The investigation is digging into what has become of the N2billion Asa Dam Mixed Use Development Project and the Ilorin Water Distribution Project which has gulped N3.736billion but without water to drink by residents.
The Economic and Financial Crimes Commission
(EFCC) is probing Senate President Bukola
Saraki, Governor Abdulfatah Ahmed of Kwara
State and the Accountant-General of the state
over how a N17billion bond secured by the State
Government was spent.
The anti-graft agency suspects that part of the
funds may have been diverted into private use.
The bond was intended to cover 13 projects and
loan refinancing package during the tenures of
Saraki as governor and Ahmed,his successor.
The investigation is digging into what has
become of the N2billion Asa Dam Mixed Use
Development Project and the Ilorin Water
Distribution Project which has gulped
N3.736billion but without water to drink by
residents.
The EFCC has already interrogated the Secretary
to the State Government, two Permanent
Secretaries, the Accountant-General of the state,
and about three contractors.
All those invited were said to have made
“voluntary statements.”
Two ex-commissioners and two members of the
House of Representatives may be arrested by the
anti-graft agency in connection with the affected
projects.
But a source in government in Kwara State
claimed that EFCC is on a “wild goose chase
because the bond has been fully repaid since
2014 without any outstanding liability for the
people of Kwara State.
“We suspect sheer politics and a plot to
intimidate Saraki and Ahmed because 2019 polls
are around the corner.”
The fact-sheet sighted by our correspondent
listed the affected projects as Aviation College –
(N1.5b budgeted, N2.448, 663, 386.56b spent);
Asa Dam Mixed Use Development Project (N2b);
Kwara State University (N1b); Ilorin Water
Distribution Project (N2b allocated, N3.736b
spent); Shonga Irrigation Project (N2.9b
allocated, N882.9 million paid to contractor);
Kwara Advanced Diagnostic Centre( N750m
allocated, N1.861b spent); Urban roads (N1.5b
allocated but N1.609b spent); Rural and Feeder
roads(N200m); Ilorin Metropolitan Street Lights
Project(N250m); Kwara Vocational Centre
(N650m); Loan refinancing (No evidence of
payment of N2.4b to AFDB); Ilorin Township
Stadium Project—N1b allocated but N1, 117
430, 700.54 spent; Electrification Project—N462,
144, 291.10; Kwara Mall Project—N500m
allocated, $2m deposit in another account
The fact-sheet said: “We are investigating a
petition forwarded by the Code of Conduct
Bureau, Abuja. It was alleged that the Senate
President, Dr. Bukola Saraki, Governor Abdulfatah
Ahmed and the incumbent Accountant-General of
Kwara State allegedly conspired and
misappropriated N17billion raised through bond
in 2009.
“Letters of invitation were sent to the Secretary
to the State Government, the Accountant-General
of the state as well as Permanent Secretaries for
ministries that handled the projects.
Some snippets of the investigation include the
following:
“Asa Dam Mixed Use Development project: The
project had N2billion allocated from the bond.
However the sum of N83.688 431.68 was spent
on consultancy by ECAD Designs Limited and
nothing else was done.
“Ilorin Water Distribution Project was allocated
N2, 000,000,000. However, N3, 736,505,126.49
was spent on the project. The only contractor for
the project was C.G.C Nigeria Limited. An
analysis of the Kwara state Government’s First
Bank of Nigeria Plc account revealed that the
sum of N1billion was paid to C.G.C apparently
for the project. Investigation is still ongoing.
“Another project which benefitted from the bond
was Kwara State University with a N1billion
vote. But a total of N1, 675 607.905 23 was
spent. The project had the following contractors:
Charvet Nigeria Limited, Akit technology Limited,
Integrated Concept Limited, Golden Consult and
the University Itself.
“The project was handled by the Ministry of
Works and the Commissioner as at the time was
one Kolawole Abdulrauf Shitttu. Investigation
revealed that Mr. Shittu and one Engr. Akintola
Taiwo are both directors and the accounts
signatories to a company called PTL Consult
Limited. “Shittu is also a signatory to another
company called Strudev Consultancy Services.
