… as workers allege pension, cooperative funds diversion
- We’re being victimised – Labour
There are strong indications that over N30 billion deducted by the Ogun State Government from the salaries of over 250,000 civil servants in the last one year cannot be properly accounted for. This discovery has reportedly thrown the workforce into a quandary, as the workers are scared stiff of losing their life savings.
Investigations by The Point revealed that the Senator Ibikunle Amosun-led administration had deducted over N20 billion from the salaries of the workers in the state, but failed to remit it to the relevant pension administrators.
While the state government claimed it paid N5.5 billion for a six month workers’ unremitted deductions in December 2016 (it failed to disclose the specific deduction), The Point found that it had not remitted over N10 billion cooperative contributions deducted from the salaries of over 250,000 workers in the last 12 months to the coffers of the Ogun State Cooperative Federation.
Other deductions, which are reportedly not included in the above amount, made by the government from the ‘take home’ of the workers but not remitted to appropriate quarters, are national housing fund, check-off dues and shilling fund, among others.
Aside from the pension, most of the deductions are voluntary requests made by the workers, instructing the state government to deduct certain amount from their salaries and remit same to OGSCOFED on a monthly basis.
The essence of the deduction, especially the cooperative, was to save for one year or more, withdraw and invest in any project of the workers’ choice.
Our correspondent gathered that the situation had become unbearable for the workers, who were practically living in fear, as about 13 of them who allegedly challenged the governor over what they described as inhumanity to the workers, were dismissed.
Though 12 out of them were recalled on May 1, 2017, following the intervention of some monarchs and former president Olusegun Obasanjo, the Ogun State Chairman of the Nigeria Labour Congress, Mr. Akeem Ambali, was excluded.
Some of the recalled workers are the former state chairman of the Nigeria Union of Teachers, Comrade Dare Ilekoy; Eniola Atiku and Nola Balogun.
However, the pardon appeared like a Greek gift as the governor announced that their reinstatement had been converted to compulsory retirement with full benefits.
Ambali has already taken his case to the National Industrial Court, describing his dismiassal as victimisation for daring to ask for workers’ rights. But it would seem that the state government and political observers have not paid necessary attention to the ripples the situation is generating and how it is affecting the welfare of the workers and their productivity across sectors in the state.
Findings by The Point revealed that some of the workers, who obtained bank loans through the state two years ago, were on the verge of losing their collaterals, including houses and landed property.
In some cases, the financial institutions that issued loans to some of the civil servants, especially retirees, have embarrassed the beneficiaries several times in an effort to evacuate them from the houses used as collateral.
While the institutions insist that to avoid evacuation, the loans must be repaid, the workers, some of who retired last year, claimed the government had deducted the balance of the said loans from their salaries and that asking them for another refund was fraudulent.
However, it was gathered that N30bn, the amount deducted from the workers’ salaries and, allegedly, yet to be accounted for, and which the Amosun administration was expected to retract and channel to the right places, seemed well above the financial capability of the state, especially as the ‘Gateway State’ battles to survive the current economic recession.
Also, it was learnt that the state’s administration had promised several times to make the refund, but failed each time.
The Point found that the Amosunled administration recently promised to settle all outstanding funds as at May 1, 2017, but failed. Some victims, who are civil servants, bared their minds to our correspondent on the condition of anonymity to save their jobs.
They particularly alleged that there was a manhunt for workers demanding explanations about the deductions made from their salaries, as some of them had been compulsorily retired or silenced with series of administrative queries and suspension orders.
“A lot of workers, who had about five years more in the civil service have now been forced on compulsory retirement, while attempts have been made to buy some labour leaders over to the government side.
“The governor offered to pay the gratuity and retirement benefits of one of the labour leaders, who had about seven years more in service, but was perturbed when he turned down the offer. Eventually, he was illegally dismissed from the civil service,” one of the civil servants disclosed.
