The Independent Corrupt Practices and Other Related Offences Commission
has filed an 18-count charge of corruption against the former Governor
of Zamfara, Ahmed Sanni.
He was charged for corruptly enriching
himself by spending funds above and beyond amounts allowed by law. Mr.
Ahmed, now a senator was expectedto be arrigned today.
Below is a text of the charges filed at the high court at Gusau, Zamfara state.
IN THE HIGH COURT OF ZAMFARA STATE
HOLDEN AT GUSAU, ZAMFARA STATE
CHARGE NO:
FEDERAL REPUBLIC OF NIGERIA-----------------COMPLAINANT
Vs
AHMED RUFAI SANI ]
ALHAJI HASHIM A. DIKKO ]
DEVELOPMENT MANAGEMENT LTD ]----DEFENDANTS
HAD NIGERIA LTD ]
Count 1
That you Ahmed Rufai Sani on or about November, 2006 whilst being the
Governor of Zamfara State at Gusau within the jurisdiction of this
court did commit an offence of spending money allocated for one project
on another to wit: out of N 1,000,000,000 (one billion naira) additional
budgetary allocation Zamfara State House of Assembly allocated for the
repair of collapsed Gusau dam and settlement of the victims of the said
dam which was obtained through bank loan you spent the sum of
N20,000,000 (twenty million naira) purportedly on assistance to INEC and
thereby committed an offence contrary to and punishable under section
22 (5) of the Corrupt Practices and Other Related Offences Act 2000.
Count 2
That you Ahmed Rufai Sani on or about October 2006 whilst being the
Governor of Zamfara State at Gusau within the jurisdiction of this court
did commit an offence of spending money allocated for one project on
another to wit: out of N1,000,000,000 (one billion naira) additional
budgetary allocation Zamfara State House of Assembly allocated for the
repair of collapsed Gusau dam and payment of compensation to the victims
of the said dam which was obtained through bank loan you spent the sum
of N10,000,000 (ten million naira) purportedly on donation and thereby
committed an offence contrary to and punishable under section 22 (5) of
the Corrupt Practices and Other Related Offences Act 2000.
Count 3
That you Ahmed Rufai Sani on or about October 2006 whilst being the
Governor of Zamfara State at Gusau within the jurisdiction of this court
did commit an offence of spending money allocated for one project on
another to wit: out of N1,000,000,000 (one billion naira) additional
budgetary allocation Zamfara State House of Assembly allocated for the
repair of collapsed Gusau dam and payment of compensation to the victims
of the said dam which was obtained through bank loan you spent the sum
of N43,008,000 (forty three million and eight thousand naira)
purportedly on surveillance of guests and thereby committed an offence
contrary to and punishable under section 22 (5) of the Corrupt Practices
and Other Related Offences Act 2000.
Count 4
That you Ahmed Rufai Sani on or about November 2006 whilst being the
Governor of Zamfara State at Gusau within the jurisdiction of this court
did commit an offence of spending money allocated for one project on
another to wit: out of N 1,000,000,000 (one billion naira) additional
budgetary allocation Zamfara State House of Assembly allocated for the
repair of collapsed Gusau dam and payment of compensation to the victims
of the said dam which was obtained through bank loan you spent the sum
of N21,450,000 (twenty-one million four hundred and fifty thousand
naira) purportedly on settlement of publication equipment and thereby
committed an offence contrary to and punishable under section 22 (5) of
the Corrupt Practices and Other Related Offences Act 2000.
Count 5
That you Ahmed Rufai Sani on or about November 2006 whilst being the
Governor of Zamfara State at Gusau within the jurisdiction of this court
did commit an offence of spending money allocated for one project on
another to wit: out of N 1,000,000,000 (one billion naira) additional
budgetary allocation Zamfara State House of Assembly allocated for the
repair of collapsed Gusau dam and payment of compensation to the victims
of the said dam which was obtained through bank loan you spent the sum
of N64,332,734 (sixty four million three hundred and thirty two thousand
seven hundred and thirty four naira) purportedly on sponsorship of
government officials to hajj and thereby committed an offence contrary
to and punishable under section 22 (5) of the Corrupt Practices and
Other Related Offences Act 2000.
