Following the directive of the Governor of the state of Osun, Mr Adegboyega Oyetola, arrangements have been concluded to stop the payment of salary deductions directly into the account of Ministries, departments and Agencies.
The move which is aimed at checking fraud and improve fiscal transparency will go a long way in strengthening cooperative societies within the civil service as well as parties which such deductions are meant for.
Supervisor for Finance, Mr Bola Oyebamiji disclosed this during the weekly meeting of the Finance Conglomerate held at the conference room of the ministry of finance.
Such deductions include: funds which go to cooperative societies engaged in by civil servants, loan repayment funds to banks, funds meant for the Osun Health Insurance Scheme and all others that are deducted for one purpose or the other.
He said the move which will aid efficiency and remove the bottlenecks involved in the payment of the salary deductions will also go a long way in checking fraud and the irregularities involved in such payments.
Oyebamiji said the old method where the funds will first be paid into the accounts of ministries and agencies before it gets to the original beneficiaries have been found to be slow in processing and surrounded with a lot of fraud.
He added that the Adegboyega Oyetola led administration will continue to prioritize the welfare of civil servants because they are the heart of government who assist in the provision of basic amenities to the masses of the state.
He said, “As instructed by Mr Governor, we have concluded all arrangements through the Office of the Accountant General to commence the automation of all salary deductions to cooperative societies and others in Osun.
“I know we are long overdue for this, but it is also good that we are starting now. This is part of the fiscal transparency we are talking about, things can only get better and I am sure we will continue to improve.
“This is how things ought to be done, with this system in place, cooperative societies that civil servants run will become better and operate more efficiently for the benefit of those who invest through them.
“The funds will now be paid directly into the accounts of the cooperative societies, same goes for those who have loan repayments in banks, it will be paid directly into such banks when salaries are paid. In short, this is a win-win situation for everybody, especially for the cooperative societies, they will operate better, individuals will have more trust and confidence in them.
“This is about improving financial management in Osun, we are leaving where we were and moving to where we should be in terms of fiscal transparency and in this case, civil servants who invest in such cooperative societies will be better for it”. Oyebamiji stated.
He then urged officers and people who are affected by what is termed as other salaries to open an account for the purpose.
Also speaking, the state Accountant General, Mr Sunday Igbaroola confirmed that the Office of the Accountant General is set to commence the process while urging the various cooperative societies and their investors not to exercise any fear as the new system is to make things work better for everyone involved.