PRESS RELEASE
FOR IMMEDIATE RELEASE: (13/04/2019)
CONTACT: (Victor Dorawa Koreyo, Executive Director, info@acfng.org, www.acfng.org, acfngo.blogspot.com and
+2348051430497)
HEADLINE
(Prosecute Management of Akanu Ibiam Federal
Polytechnic Unwana and Professor Francis Ogbonia Otunta for Fraud of Budget
Padding, Stealing of Staff Salary and Allowances)
SUBHEAD
(A Call for State Actors and Non-State Actors
in the Implementation of Open Government Partnership (OGP) National Action Plan
for Nigeria to take action)
Abraham’s
Children Foundation is an NGO registered in Nigeria in 2011 with head office in
Afikpo, Ebonyi State Nigeria. Abraham’s Children
Foundation had signed Declaration Against Corruption that states:
We will work with others to campaign against
corruption
We will speak out against corruption and report on abuse
We will support candidates for public office who say no to corruption and demonstrate transparency, integrity and accountability.
We will speak out against corruption and report on abuse
We will support candidates for public office who say no to corruption and demonstrate transparency, integrity and accountability.
In line with Abraham’s Children Foundation letter writing campaign
on human rights we are presenting to the Press, General Public and
International Community our letter to State Actors in Nigeria requesting for the prosecution of Management of Akanu Ibiam Federal Polytechnic Unwana and Professor Francis
Ogbonia Otunta for Fraud of Nine (9) years of Budget Padding, Stealing of Staff
Salary and Allowances.
Evidence backing our letter to Acting Director General, National Pension
Commission Abuja Nigeria that is attached to this press release will be
provided by Abraham’s Children Foundation if contacted by email.
We hereby call for action
on above by both State Actors and Non-State Actors in the implementation of
Open Government Partnership (OGP) National Action Plan with respect to
Anti-corruption commitment.
We hereby call on the
Press, General Public and International Community to hold Nigeria Anti-Corruption
agencies and Federal Government accountable to it Anti-Corruption War in
Federal Public Service.
For: Abraham’s Children Foundation
KOREYO
VICTOR DORAWA KOREYO
EXECUTIVE DIRECTOR
ACF/SEC/PenCom/Vol.
1/08 3rd
April, 2019
The
Acting Director General,
National
Pension Commission
174
Adetokunbo Ademola Crescent, Wuse 2, Abuja,
ATTENTION:
M.S. Muhammad (Commission Secretary/ Legal Adviser)
Sir,
RE: REQUEST FOR INVESTIGATION
OF SERIOUS ALLEGATION ON
NATIONAL PENSION COMMISSION, FEDERAL MINISTRY OF
FINANACE, BUDGET OFFICE, OFFICE OF ACCOUNTANT GENERAL
OF THE FEDERATION BY
PARALLEL GOVERNMENT OF
MANAGEMENT OF AKANU
IBIAM
FEDERAL POLYTECHNIC UNWANA ON INABILITY
OF THESE FEDERAL GOVERNMENT AGENCIES TO FULLY IMPLEMENT PENSION
REFORM ACT 7.5% MANDATORY PENSION CONTRIBUTION
DEDUCTION
FROM SOURCE TILL DATE THAT MAKE THE INSTITUTION
MANAGEMENT TO BEGIN
THE FULL IMPLEMENTATION OF THE PENSION REFORM
ACT DEDUCTION
IN JUNE 2016
TILL DATE
AND REMITTING
THEIR INSTITUTION DEDUCTED 7.5% OF STAFF SALARY TO
NATIONAL PENSION COMMISSION: AN ACTION PREJUDICIAL
TO THE SECURITY
OF THE STATE, DIVIDED LOYALTY AND SABOTAGE
GROSS
ABUSE OF GOVERNMENT INTEGRATED FINANCIAL AND MANAGEMENT INFORMATION SYSTEM
(GIFMIS) BY THE PARALLEL GOVERNMENT OF MANAGEMENT OF AKANU IBIAM FEDERAL
POLYTECHNIC UNWANA: REQUEST FOR INVESTIGATION, PROSECUTION AND RECOVERY OF
STOLEN SALARIES, ALLOWANCS AND BENEFITS OF STAFF OF THE INSTITUTION BY FEDERAL
GOVERNMENT AGENCIES AND CIVIL SOCIETY ORGANIZATION.
