By Chesa Chesa
The Nigeria Social Insurance Trust Fund (NSITF) on Tuesday refuted allegations of financial impropriety, abuse of office and diversion of funds leveled against its Managing Director/Chief Executive Officer, Seun Faleye, describing the claims as false, malicious and unsupported by facts.
In a statement issued by its management, the Fund said the allegations, which have been circulating in sections of the media, were part of a coordinated attempt to discredit its leadership and undermine ongoing reforms within the institution.
The NSITF said it operates strictly within the statutory and governance framework provided by the Employees’ Compensation Act (ECA) 2010, as well as public finance management laws, treasury regulations, procurement rules and audit requirements of the Federal Government.
According to the Fund, all monies accruing to the Employees’ Compensation Fund are public trust funds subject to internal controls, routine internal and external audits, Management Board oversight and supervision by relevant government authorities.
It stressed that at no time did the Managing Director or Chief Executive Officer operate or have access to NSITF funds outside the institution’s approved banking structure. It explained that all funds are held exclusively in official accounts and that disbursements go through established processes involving multiple officers, departments and approval stages.
“The suggestion that Fund resources were diverted into personal or non-Fund accounts is categorically false,” the statement said.
Addressing claims relating to the operation of multiple bank accounts linked to a single Bank Verification Number (BVN), the NSITF noted that BVN linkage and account administration are regulated by deposit money banks and the Central Bank of Nigeria, not by individual officials. It added that the existence of multiple accounts, many of which may be dormant or inactive, does not in itself constitute evidence of wrongdoing, stressing that no proof had been presented showing NSITF funds paid into personal or third-party accounts.
The Fund also dismissed allegations that the Managing Director granted himself “unlimited approval authority,” describing them as misleading. It said approval processes in public institutions are governed by statutory financial regulations, procurement laws and Board oversight, and cannot override thresholds prescribed by government circulars.
On claims that expenditures were made without Board approval, the NSITF said such assertions reflected a misunderstanding or deliberate misrepresentation of public financial administration. While Boards provide policy direction and approve annual budgets, it explained that operational expenditures are carried out within established regulatory thresholds and are properly documented for review by authorised oversight bodies.
Regarding vendor payments and commissions, the Fund reiterated that all engagements under the current administration comply strictly with the Public Procurement Act and relevant regulations, with payments tied to contractual obligations and services rendered.
