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Atiku Abubakar Kigo AUDITING giant KPMG has been hired to clear the multi-billion naira mess in the pension system.
The firm is expected to work with the Police Pensions Reform Task Force to put the office in order.
But, there is pressure on the Presidency to allow the Task Force complete its assignment before KPMG takes over.
Besides, a Forensic Examination Report on the police pension fraud has uncovered five ways funds were looted by directors and top officials of the unit.
A former Head of Service may be questioned by anti-graft agency, The Nation learnt yesterday.
Over N32.8billion has been looted in the Pensions Office. Six top government officials on trial over the alleged fraud.
Those arraigned by the Economic and Financial Crimes Commission(EFCC) are the Permanent Secretary in the Office of the Head of the Civil Service of the Federation, Atiku Abubakar Kigo, Esai Dangabar, Ahmed Inuwa Wada; John Yakubu Yusufu, Mrs. Veronica Ulonma Onyegbula and Sani Habila Zira.
The Federal Government has decided to overhaul the police pension system and sanitise it.
According to sources, although the government acknowledged the good work done so far by the Task Force, headed by Abdulrasheed Maina, it also saw the need to engage KPMG to put a sustainable system in place. KPMG is likely to work with the Task Force.
A letter by the Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, who is also the Minister of Finance, explained the position of the government.
The letter reads: “This is to formally notify you that His Excellency, Dr. Goodluck Jonathan (GCFR), President and Commander-In-Chief of the Armed Forces, Federal Republic of Nigeria, has directed that I review the processes and structure of the Public Service Pension System, including the work of the current Police Pensions Reform Task Force.
“In this light and with the express approval of Mr. President, I have retained the firm of KPMG to review the Nigeria Police Pension System, and the work already carried out by the Police Pensions Task Force.
“I am hereby instructing you personally, each member of the Task Force individually, to give full and unfettered cooperation to the KPMG officers.
“This includes giving access to all files, computers details of accounts and all other data that would ensure a full and complete review of the Police Pensions Scheme and the work carried out to date by the Task Force.
“Please note that the directive contained in this letter supersedes and overrides any other directives that might have been given with regards to the Police Pensions System or to the Task Force.
“Therefore, any actions taken by members of the Police Pensions Task Force counter to those contained in this letter would be considered prejudicial to the mandate by Mr. President and the directives of the Coordinating Minister of the Economy and Hon. Minister for Finance; and such members would be held fully accountable for their actions.”
A total of N151.6 billion cash allegedly stolen from pension funds has been recovered by the Pension Reform Task Force.
Forty-seven bank accounts used to stash away over N100 billion of the funds by a cartel have also been uncovered, according to an investigation in Abuja.
A status report submitted to the Federal Government confirmed that the task force has so far recovered N151.6 billion pension funds from various accounts in the Office of the Head of Civil Service of the Federation and the Police Pension Office.
Dr. Okonjo-Iweala and the Accountant-General of the Federation, Mr. J.O. Otunla, have already launched a fresh initiative to harmonise pension accounts.
It was also learnt that the Office of the Accountant-General of the Federation was unaware of the operation of the secret accounts.
The report said in part: “At the inception of the task team, the Office of the Head of Service (OHCSF) operated about 47 bank accounts (some of which had amounts raging from N2 billion downward.
“As at today, instruction has been given to the banks having account with OHCSF pension to collapse all the operational accounts to one account each, where more than one account is being operated.
“At the end of the instruction, 14 bank accounts are expected to be in operation even though the Task Team recommended three accounts only.”
It was learnt that the scattered pension funds have now been mopped up and harmonised accordingly.
A separate memo from the task force gave the breakdown of the N51.6 billion recovered so far as follows:
N64.6 billion—savings from reduction of Pension Wage Bill from N5 billion per month to N3.4 billion from June 2010 to December 2011.
N24 billion—carted away by former staff of the Office of the Head of Civil Service of the Federation.
N35 billion—idle pension funds located in various banks by the Task Force.
N28 billion—saved from the restructuring of the Police Pension Office in three months.
The report added: “The Task Team has adopted an e-Pension Management System where all relevant agencies can log in and monitor the activities of the Head of Service Pension, Police Pension and CIPPO.
“Smart cards will also be issued to all pensioners so that they can verify themselves at their leisure, thereby cutting hundreds of millions which government expends on quarterly pensioner verification exercise in all the pension agencies.
SOURCE: The Nation, 2 April 2012. www.thenationonlineng.net
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