Retirees allege fraud in CBN Pensions

Member of the Board of Trustees (BOT) and former Vice President of the CBN Pensions Club, Mr. Augustine Awenlimobor, in a telephone conversation, however, described the action as punitive, since the measure only affected older pensioners, who had engaged the CBN in a legal battle for over 12 years, forcing the suspended governor to pay arrears two years ago.

Describing the apex bank’s move as “fraudulent,” Ewenlimobor stated that the older members of the Club had renewed the fight — this time outside of the courtrooms — when they discovered that their younger colleagues, who retired after them were receiving thrice their pensions.

According to him: “Along the way, we have come to know that those who retired after us on the basis of non-contributory Pension Scheme, were being paid much higher than us, about three times, to be precise.

“At first, we sought to discuss with the Director of Human Resources Department, Ms. Chizoba Mojekwu, to comply with the order of the courts to harmonise our pensions. But when she was not forthcoming, we engaged the services of a lawyer to serve the officials of the bank, who would not allow our case to sail through. The lawyer was to issue them ‘Form 48’ (a contempt of court form), which they evaded.

“It is during this process that the Central Bank went ahead to slash our pensions by at least 15 percent in the month of February 2014 instantly without prior discussion.

“We view it as a punitive measure calculated to intimidate the older pensioners, since it was only the pensions of the older pensioners that were affected. The older pensioners were those seeking to enforce their rights conferred by the Law Courts, which lasted for over 12 years,” Ewenlimobor insisted.

He said the members have no choice but to view the “recent action of the CBN Management as an act of pension fraud, which must be stopped with immediate effect.”

The subject of pension harmonisation in the CBN was object of litigation between the apex bank and its pensioners from June 1999 to June 2010. After 11 years of protracted court process, during which the CBN had, through the Court of Appeal up to the Supreme Court, challenged a 1999 Lagos High Court judgment ordering it to comply with the government circulars and White Paper in that regard, the pensioners in May 2010 finally got the apex court to order the CBN to pay the new rate and the arrears without delay.

One year after, the CBN did not implement the Supreme Court judgment, even as many of the supposed beneficiaries of the judgment passed on.

Subsequently, The Guardian, in early 2011, exclusively published a list of about 100 CBN retirees, who had died waiting for their entitlements since the new scheme took effect in all Federal Government parastatals, except the CBN. As the legal battle subsisted, the banking business regulator’s argument was that it could not afford it and that its pensioners were not included in the scheme. The CBN, however, extricated itself from the demise of the 100 pensioners, arguing that the deaths should, in no way, be associated with the legal tussle surrounding the pension scheme. It also explained that it took care of its senior former employees by paying their pensions as and when due.

Two months after the publication (precisely on June 26, 2011), The Guardian exclusively reported four new deaths of CBN pensioners waiting for the apex bank to implement the Supreme Court Judgment. Only three of such deaths were, however, confirmed as at the time of going to press. In the new list of casualties as at the time, were Mr. R. O. Ojemoron, who died on May 26, 2011); Mr. P.A. Adeboye, May 30; and Mr. J.O. Olatosi, June 6.

Subsequently, the apex bank, mid-2011, conducted a special head count of all its pensioners in all 23 branches of the apex bank, including Abuja Headquarters, for the purpose of paying the accrued arrears of pension, as well as confirming to the pensioners the new enhanced monthly pensions due to them.

According to Ewenlimobor, “when it dawned on the CBN that they would have to obey the Court of the land, it was another herculean task as they dragged it for a further period of two years, during which they stated that they were taking their time to do a thorough job.” Before paying the older pensioners, the CBN held series of meetings at which they stated what they were to pay to each and every one affected.

He informed that at one of the meetings between the representatives of the CBN Management Team and the representatives of CBN Pensioners Club, on the 3rd floor of the CBN Conference Hall, Lagos Office, on November, 24, 2010, the apex bank explained that the outstanding balances of the percentage increases of 150 percent, 30 percent and 142 percent granted by the Federal Government (less the arbitrary 40 percent and 60 percent respectively already paid by the CBN) would then be paid.

The CBN Management further stated that the new figures arrived at would form the base period figures for the six percent upward review of 2005 and the 15 percent further upward review of 2007 to date.

“It is on the basis of this that our pensions have been paid since July 2011 to January 2014,” Ewenlimobor said.

[Guardian]