PenCom asks EFCC to prosecute employers withholding pension contributions

The National Pension Commission (PenCom) has sought the support of the Economic and Financial Crimes Commission (EFCC) to tackle pension fraud, particularly the failure of some employers to remit workers’ pension contributions.

PenCom Director-General, Omolola Oloworaran, made the appeal on Thursday during a visit to the EFCC headquarters in Abuja, where she led a delegation from the commission.

Oloworaran expressed concern that some employers deduct the mandatory pension contributions from workers’ salaries but fail to transfer the funds into their Retirement Savings Accounts. She said some employers also withhold their 10 per cent contribution.

Describing the practice as a serious concern, she urged the EFCC to help recover the outstanding funds and bring defaulting employers to justice.

“Employees are stealing from Nigerians. And we need a way to recover these monies from them. We are looking for a more effective way to manage this situation. We believe you can help us,” she said.

Also speaking, the Acting Director of PenCom’s Compliance and Enforcement Department, Ahmed Lawan, said the failure to remit deducted contributions had deprived many workers of their retirement benefits and contributed to the hardship faced by retirees. He called for a formal framework of collaboration between both agencies.

Responding, EFCC Chairman, Ola Olukoyede, described the practice as fraudulent and pledged to investigate the allegations and ensure that those responsible were brought to justice.

Olukoyede, represented by the EFCC Chief of Staff, Michael Nzekwe, said the commission would give the matter accelerated attention and work towards recovering the outstanding funds.