Nine months after the Employees' Compensation Act was signed into law by President Goodluck Jonathan, the take-off grant expected from the Federal Government has not been provided, even though the scheme was said to have take off on July 1, 2011.Though, the Board of the Nigeria Social Insurance Trust Fund (NSITF) last week, inaugurated the Investment Committee, an independent committee that will work together with the NSITF to achieve the objectives of the Fund, the delay in the release of the take-off grant is affecting the smooth take off of the scheme and its operations.The Investment Committee was since expected to have been inaugurated, but for the non-release of the take-off grant by the Federal Government. However, after waiting for a long time without the take-off grant, the board decided to inaugurate the committee, just to start planning ahead without necessary fund.The committee was inaugurated in consonance with the provisions of the Employees' Compensation Act, as the committee has been statutorily created by Section 62 of the Act.But the committee could not start its work immediately, even though it was inaugurated due to the non-release of the take-off grant.The frustration was noticed in the speech of the Chairman of the NSITF Board, Dr Ngozi Olejeme, while inaugurating the committee at the board room of NSITF.Dr Olejeme said: 'The Employees' Compensation Act was signed into law in December 2010, but was only gazetted in May 2011, hence the reason why the scheme could not take off until July 1 this year.'The committee would have been inaugurated earlier than now going by the initial letters of appointment sent out to members in February this year. However, this could not happen because the take-off grant which the government was supposed to provide had not and still has not yet provided.'We do not want to leave you guessing as to when you will be inaugurated. We therefore thought that even if you cannot start your work immediately, it is important that the committee is inaugurated to enable members meet with board and management, as well as meet among themselves to start planning for the task ahead.'The chairman of the board said that the inauguration was being conducted as to ensure that NSITF fulfills the provisions of the law, adding, 'we shall need time to sort out a number of challenges facing the Fund before the committee can start functioning fully.'Dr Olejeme described the involvement of the committee as a laudable innovation and said it was a practical recognition of good corporate governance practice which most other statues do not have.'I am also glad to note that the committee's work will not only assist the board in arriving at sound investment decisions, but it will also go a long way in assuring contributors to the scheme, as well as other stakeholders, that there is transparency in the way funds under our custody are invested.'I am also happy with the constitution of this committee going by its membership from various institutions, as well as the respectable and influential personalities that make up the committee,' she said.According to Section 62 of the Act, the committee is to carry out investment surveys in the economy and draw up a list of safe investment from time to time; initiate or carry out independent assessment of the investment activities of the board; and carry out any duty or activity as the board may, from time to time direct.
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