The hope of the ex-workers of defunct national carrier, Nigeria Airways to get their full entitlements 13 years after the liquidation of the airline may be dashed again as a presidential committee, slashed their severance packages to N43 billion from the approved N78 billion.
The committee, Presidential Initiative on Continuous Audit (PICA), in a letter signed by its Director, Special Projects, M.K Dikwa turned down the recommendation of the Inter-Ministerial Committee set up by the Federal Government for that purpose.
The letter with the title: ‘Re: Settlement of the Terminal Benefits of Ex-Workers of Nigeria Airways –Appeal for Mr. President’s Intervention,’ with the reference number: OHMF/DSP/FMF/SH/95/Vol.4/61 was dated 19th October 2016.
The funds were slashed by N35 billion, which indicated 45 per cent reduction.
A source close to the Ministry of Transportation, confided in our correspondent that President Muhammadu Buhari had perfected plans to pay the sum about two months ago, but the recommendation of PICA stalled the final payment to the ex-workers.
The Inter-Ministerial Committee had recommended the N78bn figure for the ex-workers after reaching an agreement with them that the government would only pay 10 years severance packages, including pension for that period, rather than the 25 years it initially reached with the Federal Government in 2010.
The ex-workers at first, kicked against the reduction of 25 years to 10 years, but after much deliberations, both parties agreed to forge ahead.
The source confided in our correspondent that PICA reduced the funds to N43bn by totally removing the 10 years severance packages reached with the leaders of the ex-workers.
However, the reduction of the several packages by PICA did not go down well with Minister of State for Aviation, Sen. Hadi Sirika who insisted that the government must pay the agreed term.
Sirika in a letter to Buhari on the issue warned that if the severance packages of the former workers and other liabilities were not settled, it would be difficult to re-establish a national carrier for the country again.
Sirika observed that before the company was liquidated, there was no proper determination of the worth of the company in terms of income on realizable assets vis-à-vis the liabilities in form of entitlements of staff that would be affected and insisted that the workers must be paid in full as agreed.
Recall that the government during the government of Late President Umaru Yar’Adua had paid the sum of N29.1bn, representing five years pension to the ex-workers of the airline.
Only the personnel of the defunct airline in United Kingdom and United States were paid 25 years severance packages while their Nigerian counterparts were paid just five years.
The source said though the President is committed to keep his promise, PICA has remained the stumbling block.
