The Management of the Nigeria Social Insurance Trust Fund (NSITF) has dismissed allegations of misappropriation of funds against the Managing Director of the Fund, Oluwaseun Faleye.
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A statement issued by the management, stated that, “It has noted with concern a publication circulating in sections of the media alleging financial impropriety, abuse of office, and diversion of funds against the Managing Director/Chief Executive Officer of the Fund.”
The Fund added: “These allegations are false, malicious, and unsupported by verifiable facts, and appear to form part of a coordinated attempt to discredit the leadership of the Fund and undermine the far-reaching reforms currently underway.”
NSITF explained that it operates strictly within a clearly defined statutory, financial, and governance framework under the Employees’ Compensation Act (ECA), 2010, the Public Finance Management laws of the Federal Republic of Nigeria, and applicable Treasury, procurement, and audit regulations.
“All funds accruing to the Employees’ Compensation Fund are public trust funds, subject to multilayered internal controls, routine internal and external audits, Management Board oversight, and supervision by relevant government authorities.
“At no time has the Managing Director/Chief Executive Officer operated, controlled, or had access to NSITF funds outside the approved institutional banking structure of the Fund. “NSITF monies are held exclusively in official Fund accounts, and all disbursements pass through established financial controls involving multiple officers, departments, and approval stages.
“Any suggestion that Fund resources were diverted into personal or non-Fund accounts is categorically false,” it added.
With regard to claims about the operation of multiple bank accounts linked to a single Bank Verification Number (BVN), it said the BVN linkage and account administration are regulated by deposit money banks and the Central Bank of Nigeria, not by individual discretion.
The Fund explained that the existence of multiple accounts, many of which are dormant, marked “Post-No-Debit,” or not operational, does not constitute evidence of wrongdoing, adding that “crucially, no credible evidence has been produced showing that NSITF funds were paid into any personal or third-party account”.
On the allegation that the Managing Director granted himself “unlimited approval authority” the NSITF described it as “misleading and inaccurate.”
It said that internal approval frameworks within public institutions operate strictly within statutory financial regulations, procurement laws, and Board oversight.
“They do not override approval thresholds prescribed by government circulars, including those issued by the Office of the Secretary to the Government of the Federation.
“No internal decision can lawfully supersede these statutory controls, and no single officer can unilaterally appropriate or expend public funds.
“Claims that expenditures were made without Board approval further reflect a misunderstanding, or deliberate misrepresentation, of public financial administration.
“Board approval is required for policy direction and annual budgets, while operational expenditures are governed by established statutory and regulatory thresholds.
“The NSITF maintains comprehensive documentation of approvals, mandates, and supporting records, all of which remain available for lawful review by authorised oversight bodies,” it added.
On issues relating to vendor payments and commissions, NSITF stated that all engagements under the current administration are undertaken in strict compliance with the Public Procurement Act and applicable regulations.
Accordingly, it stressed that payments are tied to contractual obligations, services rendered, and statutory mandates, noting that any concerns arising thereof are appropriately addressed through lawful audit and review processes, not through trial by media.
The management assured that funds of NSITF is safe and secure, adding that it is fully committed to transparency, accountability, and the prudent management of the Employees’ Compensation Fund.
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