The Kano State Government has constituted an executive committee to recover the sum of N1.8 billion illegally deducted from the salaries of civil servants by private loan vendors.

Consequently, the government has directed the immediate suspension of further loan contracts between civil servants and private vendors, while also announcing the withdrawal of government as a third party to such contractual agreements.

Inaugurating the 12-member committee on Thursday, the Secretary to the State Government (SSG), Alhaji Umar Faruq Ibrahim, explained that an independent audit report revealed that some vendors carried out arbitrary deductions from workers who obtained soft loans.

Alhaji Ibrahim further stated that the audit report uncovered multiple loan deductions by the vendors beyond the one-third salary deduction officially approved by law, thereby violating extant regulations.

According to the SSG, the State Executive Council approved the report of the independent audit and instructed the committee, led by the Commissioner for Finance, Dr. Ismaila Aliyu Danmaraya, to identify affected workers, both dead and alive, for subsequent refunds.

He also clarified earlier reports alleging that N1.5 billion was missing under the former Head of Service, Alhaji Abdullahi Musa. The SSG reaffirmed that the audit report exonerated Musa of any misappropriation and confirmed that the actual amount illegally deducted stood at N1.8 billion.

The SSG lamented the indiscriminate loan agreements between state civil servants and private loan vendors, noting that the total liabilities from such facility currently stands at N13 billion. He warned that the government would no longer permit vendors access to the state payment system for further deductions.

“In February 2025, the government received complaints regarding illegal deductions from workers’ salaries in the name of loan repayments. Following the complaints, the cabinet presented a memo before the State Executive Council, which was graciously approved.

“Subsequently, the government engaged an independent audit firm to investigate the deductions, and the report was later presented before the council. Findings from the audit indicated arbitrary deductions from workers’ salaries in the name of loans obtained by the workers.

“The report also revealed that vendors granted multiple loans against the one-third salary deduction limit approved by law, among other findings. Upon submission of the report, the council directed the constitution of a committee to recover the illegal deductions and refund the affected beneficiaries,” the SSG stated.

Other members of the committee include the state Attorney General and Commissioner for Justice; Head of Civil Service; Accountant General; Chairman, State Standing Committee; Local Governments Standing Committee; Director Computer Center; Permanent Secretary Establishment (Secretary); Principal Assistant Secretary (REPA); Commissioner Livestock; Hon Commissioner planning and budget and the Chattered Accountant firm. (The Guardian)