THE Nigeria Employers’ Consultative Association (NECA) has disagreed with the suspension of the management of the Nigeria Social Insurance Trust Fund (NSITF) stating categorically that the step taken by Dr Chris Ngige, Minister of Labour and Employment was a clear disregard to the “well-publicised disciplinary procedures approved by President Muhammadu Buhari.
NECA made its position known in a letter to Minister Ngige, signed by Dr. Timothy Olawale, NECA’s Director-General on Friday, and copied to President Buhari, Vice-President Osinbajo, Secretary to the Government of the Federation, President of the Senate, Speaker of the House of Representatives as well as Chairmen, Senate and House of Representatives Committees on Labour, Chairman, NSITF Governing Board, President, Vice-President, Honourable Treasurer of NECA, the President of NLC and all NSITF Governing Board Members.
The letter, sighted by National Record, entitled; “RE: SUSPENSION OF TOP MANAGEMENT AND EXECUTIVE COMMITTEE MEMBERS OF NIGERIA SOCIAL INSURANCE TRUST FUND (NSITF) FROM OFFICE,” said as a stakeholder in the NSITF, NECA was “caught unawares and surprised” at the action of the Minister.
“As you are well aware, Nigeria Employers’ Consultative Association (NECA) is an institutional stakeholder in the NSITF and is also represented on the Board of the Fund.
“We were caught unawares and surprised at the purported suspension from office of the top management and Executive Committee of the Fund, effective from 1st July, 2020 by your good self, on the basis of “prima facie infraction on the Financial Regulation and Procurement Act, apart from other gross misconduct” actions. We were taken aback by the development due to the followings:
“1. The Board of the Fund was duly constituted and inaugurated by your good self and in line with the enabling Act governing the NSITF and activities of the Board. As such, “other acts of misconduct in the Fund” ought to have been brought to the knowledge of the Board for necessary actions as it unfolded.
“2. The same goes for the supposedly “established prima facie infractions on the Financial Regulation and Procurement Act” by the Executive Committee and Management.
“3. The suspension was in disregard of the well-publicised disciplinary procedures approved by the President and released by the Secretary to the Government of the Federation which was put in place to stem the arbitrary removal of Chief Executive Officers of Government and to ensure stability in the system,” Dr Olawale, the Director-General of NECA stated in the letter.
NECA stressed that the corporate governance structure of NSITF as provided for in its act empowers the Board to deal with matters such as is being unilaterally handled by Minister Ngige without the knowledge of statutory institutions that are members of the organisation’s Board, like the NLC and CBN.
“The Corporate Governance structure of the Fund as provided for in the enabling Act entrusts the Board with the responsibility of dealing with these and other related matters. This is the essence of the Board and in the spirit of corporate governance.
“We wish to put on record that the Board to which the Nigeria Employers’ Consultative Association (NECA) and other statutory Institutions like the Nigeria Labour Congress (NLC), the Central Bank of Nigeria (CBN), etc. are members were not aware of any of the claims made by your office as a subject before it.
“Furthermore, we had expected that in line with the aforementioned circular of Government on Approved Disciplinary Procedure against CEOs of Government Parastatals and Agencies, the Honourable Minister ought to have refer [sic] the matter through the Permanent Secretary to the Governing Board which is still in existence, for necessary action in line with the relevant provisions of the Establishment Act and the Principles guiding Chapters 3 and 16 of the Public Service Rules.
“On our part as member of the Governing Board, we would then follow due process, issue relevant officers queries requesting explanations on the specific acts complained about, then forward our findings and recommendations to you (the Hon. Minister) for further consideration and necessary action. It is then that you can recommend to the Government (the President through the SGF, as the case may be) for necessary action,” NECA stated.
NECA added that it is aware that there is an ongoing audit of the NSITF being undertaken by the Bureau of Public Procurement and the Office of the Auditor General of the Federation as part of routine procedures carried out in the NSITF and as a result advised that the suspension of the management be put on hold until that exercise.
“We have information on good authority that the Bureau of Public Procurement (BPP) and the Office of the Auditor General of the Federation are currently looking into the books, processes/affairs of the Fund, carrying out the routine periodic check on the financial records of the Fund for the period 2018 to 2019 and are yet to conclude the tasks, thus cannot be the basis of your conclusions reached and actions taken.
“In view of the foregoing, our candid opinion, therefore, is that the NSITF should not be run outside the laws of the nation, the enabling Act establishing it and the guidelines/directives of Government.
“Thus, we advise that:
“1) The Managing Director, Executive Directors and other suspended General Managers be allowed to continue their lawful duties without hindrance.
“2) The observed infractions on the Financial Regulation and Procurement Act and every other acts of gross misconduct in the Fund should be referred to the duly constituted Governing Board through the established procedure for attention and appropriate actions.
