Reps Public Accounts C’ttee to investigate severance packages for political office holders

The Public Accounts Committee (PAC) of the House of Representatives Committee is to investigate the processes of approving severance package for political appointees in Ministries, Department and Agencies of government.

The committee now not happy that some extra ministerial agencies of government approve huge amount of money for themselves in the name of severance package.

Chairman of the Committee, Bamidele Salam who named a five man sub committee to handle the investigation and make recommendations to the committee for adoption said the Public Accounts Committee may have to recommend to the whole House amendment to the establishment act of some government agencies.

Speaking the Security and Exchange Commission (SEC) appeared before the committee to defend the 2020 audit queries from the Office of the Auditor General for the Federation, Salam said boards of some agencies of government appeared too powerful and approves any amount as severance package for appointees.

Salam said the scale of the severance package being paid to board members of some agencies of government exorbitant, adding “If we are paying such an amount to executive commissioners who served for just four years, how do we justify compensation for individuals who have served this country for 35 years, including those who have served in war zones and on the frontline?”

The committee emphasized the urgent need for the government to efficiently manage its finances, especially given the current fiscal challenges.

Responding questions from the committee, Director General, Dr. Emomotimi Agama, Securities and Exchange Commisision’s said the severance package and allowances were paid to the former executive commissioners who served at the commission from 2013 to 2017.

“At the end of their four-year tenure, they were paid severance packages as approved by the board for their positions,” he clarified.

The SEC’s Director General had explained that the commission operates both the defined benefit and contributory pension scheme which is managed by three Pension Fund Administrators (PFAs): Sigma, Premium pension, and Stanbic IBTC.

He noted that the commission opted to pay management fees to the PFAs to reduce the risk of a future deficit that would require offsetting within 90 days.

The report indicated that the sums of N128,869,606.22 was paid to an individual on January 5, 2017, as severance allowance, as well as the sum of N128,556,888.58 paid to another individual on the same date, also as severance allowance.

In the same vein, the office of Auditor General for the Federation also queried the Commission over an illegal payment on the gross income earned from pension fund investments, totaling N93,380,888.38.

Tony Akowe