The Integrated Personal Payroll Information System allegedly failed to transfer N26.6 billion in employee contributions during a two-year period, according to the Federal Mortgage Bank of Nigeria.
This was stated on Thursday in Abuja by FMBN’s managing director, Mr. Madu Hamman, who was testifying before a House of Representatives Ad hoc committee looking into non-payment to the National Housing Fund and Utilisation.
According to the News Agency of Nigeria’s report, he said that a revenue drive by the Federal Government resulted in 40% of payments to FMBN going unremitted from October to December 2022, totaling N11.63 billion.
“From January to December 2022, N11.59 billion in backlog payments for MDAs from IPPIS were not remitted, while N3.36 billion in outstanding failed payments for 2021 from IPPIS were not remitted from April to July 2021,” the official added.
Hamman stated that 14 MDAs were impacted by NHF funds that were incorrectly made to the Federal Government Loan and Scholarships Board when intended for FMBN as housing contributions.
He claimed that upon retirement, all participants were entitled to a full refund of their cumulative contributions, including any interest that had accrued up to that point (2%).
Others, he claimed, were caused by reaching the age of 60 or being unable to work owing to illness or death, and he added that FMBN had given 444,637 beneficiaries N66.68 billion in refunds.
Speaking of projects carried out in a variety of ways, Hamman claimed that FMBN made sure to provide loans to the association of developers members who had registered.
He said that in addition to receiving regular main mortgage loans from interested parties, FMBN also distributed N139.6 billion to 24,332 beneficiaries.
Regarding the ministerial pilot program, he claimed that the Federal Ministry of Works and dwelling provided land for participants and had spent N38 billion to construct 5,443 dwelling units.
Mr. Ekwem Dem, Deputy Director of IPPIS in the Office of the Accountant General, responded to the charges by saying, “On our own part, we are just hearing some of these allegations.”
For instance, he stated that the “no work, no pay” policy for ASUU members remittances was still in effect, adding that a reconciliation window was required. “So that we can see the area of convergence.”
The committee’s chairman, Dachung Bagos, announced that it would continue to monitor some of the projects that FMBN claimed to have completed and their locations.