“It is worthy of note that member-companies represented by NECA on the Fund are the major contributors (of over 90% of the NSITF revenue) to the fund, thus, we owe our nation and constituents the responsibility to ensure that right things are done under our watch. We have no doubt that the Honourable Minister will respect these positions of NECA as it is in tandem with the avowed commitment of the Government of President Muhammadu Buhari to respect the rule of law.”
Below is the letter in full:
Our Ref: NECA/SELA/C.8
3rd July, 2020
Senator (Dr.) Chris Ngige
Honourable Minister
Federal Ministry of Labour and Employment
Federal Secretariat Complex
Phase I, Shehu Shagari Way, Abuja.
Dear Sir,
RE: SUSPENSION OF TOP MANAGEMENT AND EXECUTIVE COMMITTEE MEMBERS OF NIGERIA SOCIAL INSURANCE TRUST FUND (NSITF) FROM OFFICE
As you are well aware, Nigeria Employers’ Consultative Association (NECA) is an institutional stakeholder in the NSITF and is also represented on the Board of the Fund.
We were caught unawares and surprised at the purported suspension from office of the top management and Executive Committee of the Fund, effective from 1st July, 2020 by your good self, on the basis of “prima facie infraction on the Financial Regulation and Procurement Act, apart from other gross misconduct” actions. We were taken aback by the development due to the followings:
1. The Board of the Fund was duly constituted and inaugurated by your good self and in line with the enabling Act governing the NSITF and activities of the Board. As such, “other acts of misconduct in the Fund” ought to have been brought to the knowledge of the Board for necessary actions as it unfolded.
2. The same goes for the supposedly “established prima facie infractions on the Financial Regulation and Procurement Act” by the Executive Committee and Management
3. The suspension was in disregard of the well-publicised disciplinary procedures approved by the President and released by the Secretary to the Government of the Federation which was put in place to stem the arbitrary removal of Chief Executive Officers of Government and to ensure stability in the system.
The Corporate Governance structure of the Fund as provided for in the enabling Act entrusts the Board with the responsibility of dealing with these and other related matters. This is the essence of the Board and in the spirit of corporate governance.
We wish to put on record that the Board to which the Nigeria Employers’ Consultative Association (NECA) and other statutory Institutions like the Nigeria Labour Congress (NLC), the Central Bank of Nigeria (CBN), etc. are members were not aware of any of the claims made by your office as a subject before it. Furthermore, we had expected that in line with the aforementioned circular of Government on Approved Disciplinary Procedure against CEOs of Government Parastatals and Agencies, the Honourable Minister ought to have refer the matter through the Permanent Secretary to the Governing Board which is still in existence, for necessary action in line with the relevant provisions of the Establishment Act and the Principles guiding Chapters 3 and 16 of the Public Service Rules. On our part as member of the Governing Board, we would then follow due process, issue relevant officers queries requesting explanations on the specific acts complained about, then forward our findings and recommendations to you (the Hon. Minister) for further consideration and necessary action. It is then that you can recommend to the Government (the President through the SGF, as the case may be) for necessary action.
We have information on good authority that the Bureau of Public Procurement (BPP) and the Office of the Auditor General of the Federation are currently looking into the books, processes/affairs of the Fund, carrying out the routine periodic check on the financial records of the Fund for the period 2018 to 2019 and are yet to conclude the tasks, thus cannot be the basis of your conclusions reached and actions taken.
In view of the foregoing, our candid opinion, therefore, is that the NSITF should not be run outside the laws of the nation, the enabling Act establishing it and the guidelines/directives of Government.
Thus, we advise that:
1) The Managing Director, Executive Directors and other suspended General Managers be allowed to continue their lawful duties without hindrance.
2) The observed infractions on the Financial Regulation and Procurement Act and every other acts of gross misconduct in the Fund should be referred to the duly constituted Governing Board through the established procedure for attention and appropriate actions.
It is worthy of note that member-companies represented by NECA on the Fund are the major contributors (of over 90% of the NSITF revenue) to the fund, thus, we owe our nation and constituents the responsibility to ensure that right things are done under our watch. We have no doubt that the Honourable Minister will respect these positions of NECA as it is in tandem with the avowed commitment of the Government of President Muhammadu Buhari to respect the rule of law.
Thank you.
Yours faithfully,
Dr. Timothy Olawale Director-General
Cc: President, Federal Republic of Nigeria
Vice-President, Federal Republic of Nigeria
Secretary to the Government of the Federation
President, Senate
Speaker, House of Representatives
Chairman, Senate Committee on Labour
Chairman, House of Reps Committee on Labour
Chairman, NSITF Governing Board
President, Vice-President, Honourable Treasurer, NECA
President, NLC
NSITF Governing Board Members
