The Nation Newspaper

Tag: ex-Airways workers

  • Eight banks withhold N700m overpaid to ex- Airways workers

    Office of the Nigeria’s Accountant General is at loggerheads with eight banks for unauthorised withholding of over N700million paid in error into the accounts of some former workers of the Nigeria Airways in their banks.

    The unprofessional conduct of the banks in not returning the huge sum paid in error into accounts of ex – Airways workers is creating tension between the banks and the office of Accountant General.

    The N700 million represented the extra money that was mistakenly paid into the account of some of the former workers who were paid twice by the government.

    The payment came after a verification exercise on the former workers of the defunct national carrier.
    A source hinted that the N700 million overpayment, was part of the N22 billion approved by government as the final N45 billion severance entitlements approved for former workers of liquidated Nigeria Airways Limited.

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    A source hinted that efforts made by the Accountant General and the National Union of Pensioners (NUP), representatives of the workers to make the banks refund the money to the Accountant General’s office has not yielded positive results.

    Rather than return the N700 million into the accounts of the affected workers, the banks have failed and are allegedly trading with the money.

    The eight banks affected include: the First Bank which is said to be in possession of the lion share of 80 per cent of the money in question.

    Other banks include: Diamond, Fidelity, Polaris, Zenith, Stanbic and Ecobank.

    While the eight banks failed to comply with the agreement to refund the money, few others are said to have voluntarily returned the money mistakenly paid into the accounts.

    The banks that have fully refunded the money are: GTB, Keystone, Standard Chartered, Unity and UBA.

    While the office of the accountant General was said to be unhappy with the banks, the union representatives of the former airline workers have given the banks one-week ultimatum which ends this week to return the money.

    Former workers of Airways said should the banks fail to return the money this week, they will picket the banks first thing next Monday.

    The refusal of the banks to refund the money is said to be slowing down the ongoing payment of the last batch of the former workers entitlements.

  • Multiple verification stalls payment of ex-Airways workers

    THE Presidential Initiative on Continuous Audit (PICA) yesterday said the payment of the approved N22. 6 billion entitlements to ex-workers of the defunct Nigeria Airways Ltd. was halted due to multiple verification by some of the beneficiaries.

    Its Deputy Director, Mr. John Waitono stated this  in an interview with the News Agency of Nigeria (NAN) in Lagos.

    The verification exercise for the ex-workers took place between October 15 and 28 across three centres in Lagos, Kano and Enugu.

    Waitono said PICA had planned to start the payment of already verified pensioners in batches of 1,000, but had to halt the disbursement after it was discovered that some of the beneficiaries were verified in more than one location.

    He said: “What happened was that the first batch was to commence payment but when we went through the system, we discovered that some persons have done the same exercise in Enugu and Lagos or Kano and Lagos.

    “We now started sorting them out and that is what delayed the first batch. So, now we have collated all the information in one place from the three centres. The system is now sieving out those with multiple verification.

    “One of such persons, whom I am aware of, said he did not trust the verification he did in Kano and that was why he did another one in Lagos.”

    According to him, PICA is being careful not to make the mistake of paying some of the beneficiaries more than once.

    “As at today (yesterday), the consultant is back in Abuja and we are ensuring that the verified persons are paid as soon as possible. We want to send the names to the Office of the Account General in batches of 1,000.

    “Over 5,000 persons were verified and once we eliminate the multiple verification, everybody will be paid before the end of the week,” he said.

    Waitono, who was the coordinator of the verification exercise at the Lagos centre, disclosed that it was concluded on Sunday, adding that the equipment had been sent back to Abuja.

    “The few cases we left behind were those still processing their letters of administration in court.

    “Also, there are some families involved in litigation over the beneficiaries and we have allowed them to go and sort themselves out legally before coming for the exercise,” he said.

    The former national carrier was liquidated in 2004 by the President Olusegun Obasanjo’s government without paying the workers their severance packages as stipulated in extant labour laws.

    The workers were paid a fraction of their entitlements by the late President Umaru Yar’Adua’s regime in 2008 before President Muhammadu Buhari recently approved the part payment of N22. 6billion for them.

