Saturday, November 23

How Federal Civil Servants are Defrauded in Govt Home Loan Scheme

THERE are strong indications that the ruling administration in Nigeria may have further drifted in

its so-called commitment to officially tackle the monster of fraud and corruption, following startling revelations that civil servants who were told to make monthly contributions towards low-cost homes may have been sold falsehoods resulting in a multi-billion naira rip-off.

 

In October of 2010, a circular from the office of the head of the civil service of the federation to all government offices recommended a list of approved developers for civil servants interested in purchasing affordable houses through loans from the Federal Government Staff Housing Loans Board.

Many of the applicants took advantage of the opportunity, choosing their preferred developers, who in turn provide a price list. An employee who qualified for the 1-bedroom Terrace (row) expandable to 2 bedrooms, with a total price of N3.83 million on a land size of 180 M2 will have the sum of N29,412.08 deducted from his monthly salary.

Despite that many of this houses were demolished after construction, the employees’ salary are still being deducted every month. There has been no official explanation as to why the houses were demolished, even as many of these workers still yearn to own a home, or at least be refunded monies deducted from their salaries.

Attached are documents of approved developer lists, the price list of preferred developer and the pay record of an employee whose identity is hidden to protect his privacy. The line that reads ‘FGSHLB’ classifies the deduction for the loan which no longer exists, or does without the affordable housing as promised in the government circular.

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