Count 6
That you Ahmed Rufai Sani on or about November 2006 whilst being the
Governor of Zamfara State at Gusau within the jurisdiction of this court
did commit an offence of spending money allocated for one project on
another to wit: out of N 1,000,000,000 (one billion naira) additional
budgetary allocation Zamfara State House of Assembly allocated for the
repair of collapsed Gusau dam and payment of compensation to the victims
of the said dam which was obtained through bank loan you spent the sum
of N32,646,286 (thirty two million six hundred and forty six thousand
two hundred and eighty six naira) purportedly on settlement of
accommodation and thereby committed an offence contrary to and
punishable under section 22 (5) of the Corrupt Practices and Other
Related Offences Act 2000.
Count 7
That you Ahmed Rufai Sani on or about November 2006 whilst being the
Governor of Zamfara State at Gusau within the jurisdiction of this court
did commit an offence of spending money allocated for one project on
another to wit: out of N 1,000,000,000 (one billion naira) additional
budgetary allocation Zamfara State House of Assembly allocated for the
repair of collapsed Gusau dam and payment of compensation to the victims
of the said dam which was obtained through bank loan you spent the sum
of N15,800,000 (fifteen million eight hundred thousand naira)
purportedly on furniture allowance and thereby committed an offence
contrary to and punishable under section 22 (5) of the Corrupt Practices
and Other Related Offences Act 2000.
Count 8
That you Ahmed Rufai Sani on or about November 2006 whilst being the
Governor of Zamfara State at Gusau within the jurisdiction of this court
did commit an offence of spending money allocated for one project on
another to wit: out of N 1,000,000,000 (one billion naira) additional
budgetary allocation Zamfara State House of Assembly allocated for the
repair of collapsed Gusau dam and payment of compensation to the victims
of the said dam which was obtained through bank loan you spent the sum
of N29,200,000 (twenty nine million two hundred thousand naira)
purportedly on purchase of 2000 Nanfang motor cycles and thereby
committed an offence contrary to and punishable under section 22 (5) of
the Corrupt Practices and Other Related Offences Act 2000.
Count 9
That you Ahmed Rufai Sani on or about October 2006 whilst being the
Governor of Zamfara State at Gusau within the jurisdiction of this court
did commit an offence of spending money allocated for one project on
another to wit: out of N1,000,000,000 (one billion naira) additional
budgetary allocation Zamfara State House of Assembly allocated for the
repair of collapsed Gusau dam and payment of compensation to the victims
of the said dam which was obtained through bank loan you spent the sum
of N23,859,692 (twenty three million, eight hundred and fifty nine
thousand, six hundred and ninety two naira) purportedly on payment to
automobile company and thereby committed an offence contrary to and
punishable under section 22 (5) of the Corrupt Practices and Other
Related Offences Act 2000
Count 10
That you Ahmed Rufai Sani on or about October 2006 whilst being the
Governor of Zamfara State at Gusau within the jurisdiction of this court
did commit an offence of spending money allocated for one project on
another to wit: out of N1,000,000,000 (one billion naira) additional
budgetary allocation Zamfara State House of Assembly allocated for the
repair of collapsed Gusau dam and payment of compensation to the victims
of the said dam which was obtained through bank loan you spent the sum
of N14,000,000 (fourteen million naira) purportedly on payment of
auditing of account and thereby committed an offence contrary to and
punishable under section 22 (5) of the Corrupt Practices and Other
Related Offences Act 2000.
