News

Forensic Audit: How we spent N10b airport fund – Ikpeazu

Published

2 weeks ago

May 7, 2024

Forensic Audit: How we spent N10b airport fund – Ikpeazu

The immediate past Governor of Abia State, Dr. Okezie Ikpeazu, has warned his successor, Dr. Alex Otti, to focus on governance and stop deceiving the people with lies and fiction.

Ikpeazu, who spoke against the background of a report that his government awarded a N10 billion contract for the construction of an airport in Abia without doing same, insisted that Otti was on clout- chasing and deceiving gullible people with the alleged forensic report he conducted on Abia finances.

He said Otti was diverting attention from the quarterly reports of Abia State, which showed that his government had been reckless with funds.

Ikpeazu said: “Accounting for the N10billion, no dime was diverted. Otti is diverting attention from his own quarterly report which captured him spending N3billion on research and non-existent projects.

”Why is it that he is using the same Ferrotex contractor, who he accused of receiving N10billion from us for major contracts today?

”What stopped him or his auditors from asking Ferrotex for explanations? We have decided to respond to him with evidence of jobs done. The time of truth has come.”

Providing an insight into the spending of the money, a former Commissioner for Information under Ikpeazu, Chief John Okiyi Kalu, asked Otti to stop playing to the gallery and tell Abians the truth with documents at his disposal.

Okiyi-Kalu said that the alleged N10billion originally budgeted for the airport project was rechanneled into other projects, following the approval of the Executive council, after traditional rulers in the state told Ikpeazu to forget an airport project but focus on repairing major roads in the state. The traditional rulers had told Ikpeazu that the airports in Owerri and Uyo made an Abia airport project unviable.

Okiyi-Kalu, who later served as a Commissioner for Trade and Investment, said that it was shocking that after a demand was made for the publication of the much talked about audit, Otti and his media handlers rushed to a blogger to help them publish an indicting report against his former principal instead of the forensic audit report.

Okiyi-Kalu said that since Otti became the Governor of Abia State, Ferotex Construction Company has been awarded the Umuimo Road, Shalom Road and Umuode Road, all in Aba.

“Currently, Ferotex Construction Company is equally handling 22.5 kilometres Isuikwuato-Abariba section of the 67.6 kilometres Umuahia-Uzuakoli-Abiriba-Ohafia Road, which is Otti’s biggest road project in Abia State.”

Okiyi-Kalu explained that the airport project issue first came to the Abia State Executive Council at a meeting on September 24, 2020.

He said that based on the presentation made to the Exco, they approved the project and also approved the borrowing of N10billion “from UBA Plc as an initial investment by the state with repayment charged to our FAAC account with the bank.

“You may wish to recall that during the period, the country was still struggling to emerge from the COVID-19 pandemic with very low FAAC and IGR inflows across the states,” he said.

Okiyi-Kalu said the current Secretary to State Government, who is an appointee of Otti, Prof Kenneth Kalu, can review and confirm his claim from Exco records in his custody.

“Shortly after we announced Exco’s approval of the airport project, Governor Okezie Ikpeazu received in audience executives of Abia State Traditional Rulers Council then led by HRM Eze Joseph Nwabekee.

“On 13th of November 2020, Governor Okezie Ikpeazu informed members of the State Executive Council about the details of his meeting with representatives of the traditional rulers in Abia State, who requested that we suspend the airport project and commit the funds earmarked for it to do more roads in the state, as we are surrounded by airports already but need to urgently improve internal roads that would give a further boost to the socio-economic activities of the state. Exco thereafter voted to approve the suspension and request to use the earmarked funds for road projects in the state.”

He further said that on November 17, 2020, Governor Ikpeazu took to his official X (formerly Twitter) handle to inform Abia citizens that the airport project had been suspended.

Okiyi-Kalu said that Ikpeazu must have informed the then Commissioner for Works, Elder Bob Ogu, of his intention to suspend the airport project in anticipation of Exco approval, hence the State Ministry of Works selected road projects in Abia 2020 budget for funding with the N10 billion and allocated resources to the contractors.

