- Forwards Report to Presidency
Following its determination to pursue its war against corruption at all levels, the Economic and Financial Crimes Commission,EFFC, has reportedly concluded its interim investigations into the alleged fraud that rocked the disbursement of the $4billion Paris Club windfall by the 36 states governors. Fresh findings by The New Diplomat Economic Intelligence Desk reveal that the acting Chairman of the EFCC, Mr Ibrahim Magu, has reportedly forwarded an interim report into the said massive fraudulent deals that was allegedly perpetrated by the Nigerian Governors Forum, NGF, with its untidy handling of the $4Billion Paris Club Windfall, to the Presidency for necessary action.
The New Diplomat investigations reveal the alleged manner the funds were shared among political top-shots. Sources close to the EFCC disclosed that a serving Senator who was also an ex-governor received as much as N2.5billion from the Paris/London Club fund while an ex-Ekiti State Governor allegedly got N2 billion. Another political top-shot from Rivers State is said to have been given N400m for political purposes from the fund. The New Diplomat gathered that the indicted Senate bigwig is mounting pressure on the Presidency to shelve the EFCC report in return for a confirmation of Magu’s appointment.
The EFCC boss, Magu has been in acting capacity. But Presidency sources told The New Diplomat the Presidency is not bothered as the Senate bigwig was told in clear terms that the anti-graft agencies should be left to do their jobs.
It would be recalled that In perpetrating the alleged fraud, the NGF) allegedly used phony consultants— GSCL Limited and Biztrust Limited — who unethically deducted five per cent of the funds paid to the states by the Central Bank of Nigeria ,CBN, without the authorization of the Accountant-General of the Federation. Once paid, the consultants forwarded a part of their payment to the individual accounts of the governors, with some governors individually receiving as much as N400 million.
This information allegedly sprung the EFCC into action which led to the arrest of Ashishana Okauru, Director-General of the Nigerian Governors’ Forum.
It would be recalled that Senate President Dr Bukola Saraki as chairman of the NGF had allegedly introduced the use of consultants to access such funds. But it was gathered that when former Governor of Rivers Rt. Honorable Chibuike Amaechi became the chairman of the forum he scrapped the use of consultancy for such purposes. However, the current Chairman of the forum, Gov Abdul Aziz Yari of Zamfara state reintroduced the use of consultants to manage such funds
While releasing the money to the governors last year December, President Buhari had urged the states to invest a minimum of 50 percent of the amount disbursed to them in people’s welfare, especially for the payment of salaries and pensions.
Rather, according to investigations by The New Diplomat, instead of using the money for paying workers salaries, some political top-shots decided to convert it into slush fund that would be used to refund some of the party’s original funders.
The NGF has described as malicious, a media report alleging that Saraki, members of the Forum and Okaru pocketed part of the Paris loan refund.
The state governors noted that they are ready to take on the EFCC, which is investigating them over the alleged diversion of the refunds.
After a meeting at the Presidential Villa recently, the governors, under the aegis of the NGF, said they would await the report of the EFCC investigation.
Fielding questions from State House correspondents after the NGF meeting, chairman of the forum and Zamfara State governor, Abdulaziz Yari, said the governors were ready for the probe.
He expressed the governors’ support for the present administration’s war against corruption, but said that they would wait for the outcome of the EFCC investigation.
He said: “We discussed the issue of the Paris Club and London Club refunds. We observed that EFCC said it is conducting an investigation. Yes, we support the federal government in the fight against corruption. “So we are waiting for the EFCC to come up with what they say is the investigation and come up with the result.”
The presidency had ordered the investigation because it was disappointed that what was meant to be a goodwill gesture was compromised by selfish interests. Top presidency source said that the federal government was worried that its efforts to ensure the settlement of pension and salaries owed to workers in the states were being sabotaged through the alleged.
It expressed its determination to get to the bottom of the matter and consequently ordered the relevant agencies to carry out a full-scale probe to unravel any abuse of the funds.
Since the directive, the governors have reportedly been spoiling for war with Magu.
To ensure that the case was not swept under the carpet, Socio-Economic Rights and Accountability Project, SERAP, has given the Federal Government seven days to initiate legal action against states that allegedly diverted and mismanaged the N388.304 billion London/Paris Club loan refunds.
The rights group urged the Accountant-General of the Federation Alhaji Ahmed Idris, “to urgently pass on information to the Attorney General of the Federation and Minister of Justice Abubakar Malami (SAN) relating to the release of N388.304 billion London/Paris Club loan refunds to the states by the Federal Government so that Mr Malami can take steps to initiate legal action against the states that allegedly diverted and mismanaged the funds.”
The organization asked Alhaji Idris to compile and pass on information on the spending of the funds by states to Mr Malami so that he can take appropriate legal action to “compel the states to widely publish, including on a dedicated website, details of spending of the funds by them. We request that you take this step within 7 days of the receipt and/or publication of this letter, failing which SERAP will institute legal proceedings to compel the discharge of duty in this matter.”
In the open letter dated 17 February 2017 and signed by SERAP executive director Adetokunbo Mumuni the organization said: “SERAP strongly believes that passing on information on the spending by states of N388.304 billion London Paris Club loan refunds to Mr Malami and bringing a case against the states that have allegedly diverted and mismanaged funds meant for payment of salaries and pension is rational, and would be a powerful tool to deter corruption in the states of the federation.”
The letter adds: “Pursuing such action will also send a strong message that President Muhammadu Buhari would not tolerate corruption in the disbursement of funds by his government no matter who is involved. Such legal action will be deemed incidental to the power of the federal government to achieve effective implementation of anticorruption legislation such as the ICPC Act, which is applicable in all states of the federation, and will not amount to interference with activities within the states involved.”