    The government has also promised to pay the other half of the money to them as soon as funds are available.

     

  • EFFC, ICPC join team to verify ex-Airways workers

    •‘Fed Govt to fast-track verification’

    OPERATIVES of Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices and other related offences Commission (ICPC) have joined the ongoing biometric data verification of ex-workers and pensioners of the liquidated national carrier, Nigeria Airways Limited.

    Besides the EFCC and ICPC agents, other security agencies were also enlisted for the exercise.

    The participation of EFCC and ICPC personnel in the exercise, according to Minister of Finance Zainab Ahmed, was to ensure transparency and accountability.

    It was also to ensure that people who were not qualified did not have access to the money.

    Speaking at the Skypower Catering Limited premises in Ikeja, Lagos yesterday, the minister said besides displaying the relevant documents, the EFCC and ICPC officials were obtaining thumbprints of the beneficiaries.

    She was represented by the Secretary of Presidential Initiative for Continuous Audit (PICA), an arm of the Ministry of Finance, Dr. Mohammed Dikwa.

    Dikwa, while addressing the ex-Airways workers and pensioners, said hitches experienced in the exercise were being looked into.

    He said the Federal Government would create more desks and deploy more personnel to fast-track the ongoing verification exercise.

    He said government was aware of the hitches and had approved extension of the verification by one week to ensure that beneficiaries were accommodated.

    But, scores of pensioners and former workers have berated officials of PICA for the sloppiness of the exercise. They alleged that there were not enough personnel to attend to beneficiaries that are very sick and the elderly.

    They noted the paucity of personnel at the desk dedicated to the EFCC and ICPC, which they said has accelerated the delay in the exercise.

    But, Dikwa said: “We were here to confirm that the verification is on course, and we have noted some hitches, which would be addressed with the extension of the verification for an additional week.

    “The whole idea is to ensure that all beneficiaries are captured. We call for orderliness and pledge that we will increase the personnel to take care of beneficiaries, whose names were omitted. We understand the consequences that have come with the delay in the payment of these severance benefits, especially those that have either died, lost their documents and others. We will create a special desk for them.”

    He said government was making plans to ensure that the ongoing verification would be the last.

    Dikwa said: “This will be the last verification before all payments are closed. Government is paying 50 per cent now to settle the balance in the next few months. We are making plans to ensure those living outside the country are not omitted. So, there is no cause for alarm.”

    On the involvement of security agencies, Dikwa said: “We have enlisted the services of EFCC, ICPC and other security agencies to ensure transparency and accountability of the exercise.

    “The whole idea is to ensure that the money does not get into the wrong hands. We are going to deepen their involvement by ensuring that beneficiaries undergo biometric data capturing with thumbprint.”

  • Fed Govt to settle contractors’ debts, ex-Airways’ workers

    The Minister of Finance, Mrs. Kemi Adeosun, yesterday said the Federal Government would settle the inherited debts and contractual obligations to local contractors between 2006 and 2015.

    Appearing before the Ad-Hoc Committee of the Senate on “Promissory Note Programme and Bond Issuance”, she said the debts owed to various classes of contractors, including the terminal benefits of ex-Nigerian Airways workers, would be paid through promissory notes and bonds issuance.

    The Committee is chaired by the Deputy Chief Whip, Senator Francis Alimikhena.

    A statement endorsed by her Special Adviser, Media & Communications, Oluyinka Akintunde,  said the unpaid Federal Government obligations constituted a drag on economic activity across many sectors, adding that the government was determined to address the problem.

    She listed the unpaid obligations to include that of pensioners, salary and promotion arrears to civil servants; obligations to contractors and suppliers who in turn, owe banks increasing the quantum of non-performing loans, and unpaid electricity bills by Ministries, Departments and Agencies (MDAs).

    Others are exporters owed funds under the Export Expansion Grant Scheme (EEGS) and unpaid refunds due to state governments in respect of projects undertaken on behalf of the Federal Government.