We write to draw
your kind attention to your statements contain in your letter with reference
PenCom/DG/CSLD/2019/95 dated 27 February 2019. If there is no double deduction discovered after your organization
investigation, the letter under reference has attested to another serious
allegation of 9 years (108 months) of Personnel Cost Budget Padding in
favour of Akanu Ibiam Federal Polytechnic Unwana by Federal Ministry of
Education and Negligence of duty in Personal Cost Budget Monitoring and Administration
by other supervisory agencies of Federal Ministry of Finance, Budget Office
of the Federation as revealed by the Bursar and Rector of the institution
that enable them to pay 7.5% Gross Basic Salary increase without Federal
Government approval that ended May 2016. At several Staff fora the
current Rector (Venerable Dr. Ogbonnia Ibe-Enwo) stated that the administration of former Rector
(Professor Francis Ogbonnia Otunta) had excess funds to administer the
institution due to Padding of the Budget of the Institution. For over ten years Management of Akanu
Ibiam Federal Polytechnic Unwana exaggerated the staff strength of the
institution which gave them huge appropriated personnel budgeted cost and the
former Rector and the Current Rector try to cover up this massive corrupt
practice by over-recruiting of staff so that enrolment of the institution into
Integrated Payroll Payment and Information System (IPPIS) with not make Federal
Government discover their unconstitutional activities. The EFCC, National
Assembly and Federal Character Commission has information on this
unconstitutional acts of corruption and abuse of office. Further
investigation by State Actors will revealed that dead staff of the institution
are not removed from the payroll, this also add to the personnel cost excess
funds used by the management of the institution. With respect to Public Service Rule 030402,
the serious acts of misconducts of Management of the institution noted are
thus:
·
Falsification of
record by padding of personnel cost for 9 years
·
Suppression of
record of padded personnel cost for 9 years to hide this act of corruption from
Federal Government attention.
·
Acts unbecoming of
public officer(s) of not reporting or returning excess personnel cost budgeted
for 9 years to Federal Government Treasury.
We will lead a
coalition of Civil Society Organizations to cause letters to be written to
President Muhammadu Buhari, the National Assembly and other agencies of Federal
Government for further investigation and prosecution of these serious acts of
misconducts.
2. Below are
National Pension Commission statements and our observations as a Non-State
Actor in the implementation of Open Government Partnership National Action Plan
for Nigeria with respect to Anti-corruption commitment that may require Federal
High court ruling to resolve new dispute with respect to professional
accounting International Financial Reporting Standard for pay slips memorandum
entry that reflect the deduction at source (i.e. transparency in Journal Earning
and deduction entry of contributory pension by memorandum entry in public
officer pay slips for zero tolerance to corruption in Ministries, Departments
and Agencies (MDAs)). In the letter under reference, National Pension
Commission state that:
a.
Our
investigation revealed that the basic
salary shown on the pay slips attached to your letter was a gross basis salary i.e. monthly salary. This was stated for the
purpose of reflecting pension contribution based on the Federal Government
circular of 17th December, 2012.
b.
You
are to note that Federal Government only
remits salaries net of pension contributions to Ministries, Departments and
Agencies after deducting employee
pension.
c.
Double deduction
could have arisen
when net salary was stated as monthly
basic salary (i.e. monthly salary or
gross basic salary or gross pay) on the pay slip and then pension deduction made thereafter. However, this was not the case in respect of pay
slips forwarded to the commission.
d.
Kindly note that Pension Contribution deduction
shown on the pay slips were mere
memorandum entry to reflect the deduction at source, not that another pension has been effected
at the polytechnic.
e.
