Kaduna uncovers N1.3b pensions fraud

KADUNA Government yesterday disclosed that it has uncovered a major fraud involving about 3,888 phantom pensioners, which cost the state N1.3 billion annually, following a major audit embarked upon recently.

The state governor, Malam Nasir El-Rufai, has ordered an investigation, subsequent arrest and prosecution of the culprits behind the fraud.

After the State Executive Council meeting yesterday, the State Government announced that, “it uncovered a pension racket that costs the state N1.3 billion annually”, adding, “this was one of the highlights of the report on the verification of pensioners in the state that has been presented to the state executive council.”

The report after the Council meeting “confirmed that 2,484 ghost pensioners were identified and removed from the pension payroll. Another set of 1,404 were classified as probable ghost pensioners because while they managed to get verified, they curiously failed to pick their pension cheques.”

A statement issued by the governor’s Special Assistant, Media and Publicity, Malam Samuel Aruwan, pointed out that the state executive council has ordered investigation to identify the individuals or group that have been “collecting the pensions of the ghost pensioners.”

According to Aruwan, “In July 2015, the total pension payroll from the state and local governments stood at 18,265. It cost the state government N543,771,967.43 monthly to pay the pensioners.”

“But at the end of the biometric verification exercise, only 15,781 pensioners were verified on the payroll. As many as 2,484 supposed pensioners did not show up at all. Of 15,781 pensioners that were verified, 1,404 pensioners did not collect their cheques, and they are being treated as probable ghosts.”

“The Kaduna State Executive Council has ordered further investigations into the precise identities of the syndicate behind the pension scam. The council welcomed the fact that the verification of the pension payroll will now enable the state to save N1.3 billion every year,” the statement added.