Count 11
That you Ahmed Rufai Sani on or about October 2006 whilst being the
Governor of Zamfara State at Gusau within the jurisdiction of this court
did commit an offence of spending money allocated for one project on
another to wit: out of N1,000,000,000 (one billion naira) additional
budgetary allocation Zamfara State House of Assembly allocated for the
repair of collapsed Gusau dam and payment of compensation to the victims
of the said dam which was obtained through bank loan you spent the sum
of N14,170,000 (fourteen million one hundred and seventy thousand naira)
purportedly on ramadan feeding and thereby committed an offence
contrary to and punishable under section 22 (5) of the Corrupt Practices
and Other Related Offences Act 2000.
Count 12
That you Ahmed Rufai Sani on or about October 2006 whilst being the
Governor of Zamfara State at Gusau within the jurisdiction of this court
did commit an offence of spending money allocated for one project on
another to wit: out of N1,000,000,000 (one billion naira) additional
budgetary allocation Zamfara State House of Assembly allocated for the
repair of collapsed Gusau dam and payment of compensation to the victims
of the said dam which was obtained through bank loan you spent the sum
of N14,530,000 (fourteen million five hundred and thirty thousand naira)
purportedly on purchase of four 406 Peugeot and thereby committed an
offence contrary to and punishable under section 22 (5) of the Corrupt
Practices and Other Related Offences Act 2000.
Count 13
That you Ahmed Rufai Sani on or about October 2006 whilst being the
Governor of Zamfara State at Gusau within the jurisdiction of this court
did commit an offence of spending money allocated for one project on
another to wit: out of N1,000, 000,000 (one billion naira) additional
budgetary allocation Zamfara State House of Assembly allocated for the
repair of collapsed Gusau dam and payment of compensation to the victims
of the said dam which was obtained through bank loan you spent the sum
of N36,000,000 (thirty six million naira) purportedly on settlement of
leave grant for teachers and thereby committed an offence contrary to
and punishable under section 22 (5) of the Corrupt Practices and Other
Related Offences Act 2000.
Count 14
That you Ahmed Rufai Sani on or about November 2006 whilst being the
Governor of Zamfara State at Gusau within the jurisdiction of this court
did commit an offence of spending money allocated for one project on
another to wit: out of N 1,000,000,000 (one billion naira) additional
budgetary allocation Zamfara State House of Assembly allocated for the
repair of collapsed Gusau dam and payment of compensation to the victims
of the said dam which was obtained through bank loan you spent the sum
of N46, 591,692.24, (forty six million, five hundred and ninety one
thousand, six hundred and ninety two naira, twenty four kobo)
purportedly on school feeding and thereby committed an offence contrary
to and punishable under section 22 (5) of the Corrupt Practices and
Other Related Offences Act 2000.
Count 15
That you Ahmed Rufai Sani on or about February 2007 at Gusau within
the jurisdiction of this court whilst being the Governor of Zamfara
State did make a statement vide a letter dated 6th February 2007
captioned “ OFFER FOR SALE OF EXCESS GRAINS” to the President Federal
Republic of Nigeria Chief Olusegun Obasanjo in the course of the
exercise of the duty of his office that Zamfara State Government had
stock of about 100,000 metric tones of assorted grains in silos and
stores out of which 50, 000 metric tons could be sold to the Federal
Government of Nigeria which was to your knowledge false and thereby
committed an offence contrary to section 22 (1) (a) and punishable under
section 68 of the Corrupt Practices and Other Related Offences Act,
2000
Count 16
That you Ahmed Rufai Sani on or about May 2007 at Gusau within the
jurisdiction of this court used your position as the Governor of Zamfara
State to confer corrupt advantage upon your associate to wit: awarding
consultancy services to Development Management System Ltd for the
supply of 50, 000 metric tons (200,000 bags) of grains by Zamfara State
Government to the Federal Government with the agreement to pay 10 % i.e.
