Members of the House of Representatives on Wednesday unanimously expressed support for the probe of various allegations bothering on violation of provisions of the Public Procurement Act and financial mismanagement by the National Pension Commission (PenCom).
The resolution was passed sequel to the adoption of a motion sponsored by Zakariya’u Galadima, who accused the Commission of failing to comply with extant laws.
“The House recalls that following the enactment of the Pension Reform Act, 2014 the National Pension Commission (PenCom) is required to enforce and administer the provisions of the Act, co-ordinate and enforce all other laws on pension and retirement benefits in Nigeria.
“The House also recalls that based on the provisions of the Pension Reform Act (PRA) 2014, the Commission is empowered to charge and collect fees, levies and penalties in the cause of administering its regulatory and compliance role and in some cases to impose sanctions and fine on erring employers, Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs).
“The House notes that like other Government agencies, PENCOM is required to utilize its funds prudently and efficiently and to make all payment into the Treasury Single Account (TSA) or designated accounts maintained in the Central Bank of Nigeria (CBN), except otherwise expressly approved.
Further recalls that PENCOM is authorized by the provisions of the PRA 2014 to invest its funds in order to generate income.
“The House is worried that the PENCOM investment power in the recent past has been subjected to gross abuse without compliance with the provisions of the Public Procurement Act, 2007 by its Management.
“The House is disturbed that PENCOM, under the guise of investing its funds, deposited about N1 billion into Aso Savings and Loans Plc, Abuja, at a ridiculously low interest rate and further directed Aso Saving to lend the money to MGSL Mortgage Bank Limited, Abuja where a senior member of the Management has interest.
“The House is worried that recently the Commission in awarding contracts and sundry services did not recourse to due process as evident in the following transactions including: unilaterally engaging a consultant Mr. Olufemi Adeagbo, the Managing Director, Comnavig who is being paid the sum of N2.3 million monthly for the past two years; employment of IT consultant, one Mrs Olayemi Keri, who is being paid the sum of N3 million monthly plus other allowances, a car and a driver attached which privileges are not being enjoyed by the General Managers in the Commission as well as hosting of World Pension Summit in the years 2014, 2015 and 2016 respectively where it was alleged that over N2 billion was spent.
“The House is also worried that if these alleged reckless spendings, misappropriation of funds and lack of adherence to due process are not addressed, the Commission may proceed with similar abuses in future that will certainly put the interest of pensioners and the industry as whole in jeopardy,” he said.
To this end, the House mandated the joint Committees on Public Procurement and Pensions to investigate the allegations and report back to the House within six further legislative action.
KEHINDE AKINTOLA, Abuja
