Media
- Home
- Details
Hon. Justice (Dr.) Isaac Essien of the Lagos Judicial Division of the National Industrial Court has held that the National Pension Commission is empowered and entitled under the Pension Reform Act 2014 to the production, inspection and examination of the pension records of Optimum Petroleum to ensure due compliance with the provisions of the Act on contributory pension and remittances.
The Court directed Optimum Petroleum to grant the National Pension Commission or its agents forthwith access to its relevant pension documents and records for inspection, examination and investigation to determine whether it had complied with the mandatory pension contribution of its employees from January 2005 to 30 June 2019.
Justice Essien held that when the National Pension Commission and its agent issued and served Optimum Petroleum with letters informing it of their intention to conduct an audit of its pension records and requesting access to the records, the Commission was carrying out its statutory functions as vested in it by the Pension Reform Act.
The Court further held that Optimum Petroleum cannot ignore, neglect or refuse the demands of the National Pension Commission to inspect its records to ascertain compliance with the management of pension.
From facts, the National Pension Commission had commenced the action by originating summons seeking the determination of whether it has the rights and powers under the Pension Reform Act 2014 to demand the production of the pension records of Optimum Petroleum by itself or through its agents to inspect, examine or investigate such records to determine, ensure and enforce due compliance with the provisions mandating pension contribution in favour of its employees.
The Commission maintained that it introduced Messrs Emeka Ene & Co. to Optimum Petroleum as its recovery agent and requested their cooperation to enable the agent to conduct a review of its pension records, but they failed to grant the necessary access despite the efforts of the recovery agent and a subsequent warning letter issued by the National Pension Commission.
Delivering judgment, Hon. Justice Isaac Essien held that Optimum Petroleum, as an employer of labour, is statutorily required under Section 11 of the Pension Reform Act to make the deductions and remit the same to the employee's Pension Fund Administrator and that failure or neglect to make the deductions and ensure due remittance amounts to a violation of the Act.
The Court held that any infraction or suspicion of an infraction of the Pension Reform Act by an employer of labour must invoke the coercive power of the National Pension Commission to ensure compliance and that the Commission is at liberty to exercise its power to request or call for information from an employer on matters relating to retirement benefits and investigate where it suspects a breach of the provisions of the Act.
The Court further held that the National Pension Commission, in the performance of its duties, is empowered to examine or investigate the books, activities and affairs of any person or body corporate relating to pension funds and has the right to gain access at all times to the hard copies and electronic versions of books, accounts, documents and vouchers relating to pension funds.
“The Defendant is hereby directed to grant the Claimant or its agents forthwith access to its relevant pension documents and records for inspection, examination and investigation to determine whether the Defendant has complied with the mandatory pension contribution of its employees from January 2005 to 30 June 2019.
“The Order hereby made shall be complied with immediately upon service of this order on the defendant.” Justice Essien ruled.
Visit the judgment portal for full details