N161million of the total cost of N1,610,000,000 (one billion, six
hundred and ten million naira) to Development Management Ltd as
consultancy fee but for which only 9,181.89 metric tons (91, 818 bags)
were supplied and for which you paid Development Management Ltd
N91,840,000 (ninety one million, eight hundred and forty thousand naira)
whereas Development Management Ltd was entitled only to N29,565,685.80
(twenty nine million, five hundred and sixty five thousand, six hundred
and eighty five naira eighty kobo) thus overpaid her the sum of N62,
274,315 (sixty two million, two hundred and seventy four thousand,
three hundred and fifteen naira) and thereby committed an offence
contrary to and punishable under section 19 of the Corrupt Practices and
Other Related Offences Act, 2000
Count 17
That you Ahmed Rufai Sani, Alhaji Hashim A. Dikko and Development
Management Ltd on or about May 2007 at Gusau within the jurisdiction of
this court did conspire to commit an offence of using office for
gratification to wit: Ahmed Rufai Sani on or about May 2007 used his
position as the Governor of Zamfara State to award consultancy services
to Development Management System Ltd for the supply of 50, 000 metric
tons (200,000 bags) of grains by Zamfara State Government to the Federal
Government with the agreement to pay 10 % i.e. N161million of the total
cost of N1,610,000,000 (one billion, six hundred and ten million naira)
to Development Management Ltd as consultancy fee but for which only
9,181.89 metric tons (91, 818 bags) were supplied and for which
Development Management Ltd was paid N91,840,000 (ninety one million,
eight hundred and forty thousand naira whereas Development Management
Ltd was entitled only to N29,565,685.80 (twenty nine million, five
hundred and sixty five thousand, six hundred and eighty five naira
eighty kobo) thus overpaid her the sum of N62, 274,315 (sixty two
million, two hundred and seventy four thousand, three hundred and
fifteen naira) and thereby committed an offence contrary to section 26
(c ) and punishable under section 19 of the Corrupt Practices and Other
Related Offences Act, 2000
Count 18
That you Ahmed Rufai Sani on or about April 2007 at Gusau within the
jurisdiction of this court used your position as the Governor of
Zamfara State to confer a corrupt advantage upon your associate to wit:
awarding contract for the transportation of 50, 000 metric tons of
grains (200,000 bags) to HAD Nigeria Ltd to be supplied by Zamfara State
to the Federal Government at the total cost of N1,610,000,000 (one
billion, six hundred and ten million naira) with the agreement to pay
N444, 040,000 (four hundred and forty four million, forty thousand
naira) to HAD Nigeria Ltd as contract sum but for which only 9, 181.89
metric tons (91,181 bags) were transported and for which HAD Nigeria
Ltd was paid N98 million (ninety eight million naira) whereas she was
entitled only to N81,042 525 (eighty one million forty two thousand five
hundred and twenty five naira) thus overpaid her the sum of N16,
957,472 (sixteen million, nine hundred and fifty nine thousand four
hundred and seventy two naira) and thereby committed an offence contrary
to and punishable under section 19 of the Corrupt Practices and Other
Related Offences Act 2000
Count 19
That you Ahmed Rufai Sani and HAD Nigeria Ltd on or about April 2007
at Gusau within the jurisdiction of this court did conspire to commit an
offence of using office for gratification to wit: Ahmed Rufai Sani on
or about April 2007 used his position as the Governor of Zamfara State
at Gusau, Zamfara State to award a contract for the transportation of
50, 000 metric tons of grains (200,000 bags) to HAD Nigeria Ltd to be
supplied by Zamfara State to the Federal Government at the total cost of
N1,610,000,000 (one billion, six hundred and ten million naira) with
the agreement to pay N444, 040,000 (four hundred and forty four million,
