Ngige tackles NECA over N3.4bn NSITF fraud

*Accuses body of complicity

*Insists D-G’s suspension followed due process

Labour and Employment minister, Dr. Chris Ngige, has maintained that the suspension of the management of Nigeria Social Insurance Trust Fund (NSITF), followed due process.

He also accused the Nigeria Employers’ Consultative Association (NECA) of negligence which, he alleged, gave room for the suspended managing director of NSITF and some members of his executive to lavish N3.4 billion in some non-existent projects.

In a statement signed by the Deputy Director, Press and Publicity, Charles Akpan, the minister explained that

NECA’s Director-General, Timothy Olawale, as the representative of the association on the board “sat there when the suspended MD of NSITF and some members of his Executive lavished N3.4 billion on non-existent staff training split into about 196 different consultancy contracts in order to evade the ministerial tenders board and Federal Executive Council, FEC, approvals”.

Dismissing the NECA’s claim that the suspension violated the disciplinary procedure approved by the President, the statement said the Minister of Labour and Employment acted in line with the Constitution, Public Service Rules and NSITF Act which empowers him to recommend fit and proper persons to Mr. President for appointment for the post of Chairman, Managing Director and three Executive Directors to manage the day to day affairs of the agency.

NECA made this claim in a letter to the minister and signed by Olawale who referred to the presidential procedure released by the Secretary to Government of the Federation, to stem the arbitrary removal of chief executives of government and to ensure stability in the system.

The statement reaffirmed that the suspension of the management became imperative after preliminary investigation on allegations of corruption against the NSITF top officials, established prima facie infractions on the extant financial regulations and procurement Act and other acts of gross misconduct.

“Some of the infractions uncovered include N3.4 billion squandered on non-existent staff training split into about 196 different consultancy contracts in order to evade the Ministerial Tenders Board and Federal Executive Council,FEC, approval. Non existent unexecuted N2.3 billion was documented and paid while N1.1 billion is awaiting payment without any job done, all totalling N3.4 billion.

“Same goes for projects of construction of 14 Zonal/ Regional offices in 14 states running into billions of naira- a policy issue being done without Board or Ministerial knowledge not to talk of Approval.

This was done in 2019 by the MD and his three-man Executive.Some of the projects are duplications and hence waste of funds, yet you are in the Board supposedly supervising!” the Ministry replied NECA.

While calling on NECA to play its role on the matter with her members purged of their allegedly jaundiced stand, the statement said that the ministry does not intend to go into a media altercation with a Sociayl partner, NECA, as their DG should do well to emulate the NLC who liaised with the ministry to be adequately briefed and were satisfied after the briefing.

“NECA does not have the full facts nor do they know that the Secretary to Federal Government, SGF, conveyed the Presidential approval to the Hon. Minister of Labour and Employment for full implementation.

“If a Minister observes there are financial breaches earlier reported and gross misconduct he does not need to go back to a Board that has been complaining to the same Minister.

“We hope that NECA does not expect the Minister to fold his hands like his predecessor who watched helplessly when …officials looted N48 billion from the Fund and are being tried as of date by the EFCC

“NECA leadership should have been more restrained and responsive to the mantra of this administration like their NLC counterparts as the NSITF is a Federal Government Parastatal operating within the realm of the Constitution, Public Service rules and the NSITF Act, which empowers the Minister to recommend fit and proper person to Mr President for appointment for the post of Chairman, Managing Director and the three Executive Directors for the day to day Management of the agency.

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“The President on recommendation of the Minister also have powers to discipline, suspend or even remove totally depending on the circumstances of each situation.”

He recalled that these breaches in question started since 2016 to 2019 and were not limited to 2018/2019 as NECA claimed.

He added that “whilst the Ministry does not intend to go into a media altercation with a Social partner, NECA, the DG does well to emulate the NLC who liaised with the Ministry to be adequately briefed and were satisfied after the briefing, moreso when they had also received brief from their person on the Board.”