BY DAYO JOHNSON

AKURE —  FOR allegedly withholding N706 million lodged by the Ondo State government in the Staff Matters Account, workers in the state, yesterday, picketed the Alagbaka, Akure branch of a new generation bank.

Three waste disposal vehicles loaded with garbage were used by the workers to block the entrance of the bank, thereby disrupting banking activities.

But Vanguard learnt that the bank withheld the money because  some workers, who took loans from it as far back as 2008, allegedly defaulted.

It was gathered that the loan was guaranteed by the government in agreement with the workers union.

This particular account, according to findings, is for paying workers salaries and other emoluments of workers in the state public service.

The workers, as early as 7a.m, besieged  the bank’s main branch and disrupted all activities.

The workers, under the umbrella of the Joint Negotiating Council, JNC, vowed not to remove the vehicles and their contents until the bank releases their salaries.

The protest disrupted banking activities for hours and many  customers of the bank could not  transact businesses.

According to a statement  by the bank, yesterday, the Ondo State government guaranteed a facility to a related party in April 2008 and the bank only exercised its rights under the terms of the agreement by setting off outstanding sums against the state government funds with the bank.

The bank further reiterated that it was not holding on to any civil servants remunerations and has acted in conformity with the highest corporate governance standards in a professional and transparent manner.

It  also confirmed that discussions are ongoing between the Ondo State government and the bank to resolve the situation.