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From Adanna Nnamani, Abuja
The Nigeria Social Insurance Trust Fund (NSITF) has faulted the claim by the House of Representatives Adhoc Committee on unclaimed Funds that the Fund owes the Federal Government in respect of the non-remittance of Operating Surplus Funds between 2016-2018.
The agency explained that being a social security agency which is currently majorly funded from contributions of private sector employers to procure cover on behalf of their employees can not be described as revenue.
Chairman of House of the House of Representatives Ad-hoc Committee on Unclaimed Funds in Nigerian Commercial Banks and the Infractions of the Central Bank of Nigeria (CBN), Hon Unyime Idem, on had on Tuesday, disclosed that the Nigerian Social Insurance Trust Fund (NSITF) owed the Federal Government N3.8bn.
Speaking during the continuation of the investigative hearing of the Ad-hoc Committee in Abuja, the lawmaker explained that the amount represented the figure which was not remitted to the government by the agency from 2016 to 2018.
According to him the agency submitted audited financial statements for only this period and the debt figure was arrived at by the committee from the documents it received.
But in a statement issued on Wednesday, the NSITF Spokesperson, Mrs Ijeoma Okoronkwo said, “The amount standing to the credit of the Employers Compensation Fund Account, does not fall under the Operating Surplus , intended by the Section 22 of the Fiscal Responsibility Act.”
She said NSITF is a Non Treasury Funded Parastatal and the 1% contribution can be likened to Insurance premium and not IGR.
Okoronkwo argued that the balance in the Fund account is meant to be invested in line with section 32(e) of the Employee Compensation Act 2010, in order to fulfill its obligations of payment of death claim, Medical compensation and rehabilitation expenses as they occur; and not meant to be remitted to the Consolidated Revenue Fund of the Federation.