The
deduction is a merely a reflection on
the employees gross up salary for transparency and accounting purposes.
OBSERVATIONS
These are our
observations and understanding of National Pension Commission statements of
investigation findings contain in your letter under reference.
1.
With
respect to statement (a) above, gross basic
salary is monthly salary (e.g. N
4.0)
2.
With
respect to statement (b) above, Federal
Government remit salaries net of pension contribution to MDAs (i.e. after deducting employee pension at source,
e.g. if what is to be deducted is N 1.0, the net salary remitted to MDAs is N
4.0 – N 1.0 = N 3.0).
3. With respect to
Statement (c) above, when net employee
salary (e.g. N 3.0) was state as basic monthly salary (i.e. gross basic salary or gross pay) then pension deduction made thereafter (e.g.
N 3.0 – N1.0 = N 2.0), a case of double deduction could have arisen.
Example 1. ALLEGED
PAY SLIP MODEL for June 2016 to date
|
Earning (Credit)
Journal Entry
|
Deduction (Debit)
Journal Entry
|
|
Net basic
Salary N 3.0
|
Contributory
pension deduction N1.0
Tax deduction N 0.5
Other
deduction N 0.5
Net salary
pay N 1.0
|
|
Gross basic
salary N 3.0
|
Total gross
up N 3.0
|
Please see pay slips
in Exhibit B investigated
4.
With
respect to statement (d) above, pension contribution deduction on pay slips is
a mere memorandum entry.
Example 2. STAFF
ACCEPTABLE PAY SLIP MODEL for May 2016
|
Earning (Credit)
Journal Entry
|
Deduction (Debit) Journal
Entry
|
|
Net basic
Salary N 3.0
Contributory
pension deduction N1.0
|
Contributory
pension deduction N1.0
Tax deduction N 0.5
Other
deduction N 0.5
Net salary
pay N 2.0
|
|
Gross basic
salary N 4.0
|
Total gross
up N 4.0
|
Please see pay slips
in Exhibit A investigated
Example 3. STAFF
ACCEPTABLE PAY SLIP MODEL for IPPIS
|
Gross Earning
Information
|
Gross Deduction
Information
|
|
Gross basic
Salary N 4.0
|
Contributory
pension deduction N1.0
Tax deduction N 0.5
Other
deduction N 0.5
Net salary
pay N 2.0
|
|
Gross basic
salary N 4.0
|
Total gross
up N 4.0
|
Please see pay slips
in Exhibit C investigated
5.
The
deduction of pension at debit journal
entry on the employee pay slip is gross up (e.g. N 4.0) for transparency and accounting purpose.
AGREEMENT
6.
With
respect to investigated pay slips of April 2016 and May 2016, staffs of Akanu
Ibiam Federal Polytechnic Unwana are in
agreement with National Pension Commission investigation findings and statement
(c) above that there was no case of double deduction in respect pay slips
forwarded by Abraham’s Children Foundation to the commission.
DISPUTE REQUIRING FEDERAL HIGH COURT AND PROFESSIONAL
ACCOUNTING RULING
7.
With
respect to our observation (3) above, the Academic Staff Union of Polytechnics
Akanu Ibiam Federal Polytechnic Unwana Chapter had earlier written to Honourable Minister of Finance on the case of disputed
double deduction from June 2016 to date. Please see Exhibit D attached and is yet to get a response.
8.
With
respect to National Pension Commission investigation findings, that revealed
7.5% unlawful salary increase claim by staff as double deduction and
implementation plan by management of Akanu Ibiam Federal Polytechnic Unwana for
7.5% reduction from June 2016, the Register and the Bursar of the institution
made this indicting statements through a circular to all staff of the
institution:
A.
In
the circular by the Registrar of Akanu Ibiam Federal Polytechnic Unwana with
titled: “DELAYED PAYMENT OF JUNE 2016 STAFF SALARY”, ref:
AIFPU/REG/MGTC/175/VOL.63/18 dated 4th July 2016, the Register (Val
IK. Okafor) state that:
i.
