Monsuru Olowoopejo

FOLLOWING a “save our soul” appeal to Governor Babatunde Fashola of Lagos State, over their unpaid pension benefits, there are indications that the governor  has decided to intervene in the lingering case of unpaid gratuities and other benefits of retirees of the Lagos State Water Corporation, LSWC.

The retirees had petitioned the governor, seeking his intervention in the payment of their entitlements.

Speaking with Pension & You, Group Managing Director, GMD, of LSWC Mr. Shayo Holloway said the governor had decided to intervene in LSWC’s case and other agencies that could not meet up with their pension gratuity obligations.

According to him, “We have approached the state government and it is looking into the case and other agencies that could not meet up with their pension gratuity obligations. They are looking at a way of bailing out the corporation. They (retirees) should be patient with us. The state government is looking into the issue. We sympathize and recognize the need for retirees to get their gratuity. It is not that the funds are available and we are not being paid. The truth of the matter is that available funds are less than the expenditure. We have the assurance of the state government. The corporation is not the only government organization faced with this challenge, there are others.”

On efforts to pay entitlements, the GMD explained “We have made efforts to pay those that retired before the corporation adopted the Contributory Pension Scheme, CPS. We have been able to clear from up to 2009. We have been paying their gratuities. We are paying them in tranches, but it will depend on how revenue comes in. As we get more funds, we offset the list of the retirees.”

On why the corporation was yet to offset the backlog, Holloway said “The N60 million we make is not enough to run the corporation. At present, we have 1,400 staff. This is a massive organization. It requires huge amount of money to run it. We need to generate a minimum of N100 million monthly from water rates to be able to offset the entitlements. Also, when employees under CPS complain that money deducted is not remitted, it is not that physical money was deducted from their salaries and used for something else. The truth of the matter is that when one operational expenditure outstrip its revenue, and after preparing the salary schedule, what the corporation has is just enough to pay the salary. We however, as part of the accounting system note the liabilities.

“They are noted as deduction. It is not physical cash that is deducted and misused. It is noted on paper. No physical money has been deducted. The truth is that the revenue could only pay the current salaries. One recognizes that the funds are noted as deducted but it is referred to as liabilities.”