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Reps, NERC boss in row over N2.7bn severance pay
Members of the House of Representatives Committee on Power and the National Electricity Regulation Commission (NERC) are at daggers drawn over the alleged approval of N2.7 billion as severance for the Chairman and commissioners in the establishment.
The committee headed by Daniel Effiong insisted that the NERC breached the Act establishing it and other laws including the Pension Act, but Sam Amadi, the Chairman of NERC maintained that they did the right thing as the Act establishing the NERC gives them the prerogative to set their remuneration including severance for staff.
The House had on Wednesday November 4th mandated its Power Committee to investigate the planned payment of N2.7 Billion severance to NERC board members.
The lawmakers said NERC board fixed its enumeration package for commissioners and staff without the input of National Salaries, Income and Wages Commission, adding that besides this, the organisation fixed an upward review of its enumeration package for commissioners and staff unilaterally even beyond the scope of the Income and Wages Commission’s benchmark.
Read also: Reps query N2.7bn package for 7 NERC board members
The committee members wanted to know why N2.7 billion was immediately transferred on the 5th of May after a board resolution on 16th of April 2015 from Unity Bank. And why NERC now sent a letter to PENCOM in October for guidance for an act executed in May.
“Do staff earn severance? Where is the money from? Is it a monthly contribution?” Committee members wanted to know.
But the NERC boss lamented that the issue of a N2.7 billion severance package was caused by a case of “reckless reportage” by a newspaper, adding that they would be suing the paper for libel.
“Some reckless reporting has created the situation. It’s libelous. We did not approve to pay ourselves,” he said.
He said the amount was the total amount for 131 staff plus seven commissioners.
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