Non-remittance of workers’ contributions to NHF due to shortage of cashbacking, says IPPIS boss

Emma Deko, director of the Integrated Personnel Payroll and Information System (IPPIS), says the non-remittance of workers’ contributions to the National Housing Fund (NHF) is due to the “shortage of cash-backing”.

Deko spoke at a hearing by the house of representatives ad hoc committee investigating non-remittances of deduction from workers’ salaries for NHF  from 2011 to date.

Earlier this month, the committee said it would begin a probe on August 23 on the activities of the IPPIS in regards to non-remittances.

Speaking at the hearing in Abuja on Tuesday, the director said due to the shortage of funds, the IPPIS sometimes gets directives to remit the net of workers’ salaries, while the gross was kept in view.

He also said the IPPIS was not responsible for the payment of salaries of workers, adding that it only processed payment. 

Cash back refers to a scheme that offers money back as an incentive to buy a particular product or sign up for a service

“In most cases, deductions from workers were not remitted because of shortage of cash-backing for approvals for wages,” Deko said.

“While IPPIS prepares the salaries for only federal workers, the government appointed four gateways that are responsible for the payment of the salaries to workers.

“IPPIS is not in charge of every employee of the federal government. IPPIS is only covering the executive arm.

“Having said that, let me go back to the requirements from IPPIS. The first one is evidence of remittance by all stakeholders and unremitted so far by the ministries, departments and agencies (MDAs). 

“The last part of it, the names of beneficiaries, I don’t think IPPIS can provide that because we don’t give to beneficiaries.

“We cannot talk about evidence of remittance without deductions, because it is only when you deduct that you can remit.

“I must be sincere that we have been trying to collate this information because it relates as far back as 2011 to date, based on the request of this honourable committee.”

Deko said there are instances where the cash-backing may not cover the entire salary wage bill for a particular month.

“In that instance, we are directed to pay only the net, which means that all deductions will be stepped down,” he said.

The director said the payment gateways that are not situated within the IPPIS include; Nigeria Interbank Payment System (NIPS), E-Transact, Remita and Government Integrated Finance Management Information System (GIFMIS).

On his part, Dachung Bagos, chairman of the committee, summoned the accountant-general of the federation (AGF) to appear before the committee on August 31.

According to Bagos, the AGF will explain the delays in remitting deductions from workers’ salaries to the Federal Mortgage Bank.

He also summoned the Central Bank of Nigeria (CBN) to appear before the committee on the same date.