Our ordeal in the grip of pension cartel over gratuity shortfalls, by Oyo retirees
Retired civil servants in Oyo State have alleged selective treatment in gratuity payments, accusing state pension system officials of enabling an extortion scheme that compels beneficiaries to surrender a percentage
Retired civil servants in Oyo State have alleged selective treatment in gratuity payments, accusing state pension system officials of enabling an extortion scheme that compels beneficiaries to surrender a percentage of their entitlements.
The retirees, who spoke anonymously, claimed that despite the current administration's assurances that outstanding gratuities would be cleared, many who retired between 2014 and 2018 have yet to receive payment. They alleged that only retirees willing to pay between five and 10 per cent of their gratuities have had their benefits processed.
According to the claims, certain political figures and government officials allegedly collaborate with intermediaries within the civil service to demand payments from retirees in exchange for fast-tracking their gratuities. The percentage demanded reportedly varies depending on the total amount due and the retiree’s negotiating power.
Findings indicate that gratuities have been paid to workers who retired from 2019, when the present administration assumed office. However, several retirees insisted that payments were prioritised for those who agreed to the alleged arrangement.
Those reportedly affected include doctors, nurses, teachers, principals and other core civil and public servants. Some retirees alleged that a network operating within the Oyo State Government Secretariat in Agodi, Ibadan, approaches beneficiaries and negotiates the percentage to be paid before processing their gratuities.
Many said they complied out of desperation after waiting for years without clarity on when their entitlements would be settled. While expressing appreciation to the governor for regular monthly pension payments, they maintained that the delay in gratuities remains a major source of distress.
Reacting to the allegations, the Oyo State Government acknowledged awareness of individuals described as unscrupulous elements who allegedly extort retirees under the guise of facilitating payments. The government stated that it is closing in on those responsible.
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The Commissioner for Information, Prince Dotun Oyelade, confirmed that reports of retirees being asked to pay between five and 10 per cent of their gratuities had reached the government. He described the malpractice as longstanding and said it had persisted for years, including during previous administrations.
Oyelade noted that despite repeated warnings to pensioners to avoid dealing with unofficial agents, some continue to fall victim to the scheme. He assured that efforts are underway to dismantle the network and ensure due process in gratuity payments.
Oyelade said, "The attention of the Oyo State government has been drawn to the allegations that some pensioners in the state are being extorted by unscrupulous elements claiming to be government officials.
"The state is paying due diligence to the payment of gratuities for its retirees more than the previous administrations.
"With the new monthly allocation, over 800 retirees will benefit each month, compared to just 250 beneficiaries in previous years.
"A cartel has been operating within the civil service, and the government is narrowing down on the criminals.
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"Retired civil and public servants are being asked to pay 5% to 10% of their gratuities to these cartels to fast-track payments.
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"This malpractice is unfortunately longstanding. The issue has persisted over the years, even during the tenure of former governor, His Excellency Lam Adesina, and continues to affect unsuspecting pensioners till today,” he said.
“Those behind the extortions and their accomplices know themselves. Despite repeated warnings to pensioners to be cautious, some still fall victim to these schemes."
Reacting to the existence of a cartel within the state secretariat, Prince Oyelade said the illegal practices are not limited to state pensions alone but also affect local government staff pensioners.
He said the government is continuing investigations on the issue in collaboration with the Oyo State Anti-Corruption Agency (OYACA), warning that those who are caught would be made to face the music.
While highlighting government efforts to improve pension disbursement, the Commissioner recalled that gratuities were not paid between 2011 and 2016 until the arrears were cleared by Governor Makinde.
He added that Governor Makinde has increased monthly gratuity release by 200 percent, raising total allocations from N1 billion to N3 billion monthly.
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Oyelade said that with the increase in allocation for gratuity payments, no back-door payment is required for processing gratuities or entitlements, urging retirees to follow the established system of monthly disbursement and report any suspicious activity to the appropriate authorities.
"These illegal practices are not limited to state pensions but also affect local government staff pensioners.
"The government is making efforts to improve pension disbursement. Gratuities were not paid between 2011 and 2016 until the arrears were cleared by Governor Seyi Makinde.
"He has increased monthly gratuity release by 200 percent, raising total allocations from N1 billion to N3 billion monthly; hence, no back-door payment is required for the processing of gratuities or entitlements.
"We urge retirees to follow the established system of monthly disbursement and report any suspicious activity to the appropriate authorities.
"Government is continuing investigations on the issue in collaboration with the Oyo State Anti-Corruption Agency (OYACA)," Prince Oyelade added.
