FG uncovers 71,135 ghost pensioners

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Ibrahim Sali, Head of Service of the Federation, yesterday disclosed that over N28 billion will be saved yearly, following the discovery of 71,135 ghost pensioners on the public service payroll. Sali gave the hint while responding to questions from Ibrahim Kamba, chairman of the House Committee on Pensions, on the alleged pension fraud being investigated by the Economic and Financial Crimes Commission (EFCC). The committee had in a letter sent to the Office of the Head of Service, requested for clarification, especially on the N5 billion scam, involving some directors of pensions, in the office of the Head of Service. Sali explained that the report of the pension reform task force, revealed that there were several scams going on in the public service pension scheme, adding that “the Federal Government will make an annual saving of about N28 billion”.

Ibrahim Sali, Head of Service of the Federation, yesterday disclosed that over N28 billion will be saved yearly, following the discovery of 71,135 ghost pensioners on the public service payroll.

Sali gave the hint while responding to questions from Ibrahim Kamba, chairman of the House Committee on Pensions, on the alleged pension fraud being investigated by the Economic and Financial Crimes Commission (EFCC).

The committee had in a letter sent to the Office of the Head of Service, requested for clarification, especially on the N5 billion scam, involving some directors of pensions, in the office of the Head of Service.

Sali explained that the report of the pension reform task force, revealed that there were several scams going on in the public service pension scheme, adding that “the Federal Government will make an annual saving of about N28 billion”.

Sali disclosed that the discovery of the ghost pensioners has led to a reduction in the payment of monthly pension benefits to 113,089 pensioners on the payroll of the Office of the Head of Service of the Federation, from N3.3 billion to N1,634,166,821.02 as at September 2011.

He informed the Committee that the task force, prior to the exercise, also discovered payment of pension benefits to under-aged persons; duplication of names and account numbers and falsified documents, for verification.

He further explained that investigations also revealed that many problems associated with the administration of pensions were human-related and traceable to staff of the pension office, in the office of the Head of the Civil Service of the Federation, among others.

He said: “As a result of the first biometrics exercise, a total of about 44,320 pensioners who had never received pensions in their lives, have now been verified and their biometrics captured, some had been retired for over 35 years and the total monthly pension being paid to this category of pensioners stands at approximately N336 million”.

Sali explained that the newly enrolled pensioners, along with the older ones, are entitled to many years of unpaid pension arrears, “this is aside from the six percent and 15 percent pension increase provided for. The Task Team has been able to compute the total entitlements and are paying in batches since January 2011.”

In his remarks, Kamba, chairman House Committee on Pensions, expressed concern over the issue of fraud in the pension office which the the EFCC is investigating.