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EFCC finds N500m in NERC’s man’s 6/2/2009

From Yusuf Alli, Managing Editor, Northern Operation

OFFICIALS of the Economic and Financial Crimes Commission (EFCC) have found N500 million in a fixed deposit of a top official of the Nigerian Electricity Regulatory Commission (NERC).
The EFCC, which yesterday intensified investiga

tion into the N1.5 billion scandal in NERC, found the details of the transaction in the official’s home.

NERC Chairman Ransome Owan and his six commissioners were arrested on Wednesday by EFCC operatives over the financial scandal.

The others are: Abdul-Rahman Ado(Vice-Chairman and Commissioner, Market Competition and Pricing); Muhammed Baba Gana Bunu (Finance and Services); Prof. O.C. Iloeje (Research and Development); Dr. Muhammed Alimi Abdul-Rasaq (Legal, Licensing and Enforcement); Abimbola Odubiyi (Engineering Standards and Safety); and Dr. Grace Eyoma (Government and Consumer Affairs).

Their houses in Abuja were searched yesterday.

A source said: "After taking statements from the suspects, it was important to search their homes as part of our ongoing investigations.

"During the search at the home of one of the suspects, we discovered a tenor certificate on how he put N500million in a fixed deposit. The official is already being grilled on how he came about the money.

"Also, a major bend in the investigation was the retrieval of a list of how the suspects got N100million each as unspecified allowance. This is apart from the N1.5billion for which they were initially held.

"So far, we are still detaining the suspects and their interrogation is in progress."

Asked how long it will take to interrogate the suspects, the highly-placed source said: "Going by our investigations, we may even take them to court for trial from detention – if necessary."

EFCC spokesman Femi Babafemi said: "All I can tell you is that we are still investigating the suspects."

As at press time, there was no formal reaction yesterday from the NERC.

A source at the commission said: "Since our officials are incommunicado, we have no information on why they were held."

A national daily had on Wednesday quoted the General Manager (Public Affairs) of the commission as saying: "I don’t think we have such kind of money (N1.5billion) to give out contract because we are not a contract-awarding agency. The money is too much for our agency."


http://www.thenationonlineng.com/dynamiage.asp?id=76497

Waiting for the outcome of the investigations then, as long as it is not flawed as usual, fowl yansh go open!

Cool, let us not only wait, let us demand from our senators that we need to know the outcome.

http://nassnig.org/senate/.php.

Please, Efcc action! action!! action!!! You are the last hope for the elimination of corruption in Nigeria. The masses rely on you.

the banks too should be prosecuted for receiving stolen money

lmao, otokx abeg no make me laff

bros abeg laff o, na how some people dey take extend their life span.

[size=13pt]EFCC recommends NERC chiefs’ trial[/size]


Economic and Financial Crimes Commission (EFCC) chair Mrs. Farida Waziri has written President Umaru Yar’Adua on the alleged N1.5 billion fraud at the Nigerian Electricity Regulatory Commission (NERC).

She said the officials should face trial.

Minister of Power, Mr. Rilwan Babalola, who is said to be in trouble for suspending the officials in violation of the NERC Act, said yesterday that they were suspended on the recommendation of the EFCC.

Babalola had last Wednesday suspended NERC chairman Dr. Ransome Owan and his commissioners pending the conclusion of investigations by the EFCC.

Owan has denied it all, saying the allegations are false.

The commissioners are: Mallam Abdul-Rahman Ado (Vice-Chairman and Commissioner, Market Competition and Pricing); Mr. Muhammed Baba Gana Bunu (Finance and Services); Dr. Muhammed Alimi Abdul-Rasaq (Legal, Licensing and Enforcement); Mr. Abimbola Odubiyi (Engineering Standards and Safety); Dr. Grace Eyoma (Government and Consumer Affairs) and Prof. O.C. Iloeje (Research and Development).

All the seven officials had petitioned the Senate Committee on Power that they did not embezzle the money.

But in a report sent to the President, Mrs. Waziri said the NERC officials had a case to answer.

The report, dated February 20, and obtained by The Nation yesterday, reads: "In continuation of the ongoing investigation, the following were revealed:

"From 2006 to 2008, the NERC received a total sum of N1,459,831,435 only as personal cost; N3,427,887,423.97 only as overhead cost; and N1,615,987,466 only as capital cost.

"In line with the provisions of the NERC Act 2005, the National Salaries, Income and Wages Commission recommended that the chairman of the commission shall be paid an annual consolidated emolument of N25, 630,000 only while each commissioner is to be paid an annual consolidated emolument of N17, 290,000 only.

"This consolidated emolument includes salary, productivity allowance, disturbance allowance, mileage allowance and Out of Station allowance.

"On the contrary, the chairman of the commission was paid N187, 962,316.77 and the commissioners received N153, 711,474.49 from 2005 to 2008 as their total emolument.

