By Victor Ahiuma-Young

THERE appears to be no end in sight to the disagreement between members of Academic Staff Union of Universities, ASUU, Obafemi Awolowo University, OAU, Ile-Ife, Branch and the university’s authorities over alleged double deduction of workers’ pension.

The lecturers had months back petitioned the Independent Corrupt Practices and Other Related Offences Commission, ICPC  alleging among other things, that the management of the OAU has been making double deductions of pension contribution from employees’ salaries since the introduction and implementation of the new contributory pension scheme since July 2004, that the deductions made were neither remitted to the appropriate quarters like Pension Fund Administrators, PFAs, that employees’ pension contributions have been deducted at source by the Budget Office of the Federation before releasing the net amount, thus making it unlawful for another deduction by the university management and that the university management should stop further illegal deductions of pension contribution from staff salaries and refund of the ones already made.

The ICPC investigated and gave a clean bill of health to the university management on the issue of double deductions, but as the school’s authorities to refund to the Sub-Treasury of the Federation, STF, N687.185,868.70, that it (ICPC) identified as unspent funds.

Obafemi Awolowo University

But the lecturers still unsatisfied, raised more posers for the anti-graft agency, which re-investigated  the matter and in a letter to the Chairman of the OAU Chapter of ASUU, dated August 31, 2010, still maintained that there was no case of double deductions of the employees’ salaries by the OAU’s management.
Once more, the lecturers have rejected this latest report and have once more raised several posers for the ICPC and insisted on refund of alleged deductions.

In the new petition titled “Re: request by ASUU (OAU) Ife for investigation of double deductions of pensions contribution by the university administration”, by the Chairman of ASUU-OAU, Dr. Ife Adewumi, the lecturers  noted “the disparity between the two letters (to ASUU and OAU’s management) in that while the letter written to us emphasise that ICPC’s position has not changed from its earlier submission to the Union, the letter written to the Vice Chancellor indicated a substantial reduction in the amount considered by ICPC as unspent fund.”

Issues raised by ICPC’s letter to VC

Continuing, Dr. Adewumi noted that  “ the response from ICPC did not debunk nor address the issue of its findings that an amount equal  to 7.5% of the total PCA was being moved from the PCA domiciled with Skye bank PIc into Fixed  Deposit Accounts in two other Banks.   It is clear that the transferred  funds belong to the workers  of OAU. Therefore it is only just that the amounts taken from every staff’s emolument illegally since  July 2004 be refunded to him or her.

The relevant component of ICPC’s letter to OAU  that the amount of money  which the agency identified as unspent balance (difference between receipt and expenditure as at  the end of 2008) and had directed that the Administration should refund to the Sub-Treasury of the Federation (STF)  was reduced from N687, 185,868.70 to N111, 449,119.10.  While realising that the University Expenditure includes receipts from the government, internally generated revenues  (lGR), donations, etc, this negotiated reduction does not in any way address the issue of illegal  deduction of an equivalent of 7.5% of our emolument as pension from our salaries, apart from the  one already deducted at source. The union has never supported the submission that any kobo should  be refunded to government but rather that our illegally deducted fund should be refunded to us, and  we still maintain this position.

Issues not  responded to by ICPC

The lecturers posited that in “Section 4.3 of the ICPC Report, the Commission’s submission in paragraph 1 that the employee’s pension contribution of 7.5% had been deducted at source and only NET balance was released to the University is very correct. However, instead of paying the entire balance released as Total Emolument of individual staff, the university goes on to deduct 7.5% of the emolument without grossing up, instead of mere reflection  as specified in the Treasury Circular

No TRY/A10& B10/2004 of 28th September 2004 and places  the deductions in fixed deposits.

ICPC itself discovered this in its submission’ The Union insists that  the University has been investing workers’ funds stashed in First bank Plc and Afribank Plc without workers’ approval.

Justice demands that the money should be refunded to the owners. ICPC has not  addressed this in its current Response and needs to do so.  Section 4.5 of the ICPC Report makes  one fearful and doubtful of justice for the oppressed in  Nigeria. Why would a Commission set up to prevent  corruption be seen to be making excuse for privileged  administrators? The statements  by ICPC that

(i) “in the process of moving the funds from salary  account, calculations were done  in such a way that the amount moved tallied with the exact monthly  pension deductions already  made at source by the Federal Government” and (ii) {( … while  transferring the funds from  them/ar)’ account, the narrations stated on the payment vouchers were  wrongly  captured and  misleading as stated therein” are both embarrassing and unfortunate records in that Report.”

“Couching those transactions in feathered pillows is FRAUD and amounts to misappropriation of  funds by the University Administration. These monthly remnants totaling millions of naira every  month belong to workers and must be refunded with the accrued interest ICPC must address this.

Our Union wishes to inform you that your Commission’s economy with  the truth has placed those the University Administration considers as  the advocates of the stoppage of  this reckless illegality under mortal  threat. In Section 4.9 of the ICPC Report, fund being referred to as “Unspent balances in PCA  from 2004  to 2008″ by ICPC were actually surpluses accruing from the failure to gross up the total  emolument  received, which was net and which its transfer and fixing has led tn the totality of fund  categorised  in ICPC Report as Unspent Fund. The whole amount With its interest should be paid  back to the  rightful owners. In addition further deduction should be stopped from salaries. That this

“Unspent  balances in PCA from 2004 to 2008” was negotiatedly reduced as indicated earlier has not  debunked our position”

ASUU-OAU added that “the position of our Union is that the University has been keeping 7.5% of nur salaries which ICPC investigators have found as leftovers after each month’s salan payments in the PCA because the government releases funds to the University uSing. section 9(2) of the Pensions Act (2004). ASUU-OAU still stands by this position.

The items (ii) to (vi) directing the University administration to remit the discovered sums of money to ICPC for onward remittance to the STF would have been a correct  position if the funds were not part of the University workers’ salaries. With the justifications provided by us which show clearly that the funds were actually part of workers’ salaries; all the money which have been deducted since July 2004 should be paid back to the workers who have been denied access to 7.5% of their consolidated salaries. As at December 31, 2009 the unpaid 7.5% of consolidated workers’ salaries in the PCA being demanded by the workers is N 1.97 billion and this has increased because of the continued illegal deduction.

The University Administration should be directed to pay the totality of the fund plus interests obtained from placement in fixed deposit without the consent of the rightful owners.  The statement of accounts of the PCA and the fixed deposit Accounts from July 2004 to date, which can be easily obtained from the Banks (Skye Bank. Afribank and First Bank) will clarify these issues.  ASUU OAU insists that these should he obtained and made available to all and sundry for transparency and accountability.”