The Senate on Monday, October 30, commenced probe of how the Board of Directors of the Nigerian Security Printing and Minting Company (NSPMC) Plc, allegedly paid N14 billion as salary increase to all its staff without the approval of the National Salaries Incomes and Wages Commission (NSIWC).
Chairman, Senate Public Accounts Committee, Senator Ahmed Wadada, disclosed this when the management of NSPMC appeared before the panel in Abuja.
The allegation is contained in the 2019 audit report of the office of the AuGF now being considering by the Committee
According to the AuGF’s audit report for 2019, the NSPMC Board had allegedly approved N14billion for increase in salaries and allowances of staff between 2016 and 2019, without necessary approval.
Under Article 3, the NSIWC Act, 1990 stipulated that the commission shall advise the Federal Government on national incomes policy; recommend the proportions of income growth which should be utilised for general wage increase 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.
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In his written submission, however, the Managing Director of NSPMC, Alhaji Ahmed Halilu, claimed that the company did not need any approval from the National Salaries Income
and Wages Commission because it was registered under the Companies and Allied Matters Act (CAMA).
However, Halilu later admitted before the Senate Public Accounts Committee that it was wrong not to have sought the approval of the NSIWC before implementing the new salaries and allowances increase for the company.
Halilu further said: “It has come to our notice that we must obtain approval before salaries increase. It is salaries paid over the period of three years. On this ground, it was not misappropriated considering the volume of works done by thousands of staff over this period.”
Some members of the Committee frowned at the development saying public funds had been spent without due process.
The Deputy Whip of the Senate, Senator Nwebonyi Onyeka, in his part, insisted that the misappropriated sum should be refunded to the Federal Government’s treasury.