Investigation: Ex-PenCom Board Member paid millions of naira in unmerited allowance while in retirement
The National Pensions Commission (PenCom) is discovered to have paid a humongous amount of money in allowance to a retired permanent secretary, Festus Narai Yussuf Daudu, even after retiring from the federal civil service.
Prior to his retirement, Daudu was a representative of the Head of Civil Service of the Federation (HOCSF) on the Board of PenCom for which he was paid N4million quarterly allowance, aside his legitimate salary as a senior civil servant.
He became a member of the PenCom’s Board in December 2020 and retired as the permanent secretary of the Ministry of Communication on May 2, 2021.
Illegal payment and stealing
Following Daudu’s retirement in 2021, another permanent secretary, Dr. Ngozi Onwudiwe, was appointed the representative of the HOCSF on PenCom Board. But, despite retiring in May 2021, Festus Daudu continued to receive N4million as Quarterly allowance from PenCom for unrendered services. He was paid the unmerited allowance five times, totalling N20million.
TheCornet gathered from sources that PenCom made the payment ostensibly in error and it would only discover its mistake several months later. On his part, the said Festus Daudu was criminally silent about the illegitimate earnings he had been paid and he neither pointed out the anomaly to the PenCom authorities.
“PenCom did not even know. It was not until (Ngozi) Onwudiwe indicated that she had not received any allowance as a member of the board that it became clear to PenCom that Daudu was being erroneously paid,” said a source in the HOCSF office.
Recovery of N20million illegitimate earning
This medium learned that upon discovering the error, PenCom wrote a letter to Festus Daudu demanding a refund. Daudu accepted his act of stealing and agreed to refund the federal government.
TheCornet sighted the letter dated 10 May, 2020, part of which reads: “The Commission’s review revealed that after your retirement from service in May 2021 and after resultant exit from the Commission’s Board, a cumulative sum of N20,000,000 (Twenty Million Naira Only) was erroneously paid into your Bank Account Number 00127xxxx0 maintained with Daimond/Access Bank Plc.”
“Another shocking thing is that he mentioned that he could only repay in instalments and he was directed to make the payment directly into the Treasury Single Account of the government domiciled in the Central Bank of Nigeria (CBN),” said our source in the OHOCSF.
PenCom had requested Daudu to make an initial lump refund of N16million to the TSA while the balance should be paid, based on agreed terms between both parties.
However, this medium gathered that Daudu, from Nasarawa State, is yet to comply with the request.
The egregious error by the PenCom evinces a corrupt and inefficient civil service that has become a sluicegate for theft of public funds by some equally disreputable government officials in Nigeria. The retention of Daudu’s name as a member of PenCom’s Board even while he has retired is further convincing of PenCom’s official sloppiness.
In September 2019, President Muhammadu Buhari suspended the former Head of Civil Service, Winifred Oyo-Ita for alleged theft of millions of public funds.
Just recently, the Economic and Financial Crimes Commission (EFCC) arrested the Accountant General of the Federation, Ahmed Idris for stealing N80billion. His investigation is believed to have yielding more damaging discoveries about official stealing perpetrated under the incumbent administration.
This medium made effort to get the reactions of the Pensions Commission and the HOCSOF, but it was to no avail.
