Gov't releases GH¢19m for NYEP

Page 3 (lead) May 14/2008

Story: Charles Benoni Okine

THE government has released approximately GH¢19 million to be paid to employees under the National Youth Employment Programme (NYEP).
The amount covers four months arrears from January to April and it is expected to be paid into the accounts of all the 108,000 employees under the scheme instituted by the government to solve the huge unemployment challenge in the country.
Consequently, the government has reached an agreement with the Agricultural Development Bank (ADB) to pay in full, all employees under the scheme with effect from this month.
This is expected to end the delays in the payment of employees under the programme since its commencement.
The sector minister, Nana Akomea, told the Daily Graphic that since the payment of the salaries of the workers delayed as a result of the delays in the release of the sources of funds for the programme, ADB had undertaken to pay the money upfront for it to be reimbursed later.
Under the NYEP, 10 per cent each from the National Health Insurance Scheme (NHIS), Road Fund and 15 per cent from the Ghana Education Trust Fund (GETFund) is sourced to finance the programme but due to delays in the release into the accounts of the NYEP, payment of salaries have always been in arrears.
But Nana Akomea said with the new arrangement with ADB, there would be no such thing and employees would have their salaries in their accounts at the end of every month from the end of the month.
He said by the agreement, ADB would release GH¢6 million every month for payment to the employees, an arrangement he described as a welcome relief not only to the government but for the sustenance of the NYEP.
On the payment of the social security contributions of those under the scheme, he said the NYEP was not meant to be a permanent job.
"It is a temporary employment programme meant to expose the youth to the job market so that they leave after a while for others to be enrolled," he said.
Nana Akomea noted that it was against this background that the social security contributions could not be paid, adding that "it is expected that when they get permanent employment after the experience gained from the NYEP, their employers will take up the social security contributions on their behalf".