• Thursday, March 28, 2024
businessday logo

BusinessDay

Osinbajo vs the Senate: the fight for PenCom

Over the weekend, the Senate and Mr. Osinbajo, in his Acting President capacity, had a running battle over the National Pension Commission (PenCom). A bystander would reasonably wonder what the issue was. The truth is that in the last six months or so, PenCom has become a fierce battleground for the Vice President. PenCom has become a near obsession for him to the point that one wonders why a seemingly decent man would be that desperate about PenCom. Allegedly, Osinbajo has always wanted his friend and kinsman, Funso Doherty, as the DG of PenCom, but for some reasons, his interest here runs against some other interests in the Villa.

When the presidency unceremoniously and illegally ousted the former DG – Chinelo Anohu-Amazu – in April 2017, the idea was for Doherty to become the DG of PenCom. However, this wasn’t the case, as Aliyu Dikko was appointed the DG and Doherty the Chairman of the Board. This was shortly before Buhari travelled out to London for an extended period on medical grounds. This was seen as a terrible miscalculation for the other party interested in PenCom because Dikko didn’t meet the requirements of the 2014 Pension Reform Act. Although the interest group behind him was hard at work, Osinbajo, a subtle but dexterous political player wasn’t asleep. He largely appeared quiet about things in public but never kept quiet within. He lived with it and waited for the opportunity to take advantage. And the opportunity did come.

Buhari returned from the first trip to London and needed to travel again in May 2017. This time, the Acting President, thought it wise to go for his pound of flesh. He reversed the appointment of Dikko, as the DG of PenCom, and moved him to the Bank of Industry as Chairman of the Board. Dikko must be the only Nigerian capable of such roles or he must be a politically relevant actor! But that’s just by the way! When he moved Dikko out of the way, he had the chance to install his person, Doherty. It is pertinent to state that both Doherty and Osinbajo served on the Board of ARM, an institution that owns one of the largest Pension Fund Administrators in Nigeria. While Doherty was the CEO, Osinbajo was a member of the Board. Not surprisingly, both men are next door neigbhours in Lagos.

Unfortunately, for Osinbajo, the appointment of Doherty has attracted a lot of opprobrium. There are several law suits on this matter and the presidency has not been able to send Doherty’s name and those of his team to the Senate for clearance, as stipulated in the 2014 Pension Reform Act. There is also a swell of public opinion against these appointments. As such, PenCom has been without a substantive DG for over four months now. It has been mainly run by an Acting DG from within.

Buhari returned to the country on August 19. But before then, Osinbajo gave a directive on August 18 – his last day as the Acting President – for Doherty and his team to resume at PenCom on acting capacity until they are cleared by the Senate. If this is not a classic case of desperation, then nothing is.

 

It does not only fly in the face of commonsense, it makes a grand mockery of the role of the Senate in such appointments. It is like asking one to start acting and answering a professor before one is cleared by the University Senate. It is unheard of and a clear insult to the Senate as an institution. Does the Vice President mean to suggest, as he has already done in the case of Magu, that the role of the Senate in such appointments is not necessary and merely ceremonial? Why appoint an Acting DG for PenCom when the institution already as an Acting DG? Why the haste?

It will be foolhardy to assume that a Professor of Constitutional Law lacks the intellect to appreciate the full consequences and implications of his actions. The other way to interpret his action, apart from his desperation, is to read it as despotism; and it is exactly this that irks the Senate the most. As such, the Senate on August 19 issued a counter directive strongly warning Doherty and his team not to resume at PenCom. But let’s see what happens. It is very clear that the battle line has now been drawn. It is unfortunate that Mr. Osinbajo and others have chosen PenCom – an institution regulating a N7trn industry – as the football pitch and battleground. And this is not good for the sustainability of PenCom.

While it is expected that Osinbajo, being a Professor of Law would lead in the fight for the adherence to the rule of law especially the Pensions Reform Act, 2014 with regards to the appointment and removal of the Director General of PenCom, which is currently the subject matter of various lawsuits at our courts, he is doing exactly the opposite because of selfish reasons attenuated by his narrow interests. This contradicts the desire of the government to attract foreign direct investment as no investor would be comfortable to invest in a country where the rule of law isn’t adhered to.

The vice president appears to be a rather complex character who wallows in pretence. Thus far, it has been working for him especially as he navigates the slippery political environment at the villa. But beneath his gentle mien is a smooth and desperate political operator trying to plant his cronies in key positions of influence probably in readiness for the 2019 elections.

Thankfully, President Buhari is back in the driver’s seat and one expects that he shall, in line with his adherence to the rule of law, equity and constitutionality, revisit the PenCom debacle and reverse the unlawful removal of the Commission’s management. Mr. President had previously taken the side of the law when the Governing Councils of Federal Universities were dissolved in clear violation of extant laws. The affected officials were not only reinstated, but were also paid all the benefits for the period they were out of office. The travesty in PenCom should be reviewed by Mr. President so as to guarantee investor confidence in the multi trillion retirement benefits industry.

 

May PenCom be saved from Osinbajo’s desperate schemes to prevent the collapse of a burgeoning system that has been a model to emerging economies across the globe.

 

Godson Ikiebey

Ikiebey is a public affairs commentary and writes from Lagos. He tweets @ikiebey