Date Published: 08/11/11
How Otunba Mike Adenuga illegally appropriated 2.6B trust fund belonging to National Oil Pesionsioners
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Otunba Mike Adenuga |
When the federal government sold National Oil now known as Conoil to
Otunba Mike Adenuga in 2000, the pensioners wrote to the then Director
General of BPE Mrs. Irene Chigbue alerting her of a costly mistake of
not separating the trust fund set up for the staff by Shell West
Africa the former owner of the company before the government
compulsorily acquired 60% of the company in 1995. The pensioners
intimated her the fund is independent of the company and Adenuga who
had no known welfare scheme in place in any of his companies would not
be an ideal person to manage their fund. The Director General ignored
our letter.
Mike Adenuga came in and sacked the whole staff he met on ground less
than two years after simply because he hated the idea of having unions
in his company. He first tried to sack the executives of NUPENG and
PENGASAN when he came in, but we violently resisted this move. I am
one of the people he sacked in his prime. I was barely 45 years old
then.
The Pensioners wrote another letter to the BPE director when their
fear was confirmed that Adenuga would run National Oil as a one-man
show sacking people at will. She ignored this letter too.
The dream of every worker is to one day retire and enjoy the benefit
that would accrue to him after many years of active service. Every
worker desires a life of ease and relaxation after retirement.
National Oil (Conoil) workers always celebrate retirement because it
is a dream come true. This was the norm in the company until the
arrival of Otunba Mike Adenuga. His arrival in national oil marks the
beginning of sorrow for the 500 odd pensioners remaining on his
payroll.
The Shell Group established The Shell Pension Scheme under its
original name of Shell West Africa Staff Non-contributory Pension Fund
on 1st January 1952. They registered the scheme with the Ministry of
Trades now Corporate Affairs Commission as a TRUST SCHEME for the
company’s employees on retirement. It remained a non-contributory
scheme funded solely by the Shell Group when it was in control. When
the Federal Government compulsorily acquired 60% of the company in the
wake of 1975 indigenization decree, the government retained the
scheme.
The Shell Group Pension Scheme that Conoil inherited in 2000 is still
on in Shell Petroleum Development Company (SPDC). It has been in
existence for more than 50 years.
Conoil has not added any value to the fund since its arrival in
National oil in the year 2000. Mike Adenuga ignored the statutory
requirement that he contributes a certain percentage of the company’s
gross profit to the pension fund before declaring profit after tax.
The pension account into which Conoil never contributed a kobo since
it took it over has a balance of over two billion (both liquid and
fixed asset) in 2006 when conoil purportedly audited its account. The
fund has been a source of easy and interest free fund for Mike Adenuga
who has been running it according to his whim and caprice since then.
When Mike Adenuga took over as the core investor in National Oil in
2000, he suspended the 12% annual pension increase approved by the
fund since October 1994. It did not bother the man that 71.96% of
Conoil pensioners are earning between N3,360 and N7,499 at a time when
minimum wages in Nigeria has gone beyond N10, 000 which is now
N18,000.00. Otunba Mike Adenuga did not care about Federal government
directive on harmonization of fringe benefits with basic salary when
calculating pensions [govt. directive of 30th Jan. 1997, 11th May
1999, and 6th July 1999]. These ridiculous earnings remains today
after 10 years of Conoil misadventure in the once vibrant company
called National Oil without a kobo increase!
The pensioners took Mike Adenuga to court in 2008 to compel him to
release his stranglehold on their fund since the money does not belong
to his company. This will enable the pensioners distribute the balance
in the fund as they deem fit.
Because of the attendant bad publicity the case will generate for him
and his company, Otunba Mike Adenuga agreed to settle with the
pensioners without the case coming up in the open court. The
pensioners made the mistake of thinking they could trust Adenuga to
honour any agreement reached. The negotiation has been going on at the
Mediation Centre of the Lagos High Court for 30 months without an end
in sight.
Mike Adenuga and his lawyers have been frustrating every move by the
pensioners to conclude the negotiation. The court had to write two
strong letters to warn the Otunba when it became obvious that all he
wanted was to let the negotiation drags on indefinitely.
Ten members had died as at the last count since the negotiation
started. Adenuga’s lawyers always come to court singing the same song
of not being able to see the Otunba. This has been the trend for more
than eight months despite each party in the negotiation reaching an
agreement on how to disburse the balance in the fund. It is either
Adenuga’s daughter is getting married or EFCC invites the man to Abuja
or one excuse or the other. The Judge asked on one occasion if Adenuga
had become a god that mere mortal couldn’t see.
The pensioners (many of whom have been demoralized by the never-ending
negotiation) are already getting suspicious albeit erroneously that
they have been sold out by their executives. Given Adenuga’s
predilection for the Babangida style of administration, their fear
might not be wholly misplaced.
In January, this year Adenuga agreed with the Lagos High Court
Mediation Centre to pay the pensioners 1.033B out of the audited 2.6B
balance in the pension trust fund. The pensioners agreed out of fear
that many of them may never see the colour of the money in their
lifetime if they insisted on the 2.6B in the account. We were made
individually to sign undertakings that we will not resort to any legal
action after Adenuga might have paid us the 1.033B. Eight months
after, we are still waiting for the money.
Sir, we implore you and members of your committee to compel Otunba
Mike Adenuga Jr to pay us our money. This is one of the serious flaws
in the privatization process. Our fund should not have been given to
Mike Adenuga to run since the trust fund is independent of National
Oil which he bought. Many of our members had died in poverty since he
decided to stop our yearly increment. What can anyone do with N3600 in
this present-day Nigeria?
We are no more interested in his offered 1.033B but the 2.06B balance
that is in the audited account. Since he has refused to append his
signature to the agreement reached with the court after Mr. Ariyo the
Executive Director of Finance and the MD of Conoil had signed it is
implied he is no more interested in the agreement.
Sir, we don’t want to resort to violence to resolve this issue. This
is why we are writing you and your members. We implore you to call
this man to order before frustration leads our members to take
decisions they will later regret. |