A Torrent Of Scandals Trail Obasanjo - National Mirror Editorial March 19, 2008 | posted by Mobolaji Aluko (Archives)

 

NATIONAL MIRROR
March 20, 2008

 

A Torrent Of Scandals Trail Obasanjo

Political watchers  allege that Chief Kenny Martins, twin brother of his separated wife, Taiwo Obasanjo, might have been used. Indications are rife that there is a strain relationship between the PEF and the police. The Nigeria Police Force recently disassociated itself from the activities of PEF.
By WILSON ASEKOMHE

Former President Olusegun Obasanjo has been enmeshed in stormy waters since he vacated office, as shocking revelations arising from his contract awards and other matters are being unearthed.

Fresh allegations of contract scandal and corruption are now being raked up in the power sector, oil and gas, road construction and the Obasanjo's administration privatisation exercise. The accusations are widespread as both serving and retired government officials are embroiled in the mind-bloggling corruption uncovered by the House of Representatives Committee on Energy.

Gory revelations at probe panel

The hottest of these allegations is that Obasanjo awarded energy contracts to the tune of $16 billion without anything to show for it. According to Governor Gabriel Susuam of Benue State who is also the immediate past Chairman, House of Representatives Committee on Power and Steel, Obasanjo awarded contracts for the Mambilla Power Project to a blacklisted German firm. He stated this at the on-going probe panel investigating the fund so far wasted in the power sector while Nigeria wallows in total darkness.

Governor Suswam noted that the National Integrated Power Project (NIPP) was established following the setting up of the excess crude account by the National Assembly. Regrettably, he said, visits by his committee "to four of the projects including Gereku, Alaoje, Papalanto and Omotosho showed that they were yet to get-off the grounds."

Corroborating Suswam, Goveror Danbaba Suntai of Taraba State stated that the contract was awarded to Lahmeyer International, a blacklisted German firm which did not execute the project even though it had collected huge sum of money to the tune of N369 million.

He called on the House Committee probe panel "to do a thorough job and ensure that those culpable are held accountable."

Justifying the probe, Godwin Elumelu, Chairman of the House Committee, explained that since the contract was awarded in April 2005, Lahmeyer has not done anything. Yet, Obasanjo commissioned the projects in a ground-breaking ceremony.

Also testifying, the Minister of State for Energy (Power), Mrs. Fatima Ibrahim explained that the 36 states and 774 local government areas of the country contributed to fund the failed contracts. And following the failure of the National Integrated Power Project, the states and local governments now demanding for a refund of N3.2 billion they contributed.

The probe panel was further told how N250 million was spent on a bungalow and N369 million mobilisation paid for jobs not executed. She confirmed that in many cases contractors collected money and disappeared.

Ardent political watchers are worried that an Obasanjo's government, which touted itself as anti-corruption crusader may be culpable in the face of these mounting allegations.

Former Minister of Defence in the Obasanjo government, Lt.Gen. Theophilus Yakubu Danjuma recently called on President Yar'Adua to arrest Obasanjo for his alleged fraudulent practices.

He also called on the government to "unleash the EFCC" on an Indian, named Mr. Frimrod Mittal and also punish all his collaborators "immediately."

Danjuma alleged that "Obasanjo handed out Ajaokuta Steel Mill, lock, stock and barrel, in addition to the National Iron Ore Mining Company, Itakpe as well as the Delta Steel Company," to the said Mr. Primrod whom he described, as an economic terrorist." He justified his call for the probe on the premise that Indians front for "some of Nigeria's corrupt leaders."

Bemoaning the deplorable situation, a former Obasanjo acolyte alleged that the said Mr. Primrod, was "currently cannibalising the steel mills and stealing valuable equipment and machinery and shipping them out of the country." This, he described as "criminal and an insult" on Nigerians.

Chief of Army Staff noted that "many of the big-time smugglers are well-known to the cronies of leaders in power," adding that many of the "illegal corrupt allocations are also traceable to Obasanjo." For instance, he said "four companies were beneficiaries of this corrupt allocation between September 30, 2002 and the middle of May, 2003.

He claimed that the companies received several metric tonnes of fuel oil from the Nigerian National Petroleum Corporation (NNPC) at the domestic price of $68.09 per metric tonne and sold it at the export price of $277.27 per metric tonne. In this regard, there are allegations that Obasanjo may have vested interest in some of these companies.

Still on Ajaokuta Steel Mill, the Senate recently directed four of its powerful standing committees to investigate alleged mismanagement of the Ajaokuta Steel Mill. The committees are that of Power and Steel, Privatisation, Judiciary, Human Rights and Legal Matters and that of Land

Transport.

Justifying the Senate probe is the observation that after years of frustrated attempts, it was in 2004 that Ajaokuta Steel Mill was allegedly leased on concession to the Global Infrastructure Nigeria Ltd "GINL), a company in which Obasanjo and his estranged son, Gbenga are said to have substantial vested interests.

Defending the motion, Senator Ohize lamented that the Ajaokuta Steel Mills, established in 1979 to serve the country's metallurgical and engineering needs have become comatose.

He wondered why "the company which was valued in 2006 at $6 billion could have been sold out for only $525m. "The most surprising thing," Ohize noted "is that the super iron ore concentrates are now being carted away to India." The situation, he said was what caused the recent crises where some youths in the area recently protested and seized six trailer loads of super concentrates of iron ore.

