Lawyer petition EFCC over alleged massive fraud by Edo State Government

 

By Ehi Ekhator, United Kingdom

An Abuja based Nigerian lawyer, Ojealaro Friday Esq, and the Edo Civil Socieity Organisation have petitioned the Economic and Financial Crime Commission (EFCC) over an alleged massive fraud in Edo State.

The petition fingered the state government of allegedly misappropriating the bailout fund N3.167bn, which was given to state government by the Federal Government.

Hon. Osaro Obazee Oredo Local Government Chairman

According to the petition signed and a copy made available to NAIJA CENTER NEWS, the gorup believes in arresting or facilitating the arrest of activities that may hamper the development of the Edo people or harmful to their entire well being.

The petition titled “Colossal fraud Uncovered in Edo State: Passionate Appeal For Your Official Intervention”questioned how the bailout was spent, accusing the state government of starving the Local government financially.

The petition revealed that the protest staged by the five local government councilors that led to the suspension of the five local government by Adams Oshiomhole, was staged managed by the chairmen of the Local Government Council in order to get to the bottom of their shortchanged.

The Petition reads ” For over a year now,both the Edo state government and the Local councils in Edo state have been finding it difficult to pay workers salaries despite the fact that the Federal Government have never defaulted at making good their monthly allocations. Recently,the Federal Government under anti-corruption president Buhari decided to give states financial bailouts from which my state benefited. That was when the cat was let out of the bag.

SUBSTANCE OF OUR COMPLAINT:

We gathered that the state government was not ready to factor the local councils into the disbursements of the Presidential bailout which led the Councillors in Edo State to carry out a protest on behalf of the council chairmen and their constituents to the state house. One of their loudest and shocking demands is that; the state ministry of finance should stop making illegal deductions from their monthly allocations and blackmailing the council chairmen to sign receipt of fraudulent figures. The Councillors argued that,it is the only way,the local councils can pay salaries and meet other governmental commitments to their constituents.

In reaction to this protest,the state governor-Adams Oshiomhole swiftly swung into action by suspending the alleged sponsors of the protest. These are;

(1) Hon. Emmanuel Momoh,Etsako Central Council chairman

(2) Hon. Victor Enobakhare,Egor Council Chairman

(3) Hon. Osaro Obazee, Oredo Council Chairman

(4) Hon. Roland Ibieretonmwen,Orhiomwon Council chairman

(5).Hon. Akeredolu Folorunsho, Akoko Edo Council Chairman

The state government have accused these local council chairmen of corruption and fraud and misappropriation of public funds. However, the council chairmen acting through their spokesman,Hon Osaro Obazee( Oredo local council chairman), have come out to refute the allegation. He denied ever receiving N1,057,604.67(the amount of money the state government alleged he got from FAAC)from January to october,2015. He claimed that he got less than 15% of the alleged sum. He admitted only the receipt of N102,579,700.

All the other local council chairmen including those not suspended all have their version of the story which is clearly irreconcilable with alleged figures being bandied by the Edo state government. Some of them are afraid to speak out like Obazee or else,they will be shown the exit door.

REASONABLE CONCLUSION:

A lot of money running into trillions of naira cannot be accounted for. The state government is saying the council chairmen misappropriated the money. The local council chairmen are saying,they never received such money from the commissioner of finance who manages the joint account of both the state government and the local councils. This is a clear case of missing trillions of naira and Edo people are now helpless. Some are even dying prematurely because of their deplorable economic conditions occasioned by these frauds.

REASON FOR COMPLAINT.

This pervading corruption in Edo state if not arrested and dealt with by a body with the legal status,technical wherewithal and professional expertise,it will continue to injure the well being of Edo people and creating all forms of social unrest. The citizens do not know whom to believe now. Is it the state government or the local council chairmen? We can only know the answer if your esteemed establishment act promptly by carrying out immediate investigations. We want to emphasize ” promptly and immediate” because,if this matter is not attended to now,there might be fraudulent and sinister moves to sweep it under the carpet.

PERSONS DIRECTLY AFFECTED BY THIS PETITION AND NEED TO BE QUESTIONED.

(1) Commissioner for Finance,Edo State

(2) Accountant-General,Edo State

(3) Permanent Secretary,ministry of finance, edo state

(4) Commissioner for local government areas affairs,edo state

(5) All the Local council chairmen mentioned in this petition and any other one that the Commission may deem fit to invite in the circumstances of this investigation.

(6) The various revenue collection contractors in Edo state whether local and state.

(7) Treasurers and secretaries of the local councils who are joint signatories to the councils accounts.

