Pension funds scam: Task Force recovers N151.6bn

By Yusuf Alli, Managing Editor, Northern Operation 

 

Mr. J.O. Otunla

A total of N151.6 billion cash allegedly stolen from pension funds has been recovered by the Pension Reform Task Force.
 Forty-seven bank accounts used to stash away over N100 billion of the funds by a cartel have also been uncovered, according to an investigation in Abuja.
 A status report submitted to the Federal Government confirmed that the task force has so far recovered N151.6 billion pension funds from various accounts in the Office of the Head of Civil Service of the Federation and the Police Pension Office.
 The Minister of Finance, Dr. Ngozi Okonjo-Iweala, and the Accountant-General of the Federation, Mr. J.O. Otunla, have already launched a fresh initiative to harmonise pension accounts.
 The seven-man task force, headed by Abdulrasheed Maina, inclides B. G. Kaigama; A.O Leke; I.M. Adoke; G.T. Idris; F.T. Bankole; and I. Abdulkarim.
 The report showed that most of the accounts were opened in violation of Federal Government Financial Regulations.
 It was also learnt that the Office of the Accountant-General of the Federation was unaware of the operation of the secret accounts.
 The report said in part: “At the inception of the task team, the Office of the Head of Service (OHCSF) operated about 47 bank accounts (some of which had amounts raging from N2 billion downward.
 “As at today, instruction has been given to the banks having account with OHCSF pension to collapse all the operational accounts to one account each, where more than one account is being operated.
 “At the end of the instruction, 14 bank accounts are expected to be in operation even though the Task Team recommended three accounts only.”
 It was learnt that the scattered pension funds have now been mopped up and harmonised accordingly.
A separate memo from the task force gave the breakdown of the N51.6 billion recovered so far as follows:
 N64.6 billion—savings from reduction of Pension Wage Bill from N5 billion per month to N3.4 billion from June 2010 to December 2011.
N24 billion—carted away by former staff of the Office of the Head of Civil Service of the Federation.
N35 billion—idle pension funds located in various banks by the Task Force.
N28 billion—saved from the restructuring of the Police Pension Office in three months
 The report added: “The Task Team has adopted an e-Pension Management System where all relevant agencies can log in and monitor the activities of the Head of Service Pension, Police Pension and CIPPO.
 “Smart cards will also be issued to all pensioners so that they can verify themselves at their leisure, thereby cutting hundreds of millions which government expends on quarterly pensioner verification exercise in all the pension agencies.
 “In view of the successes recorded in adopting the e-Pension Management System, the Task Team is of the opinion that all other pension agencies be co-opted into the new platform and links provided to the budget office and other agencies.
 “This will help government in budget and budgetary allocation without having to go through various offices for information and also ensure accountability and transparency in line with best practices.
 As part of the initiative to harmonise the pension accounts, the Minister of Finance, in a memo to one of the banks, said: “You are hereby requested to freeze the accounts. The accounts remain frozen for an amount to be authorised by me for the payment of pension benefits.”
Five other likely sources of pension scam have been uncovered by the task force.
 The report added: “Other untapped avenues for fund recovery under the Old Pension Scheme include Nigerian Railway Corporation, National Universities Commission, Nigerian Military, all parastatals   and Pension Commission (PENCOM).”
 The Federal Government has not made its position known on whether it will look into the pension records of these five agencies. 
 The Economic and Financial Crimes Commission (EFCC) announced, on Monday, its seizure of six properties valued at N4.5 billion from a former Director of Pension Administartion in the Office of the Head of Civil Service of the Federation, Dr. Sani Teidi Shuaibu.
 The seized properties are: No.24, Ahmadu Musa Crescent, Jabi, Abuja; Brefina Hotel at Plot 1106,Abuja; No.1, Shuaibu Close, Idah, Kogi State; Riba-ile Petroleum Ltd; M.R.S Filling Station, Idah; NNPC Mega Station, Ayingba, Kogi State; M.R.S.Filling station, Ganaja, Lokoja, Kogi State; a mansion opposite Federal Polytechnic, Idah; SunTrust Properties Company Ltd; Plot B59, Dawaki Extension Layout, Bwari,Abuja; an estate of 10 bungalows at Nyanyan,Abuja.