Fresh developments have emerged in the ongoing probe into alleged local government contracts in Kano, with investigators now trailing additional N660 million meant to address the water challenges facing the state, which are feared to have been misappropriated.

Daily Trust learnt that the N660 million is part of the N1.1 billion approved by Governor Abba Kabir Yusuf for the 44 local governments to tackle issues related to water and medical supplies.

The approval covered projects slated for August, September and October 2024, with N1.1 billion allocated each month, granting N25 million to each local government.

Of the N25 million approved and released to each local government in August, it was discovered that the caretaker chairmen were directed to remit N10 million each to the account of Novomed Pharmaceuticals, a company reportedly owned by Musa Garba, a nephew of Senator Rabiu Kwankwaso, the leader of the Kwankwasiyya Movement.

The remittance, intended for a drug supply contract, was flagged by the state’s Public Complaints and Anti-Corruption Commission (PCACC) as “fraudulent”, leading to the interrogation of several officials, including Mohammed Kabawa, Permanent Secretary of the Ministry for Local Government and Chieftaincy Affairs; Abdullahi Bashir, chairman of the state branch of the Association for Local Governments of Nigeria (ALGON); and other officials of the Ministry of Local Government. They were questioned on Tuesday and Wednesday and subsequently granted administrative bail.

The suspects reportedly admitted during the investigation that they had not strictly adhered to the Kano State Public Procurement Law, stating that such deviations had become a “convention.”

However, investigators revealed to Daily Trust yesterday that the interrogation on Tuesday uncovered more complexities in the case than initially anticipated.

It was gathered that the inquiry originally focused on the N440 million allocated for the drug supply, but it soon became apparent that the remaining N660 million, intended for borehole repairs across the 44 local governments, might also have been misappropriated.

An investigator, who requested anonymity, said: “As they defended the contract awarded to Novomed, it became clear that the N660 million allocated for borehole repairs may not have been used appropriately. The ALGON chairman claimed the money had already been spent to fix boreholes, but it’s hard to believe that N660 million could be used without noticeably improving the water supply situation.”

The investigator noted that the first red flag arose when the ALGON chairman reportedly mentioned that they had sourced funds for the project before the approved money was released, using the official funds as reimbursement.

“We instructed them to return on Wednesday with evidence of the project’s execution. However, we have already begun the process of recovering this money for the government,” the investigator added.

Another staff member of the anti-corruption agency, who also spoke on condition of anonymity, said those questioned regarding the N440 million drug contract admitted to violating the state’s Public Procurement Law, 2021, and the guidelines provided for public procurement project monitoring and evaluation. Their justification was that they assumed this was “conventional practice”, the source added.

He elaborated that, according to the law, suppliers are generally not permitted to request full payment before the delivery of goods.

“The Public Procurement Law restricts advance payments (including full payment before delivery) to no more than 20% of the contract sum unless specific approval is obtained. The standard practice is to make payments only upon satisfactory delivery of goods or completion of services, ensuring that the government receives value for money and that the procurement process is safeguarded against fraud and non-performance,” he said, adding that these exceptions were not observed in the contract award.

Money spent efficiently, actual facts will be revealed – ALGON

When contacted, Abdullahi Bashir, chairman of the state chapter of ALGON and caretaker chairman of Tarauni Local Government Area, denied the allegations of misappropriation of the N660 million meant for borehole repairs.

“No, it wasn’t like that,” he stated when asked about the alleged mismanagement of the funds.

“Boreholes were fixed everywhere, and this can be verified. I can send you pictures and videos from my local government. I even spent more than the N15 million approved by the government, using my Internally Generated Revenue (IGR) to complement the funds,” Bashir explained.

He added that “even the drugs, the actual facts will be out.”

He confirmed that they returned to the anti-corruption agency on Wednesday for further discussions and were allowed to leave by 3pm, when he spoke with Daily Trust.

Bashir later sent several pictures and videos showing workers fixing boreholes, water tanks, and other related tasks as evidence of the project’s execution. In a follow-up call, the ALGON chairman reiterated that these projects were being carried out across all 44 local governments, adding that other caretaker chairmen had been sharing updates on the progress, which can be independently verified.

Anti-graft agency blocks over N160m, to quiz Kwankwaso’s nephew today

As part of the investigation into the N440 million drug contract, the anti-graft agency has secured a post-no-debit order on the account of Novomed Pharmaceuticals, blocking over N160 million while moving to recover the remaining sum.

The Managing Director, Musa Garba, is scheduled to meet with investigators at the anti-graft agency today.

In a copy of the invitation letter seen by Daily Trust, Garba is expected to appear before investigators at 11am.

The letter, signed by CSP Salisu Saleh, the commission’s head of operations on behalf of the chairman, stated that “the commission is investigating an alleged violation of Section 31 and 33 of the Public Procurement Law and Financial Management Law concerning contracts awarded by the Ministry for Local Governments in Kano State to your company (Novomed Pharmaceuticals) for the supply of drugs to 44 local government councils.”

When contacted, Muhuyi Magaji, the chairman of PCACC, confirmed the authenticity of the invitation letter. He also confirmed that the first group of individuals invited had been questioned on Tuesday and Wednesday and released on administrative bail while the investigation continues.

“As I’ve said multiple times before, the commission will leave no stone unturned. All those involved will be exposed. Our job is to investigate and submit our report to the Attorney General, who might decide to grant us the fiat to prosecute the case. But I can assure you that we will see this case through to its logical conclusion,” Magaji stated.

Responding to allegations that several other high-profile cases unearthed by the commission in the past year have not been concluded, with no further news about the suspects since their suspension, Magaji said, “You can check the courts—we are prosecuting several cases. We don’t engage in media trials by publicising every case. We’ve completed investigations and taken them to court. Legally, these individuals are presumed innocent until proven guilty, and we’re before a competent court. Our focus is on proving our case beyond a reasonable doubt. For those interested in the details, they can visit the court to inquire about the number of cases.”