Okiyi-Kalu gave a detailed account of the roads and contractors that received the N10billion initially marked out for construction of an airport and listed about 18 projects that were done, in place of the airport.

According to his list: “China Zonghghao for Osisioma flyover Aba & ABSUTH Road Aba got N800,000,000. Trackcare Construction Company for Aba-Owerri road Aba (Brass to Osisioma junction segment, Ururuka road Aba, Afor Ibeji/ Ubakala Umuahia, Stella Marris Catholic Church, etc got N1,035,000,000.

“Ferrotex Construction Company for Aba-Owerri road (Railway junction-Brass junction segment) Aba, Obohia Road Aba, Opobo Junction-Ukpakiri Ogbor-Hill Aba, Uratta Ugwuati, Itungwa, Rehabilitation of failed Ururuka got N1,500,000,000.

“⁠Shannah Jardon Construction Company for Okigwe Road Aba, Milverton Road Aba, Cemetery-Eziukwu Road Aba got N450,000,000. Ecklean: Osusu road Aba-N200 000,000, Cosmos Construction Company for Immaculate Avenue Umungasi Aba got N150,000,000 while Setraco/Hartland for Port Harcourt road got N1,000,000,000.”

Further details go thus, “⁠Rockwaters for Ohanku Road Aba, Okpu Umuobo Aba got N650,000,000, MOW for Ebenma Street Aba and Ovom street Aba got N1, 130,000,000. Zubbalco for MBUBO Umuakwu got N200,000,000.”

Other details show that Tunnel End Construction Company got N780,000,000 for the construction of Umuene-Obikabia, Umuojima-umuokiri- Ekeakpara, umuakatawom-Eziama-Ohanze while Paceo Carretera company got -N312,000,000 for the construction of Agalaba Ring road in Obingwa.

From the same details, it shows that ⁠Delhope Construction Company got N557,000,000 for the construction of Umuobiakwa-Owo road Obingwa, Federal Medical Centre internal road, Aba Road Umuahia (GG-shoprite).

It was also gathered that MOW construction got N325,000,000 for the construction of

Umuobiakwa internal roads, umuobiakwa (Gov) roads, Mbawsi internal roads and desilting of Aba big gutter while ⁠⁠BOK construction got -N100,000,000 for the construction of Agbama Ring road Umuahia.

“Crystalkleen Construction for York/Jubilee/Nicholas street Aba got N30,000,000, Pumeco Construction for Aba road (Uchenna/ShopRite) Umuahia, Zero portholes in Umuahia roads got N353, 000,000, while Yodel construction for Afrata road, Umuahia got N100,000,000.

“⁠E&P for Trinity College Road Umuahia got N60,000,000 and Obitex Development Company Ltd for construction of Ohuhu road from Isiokata, diversion from the gully erosion at isiokata to Umuawa Ohuhu to Nkwoegwu got N125,000,000.”

More details provided show that Smutedge Company got N200,000,000 for the rehabilitation of failed portions of Umuikaa-umuenne, Pacon Company got N12,000,000.00 for completion of drains at Ozuomba/Ohazu road.

“MOW company for Zero pot holes(Aba) got N100,000,000, Charbel Company for Government house got 400,000,00 and the State Ministry of Public Utilities got N100,000,000 for Streetlights.”

He, however, explained that the list containing the tranche payments was not exhaustive as those were the only ones in his personal Exco note that he kept during meetings.

He said that it is also true that other tranche payments were made from other sources, stressing that the Ministry of Works led by Elder Bob Ogu and the Ministry of Finance led by Dr Aham Uko back then, should be able to supply a more comprehensive list to what he was saying.

Okiyi-Kalu further revealed that Ferotex Construction Company, as one of the reputable indigenous construction companies with anti-graft agencies’ clearance was selected by the Ikpeazu administration as lead company in the “contractor financier” arrangements with UBA.

He said that the above-mentioned arrangement, the “contractor financier” arrangement was not alien within the public sector, alleging that a similar arrangement was entered into by the Otti’s government with Craneburg Construction Company for N50bn facility earmarked for “various roads”.

He explained that such lead companies are more or less consultants that would receive the bulk amount and pay other road contractors as banks would not likely agree to enter into multiple agreements with all the contractors.

