NSITF Refutes Claims of Fund Mismanagement Against MD Faleye

The management of the Nigeria Social Insurance Trust Fund (NSITF) has categorically rejected claims of financial mismanagement against its Managing Director, Oluwaseun Faleye.

In an official statement, the management expressed concern over recent media reports alleging financial improprieties, misuse of authority, and diversion of funds associated with the MD/CEO of the Fund.

"These allegations are erroneous, malicious, and lack any factual basis, appearing to be part of a deliberate initiative to undermine the leadership of the Fund and disrupt the significant reforms currently in progress," stated the Fund's management.

The NSITF clarified that it operates within a well-defined statutory and governance framework in accordance with the Employees’ Compensation Act (ECA) of 2010, along with the Public Finance Management laws of Nigeria, and adheres to relevant Treasury, procurement, and audit regulations.

"All funds belonging to the Employees’ Compensation Fund are public trust funds, which are subject to multiple internal controls, regular internal and external audits, oversight from the Management Board, and supervision by appropriate government bodies."

The management emphasized, "At no point has the Managing Director/CEO manipulated, controlled, or accessed NSITF funds outside the authorized institutional banking structure of the Fund. Funds are exclusively held in official accounts of the Fund, with all disbursements passing through established financial controls requiring approval from various officers and departments."

The statement further refuted any implication that Fund resources were misappropriated into personal or unapproved accounts.

In response to concerns regarding multiple bank accounts linked to a single Bank Verification Number (BVN), the NSITF clarified that such account management is governed by the protocols of deposit money banks and the Central Bank of Nigeria, rather than individual discretion.

The Fund also addressed claims suggesting the Managing Director possessed 'unlimited approval authority,' labeling it as misleading.

It explained that the internal approval structures in public institutions are strictly aligned with statutory financial regulations, procurement laws, and Board oversight. The management reiterated, "No internal decision can legally override these statutory regulations, and no single individual can independently allocate or spend public funds."

Claims positing that expenditures have occurred without Board approval signify a misunderstanding or intentional misrepresentation of public financial administration principles.

"All strategic direction and budgetary approvals require Board consent, whereas operational expenditures must align with established statutory and regulatory limits."

NSITF ensures it has thorough documentation of approvals, mandates, and supporting records, all of which are accessible for legal scrutiny by authorized oversight entities.

Regarding vendor payments and commissions, the NSITF emphasized adherence to the Public Procurement Act and relevant regulations. Payments are made in relation to contractual obligations, services provided, and lawful mandates, with any arising concerns managed through legitimate audit and review processes rather than through public speculation.

The management reaffirmed that the funds of the NSITF are secure and emphasized its commitment to transparency, accountability, and the diligent management of the Employees’ Compensation Fund.