Business
AGF Approves Police Pensions Account
The Accountant – General of the Federation, (AGF), J.O Otunla, has approved the opening of the Police Pensions Office account.
In a letter dated August 9, 2011 to the Chairman, Police Pensions Office titled “Confirmation and Clearance to Open Accounts”, Otunla gave the Pension Office the go ahead to do business with some of the banks selected by the Police Office.
“With reference to your letter Ref. No. PPO/OAGF/VOL.I/7 of 11th July 2011 on the retail banking relationship of your Agency”, the AGF said that he was pleased to convey “my confirmation and clearance of the underlisted banks- United Bank for Africa Plc and Fidelity Bank Plc”.
He stressed that the banks should be used for pension payment Accounts as indicated in the Police Office’s letter.
The AGF’s declaration may have faulted some reports that the Police Pension Account was placed in a private account.
According to reports from the Federal Ministry of Finance, the Police Pension Office Account had been opened and signatories to the account appointed long before the Finance Minister and the Coordinating Minister for the Economy assumed office at the ministry.
The Minister of Finance and the Coordinating Minister for the Economy, Dr. Ngozi Okonji -Iweala, had on assumption of office in September 2011, stopped any transactions on the account.
In her testimony before the Senate Joint Committee on Public Service and Establishment on State and Local Government Administration probing alleged corruption in the management of pension funds, she said a letter had been written to the banks to freeze the account because of the mismanagement of the fund.
“There are many anomalies with the management of pension funds and the transfer of accounts. We need to sanitise the system”.
In her letter to the heads of the financial institutions managing the fund to freeze the account, Okonjo-Iweala specifically said that the accounts should “remain frozen except for an amount to be authorised by me for the payment of pension benefits”.