N40bn Fraud: Ekiti Assembly drags former governor Fayemi to EFCC | Nigeria News Today. Your online Nigerian Newspaper

2
Ekiti State of Assembly has dragged the former governor of the state Dr Kayode Fayemi to the Economic and Financial Crimes Commission (EFCC), calling for the investigation and prosecution for allegedly looting the State to the tune of over N40 billion.
The petition, dated October 24, 2016 and signed by Speaker of the House of Assembly, Pastor Kolawole Oluwawole, was submitted to the EFCC in Abuja today, by the trio of the Deputy Speaker, Hon Segun Adewumi, Chairman House Committee on Information, Dr Samuel Omotoso and Hon Sina Animasaun.

The petition was titled; “Complaint of fraudulent practices against former Ekiti State governor and Minister of Solid Minerals, Dr. Kayode Fayemi & others: Call for investigation & prosecution.”

Other people mentioned in the petition are Mr Dapo Kolawole, Mr Yemi Adaramodu, Mr Abiodun Oyebanji, Arc Oyelade (CASA Nig Ltd) and Mr Bayo Kelekun.

The Deputy Speaker, who addressed pressmen after the petition was submitted, said; “Since EFCC have claimed that the commission does not have any complaint against those holding power in Abuja, we have decided to submit this petition openly so that Nigerians and indeed, the entire world will be able to follow it up and ask questions from the EFCC as to what has happened to it.”

Dr Omotoso, who also corroborated the Deputy Speaker, disclosed that the petition bordered on 10 major issues, namely; Construction of new civic centre, construction of new governor’s office, mismanagement of the N25bn bond and N5bn commercial bank loan, construction of new government house, diversion of State Universal Basic Education Board (SUBEB) N852.9 million, fraudulent purchase of 156 units of Ford vehicles from Coscharis Motors, inflation of road contracts, among others.

Also, Hon Animasaun said the State House of Assembly could no longer pretend as if nothing was wrong in the face of the monumental looting of the State treasury perpetrated by immediate past APC government of Fayemi, hence the complaint to the EFCC.

The petition, which was accompanied with several documents read; “Consequent upon the resolution of the House of Assembly, we write to request for the investigation of the following allegations of fraudulent practices against the former Governor of Ekiti State and incumbent Minister of Solid Minerals, Dr Kayode Fayemi and others. These fraudulent practices include, but not limited to contracts inflation, misappropriation of fund, diversion of Local Council and State Universal Basic Education (SUBEB) funds, amongst others.

1: Construction of New Civic Centre (See Document marked ANNEXURE 1)
Contract for the construction of a New Civic Centre was awarded to TIANJIN-YUYANG Construction Eng. Limited on August 30, 2012 at the cost of N2, 573,584,395.75. Consultancy on the construction was awarded to CASA Nig Ltd on June 11, 2012 at the cost of N137, 611,325.07.

As at the end of 2012, a sum of N643,396,098.94 (representing 25% of total contract sum) had been paid to TIANJIN-YUYANG Construction Eng. Limited while the consultant, CASA Nig. Ltd was paid N89,801,901.06 (representing 80% of total contract sum).

In 2013, a sum of N350, 116,245.17 was paid to TIANJIN-YUYANG Construction Eng. Limited, making a total sum of N993, 512,344.11 (representing 45% of total contract sum).

2: New Governor’s Office (See Document marked ANNEXURE 2)
2a. Contract for the construction of earthwork for the New Governor’s Office was awarded to PONTI-ITALWARE Nig Ltd on March 3rd, 2012 at the sum of N383, 900,911.06, with a sum of N115, 170,273.32 paid to the contractor. The New Governor’s Office was proposed to be constructed from the N25 billion Bond obtained by the State Government, with N3, 474,700.000.00 earmarked for the project.

However, despite that N115, 170,273.32 was paid to PONTI-ITALWARE Nig Ltd for earthwork, the site was abandoned, with no significant work done.

BOC ARCHITECTS of 32 Adeola Adeleye Street, Ilupeju, Lagos, the Project Consultant was paid N11,596,746.41.

Despite the payment of N115, 170,273.32, nothing significant was done.

Related:   ''Ikpeazu has refused to give me official residence'' - Abia chief judge explodes
2b. Contract for the construction of the New Governor’s Office was awarded to Messrs Interkel Nig. Ltd (12, Maitama Sule Street, Southwest Ikoyi, Lagos 0812900918) on March 1, 2014. The contract sum was N2, 027,495,857.45. Out of the 30% mobilisation fee of N608, 248,757.24, a sum of N100 million was paid to the contractor with nothing to show.

