Alleged N423 billion fraud: EFCC raises team to probe ex-Governor El-Rufai, others

The Economic and Financial Crimes Commission (EFCC) has raised a team of operatives to probe alleged mismanagement of N423 billion by former Kaduna State Governor Nasir El-Rufai and some key members of his government.

It was learnt that the former governor will soon be invited for questioning, reports The Nation.

Others slated for interrogation are those who served as Finance commissioners from May 29, 2015, to May 29, 2023; all the accountants-general in the eight years that his administration lasted and the chairmen of the Kaduna State Internal Revenue Service (KADIRS) from 2018 to 2023.

Others are all the managing directors of the Kaduna Market Development and Management Company Ltd from May 29, 2015, to May 29, 2023; and all the Managing Directors of Kaduna Roads Agency (KADRA) from October 11, 2017, to November 2021 except Amina Ja’afar Ladan, an engineer who spent only one month in office.

More revelations have been made on the alleged corruption during El-Rufai’s tenure.

The Ad-Hoc Committee of the Kaduna House of Assembly uncovered that about N423,115,028,072.88 was siphoned from the coffers of the state government from 2015 to 2023.

It also spotted a cumulative withdrawal of $1.4 million from the Kaduna State Economic Transformation Account.

The House panel has asked eight people and companies to refund N19, 239,511,099.76

It has also recommended that 15 contractors should refund N36, 351,126,811.65 as “being monies paid for work either not done, overpayment or diversion”.

The committee said that although the value of contracts awarded from 1999 to 2023 by el-Rufai’s administration was N510,407,166,975.39, it only paid N198,921,880,169.04 to contractors.

Investigations by our correspondent showed that a Special Task Force was assigned to look into a petition by a Non-Governmental Organisation mainly on the findings of the Kaduna State House of Assembly.

It was learnt that the team immediately swung into action yesterday for a review and isolation of the allegations against the ex-governor, some past commissioners and aides.

A top source, who spoke with our correspondent, said: “We are in receipt of a petition from an NGO. So, we have started investigation in the matters raised in the petition.

“The report of the Ad-Hoc Committee of the Kaduna State House of Assembly is also handy. We will soon invite el-Rufai and some members of his team for interrogation.

“The Special Task Force on Monday (yesterday) held a long session on the contents of the petition and the report of the Ad-Hoc Committee.”

The source added: “The report of the House of Assembly has actually laid a solid foundation for the probe by our team.”

EFCC Head of Media and Publicity, Mr. Dele Oyewale, was unavailable to respond to our correspondent’s enquiries last night.

But there were revelations in the report of the Ad-Hoc Committee that were not in the public domain.

The committee has asked eight people and companies to refund N19, 239,511,099.76.

It has also directed 15 contractors to refund N36, 351,126,811.65 “being monies paid for work either not done, overpayment or diversion”.

The report also clarified that at the time el-Rufai took over on May 29, 2015, all domestic loans had been re-paid by the previous administration.

It also established that between 1965 and 31st December 2014, the total foreign loans as contained in the handover note of the state to el-Rufai stood at $234 million.

But within eight years of el-Rufai’s tenure, Kaduna State’s liability on domestic and foreign loans amounted to N98,912,000,000.00 and $758,141,699 respectively.

The committee findings indicated that most of the loans were obtained without due process and not utilised for the purpose they were meant for.

The report said in part: “The Committee has established the following: That between 1965 and 31st December 2014, the total foreign loans as contained in the handover note of the state were $234 million before the inception of the last administration which is May 29, 2015.

“That on 29th May, 2015, when His Excellency Mallam Nasir El-Rufai took over the governance of the state, all domestic loans had been paid by the previous administration and therefore no liability on domestic loans was handed over to him as shown in the signed handing over notes dully signed by both outgoing and the incoming governors.

