The Lagos Judicial Division of the National Industrial Court has affirmed the power of the National Pension Commission (PenCom) to access, inspect and examine the pension records of Optimum Petroleum to determine compliance with the Pension Reform Act 2014.
Justice Isaac Essien, in his judgment, directed Optimum Petroleum to grant PenCom or its agents immediate access to its relevant pension documents and records to ascertain whether the company complied with the mandatory pension contributions of its employees from January 2005 to June 30, 2019.
The court also held that PenCom was acting within its statutory powers when it requested access to the company’s pension records for inspection and audit.
According to the court judgment obtained on Monday, PenCom had commenced the suit through an originating summons, asking the court to determine whether it had the power under the Pension Reform Act to demand the production of Optimum Petroleum’s pension records for inspection, examination and investigation.
The commission told the court that it had introduced Messrs Emeka Ene & Co. to Optimum Petroleum as its recovery agent and requested the company’s cooperation to enable the agent review its pension records.
According to PenCom, Optimum Petroleum failed to grant the necessary access despite efforts by the recovery agent and a subsequent warning letter issued by the commission.
In determining the matter, Justice Essien held that PenCom was carrying out its statutory functions when it issued letters informing the company of its intention to audit its pension records and requesting access to the documents.
The judge further held that Optimum Petroleum could not ignore, neglect or refuse PenCom’s demand to inspect its records to ascertain compliance with the management of pension.
Justice Essien said Optimum Petroleum, as an employer of labour, was statutorily required under Section 11 of the Pension Reform Act to make pension deductions and remit them to the employees’ Pension Fund Administrators.
He held that any infraction or suspected infraction of the Act by an employer must trigger PenCom’s regulatory powers to ensure compliance, adding that the commission could request information from an employer on matters relating to retirement benefits and investigate suspected breaches.
The court further held that PenCom was empowered to examine or investigate the books, activities and affairs of any person or corporate body relating to pension funds, including hard copies and electronic versions of books, accounts, documents and vouchers.
Consequently, the court ordered Optimum Petroleum to grant PenCom or its agents access to the relevant pension documents and records for inspection, examination and investigation.
Justice Essien directed that the order be complied with immediately upon service on the defendant.
COURTESY: theguildng.com