The foregoing is a brief particulars of our petition and we fervently hope and pray that you will employ your usual diligence and investigational prowess to help the Edo people.

Whilst thanking you for your anticipated kind and favourable considerations of our petition,please and kindly accept the assurance of the Highest regard of our Group.

F.S.S Ojealaro Esq.”

Lawyer petition EFCC over alleged massive fraud by Edo State Government

We have received N9.6bn bailout fund - Fayose

Ekiti State Governor, Ayo Fayose, has clarified that the state only got N9.6 billion out of the over N29 billion it applied for in the Federal Government’s bail-out funds for states.

Fayose vows to lead opposition against APC

The governor, who spoke on Monday in Ikogosi-Ekiti during the opening ceremony of a two-day retreat for commissioners, permanent secretaries and heads of agencies, also said out of the N5.6 billion applied for by the 16 local governments in the state, the FG only approved N991 million.

In a statement in Ado-Ekiti by his Chief Press Secretary, Idowu Adelusi, the governor made the clarification following insinuations that the state government did not want to pay pensions arrears and gratuities of retirees.

“You people know that I don’t hide anything from you when allocations come. We applied for N29 billion from the bail-out fund. It is to cover the August and September 2014 salary arrears left by the Fayemi government, leave bonus, pensions, gratuities and others. But for reasons we don’t know yet, the FG only approved N9.6 billion for salaries leaving other issues.

“The 16 local governments applied for N5.6 billion and we did all the necessary papers and presented them to the appropriate authorities, but only N991 million was approved. We were later told by the Central Bank of Nigeria that about 14 states had similar problem with the small amount approved for local governments.

“I have since written to them to rectify the situation and I hope they will do that quickly. It is only the Federal Government that can explain why they only approved one item, salary, out of the many items we presented to them on the workers’ issue.

“We have nothing to hide and people should appeal to the FG to release the money in full. We know it is loan that we will repay with nine per cent interest,” he said.

The governor also explained that the state had experienced a sharp decline in monthly allocations in recent time.

“Last month we had a shortfall of N500 million and this month we have a shortfall of N600 million. The economy is dwindling and in bad shape and the Federal Government must do something about it urgently,” he noted.

The governor also gave the assurance that there would be transparency in the disbursement of the CBN’s N2 billion loans to small and medium scale enterprises as soon as the state receives it.

He urged participants and civil servants to be loyal, committed and dedicated to their duties.

He promised a conducive atmosphere for them to work and motivation to deserving ones.

The Head of Service, Dr Gbenga Faseluka, expressed the determination of public servants to put in their best.

We have received N9.6bn bailout fund - Fayose

We’re yet to receive bailout fund, Kogi tells workers

Kogi State Commissioner of Finance, Alhaji Alfa Zakari, has dismissed claims of receiving its share of the bail out fund for the payment of salaries to state civil servants.

He also pleaded with workers in the state to be patient, noting that their salaries would be paid as soon as the state received the fund.

Zakari in a statement, sympathized with the workers, particularly local government members of staff, adding that Kogi and three other states were yet to access the loans.

His words: “As at Thursday, September 17, 2015, what the CBN Governor said was that 18 states have accessed the money. Four other states are being processed. And these states are Oyo, Delta, Kogi and Benue. So, as it is now, we have not been paid.

”The Honourable Commissioner for Finance and the state deputy governor are in Abuja permanently, more or less. They are in Abuja for the monthly NEC meeting for the Federal Allocations Committee meeting but simultaneously, they are linking up with the CBN to facilitate the release of the workers’ salaries assistance bailout loan.

”The government appreciates the patience of the workers but reassures that on receipt of the money, no delay whatsoever will occur in making sure that all the outstanding are paid according to the loan accessed from the CBN.

“The whole process will be transparent; notices will be published, Kogi people will see clearly what is being paid and to whom, across the entire state. We sympathize with the protesting workers because workers in Kogi State have been very, very understanding on the salary issues.

However, on this account, they have been misinformed that the bail out fund has been released. It has not. We appeal to them to be patient. They have been patient for a long time. The solution is just around the corner now.”

We will still appeal to them that they should not allow themselves to be used as political tools in causing upheaval and destabilizing the peaceful nature of the state. It will be most unfortunate if fifth columnists capitalized on such protests to wreak havoc in the state.

“Once again, the protests may be as a result of the disinformation that the state has accessed the funds. No, we are still in the process of doing so. The moment it is paid, the civil servants, indeed all the workers across the state will feel the impact immediately,” the Commissioner disclosed.”