    “The Federal Government is working towards settling these inherited debts. The Small and Medium scaled Enterprises (SMEs) are the lifeline of our nation. The Federal Government will be stimulating the economy by paying these legacy debts,” Mrs Adeosun said.

    The government, according to her, has approved the issuance of promissory notes and bonds to settle its contractual obligations subject to the approval of the National Assembly.

    On the ex-Airways workers, the minister explained that their terminal benefits were reconciled and agreed at N45 billion following verification.

    She debunked claims by the ex-workers that there was a presidential approval for the payment of terminal benefits of N45 billion to the workers.

    “There has been a misconception in the media that the president had approved the payment of N45 billion terminal benefits to the workers. There is no presidential approval and no appropriation yet for the payment of N45 billion to the ex-workers,” she said.

    Earlier, the representative of the Accountant-General of the Federation, Mr. Mohammed Usman, had told members of the Committee that the government paid N34.2 billion to clear the promotion arrears to workers in the MDAs.

     

    Usman, who is the Director of Funds in the Office of the Accountant-General of the Federation, added that the payment process was still ongoing.

    “These payments were made to the accounts of the beneficiaries in the MDAs after detailed verification of all documents attached as proof of promotion,” he said.

     

     

     

  • N45b ex-Airways workers’ pension ‘awaits Senate approval’

    The Minister of State for Aviation, Sen. Hadi Sirika has promised to ensure the payment of the N45billion entitlements of ex-workers of the defunct Nigeria Airways Limited (NAL).

    The said the delay in payment was because the Senate is yet to approve it.

    The minister while urging them to be patient noted that the Senate has promised to approve it after the Easter break.

    Sirika who spoke yesterday in Abuja at Aviation Stakeholders Forum, assured that the payment would be done within two weeks after the Senate approves it.

    Labour unions in the aviation industry had threatened to ground flight operations all over the country to draw government’s attention to the plight of ex-workers of the defunct national carrier.

    The union gave the Federal Government 14 days ultimatum which began on March 19 for it to make the payment or they down tools.

    Responding to their demands, Sirika said: “Because of the law and because we did everything transparently and in accordance with the law, we put out a request to the National Assembly to allow us to pay them.

    “It has passed the House of Representatives but it is remaining the Senate. The Senate promised to pass it when they come back from Easter and once they pass it, we will pay. Nigeria Airways, we will pay you and we thank you for your patience.”

    On their threat to ground flight operations, the minister said: “If you shut down operations, it will affect a lot of things. In this hard time for Nigeria, I got N45billion for you and we are just waiting for the National Assembly because the house of Representatives have done it, remaining the Senate and once they do it, within two weeks, we will pay.

    “So, you don’t need to close the airspace because it can cause serious economic damage to the country, and also cause serious security risk.

    “We are sick and tired of talks on closing of the airspace.  So please let your protest and downing of tools be in accordance with the law because it is an industry you want to develop also.

    “Press your demands some other ways. I have gone to sister agencies and MDAs, I have gone to several places just to press your demands on people, individuals, entrepreneurs and others just to make case for you.”

     

  • Row over N78b pay-off for ex-Airways workers

    Row over N78b pay-off for ex-Airways workers

    • Proposed national carrier in danger

    About N78 billion is standing between the Federal Government and its plan to have a national carrier this year.  The cash is the outstanding severance pay of over 6,000 workers of the liquidated Nigeria Airways,  it was learnt.

    Minister of State, Aviation, Hadi Sirika, was said to have advised the government to pay the workers to clear the hurdle against the formation of a national carrier.

    Nigeria Airways was liquidated in May 2003 by the Olusegun Obasanjo administration, but the airline ceased to exist from September 13, 2004.

    The  pay-off was arrived at after a series of meetings involving the Aviation Union Ground Alliance (AUGA), representing the National Union of Air Transport Employees (NUATE), the Air Transport Services Senior Staff Association of Nigeria ( ATSSSAN) and the National Association of Aircraft Pilots and Engineers (NAAPE), Ministry of Aviation and Office of Accountant- General of the Federation.

