On the Matter of Investing PENCOM Funds for National Development {Re: Jonathan spent N3.5tn pension fund on recurrent expenditure – Oshiomhole

[Mobolaji Aluko]

My People:

Here is what Oshiomhole is quoted to have said:

QUOTE

You challenge Pencom and Ministry of Finance, you will discover that over N3.5tn was drawn by the previous government from pension funds to support recurrent expenditure, not to support infrastructure.

UNQUOTE

Assuming he was quoted correctly - no embellishment or fabrication - there are two issues here:

1. First is the very character of MISAPPROPRIATION. If that is what Oshiomhole is hinting at, then misappropriation/misapplication means not spending a particular money the way it was meant to be spent, sometimes by the person who has custody of the money, who may do it under the influence of another person.  I am not sure that is what Oshiomhole is stating here.  It is therefore trite to say that something CANNOT happen, when in fact the very POSSIBILITY/REALITY of its happening is the ILLEGALITY being hinted at.

2. Secondly, and more importantly, is to ask certain questions:

    (1)  Was  N3.5 trn drawn from PENCOM during this period?

(2) How much of it was invested in INFRASTRUCTURE?

(3) Is there ANY other CAPITAL category OUTSIDE of Infrastructure that PENCOM spent part of the money on?

If NONE was invested in Infrastructure or any other Capital Project - as Oshiomhole is likely to be hinting - then the ONLY other category that PENCOM must have spent the money on would be RECURRENT - to pay for

(A) its (PENCOM) own workers (salaries + allowances)

(B) to pay for its own overhead operations

(C) to pay for retirees - its primary aim.

I believe that is what Oshimhole is hinting at - that the N3.5 trn was not INVESTED to generate more money - maybe beyond interest income from banks - and was used to do (A), (B), (C) above, rather than to include

 

    (D)  Investment in Infrastructure (Roads, Railway, Power, Water), for which citizens will be required to pay

    (E)  Low-Interest Loans for Education

    (F)  Low-Interest Loan for Agriculture

    (G)  Low-Interest Loans for Manufacturing Industries

    (H) Conservative Investment in Foreign Securities

 A successful investment in these will not only DEVELOP the country, but a portion of the return on investments will be ADDED to the income of the retirees via (D) to (G) above.

That is what is done all the world over - except in Nigeria apparently - out of fear of corruption? We must rise above that, and be confident that we can put the proper controls.

In conclusion, I fully support the conservative use of the trillions of PENCOM in developing our country. Not doing so is ridiculous, and is like that story of the Bible where one man was given a talent and he BURIED it and returned it to its owner who upbraided him, while the others invested theirs, and where given even more money.

And there you have it.

Bolaji Aluko

On Wed, Oct 7, 2015 at 10:42 PM, 'Leye Ige' via AfricanWorldForum <africanw...@googlegroups.com> wrote:

"The funds are held by one independent institution while the investment decisions are made by a different private sector entity. All regulated by PENCOM..No Government can use pension funds as before because the funds neither belong to Govt nor controlled by Govt."--Joe Attueyi



(1) The funds need NOT belong to or  be controlled by the Government BEFORE the government can access it. The Government appoints whoever will be the directors  of PENCOM and associated entities.
(2) The government does NOT have to "use it as before"; that is, simply dipping its hands into it; BUT the government can utilize it via "Investments"--which is what Pension funds are all about-- just that in this case, the "investment" is in recurrent expenditure.
Leye Ige


--------------------------------------------
On Wed, 10/7/15, Joe Attueyi topc...@yahoo.com [OmoOdua] <Omo...@yahoogroups.com> wrote:

 Subject: [OmoOdua] Re: [NIgerianWorldForum] Re: Jonathan spent N3.5tn pension fund on recurrent expenditure – Oshiomhole
 To: Omo...@yahoogroups.com
 Cc: Omo...@yahoogroups.com, "Segun Sanni therea...@yahoo.com [NaijaPolitics]" <NaijaP...@yahoogroups.com>, "Oyo State Intellectual Forum" <Oyo-...@yahoogroups.com>, "NAIJA Dream Team Intellectuals" <naijadreamtea...@yahoogroups.com>, "Buddies" <Cauc...@yahoogroups.com>, "Ode- Besilu's Group" <NaijaO...@yahoogroups.com>, "AfricanWorldForum" <AfricanW...@yahoogroups.com>, "Naija News" <TalkN...@yahoogroups.com>, "yahoogroups" <Egbe...@yahoogroups.com>, "Unilorin friends" <Universityo...@yahoogroups.com>, "Yan" <YanA...@yahoogroups.com>, "Professionals" <capitalmark...@yahoogroups.com>, "Ra'ayi Riga" <raay...@yahoogroups.com>, "Naija...@googlegroups.com" <Naija...@googlegroups.com>, "African GM" <africanw...@googlegroups.com>
 Date: Wednesday, October 7, 2015, 12:29 PM

  









       Post Adeola commission restructuring of
 the pension system:
 the  pension
 funds contributed
 ‎under the auspices of
 the National Pension Commission
 (PenCom) are
 managed by privately owned Pension Fund
 Administrators (PFAs) and kept in custody by
 Pension Fund
 Custodians
 (PFCs).

 as Segun
 rightly educated those who are interested in knowing how the
 pension system currently works in Nigeria. The funds are
 held by one independent institution while the investment
 decisions are made by a different private sector entity. All
 regulated by PENCOM. 
 No Government can use
 pension funds as before because the funds neither belong to
 Govt nor controlled by Govt. 
 Some state governments
 have not adopted these pension reforms. Edo is probably one
 of them -- which would explain Oshio's
 confusion
 Joe
 Sent from my iPhone
 On Oct 7, 2015, at 4:48 PM, Leye Ige ige....@yahoo.com
 [NIgerianWorldForum] <NIgerianW...@yahoogroups.com>
 wrote:

 the  pension funds contributed

  ‎under the auspices of the National Pension Commission

  (PenCom) are managed by privately owned Pension Fund

  Administrators (PFAs) and kept in custody by Pension
 Fund

  Custodians (PFCs).

     __._,_.___










         Posted by: Joe Attueyi <topc...@yahoo.com>





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   .

[Wharfery Snake]

I think it is foolish to read another person's mind. Once we cross that bridge nothing said or written can ever be taken at face value. Mofolaji Aluko, if you need clarifications from the Beast in Edo, why not do so. I am sure you have his phone numbers. 

WS - A revered prince of Mushin.

Sent from my iPad

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