Analysis of the companies’ accounts and the Mr.
Shittu’s personal account revealed that transfers
were made by Charvet Nigeria Limited and
Archon Nigeria Limited; the two companies were
among the contractors of the University Project.
“The Managing Director at Archon was invited
and he stated that he was the project manager
for the construction of the Kwara State
University and that he was informed by the State
Government that PTL Consult is the consultant
on the project and that he worked with Engr.
Taiwo during the period which was why they
made payments to PTL Consults’ account.
Efforts are being made to arrest Mr. Shittu.”
Concerning Kwara Mall, the fact-sheet claimed
that the project was allocated N500million and
the entire sum was utilized by the Ministry of
Commerce.
It added: “The Permanent Secretary was unable
to provide us with details of how the money was
spent but did state that they were in partnership
with a private company; Persians Investments
Limited and that the Kwara Mall was
constructed and is being fully utilized. A search
of the company showed that they were into real
estate and property management; parts of their
properties included Kwara Mall, Viva cinema,
Polo Park Enugu among others. Analysis of the
company bank statement showed N500million
paid to the company by the Kwara State
Government on the 10th of June 2010. While the
investigation is ongoing, the sum of two million
USD $2,000,000 deposit was traced to one of the
company’s account. The depositor is being
tracked by detectives and all relevant agencies.”
Regarding the irrigation project, the EFCC
detectives alleged that the “document recovered
from the Accountant-General did not show this
project but the Permanent Secretary stated that
the project also known as Shonga Irrigation
Project was handled by the Ministry and the
contract was awarded to C.G.C Nigeria Limited
for N2,998,966,827. However, only N882,
944,215 was paid to the company. He further
stated that the project was later taken over by
the Federal Government.
On the International Aviation College, whose
licence was suspended recently, the detectives in
their report said it was allocated N1.5billion
from the bond but N2,448.663.386.56 was spent
in on the construction and purchase of
equipment.
“Contractors that handled the project were:
Godab Nigeria Limited. Henry George Nigeria
Limited, ECAD Design (Consultants) and the
college itself. The College is alleged to be fully
owned by the Kwara State Government and
registered with the Corporate Affairs
Commission (CAC) R C; 746511. Its board
included the current State Governor, Ministry of
Finance, Mr. Razak Atunwa (a former
commissioner in the state) Popoola Captain
Shadrack Taiwo and Yusuf Tunde. The registrar
of the college was invited for an interview and
questioned on the finances of the college as well
as aspects in which the college handled during
the construction of the college. He stated that
the bursar of the school died recently but most
contracts were handled by one Harlequin
Aviation Information Service Limited (HAIS).
“A search at the company found that one Yusuf
Tunde is a Director as well as signatory to the
accounts of the company: he is also a Board
member of the Aviation College. Based on this
the accounts of HAIS were placed on caution
and the company’s representative is to report for
an interview on the 30th of August 2018.
The report clarified the status of loan refinancing
by the state government.
It said: “The prospectus of the bond stated that
Kwara state had indebtedness of N4, 980,000 in
external loans out of which N3.3billion amounted
to legacy obligations preceding the then
administration They proposed utilizing N2,
400,000,000 from the bond proceeds of the bond
to service part of the legacy obligations which
were (a) African Development Bank(AFDB)-
construction of four specialist hospitals in Jebba,
Offa, Oke-Ode and Sobi at a cost of N1,440, 828,
000; (b) AFDB-equipment procurements to the
four specialist hospitals; ( C) World Bank
Essential Drug Projects.
“The total debt was N3, 301, 162, 42. Only
Documents obtained from the Accountant-
General of the State did not show any indication
that monies were paid to AfDB or the World Bank
instead another list with heading ‘OTHER
PAYMENT’ showed the names of Government
Agencies and private companies being paid a
total of N974, 896,343.47.
“The companies were invited. One of the
companies, Lolada Investment Limited reported
and stated that they were awarded a contract
valued at N285, 652, 200 by the Kwara state
Government to install CCTV system for Ilorin
metropolitan.
CREDIT : YUSUF ALLI, THE NATION
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