… faults breach of Pension Reform Act
National Assembly is set for a showdown with the Executive over the sack of Chinelo Anohu-Amazu as director-general, National Pension Commission (Pencom).
The Senate resumed from Easter break on Tuesday, with lawmakers squaring up for a showdown when President Muhammadu Buhari presents the name of Dikko Aliyu Abdulrahman as new DG for the Commission.
Recently, President Buhari fired heads of 22 parastatals, including Pencom, and announced Abdulrahman as new director-general of Pencom, subject to Senate’s confirmation.
The President also appointed Funso Doherty as chairman of Pencom Board as well as Akin Akinwale, Abubakar Zaki Magawata, Ben Oviosun and Nyerere Ayim as executive commissioners.
The appointment, which was described as an absolute breach of the provisions of the Pension Reform Act, 2014, contravenes the provision of the Act that provides that the nominee for the position of the chairman or director-general of Pencom cannot be a shareholder or staff of any Pension Fund Administrator (PFA), within three years before or after his/her appointment.
A legislator, who spoke with BusinessDay on condition of anonymity, insisted that the appointment of Abdulraham as Pencom DG was in breach of the Pension Reform Act 2014.
Other lawmakers also contended that the appointment of critical agency such as Pension Commission should not be politicised to avoid loss of public confidence in a sensitive sector that takes custody of about N7 trillion pension funds, which belong to the Nigerian workers.
Citing Section 21(2) of the Pension Reform Act, 2014, the PDP senator from South East zone, wondered why a replacement was not announced from the same geopolitical zone with the sacked DG, in line with the provisions of the Act.
Abdulraham, the nominated DG, is from the North-West geopolitical zone.
Section 21 (2) of the Act states that: 2014: “In the event of a vacancy (for the chairman, DG or other members of board), the President shall appoint a replacement from the geo-political zone of the immediate past member that vacated office to complete the remaining tenure.”
According to the Pensions Act, the Commission’s DG is entitled to five years tenure of office, subject to renewal for another term in office.
The former Pencom DG, Anohu-Amazu is from Anambra State, South East Nigeria, was confirmed by the Senate on the 30th September, 2014 for a five year term, is expected to end her tenure on the 29th September, 2019.
“In tandem with the provisions Act, if at all they wanted to replace Anohu-Amazu, she ought to be replaced by someone from the South East, who will complete the remaining part of her tenure of five years.
“Section 21 of the Pension Reform Act 2014 clearly spelt out the circumstances under which a member of the Commission will seize to hold office. It listed such circumstances as resignation, expiration of term, death, bankruptcy, conviction for a crime, becoming an unsound mind, disability and outright removal by the president, who would then write the affected person.
“Section 21(j) said a member of the Pencom board could be removed if the President is satisfied that it is not in the interest of the Commission or public for the person to continue in office and notifies the member in writing to that effect.
“This provision was not met in the dissolution of the Pencom board and removal of the chairman, DG and commissioners, as they were not written before the announcement was made.
“The Senate frowns at this act of impunity displayed by the President and we will vehemently oppose the confirmation of the new DG when the President presents it to us,” the senator told our correspondents.”
Another controversy is the status of the new DG, who is currently the chairman, Board of Director, Premium Pensions Limited. This, stakeholders observed, contravene the Pension Reform Act.
Section 19 (5) of the Act provides that: “The Chairman and members of the Board shall not: (a) own controlling shares in any Pension Fund Administrator or Pension Fund Custodian, prior to and during their tenure of office as Chairman or members of the Board; or (b) be directors or shareholders in any Pension Fund Administrator or Pension Fund Custodian before the expiration of three years after ceasing to be a Chairman or member of the Board.”
Section 19 (6) however, said: “The Chairman and each member of the Board shall, within one month of appointment, declare personal shareholding as well as those of his family members or close associates in any Pension Fund Administrator or Pension Fund Custodian, in writing to the Board.”
Deputy Senate majority leader, Bala Ibn Na’Allah, declined to comment on the issue on the grounds that it is an executive matter
“Honestly, I don’t want to comment on that. It’s purely an executive matter and a legal matter. And unfortunately we are in country where it is very difficult to speak the truth; more especially when you are in leadership position. So I will rather take the dignified option of maintaining a dignified silence on the matter.”
The sacked PenCom DG was reputed to increased pension assets from N2.9 trillion in 2012 to N6.7 trillion in 2017.
Besides establishment of six zonal offices, she also increased the Retirement Savings Account from N5.39 million to N7.2 million.