"These emolument include some unusual allowances as follows: cola allowance, midmonth allowance, quarterly salary, driver’s allowance and security allowance."

The report also indicted the seven officials of collecting estacodes beyond the normal rate fixed by the Federal Government.

It adds: "The circular of National Salaries, Income and Wages Commission number SWC/S/4/S.308/1 dated 18th January 2007, provides that ministers and SGF/HOS shall be paid US$500 as estacode while permanent secretaries, directors-general and executive secretaries are entitled to US$400 as estacode per night. This provision is binding on all federal ministries, federal commissions, Office of the Head of Service, Office of the ant-General of the Federation, Auditor-General of the Federation, National Judicial Council, etc.

"However, contrary to this provision, the chairman and his commissioners approved for themselves and received US$1,000 per night for the commissioners as estacode. In addition, US$2,000 was also paid alongside the estacode as contingency allowance (per journey) to the chairman and his commissioner.

"It is worthy of note that,

contrary to the provisions of the Act, the residue of contingencies was never at any point in time retired either by the chairman or any of the commissioners.

"It is also worthy of note that even at the rate they approved and paid themselves, some overpayments were discovered.

"It is more disturbing to note that the estacodes were paid to them at parallel market rate instead of the official rate.

"Furthermore, the chairman collected US$84,000 while the commissioners collected US78, 000 as holiday allowances for 2006 and 2007."

The report also blamed the officials for fixing N500 million in a mortgage firm.

The report reads: "Contrary to the provision of Treasury Circular number TRY/A8 & B8 2002/OAGF/Ts/026/1/192 dated 15th November 2002, the chairman and the commissioners resolved and placed the commission’s funds in call and fixed deposit s which earned interests running to hundreds of millions of naira in various banks. All efforts are being made to recover all deposited monies and also trace the final destination of called back funds.

"In violation of Financial Regulation number 1601, and in furtherance of the dishonest intention to cause wrongful loss to the Federal Government of Nigeria and wrongful gain to themselves, the chairman and the commissioners approved and placed N300million and N200million in fixed deposits at Mortgage Guarantee Savings and Loans Limited (MGSL) on 27th February 2008 and 14th April 2008, respectively to serve as a guarantee for some intended favours.

"Consequently, on 28th February, 2008, MGSL, now FinHomes, approved and granted loan facilities to the chairman and three commissioners as follows: (a) Dr. Ransome Owan (N70million); Mallam AbdulRahman Ado (N80million); Mr. B.G. Bunu (N65million) and Dr. Grace Eyoma (N24, 375,089.07).

"It is important to note that the loans issued to them by MGSL were guaranteed by the fixed deposit because their individual with MGSL was opened in March 2007, while the loans were disbursed in February 2007.

"Furthermore, prior to the deposit, the was zero which corroborates the fact that the money was deposited with intent to trade with the money and use same as guarantee.

"Individual statement of s of the chairman and his commissioners are being analysed with a view to detecting money laundering and other allied offences.

"So far, cash deposits of over N500, 000 have been uncovered in most of the s which are found to be contrary to the provision of the Money Laundering Act 2004.

"Generally, there is a prima facie case of conspiracy, abuse of office, theft and money laundering against the suspects. Efforts are on deck to assemble all documentary evidence to aid in the in the prosecution of the case as soon as practicable."

Babalola defended the suspension of the NERC officials.

A statement from the ministry said: "The letter asking for their (seven officials) suspension emanated directly from EFCC to President Umaru Yar’Adua. Following preliminary findings, EFCC recommended their suspension to allow it proceed with detailed and unfettered investigation pending the resolution of the matter.

"Secondly, the President has not acted ultra vires and has the right to suspend commissioners. The Federal Government is fully aware of the law on the issue of dismissal and that in the event that the removal of any of the commissioners becomes necessary, the Senate will be requested to the decision, in line with the provisions of Section 38(2).

"In the first place, the Minister of Power has no power to suspend NERC commissioners. The power is vested solely in the President of the Federal Republic of Nigeria in line with the Electric Power Sector Reform Act 2005, Section 38. The senators, who belong to the legislative arm, are aware of the law and therefore cannot give such an order.

"For now, they have not been dismissed. Investigations are ongoing and if they are proven innocent, they will be recalled.

"Also, Senate Committee on Power did not order the Power Minister to revert the decision on NERC. He was advised to go and confer with Mr. President on the matter and report back to the committee within two weeks. Similarly, the issue of alleged presidential query to the minister is also baseless as there is no iota of truth in it. It is absolutely false and unfounded."

The statement denied that the minister was behind the travails of the seven officials.

The statement adds: "The allegation that the Minister of Power is behind the petition, arrest and detention of the commissioners is predicated on a rumour. The minister as a man of honour cannot do such a thing. As a matter of fact, the petition was first received by the EFCC on 2nd June, 2008 before his appointment as a minister."

http://www.thenationonlineng.com/dynamiage.asp?id=78305