The National Industrial Court in Lagos has ordered Optimum Petroleum to grant the National Pension Commission (PenCom) and its agents immediate access to its pension records for inspection, examination and investigation to determine whether the company complied with mandatory pension contributions for its employees between January 2005 and 30 June 2019.
Justice Isaac Essien of the Lagos Judicial Division of the National Industrial Court gave the order in a judgment affirming PenCom’s power under the Pension Reform Act 2014 to demand and examine an employer’s pension records to ensure compliance with the law. The ruling means Optimum Petroleum cannot refuse or ignore PenCom’s request to inspect records relating to the management and remittance of pension contributions.
Delivering judgment, Justice Essien held that PenCom was carrying out its statutory duties when it and its agent issued letters to Optimum Petroleum notifying the company of plans to audit its pension records and requesting access to the documents.
The court further held that Optimum Petroleum, as an employer of labour, is required under Section 11 of the Pension Reform Act to deduct and remit pension contributions to the employees’ Pension Fund Administrators (PFAs).
Justice Essien said failure or neglect by an employer to make the required deductions and ensure their remittance amounts to a violation of the Act.
The judge also held that any infraction, or suspected infraction, of the Pension Reform Act should trigger PenCom’s powers to ensure compliance.
According to the court, PenCom is empowered to request information from employers on matters relating to retirement benefits and investigate where it suspects a breach of the law.
Justice Essien further ruled that, in carrying out its duties, PenCom has the power to examine or investigate the books, activities and affairs of any person or corporate body relating to pension funds.
He said the Commission also has the right to access hard copies and electronic versions of books, accounts, documents and vouchers relating to pension funds.
The case followed a suit filed by PenCom through an originating summons, seeking the court’s determination on whether it had the legal power under the Pension Reform Act 2014 to demand the production of Optimum Petroleum’s pension records, either directly or through its agents.
PenCom 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 to review its pension records.
The Commission said Optimum Petroleum failed to grant the requested access despite efforts by the recovery agent and a subsequent warning letter issued by PenCom.
In its final order, the court directed Optimum Petroleum to grant PenCom or its agents immediate access to the relevant pension documents and records to determine whether the company had complied with mandatory pension contributions for its employees from January 2005 to 30 June 2019.
“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,” Justice Essien ruled.
The court ordered that the directive be complied with immediately upon service of the order on Optimum Petroleum.
