Senate has uncovered how Officials of Nigeria Social Insurance Trust Fund (NSITF) paid salaries of N38 billion without approval by the Federal government. The Senate discovered this through the Senator Matthew Urhoghide, led Senate Committee on Public Accounts, just as the illegal payment of Salaries was unfolded as a result of the 2018 report of the Auditor General for the Federation which the Committee is relying on. The query read,” 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 N 38,219,919,530.32 by way of personnel cost was made to the staff 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 staff. The Managing Director is required to provide the approval of the National Salaries, Income and Wages Commission for the implementation of the Fund’s salaries structure”please. But, the Managing Director of NSTIF, Dr. Michael Akabogu claimed that the amount was approved through a letter dated 4th July , 2019. When the Committee perused the letter from the National Salaries , Incomes and Wages Commission on the illegal salary at the commission, it was observed that the letter was written five years after the Commission started paying the salaries.
The Committee further discovered in the letter from the National Salaries, Incomes and Wages Commission that an objection was raised about the payment of unapproved salaries by the commission. The letter of National Salaries, Incomes and Wages Commission read, “however, the following anomalies are observed in the consolidated salary are General Manager and Deputy General Manager are both places on GL17 respectively and One GL17, (General Manager) salary grade has 8 steps while another GL(Deputy General Manager) and GL 16 salary grades have 5 steps each. “The Fund is, therefore, advised to arrange a meeting of the fund , it’s supervising Ministry and this Commission to rectify these anomalies before the next promotion exercise.” The Committee thereafter sustained the query of illegal payment of Salaries by the NSTIF.
