By ERICJAMES OCHIGBO

The Chairman, House of Representatives Committee on Public Account, Rep. Bamidele Salam (PDP-Osun), has appointed a five-man Sub-Committee to investigate severance packages for political appointees in government agencies.

Salam announced the sub-committee in Abuja on Thursday following lawmakers? resolution to probe the process of severance packages for political appointees.

Speaking at a public hearing on the 2020 Audit Queries from the Office of the Auditor General for the Federation, Salam said some agency?s boards appeared too powerful and approved any amount as severance package for appointees.

He raised concern over the scale of severance packages being paid to board members of some government agencies.

The lawmaker said the package enjoyed by some appointees for four years of service was higher than the packages for civil servants who served for 35 years, including those who served in war zones.

?There is an urgent need for the government to efficiently manage its finances, especially given the current fiscal challenges,? he said.

He said that the report from the probe would be presented on the floor of the house with recommendations to amend the existing Act to curtail indiscriminate approvals.

In his remarks, the Director-General, Securities and Exchange Commission, Dr Emomotimi Agama, said the commission operates both the Defined Benefit and Contributory Pension Schemes.

He told the committeee that both schemes are managed by three Pension Fund Administrators (PFAs): Sigma, Premium Pension, and Stanbic IBTC.

According to him, the commission opted to pay management fees to the PFAs to reduce the risk of future deficits that will require off-setting within 90 days.

He explained that the severance package and allowances are paid to the former Executive Commissioners who served at the commission from 2013 to 2017 as approved by the board. (NAN)

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