AuGF Queries NSITF Over Alleged N38b Excess Workers’ Salary

The Senate Committee on Public Accounts yesterday sustained an
audit query by the Auditor General of the Federation (AuGF) against
the Nigeria Social Insurance Trust Fund (NSITF) for allegedly
paying N38 billion excess salary to its workers without approval
from the Federal Government.

The query is contained in the 2018 report of the AuGF being
considered by the Senate Committee on Public Accounts, chaired by
Matthew Urhoghide (Edo South).

The query reads: “Audit observed that the fund had been
implementing a salary structure that is not approved by the
National Salaries, Income and Wages Commission.

“As a result, irregular payment of N38,219,919,530.32, by way of
personnel cost, was made to the workers of the fund from 2012 to
2017.

“Implementation of unapproved salary structure may result in
wastage of public funds, as remuneration may be higher than the
productivity level of the workers.

“Recommendation: The Managing Director is required to provide
the approval of the National Salaries, Income and Wages Commission
for the implementation of the Fund’s salary structure.”

Responding, NSTIF Managing Director, Dr. Michael Akabogu,
claimed that the amount was approved by the National Salaries,
Income and Wages Commission, through a letter, dated July 4,
2019.

But the committee said it discovered that the purported letter
of approval from the National Salaries, Incomes and Wages
Commission was written three years after the commission had started
paying the alleged salaries.

It also observed that an objection was raised about the payment
of unapproved salaries by the commission in the letter.

The letter of National Salaries, Incomes and Wages Commission,
reads: “However, the following anomalies are observed in the
consolidated salary: (a) General Manager and Deputy General Manager
are both placed on GL17 respectively, and

“(b) One GL17 (General Manager) salary grade has eight steps
while another GL (Deputy General Manager) and GL 16 salary grades
have five steps each.”

“The fund is, therefore, advised to arrange a meeting of the
fund, its supervising ministry and this commission to rectify these
anomalies before the next promotion exercise.”

The committee sustained the query of alleged illegal payment of
excess salaries by the NSTIF without due approval.

The Senate Committee on Public Accounts yesterday sustained an
audit query by the Auditor General of the Federation (AuGF) against
the Nigeria Social Insurance Trust Fund (NSITF) for allegedly
paying N38 billion excess salary to its workers without approval
from the Federal Government.

The query is contained in the 2018 report of the AuGF being
considered by the Senate Committee on Public Accounts, chaired by
Matthew Urhoghide (Edo South).

The query reads: “Audit observed that the fund had been
implementing a salary structure that is not approved by the
National Salaries, Income and Wages Commission.

“As a result, irregular payment of N38,219,919,530.32, by way of
personnel cost, was made to the workers of the fund from 2012 to
2017.

“Implementation of unapproved salary structure may result in
wastage of public funds, as remuneration may be higher than the
productivity level of the workers.

“Recommendation: The Managing Director is required to provide
the approval of the National Salaries, Income and Wages Commission
for the implementation of the Fund’s salary structure.”

Responding, NSTIF Managing Director, Dr. Michael Akabogu,
claimed that the amount was approved by the National Salaries,
Income and Wages Commission, through a letter, dated July 4,
2019.

But the committee said it discovered that the purported letter
of approval from the National Salaries, Incomes and Wages
Commission was written three years after the commission had started
paying the alleged salaries.

It also observed that an objection was raised about the payment
of unapproved salaries by the commission in the letter.

The letter of National Salaries, Incomes and Wages Commission,
reads: “However, the following anomalies are observed in the
consolidated salary: (a) General Manager and Deputy General Manager
are both placed on GL17 respectively, and

“(b) One GL17 (General Manager) salary grade has eight steps
while another GL (Deputy General Manager) and GL 16 salary grades
have five steps each.”

“The fund is, therefore, advised to arrange a meeting of the
fund, its supervising ministry and this commission to rectify these
anomalies before the next promotion exercise.”

The committee sustained the query of alleged illegal payment of
excess salaries by the NSTIF without due approval.