The Kwara State government has explained that the monthly deductions from the federal allocation accruing to the 16 local government areas in the state are for repayment of loans obtained by the councils in 2015.

The government also affirmed that it has not received its share of the N1.6billion approved by the federal government as flood intervention in 16 states.

The state commissioner for Finance, Alhaji DemolaBanu made these clarifications in a statement made available to newsmen in Ilorin, the state capital yesterday.

Banu disclosed that the amount being deducted from LGs allocations is  repayment of a N4.8 billion loan facility the councils secured in 2015 from three commercial banks to pay two months’ salary arrears owed their workers and pensioners.

He said the loan was in anticipation of a bailout fund from the federal government, which they eventually did not get.

The commissioner further explained that the deductions are usually made at source by the creditor banks before remittance to the State Joint Accounts.

Also, the commissioner said that the N1.6 billion recently approved by the Acting President, Prof. YemiOsinbajo was meant to be disbursed for victims of flood in 16 states of the federation, including Kwara State.

Banu, however, noted that the Federal Ministry of Finance was directed to release the money directly to the National Emergency Management Agency (NEMA) for onward direct disbursement to the victims in the affected states.

The commissioner, therefore, emphasized that the fund was not released to the Kwara State government.