It will be recalled that the policemen drafted to handle the crisis killed two of the youths. The youths in return, killed a policeman. And in a swift reaction, the police deployed more policemen to the area, leading to the killing of 20 youths and the burning down of properties worth millions of naira.

Transcorp:

The Transnational Corporation of Nigeria, (Transcorp) has also been a subject of alleged fraud. This prompted the 'cat and mouse' game between the Federal Government and the company.

Recently, the Federal Government through the Information and Communications Minister, Mr. John Odey, reversed the sale of Nigeria Telecommunications (NITEL) and its subsidiary, Mobile Telecommunication (MITEL) to Transcorp.

According to Odey, the revocation order was sequel to public complaints that the sale of NITEL and MTEL was done without regard to due process. Besides, Transcorp is said to have failed to achieve its set objectives.

Above all, the ownership structure of Transcorp has been shrouded in secrecy. This stemmed from the N1.2 billion worth of the company's shares which was originally bought in the name of Obasanjo Farms. This much was exposed at the peak of the face-off between Obasanjo and his Vice President Atiku Abubakar.

Although this led to the divestment of Obasanjo's controversial shares, till date, Transcorp operations remain suspect.

To give bite to these allegations, the House of Representatives Committee on Capital Market recently directed the Director General of the Nigerian Stock Exchange (NSE) and Chairman of Transcorp to resign to pave way for a transparent and successful investigation of the corporation.

According to Hon. Ahamed Nadada, Chairman, House Committee on Capital Market, "Transcorp was under the searchlight of the committee for the contradictory claims of shares subscription during its last Initial Public Offer (IPO). Other areas to be investigated he said "is the status of Transcorp shareholders fund of which he said "nobody knows their whereabouts".

Police Equipment Fund (PEF)

The Police Equipment Fund has also come under sharp criticisms in recent times. Allegations are that several billions of naira were raised by the Chief Kenny Martins-led Foundation with no significant thing to justify the huge fund. The matter is currently before a court of competent jurisdiction.

Political watchers  allege that Chief Kenny Martins, twin brother of his separated wife, Taiwo Obasanjo, might have been used. Indications are rife that there is a strain relationship between the PEF and the police. The Nigeria Police Force recently disassociated itself from the activities PEF.

Inspector-General of Police, Mr. Mike Okiro at a meeting with his Deputies and Commissioners at the force headquarters, Abuja refuted some media reports credited to PEF that it was collaborating with the police to procure armoured personnel carrier and bullet proof vans from Europe for banks in Nigeria under a soft loan repayment agreement scheme.

According to the IG, "The Police don't buy bullion vans and we don't sell. We only ordered banks to buy bullion vans on or before a certain date, adding that how they buy it is not our business. So, we are not part of any arrangement on that with the PET or the bank." The distribution of vehicles bought with PEF funds to some influential Nigerians also generated a lot of heat recently.
NNPC on the Spot

The Economic and Financial Crimes Commission (EFCC) has been x-raying the operations of the  Nigerian National Petroleum Corporation (NNPC) during the Obasanjo years. Disclosing this last year, a top source at the Commission disclosed to National Mirror that "when we conclude our investigations and the report enters into public domain, Nigerians will appreciate the monumental fraud that the NNPC has been through over the years."

The sacked Managing Director of NNPC, Funso Kupolokun, Obasanjo school son in their secondary school days, was alleged to have gone into some shadowy activities while he called the shots.

According to some of the petitions said to be crucial to EFCC investigation, "some monies were allegedly siphoned from the country by the "leader" of the last civilian dispensation directly from NNPC."

For instance, it was alleged that the sum of $1 billion  passed through NNPC  NAPIMS and the Central Bank of Nigeria for payment of non-existent cash call. Also, over $130 million of interest generated from $650 million was illegally transferred out of NNPC account.

Curiously, in spite of the monumental fraud at the NNPC, Obasanjo was alleged to have shielded his 'boy' from indictment for inexplicable reasons.

Observers also say that the road construction embarked upon by the Obasanjo administration were to say the least a gross failure. Till date, accusations are rife on how former PDP Board of Trustees Chairman,  Chief Tony Anenih, wasted billions of naira on road construction and rehabilitations that were not realised. It was alleged that contracts were simply awarded on paper but none was executed. Yet, the Obasanjo government which claimed it was fighting corruption never raised an eyebrow.

In August 2007, the Finance Minster, Dr. Shamusideen Usman hinted that the Obasanjo administration wasted over N250 billion through the abuse of import duty waivers and exceptions.

Although waiver is a policy used to encouraged local industries and attract investment, it is alleged that Obasajo did it in an absurd way as there was "a scandalous abuse of policy of exception". The Minister explained that "one particular waiver was re-cycled 10 times." He narrated how "on paper, you'll see that a particular amount has been waived but in reality, the amount is far more than that." He lamented that "we had a case where somebody was organising a game and got a waiver to import 600 cars."

Meanwhile, Nigerians have been reacting to these wastage of public funds and contract scandals. A cross section of people who spoke to National Mirror are calling on President Yar'Adua to "probe the eight-year misrule of Obasanjo."

Also, the Action Congress (AC) has reiterated his call on the Federal Government to probe Obasanjo. In a recent statement issued by its National Publicity Secretary, Alhaji Lai Mohammed, he said: "We are shocked and appalled at such an unprecedented wastage of public funds by an administration that shouted itself hoarse on due process, probity, anti-corruption and financial discipline."

The AC called on the Federal Government to investigate the Obasanjo eight-year in view of the huge resources his government ploughed into the various areas including power, roads and refineries."

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