The
delay is to enable management to sensitize the Executive Committee of
Polytechnic Staff Unions, ASUP, SSANIP and NASU on full implementation of 7.5 percent mandatory pension contribution
payable by all staff which counts towards the retirement benefits of staff in
accordance with the provisions of the Pension Reform Act.
ii.
The full
implementation of this existing policy became operative in the polytechnic as
from June 2016 and implies that normal monthly salary of staff across board
will reduced by 7.5 percent to cater for the pension contribution payable by all staff
towards their retirement benefits in the future in line with Government policy
on the contributory pension scheme.
B.
In circular by the Bursar of Akanu Ibiam
Federal Polytechnic Unwana with titled: “DELAYED PAYMENT OF JUNE 2016 STAFF
SALARY” with ref. AIFPU/BUR/2016/30 dated July 11, 2016. The Bursar (M.A.
Azubuike) state that:
i.
Management
did not reduce salary of workers rather, management
paid to staff what government remitted to her as staff salary which is 92.5% having
deducted 7.5% employees contributory pension and remitted same to PENCOM,
who usually remit same to individual staff PFAs.
ii.
It
should be noted that ever since this Act came into effect, this institution has been taking responsibility
for augmenting this payment hence staff have hitherto been paid 100% of their
salary instead of 92.5% which in
effect means that staff have been accumulating
their pension funds without paying for it.
iii.
It
should be noted also that this institution
had directly enriched staff with up to 108 months 7.5% of their salaries. This
should be commended.
iv.
That
Management grossed up salaries in the
month of June to 100% and reflected deduction of 7.5% for disclosure in staff
pay slips to enable them present same to their PFAs should they be
asked to do so for the purpose of computation of their terminal benefits. That does not mean further deduction or
shortfall in salary as is erroneously being canvassed.
C.
In
the Rector’s written response titled: “SOLUTION TO THE ASUP CLAIM OF DOUBLE
DEDUCTION OF PENCOM CONTRIBUTION BASED ON ORDINARY PAYSLIPS AND CONPCASS SALARY
STRUCTURE”, the Rector (Venerable Dr. Ogbonnia Ibe-Enwo) state that:
i.
7.5%
of N256,239.08 is N19,217.94, if examine appendix A you will see that by adding
contributory pension of N19,217.94 to consolidated gross salaries and removing
same under the heading deductions, the
staff on CONPCASS 07/04 did not make any pension contribution of 7.5% the
polytechnic therefore paid this amount
on behalf of the staff on CONPASS 07/04. So there was no deduction and for
this reason there was no memorandum entry on the pay slips as mandated by this
extant law of PENCOM contributory pension.
ii.
Let
us examine appendix C which is the pay slip of the same staff CONPCASS 07/04
when the staff making contribution in compliance with the pension Act. The pension Act provides that
irrespective of the fact that 7.5% of a staff salary has been deducted at
source that a staff’s pay slip should not show a salary figure of 92.5%. The
salary must be grossed up and pension deduction must be made as a memorandum
entry. If we agree that monthly gross salary of a staff on CONPCASS
07/04 is N256,239.08 and pension contribution for the same staff is N19,217.94,
(Examine appendix C) where is the double
deduction management is being accused of? The sum of N237,021.20 (before other
deductions on what the staff is expected to receive) and this is what has been
done in appendix C. This is in strict
compliance with the pension reform.
iii.
Appendix
A: SALARY PAYSLIP OF MAY 2016 FOR A SENIOR LECTURER ON CONPCASS 07/04 WHEN THE POLYTECHNIC WAS PAYING PENSION
CONTRIBUTION OF 7.5%, THAT IS WHEN STAFF WERE NOT CONTRIBUTING
iv.
