Over Payment of 13 Months’ Salary To Sub-Vented Agencies, Others… FS On Tough Fiscal Measures

 

The Financial Secretary in the Ministry of Finance, Sahr Lamin Jusu in a Memorandum of Understanding dated 14th December, 2018, addressed to the Secretary to President advised the government to reject the honoring of payment of thirteen (13) months’ salary to sub-vented Agencies, off budget Agencies and state owned Enterprises.

According to the Financial Secretary, the extra monthly salary was not part of the 2018 Budget approved by Parliament in July 2018 and that there is neither a cabinet approval for the payment of the said bonus, nor has it been legislated by Parliament. The situation, he said, is complicated as, according to him, such payment is not linked to performance.

“Giving  the fiscal challenges faced by Government and the need to adhere to the fiscal framework agreed with our development partners in order to remain on track with the economic programme recently approved by the Executive Board of the IMF, the Ministry of Finance is constrained to pay the thirteen months salary to these agencies,” insisted the Financial Secretary.

He therefore advise that the off budget agencies and state owned enterprise should only be paid bonuses or thirteenth month salary based on the achievement of agreed performance targets, profitability and its ability to pay dividends to government.

He furthered informed that the consultant for Wages and Compensation Commission has commenced work as stipulated in the 2019 Budget.

He concluded that adjustment to salaries and compensation over and above what was approved in the 2019 Budget should await the establishment of the Wages and Compensation Commission or seek executive clearance as it is part of government efforts to harmonies salaries and compensation across the public sector.