Tuesday, December 14, 2010

Huge expenditure: Mass sacking looms in civil service

The Federal Government may be considering a significant reduction in the number of workers in its Ministries, Departments and Agencies as part of plans to cut rising recurrent expenditure.

It was also gathered that the government was proposing the sum of N4.2tn as budget for the 2011 financial year.

A competent source told one of our correspondents on Tuesday, “Before the government can successfully cut the recurrent expenditure, it needs to review a few things such as downsizing of the workforce in the ministries, departments and agencies of government, as well as mergers of ministries and parastatals.”

The source further disclosed that the government was also mulling the prospect of voluntary retirement and pay-off for civil servants, who were willing to leave the service.

“All these are cost-saving measures, but they are things that cannot be done overnight. It is not a six-month thing.

“The government would have to do this gradually and overtime,” the source said.

The source noted that in line with plans to audit the workforce, the Ministry of Finance had already spent about N12bn to build a database of staff in 16 MDAs.

“The ministry intends to cover the outstanding MDAs by the end of the 2011 financial year,” the source said.

“This processes require time, people who will be laid off would have to be paid, and in other cases, alternative jobs would have to be provided for such people.

“It has to be planned carefully in order for it not to have a backlash effect,” the source further explained.

The proposed N4.2tn budget is anchored on a benchmark of $62 per barrel of crude oil.

Out of the proposed sum, capital expenditure is expected to take N1tn, while recurrent expenditure will take N3.2tn.

A Presidency source, who disclosed these, however, said that the government was engaged in last minute “tinkering with the budget proposal” on Tuesday ahead of its presentation to a joint session of the National Assembly on Wednesday (today).

While reacting to the planned downsizing, the General Secretary, Nigeria Labour Congress, Mr. John Odah, said, “For us in the NLC, this is completely unacceptable and an unworkable policy. Government’s finances are being depleted by poor management and over-padded contracts. Government should not make workers the scapegoat of its failed policies.”

Meanwhile, the Secretary to the Government of the Federation, Alhaji Ahmed Yayale, on Tuesday received the draft white paper on the report of the National Committee of Experts on Wage Fixing.

A statement from the office of the SGF, signed by the Deputy Director of Information, Mr. Salisu Dambatta, said that Yayale promised to deliver the draft document to President Goodluck Jonathan, before presenting it to the Federal Executive Council for deliberation.

He said that the government would exploit the opportunity of the white paper to fix appropriate wages of workers in the country.
Source:http://www.punchng.com/

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