The Rivers State chapter of the Trade Union Congress said its attention has been drawn to the response by the National Pension Commission signed by Emeka Onuorah, its Head of Corporate Communications, to the TUC’s statement that PenCom is about to issue a guideline for the withdrawal of voluntary contribution from the Retirement Savings Account without due consultation with the workers, the unions that represent them and without recourse to the National Assembly.
In the statement, PenCom alleged that the guidelines “will boost government’s fight against Financial Terrorism and Money Laundering, and nip in the bud the dangers that could arise should Contributors decide to use RSAs to launder dirty money”.
The TUC said it is shocked that the PenCom’s spokesman could make such an assertion and deliberately misinform the public.
The statement, signed by the state Chairman of the TUC, Comrade Hyginus Chika Onuegbu, reads further: “The least we expect from PenCom’s spokesman is to say the truth and not lie to the public.
“It is important to clarify that Voluntary Contributions are paid from salaries of workers and deducted at source by the employer and remitted to PenCom through the Pension Fund Administrators (PFA) just like the statutory pension contribution. This contribution was first started following the commencement of the 2004 Pension Reform Act which was later repealed and replaced by the 2014 Pension reform Act. Section 9(5) of the 2004 Pension Reform Act states that ‘Any employee to which this Act applies may, in addition to the total contributions being made by him and his employer, make voluntary contributions to his retirement savings account’.
“Since then, 2004, workers have been making voluntary contributions and withdrawing the voluntary contributions as they elect to freely do. This was the impression created by PenCom and the PFAs to lure workers to make additional voluntary contributions, and has been the practice since 2004.
“It is therefore shocking that PenCom’s spokesman would in his desperation to cover the unilateral actions of PenCom lie to deceive the public that Voluntary contribution is used to launder dirty money. And how come PenCom have not prosecuted or indicted anybody for laundering dirty money through the Voluntary Contributions since 2004?
“Again, PenCom said that TUC is on the Board of PenCom. That is true. In fact TUC, NLC and NECA amongst others are on the Board of PenCom. But as we make this publication, PenCom’s board have not been reconstituted and PenCom have not engaged representatives of TUC, NLC and NECA on the proposed guidelines. And this is the crux of the matter. Nigeria is operating a constitutional democracy and agencies of government cannot be allowed to operate unilaterally without recourse to the Law and rules of engagement in a democracy.
“If PenCom is sincere about its intentions, they should have engaged the leadership of TUC, NLC and NECA to ensure that there is broad stakeholders support for the new guidelines. Even the process of legislation by the National Assembly which led to the enactment of the 2004 and later 2014 Pension Reform act is one of engagement. Public hearing was conducted by the National Assembly and stakeholders made their inputs. We are therefore surprised that a fundamental change in the administration of Voluntary Contribution will be made to the extent that a draft has been issued by PenCom without engaging TUC, NLC and NECA. This is dictatorial and cannot be allowed in a constitutional democracy. We would as representatives of the workers are failing in our duties if we allow PenCom become dictatorial and tyrannical in their approach to making fundamental changes.
“And for the avoidance of doubt, TUC Rivers State we will commence the process of shutting down the economy of Rivers state (without any notice or ultimatum) if PENCOM goes ahead with these illegal changes in the proposed guidelines without due engagement of the Trade Unions and the workers they represent, and without the due process of law in a constitutional democracy.”