Reps C’ttee Probes Political Appointees’ Severance Packages Approval By Govt Agencies
The House of Representatives Committee on Public Accounts has resolved to investigate the processes of severance packages approval for political appointees in Ministries, Department and Agencies (MDAs).
Chairman of the Committee, Rep. Bamidele Salam who named a five-man Sub-Committee to handle the investigation and make recommendations to the committee for adoption.
He said the Public Accounts Committee would present the recommendations to the whole House for the amendment of the Establishment Acts of some government agencies.
He stated this when 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.
Rep. Salam said boards of some Agencies of government appeared too powerful and approves any amount as severance package for appointees.
He expressed concern over the scale of the severance package being paid to board members of some agencies of government.
“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 front lines?” he questioned.
The Committee emphasized the urgent need for the government to efficiently manage its finances, especially given the current fiscal challenges.
Responding to the audit query, the Director General, SEC, Dr. Emomotimi Agama, explained that 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 Schemes which are 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 off-setting within 90 days.
