Senate: SGF Mismanaged N8.3bn IDP Funds
Carpets EFCC, others for not discovering fraud, transmits report to presidency Saraki admits political pressure to stop probe
The Senate yesterday indicted the suspended Secretary to the Government of the Federation (SGF), Mr. Babachir David Lawal for corruption and abuse of due process in the management of the N8.3 billion allocated to the Presidential Initiative on the North East (PINE).
The Senate also carpeted the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices Commission (ICPC) and other anti-graft agencies for not discovering the quantum of fraud that was perpetrated in PINE, particularly as it was evident that the billions of naira allocated to alleviate the plight of the Internally Displaced Persons (IDPs) in the North-east were not yielding results.
The upper legislative chamber further transmitted its report of the investigation into the allegation of fraud in application of PINE funds to the presidency yesterday.
Adopting the report of its adhoc Committee on the Mounting Humanitarian Crises in the North-east, the Senate called for the prosecution of Lawal by the EFCC and other anti-graft agencies for contract fraud, abuse of office, misapplication of funds and other corrupt practices.
The report which was signed by seven members of the committee, noted that the sum of N6.8 billion was expended in three phased projects by PINE in six months (March-September 2016) leaving a balance of N2 billion, even though none of the 27 companies that were awarded 39 contracts met any of the six pre-qualification criteria of the Bureau of Public Procurement.
Lawal was accused by the Senator Shehu Sani-led committee of using his company Rholavision as a destination pool for receipt of kickbacks amounting to N500 million from companies that were awarded PINE contracts.
It alleged that Josmon Technologies Ltd which was awarded two contracts totaling N530.6 million for the removal of invasive plant species, later transferred over N317 million to Rholavision; while Messers Adamawa Boreholes and Drilling Company, with a N54.8 million contract to renovate seven classrooms in Adamawa, also transferred N18.3 million to Rholavision’s account.
Also, Barde Brothers Multi Services Ltd, with seven contracts totalling N145.6 million to renovate classrooms in Adamawa, transferred N71.2 million into one account bearing Badau Agricultural Services Ltd and another N13 million into the personal account of the suspended SGF.
The recommendations of the report were unanimously adopted by the senators.
Speaking on the report, the Senate President, Dr. Bukola Saraki admitted that the leadership of the Senate and the investigating committee came under intense political pressure to stop the probe.
“I am sure of the kind of pressure on the members, especially the chairman and some of us in the leadership and the kind of pressure we were under.
“But for you to have been able to stay firm and do your job, and carry out your responsibility. I must commend the committee and the chairman in particular.
“I am proud of a Senate that can produce this kind of report despite the political pressure that we know existed and present a report that is not biased,” he said.
Saraki added that facts of the matter spoke for themselves, adding that whatever the sentiments were during the probe, the report showed that something had gone wrong.
“This also raises question on our anti-corruption agencies, truly, and what they are doing. I don’t think Babachir is the beginning of corruption in these agencies.
“Surely, there are people under him who also made it conducive for this kind of looting. And I believe that it should not just stop here. The anti-corruption agencies need to go there. This is systemic.
“I don’t know whether the PCNI and whoever is there now, and if the calibre of people there now can do what is necessary. But I believe that it is a great indictment on all of us if they don’t.
“If the people there are not the right people who need to be there, then the right people must be put there to get it right.
“I am emphasising this, so that it is not just about the SGF,” Saraki added.
The Senate President also lamented that some people chose to make profits from the humanitarian crises, adding that it did not speak well of the Nigerian society.
Also speaking, Deputy Majority Leader, Senator Ibn Na’Allah (Kebbi South) said it was disturbing that the companies had an obligation to transfer back some amount of money to Rholavision.
Na’Allah alleged that there was credible evidence that part of the money made from PINE contracts was used to sponsor people against the National Assembly.
“We have a good president who has gone all over the world, promising the entire world that he would change this country. And then, we have this misfortune of having some very few individuals finding their way into the government. How they did it, only God knows.
“They want to get at the foot of the government and they were entrusted with the mission and vision of Mr. President. We are lucky as this is one that the country is now aware of.
“We have many of them and
we are going to bring them to the floor with evidence.
“This same man (Lawal) who spent the best part of his life saying that even ordinary boreholes that should be dug for Nigerians in various corners of this country were unnecessary.
“Now, you are providing consultancy for cutting grass and you are taking N200 million.
“Nigerians don’t even know that there is a difference between the contract to cut grass and the consultancy payment to cut grass,” he said.
Following the adoption of the report, the Senate in an unusual manner, took a 10-minute break and reconvened to adopt the votes and proceedings of its plenary to allow for transmission of the proceedings to the presidency.
Under normal circumstances, the votes and proceedings of plenary are supposed to be adopted on the next legislative day.
THISDAY gathered that the decision was taken to allow for the transmission of the report immediately, ahead of the conclusion of the investigation by the administrative panel of the executive headed by Vice-President Yemi Osinbajo.
Other findings of the committee showed that there were “no evidence of advertisement for all the rehabilitation contracts carried out, no evidence of submission of bidders register, no evidence of bid of return sheets at the bid opening exercise to authenticate those that participated in the bid process (it was not a coincidence that for each contract awarded it was bidded by only three companies interchangeably).
“Contracts awarded by PINE were split to favour companies owned by cronies and friends by awarding them more than one contract”.
The committee further found out that all the Bills of Quantities for rehabilitation works presented to the committee by PINE were all blank, thereby making it difficult to ascertain the true cost of the projects.
“The committee could not sight any documents converting Federal Executive Council approval on all contracts above N50 million as required by the Public Procurement Act 2007.
“That contrary to the provisions of Section 35 of the Public Procurement Act, 95% to 100% payments of all contracts awarded by PINE have been paid for, even as some of the contracts are yet to be fully executed,” the report of committee revealed.