Economy
REVEALED: Real Reasons for Delay in Payment of Ex-Nigeria Airways Workers
By Olusegun Koiki
Daily Independent newspaper has unearthed the real reasons former workers of the defunct Nigerian Airways are yet to receive the severance package despite President Muhammadu giving the approval for the payment.
It was gathered that the conflict between the Office of the Accountant General of the Federation (OAGF) and the Presidential Initiative on Continuous Audit (PICA), a department under the Ministry of Finance, is stalling final payment of severance benefit to ex-workers of the defunct national carrier, Nigeria Airways.
Independent learnt that the conflict between the two government bodies is as a result of who gets the administrative charge from the severance package of the ex-workers.
Recommendations
The inter-ministerial committee raised by the government verified the status of ex-workers of Nigeria Airways and came up with N78 billion benefit for the former staff of the airline. The committee recommended one percent administrative charge of the total sum to be given to any government agency that disburses the money to the ex-workers. This amounted to N735 million.
In its recommendation, the inter-ministerial committee also said that the OAGF should disburse the N78 billion to all the beneficiaries.
However, PICA in its own recommendation to President Muhammadu Buhari reduced the total benefit to N43 billion, but increased the administrative charge to N2.1 billion without recourse to any percentage as recommended by the inter-ministerial committee.
Breakdown Of Benefit
A document seen by Independent revealed the breakdown of the N78 billion benefit thus: serving staff, N20.9 billion; presidential fleet, N1.4 billion; Skypower Aviation Handling Company Limited (SAHCOL), N4 billion; retired staff from SAHCOL, N207.7 million; properties, N1 billion and catering, N1.1 billion.
Others are pensioners, N37.3 million; deferred pensioners, N920.5 million; 1988 Group, N6.4 billion; one percent administrative charge, N735 million; one percent mark-up contingencies, N735 million; salary of four retained staff working on the benefit for 12 months, N10.5 million; office running cost at N100,000 monthly for 12 months, N1.2 million and supplementary at N3 billion.
Interest In Administrative Charge
A reliable source told Independent that PICA, which was set up by President Buhari in 2015, few months after coming into office to carry out final verification of any payment by the Federal Government suddenly became interested in payment of the severance package to the former workers of the airline because of the administrative charge involved.
The document revealed that the inter-ministerial committee had recommended the sum of N78 billion as the total severance package for 10 years for the workers, including pension arrears for the period after the physical verification of about 6,000 beneficiaries.
The workers had initially insisted on another 20 years payment of severance package as agreed with the Federal Government in 2009 before the payment of five years of severance package to them by the late President Umaru Yar’Adua in 2009.
PICA in its recommendation to the government slashed the sum to just N43 billion, and expunged the 10 years pension arrears as agreed with the former workers and their unions by the inter-ministerial committee.
Anger
However, sources said the reduction of a massive N35 billion from the recommended and approved N78 billion by the inter-ministerial committee did not go down well with the Minister of State for Aviation, Hadi Sirika, who insisted that the earlier approved sum must be paid.
A source close to the committee confided in our correspondent that the Federal Government was ready to pay the total sum to the ex-workers who have lost at least 700 of their members since the airline was liquidated in 2013 to avoidable deaths, but PICA is a stumbling block to that payment, which has further put the government in a dilemma.
The source wondered how PICA arrived at the N2.1 billion administrative charge after reducing the total sum to be paid to the ex-workers to N43 billion which represented 45 percent reduction.
“PICA is the only body that is standing between the payment of the final severance package to us and the government. President Buhari has agreed to pay the total sum to us until everything was taken to PICA for final verification.
“PICA without following due process, suddenly reduced our total benefit to just N43 billion, but ironically increased its own administrative charge to N2.1 billion, which is a difference of N1.3 billion. And the government thinks they can come up with a national carrier without first settling us, I think that will be practically impossible.
“Several bodies are ready to take the government to court even outside the country. I can assure you that anywhere their aircraft flies to such an aircraft would be impounded until all debts are settled. We are talking of ex-workers in Europe and several other African countries. Some of them are already in court to ensure their payments. PICA is not helping matters and may make the case worse for impending investors.”
It would be recalled that apart from the Nigerian staff of the airline who are owed pension arrears, outstations like those in Rome, Saudi Arabia, Benin Republic, Cameroon, Dubai and all the French speaking countries in Africa are also yet to benefit from the severance package.
Only staff of the airline in United Kingdom and United States were paid their entitlement of 25 years severance package in full.
The total sum of N29.1 billion, which represented five years severance package was paid to the former workers of the airline by the late Yar’Adua in 2009 after years of agitation by the ex-workers.
Source: Daily Independent
By Modupe Gbadeyanka
The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.
In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.
A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.
To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”
“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.
It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”
“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.
“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.
“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.
“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.
By Adedapo Adesanya
Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.
The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.
Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.
Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.
Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.
The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.
By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.
By Dipo Olowookere
It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.
The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.
Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.
Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.
At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.
This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.
VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.
In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn