Osun State has saved N1.4billion from the payments of the 142 percent pension arrears due to retirees.
The state Commissioner for Finance, Dr. Wale Bolorunduro, who disclosed this to THISDAY Saturday in his office, said this was achieved through the use of biometric database created by the Administration of Governor Rauf Aregbesola.
According to the commissioner, Aregbesola accepted to pay the N4 billion pension arrears, which was left unpaid by the previous administration of Prince Olagunsoye Oyinlola, out of his concerns for the welfare of the senior citizens of Osun State in October last year.
The commissioner said while the first instalment of the payment (15 percent ), totalling N599million resulted into a saving of N213 million, the same biometric database system created by the state government will be used to pay the balance, which will result into additional savings totalling N1.2 billion.
He noted that total savings of N1.4 billion would have been paid to un-identified retirees assuming manual system had been used.
He explained that the use of the biometric database is part of the expenditure re-engineering required to free the cash flow of the state for capital project development.
He explained that once the payment of the first instalment is concluded, the government will begin subsequent payments.