Acting President Goodluck Jonathan Orders Investigation of Suspended NSITF MD

The Acting President, Dr. Goodluck Jonathan, has ordered an investigation into allegations of corrupt self-enrichment levelled against the suspended Managing Director and Chief Executive Officer of the Nigeria Social Insurance Trust Fund, Chief Enukora Okoli.

Jonathan‘s directive to investigate and audit the finances of the NSITF under Okoli‘s tenure followed allegations of fraud and other wrongdoings levelled against Okoli by some members of staff of the organisation under the aegis of the Joint Workers Association for Good Governance.

Apart from the workers, the National Pension Commission had also petitioned the Chairman and Board of the NSITF to call attention to alleged illegal dealings of the Okoli-led management with regard to the administration of pension funds.

The decision of the Acting President to intervene in the matter was contained in a letter dated March 12, 2010, written by former Minister of Labour and Productivity, Alhaji Ibrahim Kazaure, to the Inspector General of Police, Mr. Ogbonna Onovo, on the raging issue.

The letter is entitled ”Re: Summary of Police Investigation Report on Conspiracy, Fraudulent Conversion of Property, Fraudulent Accounting, Corrupt Practice and Enrichment, etc by Chief Enukora Joe Okoli - Managing Director/CE of Nigeria Social Insurance Trust Fund (NSITF).”

In the letter, it was said that some NSITF employees had in a petition of September 16, 2009 said that Okoli refused to transfer their remaining pension assests to the Trust Funds PLC, contrary to the express stipulation of the Pension Reform Act 2004.

Okoli was also alleged to have held back the interest that accrued from N1.6bn invested unlawfully, in addition to deducting illegally the sum N378m from the fund, and another N18m as five per cent of agency fee from the sale of Gimbiya Estate.

The suspended MD of the NSITF was further alleged to have failed to remit ”N400m dividend warrant to N124m collected from UBA, being repayment of a fixed deposit with the defunct City Express Bank Ltd and some arrears of contributions.”

He was further accused by the petitioners of fraudulent conversion of some assets, including shares, bonds, debentures and stocks held by the NSITF in some companies.

Okoli was also alleged to have diverted the proceeds from the deal to his companies in the UK to purchase several houses.

The suspended MD was further accused of buying from the organisation three vehicles, including a Prado Jeep and two Toyota cars, in questionable circumstances.

Documents made available to our correspondent by authoritative sources in the NSITF revealed that the management of the Fund constituted a Board Investigation Committee to look into the allegations of financial impropriety against Okoli at its meeting No.36/2009 on September 28, 2009.

The panel comprised Chief Richard Uche, who was the Chairman; President of the Nigeria Labour Congress, Mr. Abdulwaheed Omar; a director and Umar Munir Abubakar, an Executive Director.

The Board which investigated the allegations contained in Trustfund’s letter of September 2, 2009 and National Pension Commission‘s letter of August, 2009 indicted Okoli on the allegations and other wrongdoings.

Uche and his colleagues in the committee had recommended disciplinary action against the suspended MD of the NSITF on the grounds that his action flouted the provisions of the Pension Reform Act 2004.

The committee, which called for a restating of financial statements of funds for the years 2004-2006, recommended further that “the deficit in the actuarial valuation of the fund should be addressed.”

Meanwhile, there is a brewing controversy between the office of the Inspector General of Police, the NLC and the then Minister of Labour over the veracity of the allegations made against Okoli.

The police seem to have come up with two opposing positions after investigating the issues raised in the petitions against Okoli.

While a Commissioner of Police in charge of the Special Investigation Unit, Force Headquarters Abuja, Mr. Ali Amodu, concluded in an interim report that the allegations were not unfounded, his boss, Onovo, saw it differently.

In a letter Nov. 12, 2009 to the Acting Managing Director of the NSITF, Umar Munir Abubakar, Amodu said investigation had established ”a prima facie case of unlawful investment/placement of funds belonging to the Trust Funds Pension Plc, withholding, or delaying, refusing and failing to remit pensioners funds to Trust Funds Pension Plc contrary to Section 42, Sub Section 6 and 7, Section 46 and 72 of the Pension Reforms Act 2004 punishable under section 48 and 85 of the same Act.

”Investigation also established that the way and manner three vehicles viz: one Prado Jeep and two Toyota Condors were purchased was not transparent.”

But, curiously in a letter dated March 3, 2010 to the Minister of Labour and Productivity, Amb. Ibrahim Kazaure, the IGP stated that police investigation revealed that Okoli had no case to answer as the allegations were false and a product of a smear campaign.

”It is apparent from the foregoing that the petition was the handiwork of some wicked and faceless groups who were bent on tarnishing the good name of the Managing Director of the NSITF.

”If the petitioners were sure of their facts, they would not have hidden their identities and would be very willing to come forward to substantiate the allegations. The petition is therefore refused, false please,” Onovo concluded.

But the decision of Onovo to absolve Okoli of blame has triggered concern among the key stakeholders of Labour.

For instance, the then Minister of Labour, Kazaure called the attention of the IGP to the Police Interim Report establishing a prima facie case against the suspended boss of the NSITF and directed him to revisit the case.

He said the IGP should revisit the matter as Jonathan had commenced action on the issue after being inundated with the PIR and the adopted recommendations of the NSITF Board Investigating Committee which he said was done with the aid of external forensic auditors and other experts.

”The resolution of the Board of the NSITF unanimously accepting the recommendations of the Board Investigating Committee on the allegation along with the Police Interim report were duly forwarded to His Excellency, the Acting President and His Excellency has since approved the report and directed that the matter be treated in line with due process of law,” Kazaure wrote.

Similarly, the General Secretary of the NLC, Mr. John Odah, has said that the NLC was shocked by the position of the IGP on the contentious issue.

”We urge you sir, not to be goaded into any effort to cover these unsavoury dealings of the suspended Managing Director of the NSITF and let justice be allowed to run it full course as directed by the Ag. President, Dr. Goodluck Jonathan,” Odah wrote.

The letter was copied to the Attorney General of the Federation and the acting MD of the NSITF.
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