He said that Otti’s claim that he got the top three audit firms in the world to do the forensic audit was untrue, as his top three audit firms have failed to follow the money as expected of any audit firm, even the least ones, adding that a serious audit investigation would simply seek to establish if the allocated funds got to the companies and also if the contractors did the work.

According to Kalu, “Those who claim that there was the need for “virement” may be speaking out of ignorance in this case. The road projects were already in our approved 2020 budget, hence no need for further house approval.

“All state revenues are expected to be used to fund state budget and from the time we had approval to spend on the roads instead of Airport there is, no further need for legislative approval.”

“For the further education of those who verbalize terms they do not understand, “virement” is the process of transferring items from one financial account to another. In this case, the airport project and the road projects must both be in the 2020 budget before you can execute virement.

News

Alleged N6bn laundering: Fidelity bank staff testifies against Mompha

Published

3 hours ago

May 20, 2024

Advocate News Nigeria

A Fidelity Bank compliance officer, Mr Ezekoli Ozoemenam, on Monday testified against a social media celebrity, Ismaila Mustapha (alias Mompha) charged with six billion Naira money laundering.

Ozoemenam, the fourth prosecution witness, was led in evidence by the Economic and Financial Crimes Commission (EFCC) counsel, Mr Suleiman Suleiman.

The witness testified about the package of an account of the bank allegedly linked to Mompha.

The witness said that EFCC requested the account’s opening package and he responded to it.

“This is the Fidelity Bank opening package of the account that I sent to EFCC.

“It was printed from a perfectly working computer,” he said.

The prosecution, thereafter, tendered the document and prayed the court to admit it in evidence.

Defence counsel, Mr Kolawole Salami, told the court that he reserved his objection to the tendering of the document in evidence.

During cross-examination of the witness, Salami asked the witness whether he knew the branch of the bank in which the account was opened.

Salami also asked the witness if he was working at the bank’s headquarters at the time the account was opened in 2016.

The witness replied in the negative, adding that he was not at the headquarters.

“As at the time the account was opened, I was not at the headquarters.

“I was part of the internal control, and I moved from branch to branch, but I cannot remember which branch I was at, when the account was opened.

“Anomalies in bank accounts are reported to the Nigerian Financial Intelligence Unit (NFIU) and not EFCC but I do not know if the account was ever reported to NFIU.

“I cannot speak to the nature of the transactions conducted through the account as I am not the relationship manager,” the witness said.

Counsel to EFCC, thereafter, appealed to the court for a witness summons to compel appearance of EFCC’s next witness.

The counsel said that he needed the witness summons because the witness complained of feeling unsafe and receiving threats to his life.

Justice Mojisola Dada, however, said that it was the duty of prosecution to ensure appearance of its witnesses in court.

Dada said: “There is no special cause placed before the court to warrant a witness summons.

“I do not know what position he is occupying that will make him feel threatened.

“If EFCC cannot secure his protection, how does a witness summons guarantee his protection?” the judge asked.

Mompha is currently at large. His trial in absentia started on June 3, 2023 when a compliance officer with Access Bank testified against him.

The court, on Sept. 21 2022, ordered commencement of Mompha’s trial in absentia after he failed to appear before it severally.

EFCC had, on Jan. 22, 2022, arraigned Mustapha alongside his company, Ismalob Global Investment Ltd., on eight counts bordering on six billion Naira laundering.

The court, on June 22, 2022, issued a bench warrant for his arrest following his absence in court.

The court also revoked bail it granted the defendant.

The social media celebrity was equally absent in court on June 26, 2022.

On July 10, EFCC accused him of flouting the court’s order by travelling to Dubai with a new international passport.

The charges against Mompha include conspiracy to launder money obtained through unlawful activities and laundering of money obtained through unlawful activities.

The others are retention of proceeds of criminal conduct, use of property derived from an unlawful act, possession of a document containing false pretences, and failure to disclose assets.

The judge adjourned the case until July 1 for continuation of trial.

