FG denies deducting salaries of PHCN workers

Simon Ateba

The Federal Government of Nigeria has denied claims that it had been deducting 25 percent salaries of PHCN staff.

The leadership of the National Union of Electricity Employees, NUEE, had demanded the payment of 25 percent of salaries of workers which had, over the years, been deducted as contributions to their pension scheme.

However, the Minister of Power, Prof. Bart Nnaji, said in a statement that the government has no knowledge of such deduction.

“Let it be stated without equivocation that there is no PHCN employee who contributed 25 percent of his or her salary to the pension scheme or any amount at all to the scheme up till June 30, 2004, when the PHCN was allowed by law to operate an in-house defined pension scheme, that is, a pension scheme different from what generally obtained in the public service.

“If there were contributions to the pension scheme by any PHCN personnel at all, they are not reflected in the books or bank accounts of the pension scheme.

“The trustees of the scheme are officials of the trade unions in the power sector and the PHCN management members, who are the sole signatories to the bank accounts,” Nnaji said.

The minister said the Federal Government has never been involved in the management of the PHCN pension scheme.

“In other words, if there is any case of fraud or misappropriation of funds, the workers should know those to be held responsible.

“The union claimed that as of June 30, 2004, there was a total sum of N88 billion in the pension account. But this is far from the truth. The account has never had more than N3 billion. Civil society organisations are invited to verify the claim,” Nnaji said.

He said the demand by the workers was unrealistic, because it is in gross violation of the 2004 Pension Reform Act.

Meanwhile, the Ministry of Power has said it is shocked at a statement credited to the President of the Nigeria Labour Congress, NLC, Abdulwaheed Omar, threatening to disrupt power supply nationwide if within a week the Federal Government failed to accede to the demand of the National Union of Electricity Employees (NUEE).

NUEE is demanding the withdrawal of security agents from all installations of the Power Holding Company of Nigeria (PHCN) across the country and the payment of 25% of salaries of workers which they claim had over the years been deducted from their pay as contributions to their pension scheme.

“It is self-evident to all Nigerians that the respected NLC President was not properly briefed on the issues in question,” the statement said.

The ministry said that it is unacceptable and unpatriotic for any person to suggest that the soldiers be withdrawn from the facility when it owes no money to anybody.