forty thousand naira) to HAD Nigeria Ltd as contract sum but for which
only 9, 181.89 metric tons (91,181 bags) were transported and for which
HAD Nigeria Ltd was paid N98 million (ninety eight million naira)
whereas she was entitled only to N81,042 525 (eighty one million, forty
two thousand five hundred and twenty five naira) thus overpaid her the
sum of N16, 957,472 (sixteen million, nine hundred and fifty nine
thousand, four hundred and seventy two naira) and thereby committed an
offence contrary to section 26 (c) and punishable under section 19 of
the Corrupt Practices and Other Related Offences Act 2000
DATED DAY OF 2015
A.I RAHEEM ESQ
KALU JOSEPH UGBO
ICPC HQ, ABUJA
FOR: ATTORNEY-GENERAL OF THE FEDERATION
FOR SERVICE ON:
The Defendants
O/c ICPC investigators
IN THE HIGH COURT OF ZAMFARA STATE
HOLDEN AT GUSAU, ZAMFARA STATE
CHARGE NO:
FEDERAL REPUBLIC OF NIGERIA------------COMPLAINANT
Vs
AHMED RUFAI SANI ]
ALHAJI ISHAM DIKKO ]
DEVELOPMENT MANAGEMENT LTD ]----DEFENDANTS PERSONS
HAD NIGERIA LTD
PROOF OF EVIDENCE
1.ENG LAWAL JIBRIL to state as follows: He will give brief history of
himself. He will say that he was the Special Assistant ( SA) Commodity
from 2003 August to 2005 July. As the SA Commodity his schedule was to
receive directives from the Governor on commodity and advice
appropriately. The commodity board received and released grains whenever
directed by an appointed committee. The board also made payments to the
suppliers when grains are sold and coordinated the sale when grains are
sold to others. He will say that on February 2007, the government of
Zamfara State agreed to sell 50,000 metric tons of assorted grains at
the total cost of N1.6billion. The transaction was sealed after the
approval of the State and Federal Executive Council. A consultant has to
be appointed because of the need to supervise the scattered grains at
the various locations, the transportation of large quantity up and down,
the process of payment from the federal government and quantification
at the grain silos at different location. A company was mandated by the
state government to do the job at an approved rate of 10% of total cost
of the 50,000 metric tons. The locations as approved by the Federal
Government for the delivery are Akure 10,000 metric tons, Ogoja 10,000
metric tons, Jos 5,000metric tons and few others. After payment the job
was started by the consultant and the transporter who was appointed by
the consultant with the approval of the state government at marked cost
of truck. During his stay as the SA to the Governor a total quantity of
grains was transported in bags by the consultant and transporter to the
various locations thus: maize=13,680 bags, sorghum =72,980 bags,
totaling =86,660 bags with 2751/2 loads of trucks which started during
his tenure 26/5/2007-10/7/2007. He handed over to his successors Alhaj
Ibrahim Mohd, the permanent secretary and Alh Salisu Bawa the SA to the
Governor on 9/7/2007. A payment for the consultant and transporter was
made as approved by the FG & PC. The sum of N112, 700,000 part
payment was paid to the consultant while N100, 000,000 was paid to the
transporter. The total contract sum for the consultant was N161million
that of the transporter was N440, 000 of the total quantity of the
grains 50,000 metric tons. He will say that the commodity board
recommended the payment of the 50% of the total contract sum but the FG
& PC approved more than that for the consultant. He will say further
that 10 bags of 100kg bag is equal to one metric tones. Therefore
50,000 metric tones is equal to 500,000 bags. In his hand over note a
total sum of 86,660 bags of assorted grains was transported to the grain
silos at different locations
He will say that one car, Honda was attached to him and after the
termination of appointment, the car was asked to be taken to the EFCC
headquarters in Abuja. He will further evidence of what he knows about
this case.
