Senate uncovers ₦14bn illegal salary increase in minting company

The Senate says it has uncovered an illegal salary increase of ₦14 billion in the Nigerian Security Printing and Minting Company Plc.

The Board of Directors allegedly paid the increase to all staff members without the approval of the National Salaries Wages, Incomes and Wages Commission.

During a session in the Red Chamber in Abuja, the Chairman of the Senate Public Accounts Committee, Senator Ahmed Wadada, discovered the issue when the management of NSPMC appeared before the committee concerning the 2019 report of the Auditor-General of the Federation.

The report revealed that between 2016 and 2019, the NSPMC’s Board of Directors approved ₦14 billion for salaries and allowances without the approval of the salaries and wages regulatory body.

The NSIWC Act, 1990 stipulates that the commission shall advise the Federal Government on national income policy; and recommend the proportions of income growth that should be utilized for general wage increases.

The NSIWC shall also inform the Federal Government of current and incipient trends in wages and propose guidelines within which increase in wages should be confined, among others.

Ahmed Halilu, Managing Director of NSPMC, claimed that the company did not need any approval from the salaries and wages regulatory body because it was registered under the Companies and Allied Matters Act.

However, the managing director later admitted before the Senate Committee on Public Accounts that it was wrong not to seek approval from the NSIWC before implementing the new salaries and allowances increase for the company.

Halilu further said, “It has come to our notice that we must obtain approval before salaries increase. It is salaries paid over three years. On this ground, it was not misappropriated considering the volume of works done by thousands of staff over this period.”

Many members of the committee were displeased with the illegal payment, pointing out that public funds were spent without due process. Nwebonyi Onyeka, deputy Whip of the Senate, explained that government money was spent without due process, adding that the misappropriated fund should be refunded.
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On Mon, 30 Oct 2023, 21:21 Temi Bamgbose, wrote:

Senate uncovers ₦14bn illegal salary increase in minting company

By Godsgift Onyedinefu

The Senate says it has uncovered an illegal salary increase of ₦14 billion in the Nigerian Security Printing and Minting Company Plc.

The Board of Directors allegedly paid the increase to all staff members without the approval of the National Salaries Wages, Incomes and Wages Commission.

During a session in the Red Chamber in Abuja, the Chairman of the Senate Public Accounts Committee, Senator Ahmed Wadada, discovered the issue when the management of NSPMC appeared before the committee concerning the 2019 report of the Auditor-General of the Federation.

The report revealed that between 2016 and 2019, the NSPMC’s Board of Directors approved ₦14 billion for salaries and allowances without the approval of the salaries and wages regulatory body.

The NSIWC Act, 1990 stipulates that the commission shall advise the Federal Government on national income policy; and recommend the proportions of income growth that should be utilized for general wage increases.

The NSIWC shall also inform the Federal Government of current and incipient trends in wages and propose guidelines within which increase in wages should be confined, among others.

Ahmed Halilu, Managing Director of NSPMC, claimed that the company did not need any approval from the salaries and wages regulatory body because it was registered under the Companies and Allied Matters Act.

However, the managing director later admitted before the Senate Committee on Public Accounts that it was wrong not to seek approval from the NSIWC before implementing the new salaries and allowances increase for the company.

Halilu further said, “It has come to our notice that we must obtain approval before salaries increase. It is salaries paid over three years. On this ground, it was not misappropriated considering the volume of works done by thousands of staff over this period.”

Many members of the committee were displeased with the illegal payment, pointing out that public funds were spent without due process. Nwebonyi Onyeka, deputy Whip of the Senate, explained that government money was spent without due process, adding that the misappropriated fund should be refunded.