Ministers may clash over N45b ex-airways workers’ pay intrigues

• 838 ex-airways workers died since 2004 liquidation
• 25 deaths since December 2017

A cold war is brewing between the Ministries of Finance and Aviation over intrigues concerning the release of N45 billion approved by the Federal Government last year for the final severance benefits of former workers and pensioners of liquidated national carrier – Nigeria Airways Limited.

 The impending crisis is predicated on the inability of the Finance Ministry to fast track release of the funds several months after the Minister of State, Aviation, Hadi Sirika announced at the Federal Executive Council meeting that government has given approval for the payment of the money.

 Meanwhile, over 838 persons, including former workers and pensioners of the defunct national carrier had died since September 30, 2004 when the airline was formally liquidated.

 Sources close the former airline workers appealed to President Muhammadu Buhari to order the Ministry of Finance to release the N45 billion approved for the former workers.

 The appeal to Buhari, according to the source is to stave off  further death of former Airways workers and pensioners, as additional 25 deaths was recorded between December 2017 and January 2018.

 The source hinted that though, the Ministry of Aviation had done enough to facilitate  approval for the release of the N45 billion, the Presidency needed to take further steps to work on the National Assembly to ratify the approval before the N45 billion, which is not contained in the budget could be released.

 The source hinted that former Airways workers and pensioners under the aegis of Aviation United Grand Alliance (AUGA), have written series of letters to the Ministry of Aviation, Senate President, Chairmen Senate Committees on Aviation, Appropriation, Pensions and Establishment on the necessity to accelerate release of the N45 billion to former employees of the liquidated national carrier.

 In a letter dated, January 8, 2018, with reference number FMA\PMD\7272/ S.8/VOL/393 , the Ministry of Transportation responded to a letter by  the National Chairman, Nigerian Union of Pensioners, Airways Branch urging Ex – Airways workers exercise patience with government on the delay in release of the funds.

 The letter signed by S. U. D Maigana, director in charge of Human Resource Management read in part: ” I am directed to acknowledge the receipt of your letter December 22, 2017 on payment of N45.3 billion pension pay off to ex – Airways workers/pensioners of defunct Nigeria Airways.

 The ministry is working hard to ensure that your members” entitlements are paid accordingly. You are further advised to exercise some patience with government, while thanking you for your usual cooperation. Please accept the warm regards of the Minister.”

 In a letter dated September 13, 2017 with reference number OHMF/PICA / FMT/28/Vol.1/94 the Minister of Finance , Mrs Kemi Adeosun informed her aviation counterpart, that she has received approval  from the Presidency contained in a letter with reference number SH/OVP/DCOS/FMF/056 dated May 15, 2017 for the settlement of benefits of 5,909 verified ex- workers and pensioners of Nigeria Airways in liquidation.

 The letter reads:”Accordingly , the approval is based on the recommendations that physical verification of beneficiaries would be carried out by the Presidential Initiative on Continuous Audit and other relevant Federal Government agencies before payment is affected.

 “That payment of the outstanding claims has been factored in the Promisory Note Programme ( PNP) of Federal Government.

 “The minister may wish to note further that you would be notified on the commencement of the payment as soon as the process of PNP is completed.”

 Investigations revealed that the inability of government to release funds for the payment of severance benefits may be linked to the lumping up of the sum with funds proposed for the payment of inherited statutory debts, for which government intends to defray with the $5.2 billion foreign loan it intends to take.

 The loan, it was learnt is intended to settle monies owed contractors, military pensions as well arrears of promotion for civil servants and workers.

 This lumping up, sources hinted has angered ex – Airways workers, who are not only happy that the final entitlements was slashed from N78 billion to N45 billion, but that they were encouraged to sign an undertaking to foreclose further demands for settlement of their benefits.

 The undertaking is contained in a letter by AUGA to the Ministry of Aviation with reference number AUGA/ NUP/ F.1/16/FMA. It is dated November 7, 2016.

 The letter reads: “We the under listed and accredited officials of the workers and pensioners of Nigeria Airways in liquidation affirm in accordance with the recommendations of the 2006 Inter Ministerial Report on NAL and our agreement in the stakeholders meeting held in the Federal Ministry of Aviation on April 14, 2011 and September 15, 2014 that the approval and subsequent payment of supplementary compilation 33 per cent pension increase.

 “That outstanding pension arrears and additional 10 years pension payoff to all categories of our members will bring to a close all agitations from any of the unions.

 “With the full and final payment of the above items by the Federal Government , all instituted court cases are dropped and it forecloses all labour issues without further litigations as it affects the defunct Nigeria Airways staff and pensioners to give a clean start to the new National Carrier.”

 Meanwhile, the Minister of Finance, a source hinted has set up, a committee with PICA to liaise with the National Assembly to secure ratification for release of the N45 billion.

 The rationale for the interface, it was learnt is to ensure the executive arm of government does not spent any money that has not been approved by the legislature.

 The source said:” We are calling on Buhari to keep his promise of settling the severance benefits of former Airways workers.

 “Mr President should order the Minister of Finance to consider ways and means of sourcing for the N45b. Any delay in releasing the money will lead to further death of our colleagues. Buhari should reach out to the National Assembly to get ratification for the release of the money.

 “The whole idea of lumping severance benefits with monies meant for payment of debts to contractors and other inherited debts will not augur well for us.  We have already made enough sacrifice through the slashing of the severance benefits N45b to forty five billion, and now we are losing our members daily.

 “Many of them had built their hope that they will soon get the money, only to be disappointed by government statement that they should exercise patience. This is getting unbearable.

 “How can government approve the money since May 2017 and nothing has happened. We think Sirika has tried his best to get approval from government, it is not his responsibility to pay.”