How We Uncovered Fraud In Pensions Payment — Oshiomhole

Governor Adams Oshiomhole of Edo State has revealed how the state government uncovered fraud in pension administration in the state, saying while some pensioners were unable to get their gratuities, others had two vouchers in their names.

He has therefore ordered the scrapping of the State Pensions Board and that a Bureau will be created to oversee the payment of pensions just as he announced that the Government will immediately key into Contributory Pensions Scheme as a way to stem the incidences of fraud in pension payment.

The Governor has however assured that within two weeks, Local Government pensioners will get paid as steps have been taken to ensure that henceforth, regardless of the amount of money accruing to Local Governments, they make provisions for the payment of local government pensioners.

Oshiomhole who has already sent the State Head of Service, Mr Jerry Obazele and Permanent Secretary, Information and Communications Technology Agency, Mr Dan Aigbavboa on retirement and directed members of the State Pensions Board to report to the State Civil Service Commission for proper investigation and disciplinary action in accordance with the Civil Service Rules said: “Government is aware that quite a number of our senior citizens, particularly the ones who were in the employment of the Local Governments, covered by the Local Government Pensions Board, for some reasons have not received their pension for a couple of months.

Oshiomhole

“I need to make the point clear, because when I see their comments, it seems to state that the state government is responsible for the payment of their pensions.

“It is true that state government has some level of responsibility to supervise and watch over the conduct of local governments. However, the local governments remain the 3rd tier of government and their roles and responsibilities are fully spelt out in the Constitution.

“Since I assumed office, Edo State Government under my stewardship has never and will never interfere with the funds of local governments.

“However, following the recent sharp drop in the revenue accruing to the local governments from the federation account, many of our local governments found out that after providing for payment of teachers salary, which we consider first line charge, what they have left was hardly enough to meet their salary obligations.

LG pensioners to get first line charge

“In the process, some of them are accumulating salary arrears. Of course, they also were not able to meet their pension obligations and as a result, the pensioners under the Local Government Pension Board for several months have not received their pensions.

“We have addressed this issue exhaustively and the Commissioner of Local Government has been directed to liaise with the Accountant-General of the State to ensure that henceforth, regardless of the amount of money accruing to Local Government, they must make provision for the payment of local government pensioners’ money. We must show respect to our senior citizens.

“So, over the next one or two weeks, I have had a conversation with the Local Government Chairmen, and we have agreed that we will cause the ICT to assist them to clean up the Pensioners’ list to ensure that only genuine pensioners are paid. I am convinced that this intervention will ensure that never again will our pensioners find that they are not able to receive their pensions.

“So, I want to appeal to our pensioners to appreciate that no one derives any comfort in watching our pensioners, months on end without receiving pension. As a former President of the Nigerian Labour Congress, I believe the pensioner deserve his wage and Edo State Government will never do anything that will bring hardship to our senior citizens.

“For those who are in the employment of Edo State Government, I also recognize that we have had huge problems, particularly with the payment of gratuity. As I am sure, people will recall, by the time I assumed office in November, 2008, we had people who had been dismissed in thousands by the previous PDP government that laid off thousands of workers including all the Permanent Secretaries in 1999 and even some that were laid off during military administration of Baba Nyam.

“So, by the time I assumed office on November 12, 2008, some of our senior citizens who had retired from Edo State Civil Service for over a period of 10 years, 11 years, 12 years and some even 13 years had not received their pensions.

“But like I have often said, my attitude has been that the responsibility of Government is to find solution, not to lament what has gone wrong and accordingly, we have put in place, a policy that enables us on a monthly basis to make provisions to liquidate these accumulated pension gratuities so that these pensioners can enjoy their gratuity here on earth.

“We have made some progress in this regard and the result is that we have paid off gratuities of pensioners who have turned up, up to 2010. I am concerned about the plight of pensioners and I am determined to do something about it.

How fraud was uncovered

“I encouraged the Head of Service to give me a clear view concerning what our liabilities are in regards to accumulated pension gratuities. I was given some numbers and my task is to find the resources to provide for these numbers.

“However, in the course of trying to establish the details of what makes up these numbers, the names of the pensioners, their date of appointment, date of retirement, their salary at the point of retirement, the number of years of service which taken together are the basis for computation of gratuity, I discovered a huge gap between what the Head of Service had told me we owe and what they now generate for us to pay.

“Following some interrogations, the Pensions Board along with some officers in the Information and Communication Technology Agency had generated three versions of what our pension liabilities are. The result is that I had difficulty as to which of these versions to believe. My intention therefore to ensure that at least, a substantial number of people who were waiting for their gratuities got paid before my 7th year anniversary was dashed because the data which we need to effect payment had been compromised.

“Consequently, we have had to invite some seasoned external auditors to prepare afresh, look at the pension documents papers and prepare a fresh voucher to enable us address this issue of accumulated gratuity benefits.

“Their intervention has been quite revealing. It shows that the Pension Board has been riddled with fraud. Cases have now been established in which one person has two vouchers, same date of birth, same first name, same surname, everything the same and two original vouchers for one pensioner. We have also discovered cases of people who ought to have been paid their gratuities in full in one slot, many have been paid on installment basis in a manner that lend itself to fraud and manipulations.

“The implication of all of these is that we have had to go afresh to construct a more reliable data to enable us deal with this corruption.

Edo keys into Contributory pension scheme

“Consequently, we have decided to take a number of measures. First, to immediately give effect to the new contributory pension fund which will put an end to the unfunded pension regime that had prevailed over this period. The House of Assembly has since amended the law, adjusted the rate of contribution to bring it in line with the practice at the Federal level and the trade unions, have all agreed on this scheme and we have all agreed that we should start the implementation immediately.

