Nigerian Senate and the Pension Fund Scam
“This is not only a monumental fraud, but a national
embarrassment. This is one report that the government should not ignore, it
should be implemented.” – Senate President, David Mark on Thursday, June 21, 2012
I couldn’t agree more with the above
statement credited to Nigeria’s Senate President, David Mark while adopting the
recommendations of the Senate probe into the pension scam. There is no
gainsaying that Nigeria has totally been engulfed and enveloped by corruption.
Hardly will a week pass without one story or the other about high level
corruption. I doubt if the Transparency International will not place us once
again at the lower rung of the ladder of countries with high proclivity for
corrupt practices. Six months into year 2012, there have been several
corruption related scandals involving both private and public sectors. There
have been the over one trillion Naira fuel subsidy scam, the $620,000 bribery allegation
involving the chairman and the secretary of the committee that conducted the
fuel subsidy probe, the N44 million demanded by the dissolved Committee on
Capital Market from the Security and Exchange Commission popularly referred to
as Oteh versus Hembe scandal, the Malabu oil deal and now the multi-billion Naira Pension fraud
perpetrated by some undesirable elements in the civil service as well as the
members of the Task Force inaugurated to right the wrongs in the pension fund
administration. Are we cursed or are we the cause? Is this all about resource
curse? Is there a future for a corruption ridden Nigeria? Are we really on
track in our fight against corruption?
It is important to recap some of the
findings of the Senator Aloysious Etok-led Senate Joint Committee on Public
Service and Establishment and States and Local Government Administration. The
probe panel observed what it described as ‘syndicated and institutionalised
corruption, fraud and embezzlement in the management of pension funds in the
country’. The Senator Etok Committee uncovered N273.9 billion pension fraud
from 2005 to 2011 and made a total of 104 recommendations which were adopted
after a thorough debate of the committee’s report. According to the Senate
President the looted funds were enough to pay all pensioners in the country for
15 years!
According
to a comprehensive report of the committee published in Daily Trust of Thursday, June 21, 2012, out of the total sum of
N1.025tn received as pension funds by the various pension offices and boards
within the period, only N751.4 bn was expended, with N273.9bn looted. The
report further stated that, out of the N213.3bn pension funds received by the
Office of the Head of Civil Service of the Federation, only N154.6bn was
disbursed; while the Military Pension Board disbursed only N294bn out of the
N317.6bn it received. The report also reveals that the Customs, Immigration and
Prisons Pension Office paid only N57.4bn out of the N85.2bn released to it; the
Department of State Service Pension Office, N9.4bn out of N34.7bn; and the
Police Pension Office, N88.2bn out of N131.4bn. Details further shows that
within the period under review, out of the N176.4bn received by other
parastatals as pension funds, only N100.6bn was expended; while only N46.9bn
was spent out of the N55.8bn released for the payment of retirees of
universities across the nation. This was made possible, according to the
committee, because of beneficial collusion and conspiracy by government
officials including some unscrupulous bank officials.
The
committee recommended, among other things, that the chairman of the Pension
Task Team, Mr Abdulrasheed Maina and all members of the team be arrested and
prosecuted by the police while also proposing that the team be immediately
disbanded as its continued existence and usurpation of statutory functions and
violation of extant laws is illegal. The alleged crimes committed by Maina’s
team, according to the committee, include: illegal contract splitting and award
to the tune of N1.8bn; spending N1.6bn as running cost of the police pension
instead of N80 million appropriated; spending N830.8 million purportedly for
the payment of June 2010 pension using cheques instead of e-payment system;
dubious enrolment of 49,395 pensioners into the payroll; spending N234 million
on the already 90 percent completed biometric capturing with no files, data and
documents from the pension department and spending N17 million on the biometric
verification of less than 30 pensioners in Diaspora without recourse to the
Nigerian Embassy/High Commission responsible for such. It also came to fore
during investigation that members of the Presidential Task Team on Pension
Reform used bank accounts of employees of the Police Pensions Office to siphon
about N5.9bn of the funds belonging to the office.
Is
it not worrisome that PRTT who had earlier in the year received wide
acclamation for detecting 71, 133 fake pensioners after a nationwide biometric verification of pensioners and discovering N151bn
fraud has now found itself in the above chronicled mess? If those entrusted
with correcting the ills of the society will themselves become part of the
problem rather than the solution, who then are we to trust? It would be recalled that a former Director of
Pension in the Office of Head of Service of the Federation from Kogi State,
currently standing trial for pension fraud, had admitted paying someone N60
million bribe meant to pave way for clinching the ticket of his political party
ahead of the December 3, 2011 election in the confluence state. Just imagine if
he had succeeded in his political ambition, Kogi State will have been done for.
According to the Human Rights Watch
Report on Nigeria released on January 22, 2012: “Nigeria made only
limited progress with its anti-corruption campaign in 2011. The Economic and
Financial Crimes Commission (EFCC) at this writing had arraigned 35 nationally
prominent political figures on corruption charges since 2003, including in 2011
a former federal minister, four former state governors, and a former speaker
and deputy speaker of the House of Representatives. But executive interference
with the EFCC, a weak and overburdened judiciary, and the agency’s own failings
have undermined the effectiveness of its work. At this writing the commission
had only secured four convictions of senior political figures, and they faced
relatively little or no prison time. The EFCC has failed to prosecute other
senior politicians widely implicated in corruption, and the political elite
continues to squander and siphon off the country’s tremendous oil wealth,
leaving poverty, malnutrition, and mortality rates among the world’s highest.”
Need I say more?
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