We’re yet to receive bailout fund, Kogi tells workers

NLC, ICPC to monitor bailout funds in states

The Nigeria Labour Congress (NLC) has said it will partner the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to monitor  the disbursement and use of the N338 billion bailout funds in 27 states.

Its President, Comrade Ayuba bailout Wabba, in a statement in Abuja, said he had directed councils in the benefiting states to be on the alert.

The congress praised the commission for ensuring the return of about N1 billion being public funds criminally diverted by some corrupt officials of the Federal Ministry of Environment and the Federal Pay Office.

Wabba said the congress was in agreement with the commission that the painful days of the public “running after funds after appropriation” are over.

Wabba urged the relevant ministries and agencies of government to “ensure that the recovered looted funds were properly channelled to the activities they are meant for.”

NLC, ICPC to monitor bailout funds in states

Fund Diversion: Osun Pensioners beg CBN to lay embargo on N34.988bn fund

The Nigeria Union of Pensioners in Osun State has urged the Central Bank of Nigeria to lay an embargo on the N34.988bn bailout fund released to the state for payment of workers salaries and pensions.

Aregbesola

The Chairman of the NUP in the state, Tunde Ogunniyi, who said this at a press conference in Osogbo on Tuesday, said this call became necessary because Governor Rauf Aregbesola had allegedly refused to use the fund for what it was meant.

Ogunniyi also called on President Muhammdu Buhari and the National Assembly  to declare emergency rule in the state because the state was gravitating towards anarchy because of nonpayment of salaries and pensions.

The pensioners  said while many states which took the bailout had started paying backlog of salaries to their workers, Aregbesola had refused to pay workers and pensioners their entitlements.

The NUP chairman said pensioners in the state were being owed backlog of unpaid pensions ranging from 10 to 15 months. He stated that some of the pensioners were paid half of December 2014 pension and none had been paid a dime in 2015.

He said, ” Pensioners have complied with the conditions laid down by the government for them to access their entitlements, which is screening of all pensioners in the state.

“We expect the state government to have commenced payment after the screening about three weeks ago but the government has refused to do so.

” This action of Osun State Government led by Ogbeni Rauf Aregbesola amount to deliberate display of callousness, greediness, wickedness, flagrant disobedience to the rule of law, maladministration and fraud.

” We hereby resolved that the Central Bank of Nigeria should immediately take over the direct payment of the money to each pensioner or in the alternative, place embargo on the state government from accessing the loan which the governor is planning to divert to fund white elephant projects.”

Ogunniyi said Eco Bank took similar action when it lent Osun State some money to offset pension arrears in 2014. He explained that the step was taken by the bank to ensure that the loan was not diverted for other use.

The pensioner stated that many members if the NUP had died prematurely because of lack of money to feed and to buy drugs to treat diseases some of them were managing.

The union however called on the anti-graft agencies to investigate Aregbesola on how he had been managing  the finances of the state, saying “he should be punished in accordance with the anti-graft law of the land.

“We also want to warn these Lagos contractors to immediately pack all their equipment and leave Osun state within one week because their safety can no longer be guaranteed by the hungry Pensioners, workers and citizen of Osun state.”

There has been allegation from the Peoples Democratic Party in the state that the governor paid a contractor N20bn from the bailout fund, but the governor had since denied it.

Aregbesola had on Monday in a statement assured workers and pensioners that the bailout fund would be used for the purpose which it was meant.

Fund Diversion: Osun Pensioners beg CBN to lay embargo on N34.988bn fund

Fear in Osun over Aregbesola"s plan to divert bailout fund

Industrial crisis looms in Osun State, following allegations that Governor Rauf Aregbesola plans to divert federal government’s bailout fund for payment of backlog salaries.

Aregbesola

Also, a group, Civil Societies Coalition for the Emancipation of Osun State (CSCEO), has asked the governor to stop using the name of Chief Bola Ige, who was murdered 14 years ago, to draw public sympathy to his inability to pay the backlog of salaries to workers and retirees alike for period of between seven and eight months.

The group was reacting to media report yesterday which credited to Governor Aregbesola as saying that Ige’s killers were behind the plot to destabilise Osun State.

The group in a statement signed by its Chairman, Comrade Adeniyi Alimi Sulaiman lambasted Gov. Aregbesola for drawing the spirit of Late Ige into his failure to perform the simple constitutional role of a governor by paying the state’s workers and retirees as and when due.

Meanwhile, suspicion that the governor may divert the N35 billion bail-out funds for payment of backlog of salaries is fueled by alleged proposition by the government that workers accept half salaries for the month of March.

Talks of industrial unrest came to fore as the Joint Public Service Negotiating Council (JPSNC), yesterday, said workers in the state would not accept payment of half salary for the month of March as proposed by the government.

