BH Investigation (2): Stanbic IBTC lied; flouted PenCom’s order on gifts

By AYOOLA OLAOLUWA 

Contrary to Stanbic IBTC Pension Managers Ltd’s protestation and denial that it did not give out Christmas gifts to its customers in December 2022, to retain their loyalty in violation of the National Pension Commission’s order, evidence obtained by Business Hallmark confirmed that the company actually did.

The PFA had in a rebuttal to BH’s story of Monday, January 23, 2023, captioned: ‘Stanbic IBTC, FCMB, other PFAs defy PENCOM’s directive on gifts’, described the report as “unfounded, incorrect, and defamatory,” adding that it is “a fabrication of reckless journalism”.

In the story, BH had reported that pension administrators operating in the country were offering incentives to RSAs holders in a bid to retain their accounts, as well as winning over accounts from their rivals, and in the process jeopardising the over N14.8trillion funds contributed by  RSA holders.

Stanbic IBTC and three other PFAs were indicted of still sending festive gifts, like birthday cakes and Christmas/New Year gifts to its customers in violation of PenCom’s directive stopping the practice.

The National Pension Commission had in October 2022, directed operators in the industry to end the “unhealthy competition”, which was creating cut throat competition, as the PFAs jostled to outdo each other by seeking to attract account holders’ attention.

However, despite writing to its customers to inform them of the stoppage of the practice of giving out gifts during festivals, BH findings revealed that the PFA still sent gifts to its customers in December 2022, an action that prompted the report.

Our report had mentioned that Stanbic IBTC Pension Managers  gave out gift worth hundreds of millions of naira to its customers, especially civil servants in December 2022.

Rattled by the expose, Stanbic IBTC Pension Managers Limited, in a statement issued by Sunday Edetanlen on behalf of its media consultant, P+ Measurement Services, PFA, described it as “reckless journalism”.

“Our attention has been drawn to publications by some unguarded sections of the media wherein certain unfounded, incorrect, and defamatory assertions are being peddled about Stanbic IBTC Pension Managers.

“The alleged falsehoods stated that Stanbic IBTC Pension Managers continued to offer incentives to Retirement Savings Account holders contrary to the directives issued by the National Pension Commission (PenCom) in a bid to retain their accounts and win over accounts from competition.

“The publications specifically stated that gift vouchers worth hundreds of millions of naira were given out to certain public and private sector clients in December 2022, disregarding PenCom’s directive to all Pension Fund Managers with the goal to end ‘unhealthy competition’ within the industry.

“Stanbic IBTC Pension Managers would like to clarify that this news is false and does not represent our ethos and values as an institution.

“The publication is a fabrication of reckless journalism, and it is our responsibility to clarify any misconception or doubts in the minds of the general public.

“Further to PenCom’s directive in October 2022, our clients were notified of the directive and its subsequent implications leading to the discontinuation of our Loyalty Programme on 05 November 2022 as approved by PenCom.

“To further reinforce our commitment and alignment with PenCom’s directives, we partnered with PenCom’s representatives to sensitise clients on this development at our annual clients’ engagement fora held in Lagos, Abuja and Port Harcourt, late 2022.

“As a major stakeholder in Nigeria managing over 1.9 million retirement savings accounts and over N4.5 trillion in assets under management, our organisation has a responsibility to uphold the highest operational and ethical standards for operators in the industry.

“Stanbic IBTC remains resolute in its position and would like to reiterate that it conducts its business with integrity in compliance with extant laws of the operating environment and international best practices. We will continue to do business the right way”, Nigeria’s leading pension manager had argued.

In spite of Stanbic IBTC’s protestation of innocence, Business Hallmark is standing on its earlier report that the provider is guilty of flouting PenCom’s directive.

In order to give the PFA a fair hearing, BH commissioned another round of investigation to either verify or dismiss the initial report. But the latest inquisition, rather than absolving the institution of any wrongdoing, further confirmed its lies and desperate attempts to cover its tracks.

For instance, official correspondence between officials of the Lagos State Government involved in the distribution of the gifts and beneficiaries from December 9th to 22nd, 2022 obtained by our correspondent clearly revealed that the firm lied in its defence.

Specifically, on December 9, 2022, the head teachers in all public schools in all the 20 local government areas in Lagos State, received WhatsApp messages from the HOS, Human Resources Management and Administration of their respective Local Government Education Authority (LGEA) to inform all personnel operating RSA accounts with Stanbic IBTC to come to their LGEA for signing of necessary documents.

The message was disseminated on each school’s official WhatsApp platform by their head teachers.

“I am directed to inform all staff that are on IBTC PFA to come to the HRM and A section to sign immediately”, a message signed by the HOS HRM & A had implored.

Eleven days later, December 20th, 2022 to be precise, another WhatsApp message from the HOS, HRM & A of the 20 LGEAs in the state was sent to all head teachers in public primary schools to be forwarded to their staff.

“If you have any staff in your school that belongs to IBTC PFA and such person went to the Local Government Education Authority to write his or her name, let them go to the LGEA tomorrow (December 21, 2023) by 12.30pm to collect gifts sent to them”, the message posted on the WhatsApp platforms of some schools in three local government areas, namely Agege, Ifako-Ijaiye and Eti-Osa obtained by our correspondent, directed.

Checks, however, revealed that all the benefiting staff received different kinds of gifts, including gift vouchers and expensive high quality Ankara materials.

Our correspondent spotted at least three of the green and red coloured Ankara fabrics gifts to lucky teachers.

A source in the bank, who did no want his identity revealed, owing to fears of recriminations, confided in our correspondent that the gift items were delivered to the LGEAs between Monday,  December 19th and Tuesday, December 20th, 2023.

“The distribution was not done internally, but undertaken on behalf of the bank by its PR partners”, the source further added

All efforts to get the reaction of IBTC Pension Managers Limited on the story proved unsuccessful, as calls, text and WhatsApp messages to the phone number (080330009××) of its Head of Marketing and Communication, Stanbic IBTC Holdings, Bridget Oyefeso-Odusami, was unanswered.

Meanwhile, Business Hallmark  will next week publish the third part of the story to further reveal Stanbic IBTC’S complicity in flouting PenCom’s direct order to suspend the practice of giving out gifts to customers, because of its ethical implications.