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The Senate has condemned the Securities and Exchange Commission’s claim to spend most of its revenue on salaries and wages.

The Senate has strongly argued that it is wrong for the Capital Markets Committee to spend nearly 90 percent of its SEC earnings on staff salaries and tastes.

The SEC has denied any wrongdoing.

The Senate’s outrage over the commission came as SEC Director-General Yugua Lemodo appeared before the Capital Market Committee.

Ladimo was there to protect the agency’s 2021 budget performance and 2022 forecasts.

“A total of N11.5bn is planned for 2021, of which N2.689bn will be spent. It is hoped that by the end of June, more work will be done before the end of the year.

“The total recurring expenditure for 2021 is projected at N13.53bn but the actual expenditure was N4.063bn at the end of June.

“Our budget deficit was N5.173bn but the actual deficit has been N2.834bn since the end of September with funding from the reserve.

“While revenue performance is still weak, a series of innovations, such as newly introduced payments to secondary investors, will boost fiscal year 2022 and beyond.

Given the need for more financial flows, we plan to retire 152 senior management staff with pay and hire new staff with less financial burden on the commission.

“There are measures to reduce costs and increase the commission’s revenue,” he said

The chairman of the committee, Senator Ibikunle Amos, blamed the commission for the expenses.

He said, “Your emolument was almost N6bn out of N9bn and other expenses, so you are spending almost all of your income on staff emolument and other related things.

“Give us the number of staff in the commission so we have to see what happens. If it generates N9bn and only N8 billion to serve its staff.

“You are facing a huge shortfall of N4bn. There is something wrong with this deficit, year after year, ”he said.

Senator Kashim Shetima also asked the SEC DG what steps it has taken so far to collect revenue and reduce costs.

“You are bleeding now and this bleeding will continue and if you are not careful, you will not be able to fulfill your duty,” Sethima said.

Similarly, Senator Ayo Akinleure blamed the agency for spending all of its revenue on salaries and wages.

He said: “We would like to know more about this because you have just arrived and the civil servants have left the service and will be there forever for 35 years or 60 years.

“If you think there should be a positive difference at the end of the year to transfer the revenue to the government on an annual basis, you need the right manpower to enable you to earn enough income. Your organization is not a charity.

“Trading in the market, controlling the market, making enough money, make sure all your employees are good.

“How can you have N2.5bn for the 2021 budget? Are you only providing N1.5bn this year for salaries and allowances? What is the reason for this difference? Do you mean they have no replacement?

In response, SEC DJ said, “We have received a request for a record. We are happy to repeat this year if necessary.

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