THISDAY checks yesterday revealed that instead of paying the workers’ salaries and pensions, the government has been embarking on different strategies to ensure the backlog of salaries were not paid in full.

A source alleged that one of the schemes being used by the governor was a mandatory requirement in a circular titled “State of Osun Government Staff Information 2015” which states that all workers should obtain and present their primary school leaving certificate with their passport photographs attached.

Also, that all the documents are to be filled and submitted within the next 24 hours, the source said, adding that the government embarked on staff auditing few weeks ago with the aim of fishing out ghost workers.

Sources said this requirement was rejected since it was not part of a Memorandum of Understanding they signed with the government before suspending their industrial action and its subsequent request for workers audit.

The sources emphasised that the discovery of ghost workers as well as sundry fraudulent discrepancies during the screening exercise conducted on the workers in the past few weeks confirmed the suspicion of the state labour that the use of consultants to pay workers’ salaries has further compounded the problem of the state by allegedly raising the state’s wage bill far above expectation.

They said the government’s request for their primary school certificate after the screening exercise was a ploy to further prolong their sufferings and to deny them the payment of their salaries and pensions.

Some Civil Servants who spoke to THISDAY yesterday said any move by the government to embark on unwanted action would be firmly resisted, and called on the State’s House of Assembly to urgently wade into the matter.

Meanwhile, some workers under the aegis of Council of Academic Staff Unions of Osun State Owned Tertiary Institutions (CASUOSTI), in a press statement issued to journalists recently, said for the months of January and February this year, they were paid less than what they had on their pay slips.

CASUOSTI, in its statement signed by the Chairman, Lasisi Jimoh, Secretary, Olusegun Lana and PRO, Dotun Omisore, decried the antics of the state government, describing it as “demoralising and discouragement towards academic improvement.

“In our efforts to seek justice amicably, we consulted those in government, mostly the Chief of Staff and Head of Service in separate meetings.

“At those meetings, Government admitted our position that the financial effects of 2014 promotions and migration of lower cadres are irreversible. We had mutual understanding that our salaries would be paid correctly once the then expected “bailout” funds were received from the federal government.

“Alas! Now that the much expected bailout funds have been received, the state government has concluded plans to sustain the pay cut contrary to the principle of fair play, equity and collective agreement between our union and the state government.

“Do we deserve to be short paid when all our outstanding salaries, allowances and leave bonuses were duly factored into the amount requested as bail out?”, the statement queried.

Fear in Osun over Aregbesola"s plan to divert bailout fund

N300 Billion Bailout Fund Ready Available Soon - Presidency

THE Presidency, on Monday, announced that the implementation of a three-pronged financial intervention of President Muhammadu Buhari to assuage workers plight and support the states is now in progress.

President Buhari

According to a statement issued by the Senior Special Assistant (Media and Publicity) to the Vice President, Laolu Akande, in Abuja, state governments would start benefiting from the special intervention fund of between N250 billion and N300 billion in a matter of weeks.

It said currently, planning meetings are being held between members of the Federation Account Allocation Committee (FAAC) and Central Bank of Nigeria (CBN), on the one hand, and also between CBN and commercial banks on the other hand, regarding details of the special intervention fund and the debt relief programme of the president for the states.

The statement added: “Such meetings are reviewing loan profiles of the states, issues around restructuring of existing loans including time span and reconciling the figures.

“Already, it has been agreed that existing state loans be restructured for 20 years, and regarding the bond option, the rates to be applied would be market-based but with a cap to make it affordable. Within weeks from now, the states are expected to start benefiting from this two other parts of the presidential intervention.”

The statement recalled that the details of the presidential intervention are in three parts.

It added: “The sharing of about $2.1 billion in fresh allocation between the states and the Federal Government. The money was sourced from recent LNG proceeds to the Federation Account, and its release okayed by the president.

“A Central Bank-packaged special intervention fund to the tune of about N250 billion to N300 billion that will offer financing to the states. This would be a soft loan available to states.

“A debt relief programme by the Central Bank of Nigeria and Debt Management Office (DMO), which will help states convert their commercial bank loans into bonds, and restructuring such loans by extending their life span thereby reducing the debt-servicing expenditures of the states.

“By extending the commercial loans of the states, the third part of the presidential intervention would therefore make available more funds to the state governments which otherwise would have been removed at source by the banks.

“To be able to offer this option to the states, President Muhammadu Buhari brought the financial muscle of the federal government to bear on behalf of the states guaranteeing the elongation of the loans.

