Senate orders Minting company to refund N14bn illegal salary increase

Senate orders Minting company to refund N14bn illegal salary increase.

Olaitan Ogundele

Following the discovery of an illegal N14 billion salary increase to staff members without the approval of the National Salaries Wages, Incomes and Wages Commission, the Senate has queried the Board of Directors of Nigerian Security Printing and Minting Company Plc (NSPMC).

During plenary in the Red Chamber in Abuja on Monday, the management of NSPMC appeared before the Committee concerning the 2019 report of the Auditor-General of the Federation, where the discovery of the illegal salary increase was made.

Deputy Whip of the Senate, Senator Nwebonyi Onyeka, explained that government money was meant to be spent with due process, adding that the misappropriated fund should be refunded.

Senator Ahmed Wadada, the Chairman of the Senate Public Accounts Committee, briefed the committee and revealed that according to the report of the Auditor-General, between 2016 and 2019, the NSPMC’s Board of Directors approved N14bn for salaries and allowances without the approval of the salaries and wages regulatory body.

However, in his submission to the Committee, Managing Director of NSPMC, Ahmed Halilu, 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.

But when he was drawn to the fact that under Article 3, the NSIWC Act, 1990 which stipulates that the commission shall advise the Federal Government on national income policy, recommend the proportions of income growth which should be utilized for general wage increases and inform the Federal Government of current and incipient trends in wages and propose guidelines within which increase in wages should be confined, among others, Halilu admitted that it was wrong not to seek approval from the NSIWC before implementing the new salaries and allowances increase for the company.

“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 work done by thousands of staff over this period.”

Displeased with the illegal payments made to the company’s staff over the years, the Senate Committee members pointed out that the public funds were spent without due process, adding that the misappropriated fund should be refunded.