“This of course will lead to additional cost burden on government but it is a burden that no government can run away from and we are ready to take it on board.

Pension Board scrapped, fraud to be probed

“Having seen the amount of fraud involved in the pension board, we have decided to abolish the pension board and create a Bureau to be manned by technical people who are competent and also people of character and re-organize the ICT in a way that will ensure that we have data that cannot be violated or compromised.

“And all those involved in this chain, in the pension board, not only will they be suspended, the police will continue investigation in the light of the fraud that have been established and based on the Civil Service rules, they will be dealt with according to the rules. For those who are political appointees, over the next 24 hours, government will make a decision as to what to do with them.

“However, I want to assure our pensioners that from tomorrow, we will begin to advertise, to encourage the pensioners to assemble at an agreed location where they will be verified and their faces, names and documents reconciled with the new data that have been prepared by these external auditors. Once they are cleared, they will get their payment on the basis of first to retire, first to be paid.

“Never again will people on the basis of their connection in government or manipulations or through corrupt tendencies have people who retired later get paid before those who retired earlier. I believe this will bring some relief to our civil servants before Christmas.”

How I Ran N2bn Illegal Accounts For Maina

A banker has told detectives how she ran five  accounts used to perpetrate a N2bilion pension fraud in the Office of the Head of the Civil Service of the Federation.

Former Pension Reform Task Team chief Abdulrasheed Maina is wanted by the Economic and Financial Crimes Commission (EFCC) for the alleged pension fraud.

The EFCC is probing Maina’s alleged complicity in the operation of the accounts, following the confessions of  Fidelity Bank Account Officer Toyin Meseke.

Besides, Meseke is said to have told the EFCC that Maina had been operating a safe deposit box with the bank.

EFCC’s investigators found that withdrawals from the five accounts were usually channelled through some bureaux de change to an account in Dubai, United Arab Emirates (UAE).

The bureaux de change are JIEK BDC, West Waves and Alnasara.

A document obtained by our correspondent identified the accounts as Cluster Logistics, Nafisatu Aliyu, Abdullahi Faizal, Kangolo and Drew Investment.

Meseke spilled the beans on how the accounts were managed by a suspected pension fraud syndicate.

Credit: NationOnline

Maina Faults EFCC On Wanted Notice, Court Order

The former Chairman of the Pension Reform Task Team (PRTT), Mr. Abdulrasheed Maina, on Tuesday faulted the Economic and Financial Crimes Commission (EFCC), on an alleged order by Justice G.O. Kolawole, that he be produced in court by his counsel, Bar. Esther Uzoma.

Uzoma in a statement in Abuja said she made an appearance on July 21 to protest the EFCC’s claim that her client was on the run when no charge had been served on him.

She said EFCC’s action was against the letters of the law.

The statement said: “The EFCC should come clean on the matter of my client, Dr. Abdulrasheed Maina. When I appeared before His Lordship, Justice Kolawole, on July 21, I made it clear that the EFCC was yet to file any charge as well as serve any summons on Dr. Maina.

“It is trite law that you cannot say an accused is on the run when there is no charge preferred against him or any invitation extended to him.

“During the hearing for the bail application, counsel to the EFCC, Mr. Rotimi Jacobs (SAN), wanted the court to direct me to produce Maina in court at the next sitting which I argued that there are clear procedures, which the EFCC is familiar with and should follow.

“Naturally, the court agreed with my submission on the position of law. Therefore, it is misleading for the EFCC in its statement of Monday to mislead the public that there exists an order for Maina to be produced in court when there is no invitation extended to him talk-less of a charge preferred against him by the commission.”

Credit: NationOnline

Ex-Pension Reform Boss, Maina Offers To Assist Buhari Stop Corruption

The former Chairman of the Pension Reform Task Team (PRTT), Mr. Abdulrasheed Maina, yesterday, said he is ready with his former colleagues, who were then drawn from the State Security Service (SSS), the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC) to assist the President elect, Maj. Gen. Muhammadu Buhari stop corruption in the pension sector.

He said one of the achievements of President Goodluck Jonathan was the setting up of the Pension Reform Task Team in 2010, adding that the team in its 2 years of operation was able to recover N280 billion for government.

“The team courageously stopped the stealing of N300 million daily by the management of Police
Pension Office in 2011, the stealing of N4.25 billion from the Head of Service on monthly basis and the establishment of an electronic pension management system and smart cards to curb stealing.” he said.

Speaking through one of his former members who is the Executive Secretary, Legislative Watch, Hon. Ngozika Ihuoma, while addressing the media in Abuja on how to sanitize the sector, said all those involved in pension theft must be decisively brought to book.

He said: “Thank God that the President elect is a pensioner. Every effort must be put in place to ensure that our senior citizens enjoy the fruit of their labor here on earth.”
Reacting to statement credited to a coalition of civil Society Group which was led by Comrade Ali Abacha in national daily, not THISDAY, he said Abacha’s allegations against the team that comprised SSS, EFFC, ICPC and other paramilitary agencies, were made in sheer desperation, adding that it was his attempt to fight PRTT back because of the blockage of channels of leakages of the pension fund.

To authenticate his claim against Abacha, Maina made available a charge sheet dated 24 June, 2011 (Appendix 9), which was instituted by EFCC against, Messrs Shuaibu Teidi, Ali Abacha and Elder Act.