2. BELLO SANI JABAKA to state as follows: He was the Deputy
Accountant General from 2003-2007, Accountant General Zamfara State from
2007 to 2009 and Permanent Secretary from 2009 and posted to Ministry
of Lands and Survey Zamfara State. He will give brief summary of his
schedules. He will say that a loan of N600million was sourced from Bank
PHB Gusau to facilitate sales of grains to Federal Government around
April/May 2007. A payment order of about 3-4 months was issued on UBA
Plc to Bank PHB. The issuance of the irrevocable order (ISPO) plus
lodgments of proceeds from the sale of grains into the Accountant
General’s account with Bank PHB served as guarantee for the loan. The
offer of the loan was addressed to Honourable Commissioner Ministry of
Finance informing him of loan approval and other terms attached to the
loan. He will say that the purpose of obtaining the loan was to
facilitate the sales of grains to the Federal Government. Disbursement
was made to the commodity board for the purchase of vehicles and other
related activities and at the ministry, payment was made to the
consultant engaged in the sales. The remaining amount was also utilized
in other payments outside the purpose. He will say that signatories to
accountant general’s account include Isiyaku Mohammed Zurmi, Permanent
Secretary, Bello Sani Jabaka, Accountant-General and Aminu Nabanga,
Deputy Accountant-General and Sanusi Garba Rikiji who signs schedules of
payment. However in his absence the PS signs on his behalf. He will say
that the N600million loan sourced from the Bank PHB was utilized as
follows: 1. N250million was paid to Italco Builders for the purpose of
restoration of Gusau Barrage that broke down in 2006. 2. N100million was
paid to the Permanent Secretary, Directorate of Commodity Board for the
purpose of grains transportation from the 14 local government areas in
the State. 3. N30million was also paid to the Permanent Secretary
Commodity Board for the purpose of vehicles for the monitoring and
transportation of grains. 4. N91.84 million was paid to Messers
Development Management –a consultant engaged for the sale of the grains
to the Federal Government. 5. N11.2million was deducted and paid as
withholding tax to the Federal Inland Revenue Service.6. N5.60million
was deducted and paid as V.A.T . N1.2 million was deducted and paid to
Accountant-General’s account as Education tax. 7. N1.2 million was
deducted as 1% levy and paid to Zamfara State agency for poverty
alleviation (ZAPA) 9. N1.12m was paid as 1% levy and paid to Zakat Board
as alms 10. N110milliom was paid to Permanent Secretary Ministry for
Local Government and Chieftaincy Affairs for onward extension as loans
to the local government employees to be administered by Nigerian Union
of local government employees of the state (NULGE). Repayment of this
loan is normally realized from the beneficiaries’ monthly salaries and
remitted to the Ministry of Finance. The witness will also give evidence
on the N1billion the House approved for the repair of the dam and how
part of it was diverted. He will give more evidence where necessary.
4. MOHAMMED MUJTABA ISAH to state as follows: He will give brief
background of himself. He will say that in 2005 he was the Permanent
Secretary in the Ministry of Science and Technology and Technical
Education. In 2006 he was posted to Zamfara State Liaison Office Abuja
as Permanent Secretary. In February 2008 after the completion of his
course at kuru, he was posted to the Ministry of Finance as Permanent
Secretary, the position he holds till date. He will say that as the PS
he is Chief Accounting Officer in charge of payment due to the
contractors, ministries and parastatals. He is also in charge of
personnel matters in the ministries with regards to promotion,
discipline etc.
He will say that the process of awarding contract starts with the
ministry that proposes the project based on budgetary provision. Such
proposal will go to the FG & PC for consideration. The FG & PC
then recommends the award of the contract to any company or individual
to the Governor for approval. If such contract is approved, the FG
&PC will issue a contract notification to the company. The
contractor will them go to the Ministry of Justice for contract
agreement which will be signed by the contractor and the Commissioner in
charge of the Ministry that proposed the contract. Thereafter the
document will be forwarded to the Ministry of Finance for payment of
mobilization fee. Subsequently payment will be based on certification of
work done by contractor which will be issued by the client Ministry.
Membership of FG & PC include the Deputy-Governor who sits as the
Chairman, members include Commissioners for Health, Finance,
Agriculture. The Secretary of the Committee who signs all notifications
of contract is the Permanent Secretary FG & PC. He will say that the
FG & PC has an advisory committee that usually vet all submissions
of bills of quantities of would be contractors. The name of the
Permanent Secretary of the FG & PC is Ahmad Abdulnasir. Contracts
awarded to individuals in their own names are usually as a result of
decisions taken at the FG & PC. He is of the opinion that this is
done because most of the contractors have not registered any company
with CAC. He will say that it will become advantageous because such
contract will yield necessary withholding tax into State government. He
will say that it is wrong to award contract to individuals names because
beneficiary companies are usually well known and could be traced out
when the needs arises. That is why contract are seldom awarded to
individuals in their own names as against registered company’s names.
