THE Federal Ministry of Labour and Employment has insisted that the suspension of the management of the Nigeria Social Insurance Trust Fund is in order, based on public service rules, the NSITF Act, and the Constitution.
The ministry was reacting to the Nigeria Employers Consultative Association’s position that the NSITF management’s removal violated approved procedure.
The Deputy Director, Press and Publicity, Ministry of Labour, Charles Akpan, who made this position known in a statement in Abuja on Saturday, also disclosed that infractions uncovered against the sacked NSITF management included the squandering of N3.4bn “on non-existent staff training.”
The Director-General, NECA, Timothy Olawale, had said in a letter to the Minister of Labour and Employment, Chris Ngige, on Friday, that the suspension of the NSITF management was arbitrary, adding that it did not follow due process.
While noting that investigations into the allegations against the NSITF management had not been concluded, the NECA boss also claimed that the minister did not secure presidential approval before sacking the officials.
The ministry’s spokesperson, however, maintained that the NSITF Act empowered the minister to recommend fit and proper persons to the President for appointment into the various leadership positions in the agency.
He said, “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 approval. Non-existent unexecuted N2.3bn was documented and paid while N1.1bn is awaiting payment without any job done, all totalling N3.4 bn.
“Same goes for projects of construction of 14 zonal 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.”
Akpan noted that the Secretary to the Government of the Federation conveyed the President’s approval to the minister for implementation.
He said, “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 the last board chair in cahoot with the two NECA representatives, MD and officials looted N48bn from the Fund and are being tried as of date by the EFCC.”