    The investigations showed that some people are to reduce the cash to N43 billion.

    In August 10, 2016 letter, the Federal Ministry of Transportation wrote President Muhammadu Buhari, appealing for the settlement of terminal benefits of the defunct Airways workers.

    In the letter, Sirika said failure to pay the entitlement might stall the     creation of a national carrier.

    He said the international creditors of the defunct Airways  might sue the proposed airline for  having tangential relationship with the former.

    The letter reads: “The Ministry of Aviation arrived at a decision. To compute additional 10-year pension pay off to make up 15 years being one of the options recommended by the Inter-Ministerial Committee instead of the 20-year pay off demanded by the ex- workers / pensioners.’’

    To this end, the entitlements of all categories of beneficiaries were updated and verified in accordance with the Inter Ministerial template.” It is imperative that the liability is paid off because if unpaid it may stall the resolve to create a national carrier as the international creditors of defunct Nigeria Airways may sue the new entity as having tangential relationship with the former.”

    The Federal Executive Council on May, 21, 2003 approved the liquidation of Nigeria Airways Limited.The Bureau for Public Enterprises ( BPE) was directed to effect this.

    Sirika  said in the letter: ”However, before the company was slated for liquidation, there was no proper determination of its worth, in terms of entitlements of staff/pension that would be affected by the exercise. This culminated into problems that confronted this Ministry till date.

    “The Inter-Ministerial Committee finished its work in October 2006, recommending in addition to all earned entitlements a pension pay off system with liabilities for 15, 20 and 25 years at N49,451, 474,384.82 , N63,376,033,029.95 and N77,756,059,  178.183 to be paid to the 5,415 verified beneficiaries.

    “However, those that could not present themselves for verification at the close of the Inter-Ministerial Committee sittings were later captured in a supplementary report with entitlements amounting to N3, 019,142.80 for 2, 181 staff beneficiaries.

    “The recommendation for the pay off was predicated on the fact that it was voluntary liquidation and also the government was on the verge of changing its old pension laws to a contributory pension scheme.”

    Sirika said teh late President Umaru Musa Yar ‘Adua in October 2007 directed the payment of N29.1 billion to the beneficiaries pending the determination of the years to be given as full and final pay off.

    He said: ”While the Ministry was making efforts to obtain approval for payment of the supplementary  batch, Nigeria Airways workers/ pensioners, aviation unions, Nigeria Labour Congress , Trade Union Congress, World Trade Unions were agitating that the five-year pay off was meant for families of deceased officers was not part of the Inter-Ministerial Committee’s recommendations and, therefore, wrote petitions to the President, National Assembly and filed suits against the government.

    “Consequently, the then President directed the Attorney-General of the Federation to settle out of court with the ex-workers that resulted in a seven and half year pay off recommendation which was rejected by the union.”

    Checks reveal that the documents to process the full payment are stuck in the Presidency. The attempt to reduce the amount have triggered fresh disagreement between officials of the Ministry of Aviation and personnel of the Presidency, in particular the Presidential Initiative on Continuous Audit (PICA).

    A source close to former ex- Airways workers said failure to pay the full amount will trigger litigation over plans to float any national carrier .The source said former Airways workers were only paid N26.9 billion as severance benefits for five years, with agreement that government will pay the outstanding N78 billion being severance benefits for 15 years .

    The agreement, he said was the fall out of recommendations by the Inter Ministerial Report of 2006 at a meeting with stakeholders in April 14, 2011 in Abuja .

    He said it will be a great disservice to the over 6,000 former workers if government decides to short change them of their entitlements after reaching an agreement.

    He said some former Airways workers in United States and United Kingdom were paid their full entitlements, but, government continues to discriminate against former workers of the national carrier living in Nigeria and French speaking African countries.

    The plot to reduce the entitlements came to the fore at the point of approval for payment between officials of the Ministry of Aviation and officials of PICA on issues bordering on demand for 33 per cent pension increase for 10 years by the former national carrier employees after they received the five years pay off.

    Investigation further revealed that Sirika is worried over the issue, as non-payment of the full        entitlements.