The governor offered to pay the gratuity and retirement benefits of one of the labour leaders, who had about seven years more in service, but was perturbed when he turned down the offer
PENSION SCHEME LACED WITH IRREGULARITIES – NLC
Reacting, the NLC Chairman in the state, Ambali, who is one of the workers dismissed by the government, told The Point that the pension scheme adopted by the state was fraught with irregularities.
He disclosed that contrary to the Nigerian pension law that stipulates that all contributors should be insured by 300 per cent and that there must be a mobility window in the scheme to enable workers to change PFA at will, the state government had not complied as several workers were not insured.
This, he said, forced them to retain a particular pension administrator, even if they were not pleased with its services.
He said, “The government has failed to properly constitute the board of bureau of pension in the state and also failed to value the past service years of workers (before the scheme was adopted in the state).
The state is expected to purchase bond on behalf of each depositor and deposit same with the Central Bank of Nigeria but it defaulted. These have hampered the performance of the scheme in the state.
“The inability of the government to implement signed agreement is what led us to where we are.
Labour has been engaging the government over the years and that is why we have been witnessing series of allegations and counter allegations by the state, but we hope the government will listen to us very soon, because any attempt to frustrate labour in the state is like working against its progress.”
In line with the views of the workers, labour experts also believe that the non-remittance of workers’ deductions, and forceful retirement and dismissal of some labour leaders in the state by the government are unacceptable, illegal and capable of affecting the productivity level of the workers.
Member, National Executive Council, NLC, Mr. Issa Aremu, also told The Point that such a situation was capable of creating fear in workers, a situation that could constitute a clog in the wheel of progress of the state.
He said, “It is unacceptable and illegal for the state to have forced workers to retire ahead of time or to be sacked because they demanded for fair treatment from the person that is supposed to be number one worker in the state.
I advise the governor to reinstate the workers before it is too late, because, he is not expected to be selective. I expect him, as a progressive leader, to create and protect the job of every worker, especially the union leaders, and not the other way round.
“If monarchs and former President Olusegun Obasanjo had intervened without desired result, the governor should know that all of them could not be wrong.
Ogun State cannot be productive if the workers are in fear. He should ensure freedom and liberty for the workforce. Workers that are cowed in fear cannot be productive or grow the economy of the state.”
GOVT ACTION, FRAUD AGAINST WORKERS – EXPERTS
Experts in the pension and financial industry have described the alleged non-remittance of pension and other funds by the state as betrayal of the workers’ trust in the government, a development they said might attract a jail term, according to the 2004 Pension Act.
A pension expert, Dr. Adebayo Oni, said the situation was a fraud against the workers of the state. He stated that it was illegal for anyone or firm to deduct money and not remit it to the PFAs. “The law is against that. You must rather remit it to an approved pension fund administrator and the employer that refuses to do that has betrayed the trust of the employees. This is very unfair as the workers deserve their pensions, having worked for decades,” he said.
According to him, the reason for contributory pension scheme is to enable the workers to have a successful retirement or use the fund for a capital project of choice. “With the savings, they are expected to have some level of economic comfort. “But when remittances are deducted and not remitted, it then means that the objective of the contributory pension scheme has been defeated,” he added.
An economic expert, Dr. Seun Adeniji, explained that the money was expected to be paid from the workers’ earnings and not from the government’s purse. Adeniji stated that he didn’t see any reason why the state would not remit such funds in the first place.
“If the pension remains with politicians, the employees’ future is in jeopardy, because we all know what they do with public funds. I believe there should be sanction for defaulters of the scheme, to prevent other states from replicating the menace. The government has to pay interest on the fund withheld over time to compensate affected workers,” he said.
OGUN GOVT KEEPS MUM
As at press time, efforts to get the Commissioner for Finance, Hon Wale OShinowo and his colleague in the Community Development and Cooperative Ministry, Hon. Gbenga Adenmosun, to react to the workers’ allegations were unsuccessful.
The two state government officials failed to respond to the text messages, e-mails and calls made by our correspondent to their phones.
If the pension remains with politicians, the employees’ future is in jeopardy because we all know what they do with public funds. I believe there should be sanction for defaulters of the scheme, to prevent other states from replicating the menace