Home News LASU debunks diverting pension fund, explains borrowing

LASU debunks diverting pension fund, explains borrowing

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LASU debunks diverting pension fund, explains borrowing
LASU

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The management of the Lagos State University, LASU, has debunked a report that it diverted N198 million staff pension fund to buy luxury cars.

It explained however that the university only borrowed N474 million from its provision and not from pension fund.

The borrowing, according to the spokesman of the university, Ademola Adekoya, was to meet past service obligations.

In a statement by Adekoya, at no time did the university borrow  its Staff Contributory Fund to finance accreditation expenses.

Said he:  “The Pension Fund for members of staff who are yet to register with Pension Fund Administrators, which is less than N100 million, is intact.

“As a matter of practice, the university does not default in the payment of its obligations to either the Pension Fund Administrators (PFAs) or its retirees.

“The Lagos State Pension Commission (LASPEC), the regulatory body for pension fund, had recently commended the university for its efficiency in remittance.”

He explained further that with the borrowing, the university was only being proactive to avoid losing accreditation of some of its programmes.

He said the aftermath of losing accreditation of the 37 programmes would have been devastating because the university would not be able to admit students for the programmes.

“Further to the approval of the university’s budget by Lagos State Government and the need to urgently commence preparation for the accreditation as set by the NUC, the university took the initiative of sourcing for required funds internally, pending release of same by the state government,” he said.

The spokesman noted that the N474 million for accreditation had been approved in the university’s 2018 budget by the Lagos State Government.

The vehicles purchased by the school, he declared, were in its name.

“Aside approval of budget, there are layers of checks that ensure that purchases are done in line with best practices.

“These layers of checks include the internal audit, office of the special adviser on education, line ministries, office of the Lagos State Auditor–General and the Lagos State House of Assembly Committee on Appropriation,” he said.

 

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