Pension Package for Public Holders as Conduit Pipe

With President Muhammadu Buhari’s inability to use moral persuasion, as promised ahead of the 2015 elections, to convince governors to amend pension laws, outrageous package for public office holders has remained a conduit pipe to siphon state funds,  Segun James writes

As the country prepares for the May 29, 2023 handing over to new administrations, no fewer than 17 state governors are set to retire and enjoy generous retirement and pension benefits for their ‘services’ to their states. 

These outgoing governors include: Nyesom Wike of Rivers State, Ifeanyi Okowa of Delta State, Udom Emmanuel of Akwa Ibom State, Abdullahi Ganduje of Kano State, Badaru Abubakar of Jigawa State, Bello Matawalle of Zamfara State, Ben Ayade of Cross River, Okezie Ikpeazu of Abia, and David Umahi of Ebonyi. Other outgoing governors who will enjoy generous benefits are Ifeanyi Ugwuanyi of Enugu State, Samuel Ortom of Benue State, Darius Ishaku of Taraba State, Abubakar Bello of Niger State, Abubakar Bagudu of Kebbi State, Nasir El-Rufai of Kaduna, Simon Lalong of Plateau State, Aminu Masari of Katsina State and Aminu Tambuwal of Sokoto State.

Since 1999, political office holders have been receiving mouth-watering benefits, thus draining public resources. Though the exact amount of severance allowances received by ministers and other members of the Federal Executive Council (FEC) remains shrouded in secrecy, it was reported in May last year that the members of the ninth National Assembly allegedly received N35 billion as severance package.

Some outgoing governors not only award extravagant severance allowances to themselves but also inflate their pensions. Undisputed media reports in 2019 had estimated that the pensions paid by 21 states to 47 former governors in the previous four years exceeded N37 billion.

These generous entitlements to former governors, which were first introduced in Lagos State, had since spread to nearly all the states. Almost all former governors, except perhaps, the former Governor of Anambra State, Mr. Peter Obi, who reportedly declined the offer, had enacted laws to enable them enjoy what many described as opulent lifestyles even after leaving office.

Some of these former governors were even said to have enacted laws to enjoy extravagant funerals when they pass on to glory.

In some states, these laws also provide for the construction of lavish mansions for the former governors, and the provision of a befitting palace for them in their state capitals or Abuja, the nation’s capital. Each of the former deputy governors are also entitled to an accommodation allowance, which in some cases, equal to 300 per cent of their annual basic salary.

Also in some cases, these laws stipulate that former governors and their spouses are entitled to free medical services anywhere, with costs ranging from N100 million to N200 million per annum, while the deputy governor is entitled to N50 million annually for the same purpose.

Governors and their deputies in some of the states are also entitled to their current salary for life. In addition, they are entitled to furniture allowances and brand-new cars every four years at the taxpayers’ expense. Their cooks, chauffeurs and security personnel are also generously paid for.

Sadly, some of these former state chief executives not only awarded huge contracts to themselves unchallenged while in office, but also to their cronies where they took huge percentage as kickback for four or eight years they were in power.

 To now see these the same set people who have accumulated enough resources to last for them and their children throughout their lifetime, still enjoy lifetime benefits for ruling their states when many pensioners who served the country and their states meritoriously for 30 to 35 years being denied their meagre entitlements, is unbelievable.

Even when many of these former governors are serving as senators, ministers, or holding other high public offices where they receive substantial remunerations, they still enjoy pensions – a blatant misuse of public funds.

This defeats the argument that providing pensions for the former governors would ensure they have enough to sustain themselves after leaving office and potentially reduce corruption.

However, it is public knowledge that some former governors have been convicted for embezzling state funds despite being entitled to lifetime allowances.

Mounting pressure on several states, including the Appeal Court’s decision to halt the payment of exorbitant amounts to their former leaders has failed to stop the drain.

President Muhammadu Buhari had during his campaign for the 2015 presidential election pledged to use moral influence to persuade governors to modify the provisions of pension laws because they were unsustainable. However, after nearly eight years in office, there has been no public statement on the matter.

Also, despite the 2019 Court of Appeal judgment declaring the payment of severance allowances to elected or appointed public office holders as morally wrong, state governors have disregarded the judgment on the ground that their various states made valid laws that support the payment of pensions and severance allowances.

The Court of Appeal made the ruling in response to an appeal (marked: CA/A/810/2017) filed by the Kogi State Government in a dispute between it and some former members of the Kogi State Local Government Service Commission (KGSLGSC), who had served for four years from February 2013 to February 2017.

The former council officials had sued the Kogi State governor, Secretary to the State Government, Attorney General and Commissioner for Justice, and Kogi State Local Government Service Commission in a case heard at the National Industrial Court in Abuja.

The claimants had asserted that they were entitled to a total of N55.4 million, which represented the accumulated arrears of their salaries for 17 months, four years’ worth of leave bonuses, and severance payment upon the expiration of their tenure.

When the presiding judge of the court, Justice R. B. Hastrup, in his decision, reportedly ordered parties to file more pleadings, Kogi State government approached the Court of Appeal.

In their judgement, the three-man panel of the court faulted the payment of severance allowance, pension or gratuity to political office holders and political appointees, insisting that the practice was morally wrong.

In the lead judgement delivered by Justice Emmanuel Agim, the court held that it was wrong for political appointees and elected public office holders, who do not work as long and as hard as the career civil servants to quickly get paid huge severance allowances upon leaving office in addition to the huge wealth they acquired while holding such offices and without having been subjected to any contributory pension schemes.

“It is also common knowledge that many of them after an office tenure of between three to eight years become stupendously wealthy, exhibiting mind-blowing opulence and splendour. Yet, these officeholders insist on being paid severance allowance for holding such offices.

“Meanwhile, career civil servants, who have served this country or their states or local governments, all their life, can hardly collect their pensions and gratuity, when retired. They are now being subjected to contributory pension schemes in which they contribute part of their monthly meagre salaries that are always paid in arrears while in service, to be able to earn pension and gratuity upon retirement,” Agim held.

With the failure of President Buhari and the court’s decision to halt the payment of extravagant pensions to former governors, retired career public servants and the common man will continue to suffer.