News

Kano anti-graft agency probes N660m fresh water contract scam

Published

3 months ago

August 22, 2024

Admin

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.”

News

Change Negative Narrative About EFCC Being Used For Settling Political Scores- Reps

Published

3 hours ago

November 12, 2024

Austin Ojomah

………Ask Anti Graft Agency To Fight Financial Crimes Within Established Laws

.
……My Staff Are Poorly Paid, EFCC

…., States Why Fight Against Yahoo Boys Fierce

The House of Representatives has tasked the Economic and Financial Crimes Commission, EFCC, to purge itself from the negative impression that its being used to settle political scores and concentrate fighting financial and economic crimes within established laws.

The House handed the advise on Tuesday through the Chairman House Committee on Financial Crimes Honorable Ginger Onwusibe who led members of the committee on the 2024 oversight exercise on the commission.

The oversight covered extensive facility tour of departments and critical operational units of the antigraft agency.

In his terse remarks, Hon. Onwusibe challenged the agency to improve its operational activities in combating economic and financial crimes by complying with its 2004 Establishment Act and other relevant applicable laws like the Money Laundering ( Prevention and Prohibition) Act 2022: Terrorism ( Prevention and Prohibition) Act 2022: The Proceeds of Crime Act. 2022, as well as other statutes, that compels it to carry out these roles transparently with accountability and show that the negative maxim being peddled in some quarters that the agency is often being used for settling political scores is incorrect .

The committee assured that it will collaborate with the commission to actualize its mandate by enacting new laws or amending old ones and as well providing budgetary interventions, if it must strive tirelessly to be on top of its challenges

The House urged the agency to collaborate with sister agencies and desist from keeping suspects as- awaiting ‘trial in correctional centres nationwide

“At this point let me add that a recent visit to the Maximun and Minimun Correctional centres in Kirikiri Lagos State, numerous suspects have been awaiting trial for over one year and yet we are all acquainted with the saying that justice delayed is justice denied”

” It is on this note that we call on the EFCC, Attorney General of the Federation and the Judiciary to improve and ensure the administration of justice works and is efficiently delivered to the victims”

The House warned the agency to purge itself of rotten eggs in order to fight economic and financial crimes frontally, thereby stimulating the Nigerian economy

It also urged EFCC to focus properly on its mandate.

” The issue of appropriate and proper focusing on the mandate of the EFCC must relentlessly be on the front burner:

“Orders from competent courts , arrest and debt recovery must be pursued religiously” the House cautioned

But on its side, the antigraft agency said it has not deviated from its focus but rather working hard and fighting financial and economic crimes as enunciated in its mandate.

Chairman of the agency , Ola Olukeyede told his guest in his remarks during the oversight visit that the commission was doing much to fight financial and economic crimes and stimulate the Nigerian economy

He said so far that the agency has recovered over N250bn cash, tens of million of Dollars and other foreign currencies, with over 3000 convictions: 17000 petitions while also investigating over 20000,with about 4000 fresh cases , all being handled by a misery number of staff strenght

He noted that its priority is to improve the country’s image and stimulate its economy, such that there could be improvement in foregin direct investments and stimulation of the local economy.
Olukeyede however, argued that the agency needed more staff strenght, funding , better renumeration for staff because they were poorly paid. He also emphasised on modern day technology to fight the ever dynamic cyber criminals

According to the EFCC boss, it was important to give more salary to EFCC staff and deploy modern technology to fight emerging cyber crime dynamism . He expalined that the agency has increased efforts to fight Yahoo, yahhoo, boys because of their ability to crumble any economy within a twinkle of an eye

According to him, the agency was expanding its drag net to focus on ministries, departments and agencies infrastructural projects. ” “Go to MDAs and see their budget implementstion. It is not up to 20%”

“We want to ensure 50% infrastructural development” the anti graft boss announced, insisting that it would henceforth encourage monitoring of project implementation which was an aspect of preventing financial crimes

He said the agency has dismissed lots of erring staff, and will continue to dismiss and even prosecute them going forward.

Olukeyede disclosed that it had designed a template on staff integrity, using the Gift- Policy model

.” It is not every thankful gift we should collect” the EFCC boss warned

” I am advocating for more welfare improvement, better welfare, he said.

“We will do more recoveries, more convictions, but we need more resources to do our work, maintaining that, that was his stand on ethics and integrity .

Olokeyede’s demand for more salary wage for staff of the commission, is seen as an incentive to boost welfare and morale to fight financial crimes to standstill.

He stated that there was the utmost need to increase salaries of staff of the commission

The EFCC boss who spoke on his stewardship in the last one year, further added that it increased the war against Yahoo- Yahoo boys because of the consequences of their nefarious acts which could crumble a nation’s economy in a jiffy.

He argued that more technology was required to fight financial crimes.

For instance he explained that it was a common scenario then for thieves and armed robbers to attack and break into banks with guns and Dynamites

” But it is the same common and more easier scenario and task now to have Yahoo-Yahoo boys and bank thieves attack banks with technology in the comfort of their homes or hideouts”

“So we need technology and we also need to increase our fight against these Yahoo boys who can dismantle any economy within a twinkle of an eye

He called on the national Assembly to improve and increase its finances because fighting Financial crimes was a herculean task that requires adequate funding

Olokeyede who apparently was responding to criticisms of the commission’s over concentration on Cyber crimes/ thieves, perpetrated by Yahoo boys, said he has made tremendous impact in enforcement, investigation and conviction with an outstanding record convictions between October 2023 when he was appointed till date

News

Trouble looming for Obaseki as Gov Okpebholo orders probe of his admin

Published

4 hours ago

November 12, 2024

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

Governor Monday Okpebholo of Edo State has ordered the setting up of a committee to probe the immediate-past administration of Godwin Obaseki for its failure to inaugurate 14 Edo Assembly lawmakers-elect into the 7th Assembly.

Okpebholo disclosed this while giving his inaugural speech as the new governor of the state.

Governor Okpebholo also ordered the State Chief Judge to immediately investigate the initial delay of former Governor Obaseki to inaugurate duly-cleared judges by the National Judicial Council (NJC) last year

News

Naira may depreciate to N1,993 against dollar – Report

Published

4 hours ago

November 12, 2024

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

Nigeria’s naira has been projected to depreciate further to N1,993 per dollar in the coming days.

This is according to BMI, a Fitch Solutions subsidiary report title, ‘Weak Naira and Structural Challenges to Constrain Nigeria’s Medical Devices Market Growth’.

The report said the forecasted depreciation will be predicated on the 95 percent dependence on imports for pharmaceuticals in Nigeria.

According to the report, the development would erode both the health system and patient purchasing power.

“We expect that the naira will end 2028 at N1,993/$ from N306/$ in 2018.

“As the naira weakens, the cost of importing medical devices will continually increase, eroding both the health system and patient purchasing power, especially to invest in essential medical technologies given the underfunding of the public health sector,” the report stated.

This comes as Naira fell to N1681.42 and N1735 at the official and parallel foreign exchange markets on Monday.

This comes as FMDQ FX transaction turnover dropped significantly from $1.4 billion on Friday to $471.5 million on Monday.

Last Thursday, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, said the country’s external reserves rose to $40 billion.

Despite Central Bank of Nigeria’s interventions and external reserves rise in the last months, the naira has continued to experience fluctuations in the FX market.