The Senate Monday commenced a probe into the sum of N14 billion salary increment approved for the staff of the Nigerian Security Printing and Minting Company (NSPMC) Plc by its Board of Directors without the approval of the National Salaries, Incomes and Wages Commission (NSIWC).
The Chairman, Senate Public Accounts Committee (SPAC), Senator Ahmed Wadada, made the disclosure at a session of the panel in the National Assembly.
The management of the NSPMC had appeared before the committee to defend the audit query against the agency as contained in the 2019 report of the Auditor General for the Federation (AuGF).
The AuGF report revealed that the NSPMC Board of Directors had between 2016 and 2019, approved N14 billion for salaries and allowances without an approval from the salaries and wages regulatory body.
The panel noted that Article 3 of the NSIWC Act, 1990, stipulated that the commission shall advise the Federal Government on national incomes policy.
It shall also 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.
The agency was also expected to propose guidelines within which increase in wages should be confined, among others
In his written defence, the Managing Director of NSPMC, Alhaji Ahmed Halilu, claimed that the company did not need any approval from the salaries and wages regulatory body because it was registered under the Companies and Allied Matters Act (CAMA).
He nevertheless admitted before the SPAC that it was wrong not to seek approval from the NSIWC before implementing the new salaries and allowances increment for the company.
Halilu 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.”
The committee members expressed displeasure over the alleged illegal wage payment and noted that public funds must be spent with due process.
The Deputy Whip of the Senate, Senator Nwebonyi Onyeka, specifically maintained that the N14 billion was not spent with due process.
He said the misappropriated fund should be refunded.
His suggestion was adopted by the panel.
The Senate at plenary will decide the fate of the Board when the SPAC report is submitted for consideration.