“Besides, the availability of the $2.1billion from LNG which has now been shared to the states was made possible because President Buhari set a new fiscal standard and tone that all monies generated should go to the federation accounts. Before that constitutional standard was upheld by the president, LNG dividends were going to other NNPC designated accounts.

“None of the three parts of this intervention would have been possible without the creativity and approval of President Buhari. It should be noted that the backlog of the salaries in some of the states went back several months before the president took office.

“To date, the states have now drawn from the LNG taxes and dividends totaling $2.1billion, besides a second sharing from the federation account the regular monthly allocations-a sum of over N518 Billion last week.

“Finally states have been advised during NEC meetings to take certain steps to avoid a similar financial crisis in the future. These include making the payment of salaries, a first-line charge, fo more to increase their internally generated revenue, clean-up their payroll to eliminate ghost workers and have a fully-functional Debt Management Offices.”

N300 Billion Bailout Fund Ready Available Soon - Presidency

PDP Rep sues FG over bailout to states

A member of the House of Representatives, Mr. Igariwey Iduma-Enwo, on Wednesday approached an Abuja Federal High Court to challenge the decision of President Muhammadu Buhari, to rescue states in the country from their financial mess with a bailout of N713.7bn.

Many states were already owing backlog of unpaid salaries by May 29 when Buhari assumed office as President.

They later turned to the Federal Government, cap in hand, seeking for rescue, a development that informed the President’s action.

But, in suit number FHC/Abj/CS102215, which the Peoples Democratic Party lawmaker from Ebonyi State filed on Wednesday, he sought to know whether Buhari had such powers under the 1999 Constitution to give the bailout without the approval of the National Assembly.

Listed as defendants in the suit were the President; Attorney-General of the Federation; Federal Ministry of Finance; Accountant-General of the Federation; Auditor-General of the Federation; and the Revenue Mobilisation Allocation and Fiscal Commission.

Among the questions Iduma-Enwo, who represents Afikpo-North/South Federal Constituency, wants the court to determine, was whether Buhari, could by Presidential “fiat”, direct that public money from the pool account of the federal government be disbursed to states and local governments without recourse to the National Assembly, “the authority vested with the power of appropriation in this case.”

Part of the originating summons read, “Whether having regards to the combined effect of Sections 192, 163, 164 and 168 of the 1999 Constitution (as amended), which prescribes the way and manner public revenue shall be distributed from the distribution pool account, the 1st Defendant (Buhari) can by itself or by way of fiat, issue lawful directives to the 3rd-6th defendants to appropriate, distribute, allocate and disburse public revenue from the distributable pool account to the federal, state and local government without the prescription of the National Assembly. “

Accordingly, the plaintiff prayed the court to declare the action of the President and his co-defendants “unconstitutional, illegal, unlawful, null and void.”

He also sought an order of “perpetual injunction” restraining the defendants from giving out funds to the states and local governments without the prescription of the National Assembly.

No date has been fixed for the hearing of the suit.

Speaking with journalists at the National Assembly soon after filing the suit, Iduma-Enwo defended his decision to challenge Buhari on the grounds of acting alone without regard for the principle of separation of powers.

He noted that much as he felt for the states, especially now that many civil servants could not fend for their families due to lack of salaries, Iduma-Enwo argued that the President must still follow the “due process of law.”

“Let him show us where it is stated in the constitution that the President can unilaterally give money without the approval of the National Assembly.

“It then means that one day they can sit at Aso Rock and pass the national budget.

“Why do we have the National Assembly if matters like this can be handled by fiat without letting the National Assembly know about it or play its role as the appropriating authority?,”he added.

PDP Rep sues FG over bailout to states

Ondo Government Denies Receiving Bailout Fund

Akure –ONDO State government weekend debunked insinuations that it received a bail-out from the Federal government to pay outstanding workers salaries. Instead the state government said that it only received N2.2 billion accrued to it from taxes, being part of June allocation from the Federation account.

The state government however put its  monthly wage bill at N4 billion. Commissioner for Information, Kayode Akinmade and his Finance counterpart, Chief Yele Ogundipe said this at a joint briefing in Akure.

Ogundipe said that the bailout proposal presented to the President at a recent meeting by state governors was yet to bear fruit as modalities are still being worked out. The two Commissioners made the clarification following the controversies the said bail out is generating across the country and the agitations by workers.

Ogundipe said the governors recently met with President Muhamadu Buhari over the lingering issue of default in payment of salaries and other contractual obligation.

According to him “One of the things that was decided on was that the Federal Government will find a way to bail out the states in terms of loan and the fund in the excess crude account could also be considered for sharing.

 

Ondo Government Denies Receiving Bailout Fund