N12bn pension scam: EFCC freezes director’s account

BY EMMA OVUAKPORIE
ABUJA—The Economic and Financial Crimes Commission, EFCC, has frozen the N800million account of Mrs Phiana Chidi in a new generation bank as it declared a manhunt for another director in the public service for allegedly partaking in the N12 billion yearly diversion of pension funds recently uncovered by the Office of the Head of the Civil Service of the Federation OHCSF yesterday.

A source close to the anti-graft agency, who refused to name the director and which ministry he serves,  said operatives had discovered that a  syndicate was responsible for  siphoning N1billion monthly from the coffers of the Federal Government.

The source further revealed that the anti-corruption body was on the trail of all public servants allegedly involved, saying the bank accounts of the Deputy Director in the Ministry of Transport, Phina Chidi, who was recently arrested for having over N800 million, had been frozen.

It would be recalled that the Head of Service of the Federation, Prof. Dapo Afolabi, had earlier  requested for the assistance of the EFCC after an investigation by his office revealed the fraud.

He had said after the investigation, the scheme saw a sharp drop of the wage bill from N2.2billion to about N1.2billion monthly.
According to Afolabi, the efforts of the anti-graft agencies, including the ICPC, paid off as his predecessor was able to pay about N1billion less in the monthly pension wage before leaving office last year.

Sequel to the HOS’s allegation, the EFCC had swung into action which led led to the arrest of Phina Chidi last week who operatives say has over N800 million in her account, money believed to be part of proceeds from pension funds that she once managed in the Office of the Head of Civil Service of the Federation before she was transferred to the Ministry of Transport.

Chidi, according to sources, has $2 million in one account and N500 million in another account in one of the old generation banks in the country.

She is said to have opened the accounts in the name of Pam Investments Ltd while she is the sole signatory to both accounts.
Before Chidi was moved to the Transport Ministry she was the Deputy Director, Finance and Administration managing the pension scheme under the OHSF.

It was also alleged that the civil servant awarded and signed payments for fictitious contracts, pensioners’ stipends, bogus and spurious allowances to staff worth several billions without following due process.

When contacted, spokesman of the anti-graft agency, Femi Babafemi, said investigation into the scam is in progress but refused to disclose any information on the director said to be on the run.