3. N25bn bond and N5bn commercial bank loan (See document marked ANNEXURE 3)
3a. N25 billion was sourced from the capital market to finance capital projects. This was obtained in two tranches of N20 billion and N5 billion in October 2011 and January 2014 respectively.

The Bond Prospectus, which was approved by the House of Assembly was not adhered to as the money was diverted into projects not listed in the Bond Prospectus. For instance, N1 billion was earmarked for the construction of Civic Centre whereas N1, 465,401,522.72 was spent on the project from the bond, with project left uncompleted.

Also, the State Pavilion to which N1, 583,292,358.00 was earmarked and total sum of N1, 457,945,445.44 was paid to the contractor was left uncompleted.

Projects funded from the Bond Proceeds but were not within the scope of the Bond Prospectus are listed in the document marked ANNEXURE 3.

3b. Towards the June 21, 2014 governorship election, N5 billion loan was obtained, using Fountain Holdings Limited, a company with N15 million share capital. The N5 billion loan was obtained from EcoBank without recourse to the Debt Management Office (DMO) and it was claimed that the loan was used to execute capital projects like construction of roads.

Our question is; is it part of the responsibilities of Fountain Holdings
Limited to execute capital projects like road construction on behalf of
Ekiti State Government?

For your information, Fountain Holdings Limited is an investment company owned by the Ekiti State Government. The responsibility of Fountain Holdings Limited is to manage and supervise all companies owned by the Ekiti State Government. The Share Capital of the company is N15m, and we wonder how a company with N15m Share Capital could be granted N5bn loan by EcoBank without any recourse to the DMO!

As at today, there is no single evidence of utilisation of the N5 bilion,
suggesting that the loan was taken to fund Fayemi’s botched re-election
bid.

4. New Government House (See Document marked ANNEXURE 4)
Contract for the construction of a new government house was awarded to KOURIS Construction Nigeria Limited on July 27th, 2012. The initial contract sum was N2, 054,573,822.00.

Curiously, another N730, 186,636.87 contract for additional works was awarded to the same company on October 10th, 2014, FIVE days to the end of the government of Dr Kayode Fayemi! It was claimed that the additional works was as a result omissions on the original Bill of Quantities prepared for the project.

For a contract awarded on July 27th, 2012, the question is; why waiting till October 10th, 2014, five days to the end of the government to realise that there were omissions on the original Bill of Quantities prepared for the project?

Curiously again, another N604, 961,645.72 contract was awarded to KITWOOD Nigeria Limited on June 18th, 2014 (three days to the June 21, 2014 governorship election) for the furnishing of the government house.

To show that the State Ministry of Works was not carried along in the contract award and execution, the contractor was asked to report at the office of Fayemi’s Chief of Staff, Yemi Adaramodu to sign contractual agreement and also obtain detailed specifications of the items to be procured.

5: Diversion of State Universal Basic Education Board (SUBEB) (See Document marked ANNEXURE 5)
A sum of N852, 936,713.92 was illegal withdrawn from SUBEB Access Bank Account Number 0065385694 on October 8, 2014, eight days to the end of Dr Fayemi’s tenure as Ekiti State governor.

The N852, 936,713.92 was counterpart fund paid by the Ekiti State Government to access the Universal Basic Education Commission (UBEC) 2012 Marching Grant of N852, 936,793.12.

Post a Comment Default Disqus

  1. Hmmm! All of unanswered na thief. APC, PDP, NPP etc that is why am angry, when some idiots comment on this platform on the level of corruption of PDP. 60% APC are PDP. Condemn these criminals and not political party.
    Idiots such as Martin OnaiyeMUMU from KOGI (English teacher even with his MA(Toronto) in Unilag), Adoke AbdulMUMU(Further Maths teacher from KOGI) and one ANNOYING ANONYMOUS from Ajegunle /Mushin will be calling these criminals saints because, they have changed their party to APC.
    I wish I could lay my hands on them and............. Let me leave this another day.

    ReplyDelete
  2. ... Na one of Baba's sinless cabinet members that took him more than 3 months to a point.
    It is common knowledge that Fayemi and Ameachi literary Bankrolled Baba's campaign. The question how did they get such amount when people of their state are suffering hunger and lack of basic amenities.
    The change must start with them.
    How can corruption fight corruption. It is APC dilemma.
    Chanji dole!
    Sai Baba!
    Sai Tinubu!
    Sai Atiku!
    Apc kworshiokor change!
    Apc werepe change!

    ReplyDelete

Nigeria News Comments are Moderated. Clean Comments will be swiftly approved. No swear words, no racism, allowed.

 
Top