“That when His Excellency, Mallam Nasir el-Rufai took over governance of Kaduna State, the mopped-up cash in the state paid into the TSA amounted to N34,000,000,000.00 only.

“That between May 2015 and May 2023, the Government of Kaduna State incurred liability on domestic and foreign loans to the tune of N98,912,000,000.00 and $758,141,699 respectively and a majority of them were obtained without due process and not utilised for the purpose they were obtained.

“That, the total Revenue (Loans, FAAC, IGR, Grants, Refunds and Intervention) received by the Kaduna State Government from 29th May, 2015 to 29th May, 2023 amounted to N1,497,682,993.375 and $758,141,699.

“That through the use of unauthorised debit cards, the Ministry of Finance in collaboration with officers of KADIRS, withdrew through 3rd parties the sum of N721,672,854.88 from the IGR account of the state.

“That, the Ministry of Finance in collaboration with KADIRS siphoned the sum of N30,000,000,000.00 from the Internally Generated Revenue account of the State.

“That the total value of the contracts awarded by the Kaduna State Government from 29th May, 2015 to 29th May, 2023 amounted to N510,407,166,975.39 only, out of this alleged amount, only the sum of N198,921,880,169.04 was paid to Contractors.

“That the total contractual liabilities found by the committee as of 29th May, 2023 stand at the sum of N311,485,286,806.35 and $26,284,595.53 (USD) respectively.

“That the public liability (Gratuity and Pension) as of 29th May, 2023 stood at N23,993,700,494.91.

“That, the liability of the Kaduna State Government to the Consultants engaged between 29th May 2015 and 29th May 2023 is N602,026,388.55.

“That the total amount of moneys withdrawn by the Commissioner of Finance and Accountant-General stood at N4,936,916,333.00 and $1.4 million.

“That, the total amount of money siphoned by the Government of Kaduna State from 29th May, 2015 to 29th May, 2023 is N423,115,028,072.88.”

The Ad-Hoc Committee also made some recommendations to Governor Uba Sani, including the repudiation of some questionable loans.

The report said: “The Committee has come to the conclusion that evidence has shown several cases of corruption in the running of the affairs of the government, ministries, departments and agencies in Kaduna State from 29th May 2015 to 29th May 2023 and hereby recommends as follows:

•To direct the Kaduna Internal Revenue Service to withdraw the Internally Generated Revenue (IGR) Account domiciled at a commercial bank as Security for N20,000,000,000.00 guaranteed in 2023 forthwith and to request the bank to refund all monies deducted on account of the purported illegal guarantee together with the accrued interest thereof.

•That all loans (Domestic and Foreign) obtained by the Kaduna State Government from 29th May, 2015 to 29th May, 2023 and found by the Committee to have been obtained without due process are not binding on the State and the State Government should henceforth stop honouring all obligations arising from them.

•That the contractors (15) listed hereunder should refund to the Kaduna State Government a total sum of N36,351,126,811.65 being monies paid for work either not done, overpayment or diversion.

•That the total amount to be refunded to the state government by the under-listed persons (8) is N19,239,511,099.76.

•That the Governor of Kaduna State between 29th May, 2015 to 29th May, 2023 as the Chief Executive Officer of the state breached his Oath of Office contained in the 7th Schedule to the Constitution of the Federal Republic of Nigeria (as amended) and failed to exercise due diligence in the administration of the state, thereby indulged in plunging the state into unwarranted, unjustified and fraudulent Domestic and Foreign Debts over and above the total Loans obtained by Kaduna State from 1965 to 1999 and majority of which were obtained without due process.

•Reckless awards of contracts without due process and due execution, leading to several abandoned projects despite payments.

•Authorised the humongous withdrawals of cash both in naira and dollars with no records of utilisation and denied the state of the needed resources for development.

•Complicit activities with commissioners and heads of parastatals to defraud the state by issuing directives to KADPPA to circumvent due process in the payment of Contractors vide letter dated 21st June 2021.