Monday, Sep 28th 2020 11:08 AM

Market Digest Nigeria


How suspended NSITF management misappropriated N48bn using fake contracts —Ngige

Chris Ngige

The Minister of Labour and Employment, Chris Ngige, has accused the suspended management of the Nigeria Social Insurance Trust Fund (NSITF) of misappropriating N48 billion.

Nigeria Social Insurance Trust Fund

Ngige made the allegation while appearing in an investigative hearing at the House of Representatives over the alleged illegal suspension of the management of the agency.

He also claimed that the suspended management while on leave, travelled outside the country through first class with their spouses, and paid themselves N9.8 million each without the approval of the Secretary to the Government of the Federation.

Going further, Ngige accused them of engaging the services of legal practitioners at the sum of N180 million without the approval of the Attorney-General of the Federation. He added that they spent N146 million on vehicles, and on May 31, 2020, awarded 30 contracts worth N332 billion, which were split into smaller components of N49 million.

He disclosed that the contract splitting was to enable the transactions fall within the threshold allowed by law for the NSITF management to award contracts.

Ngige stated that the suspended NSITF management spent N570 million on health insurance outside the National Health Insurance Scheme.

He added that since 2012, the NSITF had not submitted records of its audited accounts to the Office of the Auditor-General of the Federation, in line with the extant laws.

It was noted that the Economic and Financial Crimes Commission (EFCC) had since dragged the NSITF management to court on corruption charges.

On the alleged illegal suspension of the NSITF management, Ngige argued that their suspension went through the laid down procedure and was approved by President Muhammad Buhari, following his recommendation.

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