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.
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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.
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