N5bn pension fraud: 5 directors in EFCC net

Posted by admin EFCC Politics, Headlines Tuesday, January 25th, 2011

Five directors in the federal civil service have been arrested by the Economic and Financial Crimes Commission (EFCC) over an alleged N5billion fraud. The suspects, who are serving in various ministries, were said to have worked at the pensions department in the office of the Head of Service (HOS), where they allegedly committed the offence.

Sources at the anti-graft agency hinted Daily Sun that the suspects were members of a syndicate which had been collecting monthly payments of about 11,000 ghost pensioners before the bubble burst last Saturday when they were arrested at various points in the Federal Capital Territory (FCT).

The Directors in EFCC net include Messrs Mamman Ali Abdallah, Aliyu Bello, Luke Eloanyi, and Mrs. Phiana Chidi, formerly a deputy director (Finance & Administration) in the pensions department of the office of the HOS, now with the Federal Ministry of Transport.
Detectives investigating the case had reportedly recovered a sum of N500million and $2million from a single bank account allegedly owned by Mrs. Chidi, who is said to be the leader of the syndicate. Daily Sun also learnt that she was picked up by operatives of the EFCC last Saturday at the Abuja Sheraton Hotel & Towers, where she was allegedly hiding.

It was suspected that until their arrest, members of the syndicate may have raked in an average of N1.2billion monthly, going by figures presented to the EFCC by the new Head of Service of the Federation, Professor Afolabi. The HOS had during a recent visit to the Chairman of the EFCC, Mrs. Farida Waziri, revealed that the involvement of the anti-corruption agency in pension administration had led to a drastic cut in the bills from N2.3billion to N1.2billion monthly.
EFCC spokesman, Femi Babafemi, confirmed the arrest of the five directors over the alleged pension scam, but declined further comments. He, however, said investigations are in progress.

-Tribunewp_posts