This has been long practice since the creation of the State in 1996. He
will say it is difficult to stop despite his verbal advice as the PS
Ministry of Finance.
5. AHMED ABDUL NASIR to state as follows: In 2007 he was posted to
the government house and in 2008 he became the Secretary of the FG &
PC. He will state schedules of his duty. He will say that one of the
guidelines for issuing contracts is that if after the approval of the
Governor, the amount is over N50million, the recommendation has to reach
the Executive Council. It is after that the contract notification would
be issued. The committee awarded contracts to both the individuals and
companies.
6. MOHAMMMED FATEEMAH to state as follows: She is an investigator
with the ICPC. She will state that sometime in 2009 a group of youths
from Zamfara State acting under an NGO named “Concerned Citizens of
Zamfara State” wrote a petition to the Chairman ICPC against former
Governor of Zamfara State, Ahmed Sani Yarima and few other persons.
Various acts of corruption and abuse of office were leveled against the
suspects in the said petition. These included unlawful diversion of
N1billion approved by the Zamfara State House of Assembly to repair
collapsed Gusau dam, award of phony contract to repair the Gusau dam,
illegal N600million loans obtained to sell grains to the Federal
Government and diversion of substantial part of the loan to the cronies
of the Governor under the guise of contracts, and conversion by the
company awarded the contract part of the contract sum for the supply of
furniture to 14 local government. The Chairman, ICPC sent the petition
to the Head, Financial Investigation Unit of the Commission who in turn
assigned the petition to her team for discreet investigation. She is
the leader of the team while Abdulkadir Abdulrasaq and Ada Ojoma were
members. She will state that the team would give evidence with respect
to two of the allegations for now. That is the diversion of part of
N1billion meant to repair dam to unrelated matters and the N600million
loan obtained to sell grains to Federal Government part of which was
diverted to the cronies of the Governor.
In the course of the investigation the team visited Zamafara state
and few other places. The team also invited some officials of Zamafara
State Government who made statements to the team. Relevant documents
and records were retrieved and these included:
contract agreements and correspondences between Zamfara State
government and federal government including Federal Ministry of
Agriculture and Water Resources in respect of the sale of grains
contract
agreement between Zamfara State government and consultant, Messers
Development Management Ltd and the transporter HAD Nig. Ltd
correspondences between Zamfara State government and Directorate of Commodity, Marketing and Distribution
Bank statement of Zamfara State Commodity Account
Payment vouchers and other relevant documents as regards loan disbursement
sale of grains and silos distribution file
With respect to the N1billion loan for the repair of Gusau collapsed
dam alleged to have been diverted, investigation revealed that on 3rd
October 2006, the Secretary to the State Government (SSG) wrote a memo
to the Speaker of the House of Assembly Zamfara State requesting for
additional budgetary provisions for the repairs of the damaged Gusau
Barrage which collapsed on the 30th September 2006 (The witness will
tender a copy of the request)
The Zamfara State House of Assembly during its 70th sitting held on
3rd October 2006 deliberated on the request and unanimously approved the
sum of N1billion to the Zamfara State government for the purpose of
effecting urgent repairs to the damaged Gusau water barrage and payment
of compensation to the affected victims of the collapsed dam.
Subsequently on the 9th October 2006, the Ministry of Finance,
Zamfara State obtained a loan of N1billion from UBA purportedly for
flood disaster and the rehabilitation/ dredging of the collapsed Gusau
dam (the witness will tender correspondences on the loan)
Investigation revealed that a reputable water management company
Messrs China Geo Engineering Company was initially identified to do the
job with an estimate of N800million. Conversely, Messrs China Geo
Engineering Company was never involved in the repairs of the damaged
dam, rather the Governor approved the award of the contract to repair
the dam to another company called ITALCO BUILDERS. The witness will say
that the team had inkling that the company was a foreign company which
must register in Nigeria before it could be awarded a contract. Inquiry
from the CAC showed that the company did not register in Nigeria. The
Governor claimed to have repaired the damaged dam but the team has
reason to doubt this claim. The witness will say that the Commission is
investigating this matter and as soon as the investigation is concluded
the Commission will determine the next line of action.
