Home Business BPE Explains Delay in Payment of N1.8bn Severance Benefits to SAHCOL Ex-workers

BPE Explains Delay in Payment of N1.8bn Severance Benefits to SAHCOL Ex-workers

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The Bureau of Public Enterprises (BPE) says the compulsory contribution to the Treasury Single Account (TSA) is preventing it from paying N1.8 billion severance packages to the ex-staff of the Skypower Aviation Handling Company Limited (SAHCOL) since 2018.

The bureau’s Director for Post Transaction Management, Mr Tajudeen Oduniyi, stated this in a letter with reference number: BPE/PTM/NUATE/11/2022/M10.01 in Lagos on Sunday.

He said that its contribution to the TSA stopped it from fulfilling the Memorandum of Understanding (MoU) reached with the former workers in 2018.

According to Oduniyi, all entreaties to Mrs Zainab Ahmed, Minister of Finance, Budget and National Planning, to ensure the release of the funds proved abortive.

The News Agency of Nigeria (NAN) recalls that the federal government in 2015 through its policy had compelled all ministries, departments and agencies (MDAs) to contribute 25 per cent of their revenues to the TSA. Last month, the government had increase the contribution to 40 per cent, thereby adding more burdens to the MDAs.

Oduniyi explained that the BPE reached an agreement with the former 982 staff of SAHCOL on Nov. 2, 2018, after which it inaugurate a negotiation committee to ensure the implementation of the MoU.

He said the Bureau has written to the finance minister for funds to settle the retrenched workers but is still awaiting a reply.

“In light of the foregoing, it has become expedient to update you on our modest efforts to bridge the communication gap from the MOU we signed with you on November 2, 2018.

“This is in addition to our Director-General‘s willingness to offer to pay the redundancy as opposed to the stand of the Chairman of SAHCOL.

“Also recall that at the inception of this administration in 2015, all funds of government agencies and MDAs were swept into the Treasury Single Account (TSA), thus disabling us financially. Given this scenario, our only option was to write to the Minister of Finance for funds to settle you, which we did via our memo on May 19, 2022.” Oduniyi said.

Furthermore, he said it had employed several persons to assist on the issue, noting that a visit was paid to a director with the office of the Accountant-General of the Federation on Friday.

He appealed to the workers to show understanding until the issue is resolved.

However, indications have emerged that the workers who had been sacked since 2010 by the new owners of SAHCOL (now Skyway Aviation Handling Company (SAHCO Plc), may cause industrial unrest in the sector.

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