News

Lagos seals 840 event centres over safety violations in one year

Published

4 hours ago

May 20, 2024

Advocate News Nigeria

Over 840 event centres and social facilities in Lagos state have been shut down in the last one year, over safety infractions and non-compliance with extant laws.

The commissioner for special duties and intergovernmental relations, Gbenga Oyerinde, during the ministerial press briefing to mark Governor Babajide Sanwo-Olu’s first year in the second term, said the ministry is working in line with the THEMES Plus agenda to mitigate risks and protect life and property.

According to him, the Lagos State Safety Commission carried out enforcement action at 840 facilities, including event centres, clubs, lounges and hotels, and construction sites for safety infractions. He added that about 7,819 facilities were inspected to ensure safety, and another 5,220 were issued with fire safety compliance certificates.

The commission also carried out about 365 environmental safety advocacy initiatives.

The commissioner also said the Fire and Rescue Service rescued 376 victims during the period under review. Property worth N152.22 billion was preserved, with 82 casualties and N25.37 billion in property lost.

He added: “In line with efforts to bolster infrastructure, three new fire stations are nearing completion in Ijegun-Egba, Satellite Town, and Ijede, while an ultramodern workshop at the Alausa headquarters is nearly finished to cater to the agency’s fleet maintenance needs.

“Additionally, land spaces have been identified for the development of additional fire stations in Ibeju, Lekki, and Ifako Ijaiye.

“The Fire and Rescue Service is also sustaining its focus on enhancing fire mitigation and emergency response strategies, aligning with the THEMES Plus Agenda. Key statistics from the year’s emergency calls show 2,537 incidents, including 1,627 fire calls, 191 rescue calls, 93 salvage calls, and four explosions, alongside 607 false alarms.

“This highlights the critical need for increased awareness of fire safety measures to combat the impact of negligence and non-compliance with safety codes.”

Also during the year under review, he said the welfare of personnel received a boost, with special allowances approved for firefighters, including uniform maintenance, shift allowances, hazard allowance, and provision of personal protective equipment.

News

Bandits spotted flying drone at unknown location

Published

4 hours ago

May 20, 2024

Advocate News Nigeria

Bandits spotted flying drone at unknown location

The bandits operating the drone

A group of bandits has demonstrated skills and expertise on drone operation.

In a video posted by ZagazOla Makama, a counter-insurgency expert, at least five bandits were seen sitting on the floor.

One of bandits was seen operating a drone while the others watched it navigate through the air.

Laughing and excited as the operator maneuvered the device, one of the bandits could be heard saying, “There is something that holds it (the drone) there in the air.”

Later they spoke in chorus, albeit in a manner that appeared to reveal their utter conviction and satisfaction with the display.

The video, however, elicited reactions from X Users, who expressed a wide range of opinions, with many raising concern about the level of insecurity in the country.

An X Use, @angel_abaji, said: “This is very bad to the fight against bandits.”

@realadnantweet: “There’s is conspiracy theories behind kidnapping & banditry in Northern Nigeria.

Rumour is going round that those criminal elements are being sponsored by the powerful men in order to divert the public attention from the illegal mining of rich mineral deposits in those regions.”

@mr_stitch01: “This is because they are sponsored by high profile rich elites.”

@igwedip: “How are they even getting these drones??”

@Godmvde: “Bokoharam members have long been using drones to track the movement of Nigerian soldiers, this isnt news. The Nigerian terrorism industry will keep on growing as long as it keeps getting its needed financial, logistical and military support from the government.”

@Aminpac: “How sure are we these ones are Bandits?”

@oil_shaeikh: “How did you just profile them as bandits?
Please explain.
Or has any nomad in the bush turned into bandit?”

@carliid: “Now the government may try to ban or seriously regulate use of drones instead of coming up with more sophisticated means of tracking them. We really need to wake up.”

@legenduryjrini: “The Army should be the ones using drones just like the war in Ukrainian, But in my country is the other way round, Is it a crime to be a Nigerian, There was peace in the country just like Ghana, They should share the country for God sake.”

@Gracepikin001: “This is because they are being coached and integrated by other external extremes, they are having constant contacts with other groups that have used and experimented with drone surveillance. This is a big problem for the military as they will be spotted before hand.” (Daily Trust)