Court orders Radix Pension to pay ex-MD N57m, $21,000

The National Industrial Court sitting in Ikoyi, Lagos, has awarded judgement against Radix Pension Managers Ltd., a PFA licensed by the National Pension Commission (PenCom).

In a judgement delivered on November 19, 2024, by Honourable Justice R.H. Gwandu, the court granted all the 14 reliefs brought before it by the claimant.

The claimant, a former Managing Director of the PFA, who voluntarily resigned from the PFA, after an outstanding record, which saw the PFA competing very keenly with well-established forerunners in the industry, was alleged to have cited issues of corporate governance as reasons for his resignation.

Our findings at the industrial court revealed that the PFA reneged on agreements, as evident by over 11 ligations against it before the industrial court between the periods of 2019 to 2021.

The litigations, brought by ex-staff of IGI Pensions, the legacy PFA acquired by

Radix Capital Partners, the major investors, also centered on failure to honour severance agreements, after the new investors, Radix Capital Partners, had assured the National Pension Commission of its intention to pay within few days of obtaining regulatory approval.

This throws up the issue of integrity and the questionable character of some investors who are notorious for reneging on agreements, but desirous of doing business in an industry where PenCom has and continues to show excellent oversight, going by the success story of the Contributory Pension Scheme (CPS) since inception. It is indeed to PenCom’s credit that its impeccable oversight functions have seen many ‘investors’, who inadvertently entered the pension space, reduced to minority stakes or outrightly weeded out of the industry over the years.

This case is a vindication of the justice system at the National Industry Court, and an affirmation of the law court as the best recourse for justice and fairness for law abiding and upright citizens.

The law firm of renowned human rights lawyer, Femi Falana, SAN and Funmi Falana, SAN, represented the claimant in a suit that lasted close to 4 years.

Mr. Taiwo Olawanle, of the Falana Chambers, told our Insurance & Pension Correspondence that it was a clear and simple case that shouldn’t have necessitated any legal brig brat, as their client was reluctant in pursuing any court case at all from the onset. He informed that all efforts through correspondences from the chamber to Radix Pension Managers were treated with levity, compelling the claimant to approach the court. Before and during trial, very considerate concessions were given by the claimant, which the PFA failed to embrace to bring closure to a simple contractual obligation it owed.

Our correspondence spoke with one of the ex-staff of IGI, with similar unpleasant experience with the Radix brand, who said it was a classic case of “go to court!” by the PFA: a colloquial expression of ‘do your worst’ in local parlance.

She said her severance pay was not up to N3m, but she had to join a class action to seek justice. Justice came for her in staggered payments over a period of 5 years after the Radix Capital Investors had assured PenCom of meeting the obligations.

Considering the objectives of the Contributory Pension Scheme, arguably one of the best policies by the Federal Government of Nigeria for its working-class citizens, one would expect that employer-employee relations in the pension industry will be a beacon of hope and serve as an impeccable template for other industries, especially as evident in the excellent oversight functions of PenCom.

This throws up the need for PenCom to extend its stellar regulatory oversight functions to issues of staff engagements by operators.

The regulator can ill-afford allowing people without integrity, to perfunctorily act at variance with its commendable record as one the most effective and admired regulators in Nigeria.

Findings reveal that a new investor, known for its outstanding record of integrity and high standards in business and employee engagements, has received approval by PenCom to acquire the license of Radix Pension Managers Ltd., drawing a curtain over an era best forgotten by several ex-staff of the defunct major investor with unenviable notoriety.

We hope this verdict of the National Industrial Court serves as a veritable turning point towards higher standards in staff engagements across all industries in Nigeria, for HR Practitioners and Corporate Governance Executives.