BPE blames TSA for inability to pay severance benefits to SAHCOL ex-workers

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

BPE’s Director for Post Transaction Management, Tajudeen Oduniyi, made this known in a letter, NAN reports.

The letter, with reference number: BPE/PTM/NUATE/11/2022/M10.01, was obtained in Lagos on Sunday, the news agency said

Oduniyi said the BPE’s contribution to the TSA stopped it from fulfilling the Memorandum of Understanding reached with the former workers in 2018.

He also said all entreaties to the Minister of Finance, Budget and National Planning, Zainab Ahmed, to ensure the release of the funds proved abortive.

The News Agency of Nigeria recalls that the Federal Government in 2015 through its policy had compelled all Ministries, Departments and Agencies to contribute 25 per cent of their revenues to the TSA.

NAN recalls that government had in the middle of this month gone ahead to increase the contribution to 40 per cent, thereby adding more burdens to the MDAs.

The official said BPE reached agreement with the former 982 staff of SAHCOL on November 2, 2018, after which it inaugurated a negotiation committee to ensure the implementation of the MoU.

Oduniyi said the organisation had written to the Finance Minister for fund to settle the retrenched workers, but is still awaiting a reply.

He added: “In the light of the foregoing, it has become expedient to update you on our modest efforts to bridge 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 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, there are strong indications that the workers, who had been sacked since 2010 by the new owners of SAHCOL, now Skyway Aviation Handling Company Plc, may cause industrial unrest in the sector.

A former worker, who pleaded anonymity, told newsmen in Lagos that its members have been mobilised through unions to organise a protest in the sector in November.

The ex-worker said: “We have waited enough as we were laid off since 2010.

“So steps have being taken to ensure that we were paid as agreed, but, unfortunately, we are yet to be paid. The BPE in 2018, after agreeing that we were entitled to the several packages, promised to pay us, but four years after this, we are yet to get anything from the Bureau.

“They are even asking us to assist them in getting the money out of the Ministry of Finance. How can we do that when we are not the government?”

Agency report