Economy
Pension Fraud: Enugu uncovers 2,640 ghost, deceased pensioners
The Enugu State government has revealed the discovery of 2,640 ghost and deceased pensioners on its pension payroll.
This announcement was made at a press briefing in Enugu by the Secretary to the State Government (SSG), Prof. Chidiebere Onyia, on August 25, 2024.
The SSG outlined the progress of Governor Peter Mbah’s administration in addressing the backlog of pensions and gratuities.
Prof. Onyia said:
“Recall that the governor of Enugu State, Dr. Peter Mbah, had earlier promised that his administration was poised to eradicate poverty in the state…
“By clearing the inherited backlog of pensions and other liabilities, and also keep up with its current fiscal responsibility to the citizens, among other measures.
“This will improve our people’s standard of living, raise purchasing power and promote strong and sustainable economic growth in the state.”
In July, a total of 7,109 local government pensioners received monthly payments amounting to nearly half a billion naira.
This figure includes 989 new retirees from April 2022 to April 2024 who were not previously in the pension scheme.
“Restating the state’s commitment to clear all arrears, Prof. Onyia stressed that the payment mode adopted by the state…
“Would guarantee that backlogs were phased out within the timeline set out by the government,” he said.
“This administration will continue to support our citizens, particularly our senior citizens, who dedicated their time and energy serving the state.
“We will soon phase out all arrears inherited by the administration.
“We are reforming the pensions system through strong institutional policies that would make it difficult for corrupt elements to find their way into the scheme.
“We have been able to digitalize the institution with measures that would make every transaction and payment transparent, accountable, and traceable,” he added.
Background on pension issues in Enugu State
Enugu State has faced significant challenges with its pension system over the years.
Issues include unpaid pensions, ghost workers, and administrative inefficiencies.
These problems have been a recurring theme across multiple administrations, each struggling to manage and reform the state’s pension system.
The roots of the pension issues in Enugu State trace back several decades; consequently, the problems have persisted over time.
Poor record-keeping, corruption, and financial mismanagement led to a bloated payroll filled with ghost pensioners.
These ghost workers, who did not exist or had long passed away, continued to receive pension payments, thus, they drained the state’s limited resources.
The lack of regular audits and the absence of a robust system for verifying pensioners worsened the situation.
As a result, many pensioners in Enugu State faced long delays in receiving their payments.
The unpaid pensions backlog led to protests by retirees struggling to survive without their entitlements.
These pensioners often accused the government of neglect and mismanagement, as their grievances went unresolved for years.
Handling by previous administrations
Previous administrations in Enugu State made various attempts to address these pension-related challenges, but with limited success.
For instance, previous administrations attempted verification exercises to remove ghost pensioners from the payroll.
However, these efforts were often hampered by entrenched interests and the lack of political will to fully tackle the problem.
Some administrations began pension reforms to streamline payments but often poorly implemented or failed to sustain them.
As a result, the problems persisted, and the state’s pension liabilities continued to grow.
The absence of a digital record-keeping system made verifying pensioners cumbersome and prone to errors.
Recent reforms and audits
In recent years, there has been a more concerted effort to address the pension issues in Enugu State.
Under Governor Peter Mbah’s administration, officials have made significant strides in reforming the pension system.
Key reforms include digitizing the pension payroll and introducing regular audits to ensure transparency and accountability.
In March 2024, the state government conducted a thorough audit of its pension payroll, which led to the discovery of 2,640 ghost and deceased pensioners.
This discovery was a significant step in cleaning up the pension system and ensuring that only legitimate pensioners receive payments.
The audit exposed past mismanagement and underscored the need for ongoing reforms to prevent similar issues in the future.
The state government is clearing unpaid pensions and promptly and accurately making future payments.
These efforts are part of a broader strategy to restore public trust in the government’s ability to manage public funds and provide for its retirees.
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