Appendix
C: SALARY OF THE SAME SENIOR LECTURER ON CONPCASS 07/04 AFTER OF THE FULL IMPLEMENTATION OF 7.5% MANDATORY
PENSION CONTRIBUTION
9.
The
Chartered Accountants that are staff of
the institution are still in dispute with the Chartered Accountants in National
Pension Commission as to the transparent accounting memorandum entry for pay
slips investigated by them that make Example 1 (for May 2016 pay slip) to be
equal to Example 2 (for June 2016 to
date pay slips) shown above. They are raising a professional question of a
loop-hope open for accommodation of
corrupt practices that resulted in several written letters to the
commission seeking for clarifications. That
Making Example 3 (IPPIS pay slip
memorandum entry) equal to Example 1 (June 2016 to date pay slips) to mean “no case of double deduction could have
arisen” is a wrong judgment. This
professional dispute on lack of uniformity and transparent in some MDAs pay
slips memorandum entry for transparent accounting purpose will be communicated
to International Accounting Standard Board (IASB) and the two professional
bodies in Nigeria for their written
advised to President Muhammadu Buhari to end the incessant request by MDAs
yet to enroll on IPPIS, that write seeking for clarification from National
Pension Commission and other agencies of Federal Ministry of Finance.
Please see Exhibit E attached
ACTION
In line with Section 15 (5) of 1999 Constitution state that: “The State shall abolish all corrupt
practices and abuse of power”, Abraham’s Children Foundation will abide by
its signed Declaration Against Corruption that is consistent with and supportive of the Universal Declaration of Human Rights and the
United Nations Convention against
Corruption. It is also consistent with Transparency International’s core values: Transparency,
Accountability, Integrity, Solidarity,
Courage, Justice, and Democracy. Our position is that:
·
We will not
pay bribe
·
We will not
seek bribe
·
We will work
with others to campaign against corruption
·
We will speak
out against corruption and report on abuse
·
We will support
candidates for public office who say no to corruption and
demonstrate transparency, integrity and accountability.
In the light
of the above declaration:
i.
We will work with coalition of NGOs to legally
resolve all issued on corrupt practices raise in this letter. Corruption – the abuse of entrusted power
for private gain – is wrong. It destroys the basic rights of hundreds
of millions of people across the world,
it has devastating consequences on the services provided by public institutions and it undermines the prospect for
a better life for future generations.
We
believe together we can work towards ending corruption, overcoming widespread injustice and impunity. All forms of corruption must be ended to secure the
basic rights of all people and ensure a
world where everyone can live in dignity.
ii.
We will create
public awareness and carry out campaigns on 9 years (108 months) of excess
personnel cost for Akanu Ibiam Federal Polytechnic Unwana yet the institution is unable to pay staff
normal yearly salary increase, promotion salary increase, peculiar academic
& non-academic allowance and unable to settle for years staff basic
human rights claims.
PRAYERS
In support of Section 15 (5)
of 1999 Constitution and President Muhammadu Buhari Zero Tolerance to
Corruption in Public Service, we pray that:
1.
National Pension Commission will
professionally take an independent action in resolving the 9 years (108 months)
of 7.5% salary increase that is equivalent to 7.5% contributory pension
deduction that ended in May 2016 and the reduction in salary of staff of Akanu
Ibiam Federal Polytechnic Unwana that started in June 2016 and continue till
date.
2.
National Pension Commission will consider resolving issues of double pension complaint permanently by
appealing to the President Muhammadu Buhari to direct the immediate enrolment
of Akanu Ibiam Federal Polytechnic Unwana on Integrated Payroll and Payment
Information System (IPPIS) to put an end to the protracted issue of double pension deduction, staff normal
yearly salary increase, promotion salary increase, peculiar academic &
non-academic allowance at the institution to rest.
Please kindly accept
our highest regards.
For: Abraham’s Children Foundation
KOREYO
VICTOR DORAWA KOREYO
EXECUTIVE DIRECTOR
08051430497, 09060104177
Copys
to: OGP State Actors and Non-State Actors for further action
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