Investigation revealed that only the sum of about N574, 508,263.25
was purportedly utilized for flood disaster related matters, while the
balance of N425, 491,736.75 was diverted to unrelated activities such as
settlement of leave grant to the teachers, feeding during ramadhan,
payment of auditing of final accounts 1999-2005, surveillance to guest,
assistance to INEC etc without the approval of Zamafara State House of
Assembly. (the witness will tender relevant documents and a table of
analysis showing the funds paid the company and how the balance was
diverted to these unrelated matters)
Regarding the N600million loan obtained to sell grains to the federal
government which was alleged was spent to confer corrupt advantage on
the cronies of the former Governor, investigation revealed that in
February 2007, Ahmed Sani Yerima as the governor of Zamafara State wrote
a memo vide a letter dated 6th February 2007 No GHG/Z/S/256/VOL.1
captioned “ OFFER FOR SALE OF EXCESS GRAINS” to the President of the
Federal Republic of Nigeria Chief Olusegun Obasanjo that Zamafara State
government had stock of about 100,000 metric tons of assorted grains in
its silos and stores. The Governor appealed to the president to direct
the Federal Ministry of Agriculture and Water Resources to buy 50,000
metric tones out of the said 100,000 metric tons. Investigation revealed
at the end of the day the statement made by Sani Yerima as contained in
his letter to the President was false. Even when the Federal Government
reduced the supply from 50,000 metric tons to 20,000 metric tons the
State government could not supply 20,000 metric tons. It could only
supply 9, 181.89 metric tons. The witness will say that the outcome of
the false statement was that Ahmed Sani put his State in unnecessary
debt and made her to engage in a needless transaction that did not
benefit the State but only enriched his cronies
Investigation revealed that these grains were to be supplied and
deposited at 7 reserve silos across the contrary. These included: i
Akure 10,000 metric tons ii Irrua 10,000 metric tons iii Jahun 1,000
metric tons iv. Markudi 10,000 metric tons v. Ogoja 10,000 metric tons
vi. Jos 5,000 metric tons vii Minna 4,000 metric tons.
Subsequently Sani Yerima approved consultancy contract to a company
called Development Management System even though the State has commodity
board that could have done the job. The consultancy contract was
awarded at a sum of N161million which represents 10 % of the total
contract sum. A transporter HAD Nig Ltd was also appointed to transport
the grains to their respective silos across the country at a cost of
N444, 040,000. (The witness will tender notification of contracts issued
to the two companies).
The witness will say that investigation revealed that in May 2007 the
State government obtained a loan of N600million from bank PHB PLC
because of the sale of grains the State government wanted to sell to the
federal government. (The witness will tender relevant correspondences
on this loan). Investigation revealed that the Governor did not seek the
approval of the State House of Assembly before obtaining the loan from
the bank. The findings from the investigation revealed as follows:
The contract was later reviewed downward from 50,000 metric tons to
20,000 metric tons by the Federal Ministry of Agriculture and Water
Resources due to limited funds available to them in that the contract
was awarded in anticipation of funds from the Finance Ministry. (the
witness will tender the letter reviewing the contract)
The
consultant Development Management System (DMS) was appointed as a
consultant vides a letter dated 14th May 2007. The contract agreement
stated that Zamfara State government would pay the consultant 10% of the
total contract sum as service fees and 70% advance would be paid to DMS
Ltd on signing of documents. Thus based on the new contract to supply
20,000 metric tons which put the total contract sum to N644million (six
hundred and forty four million naira), the service charge which
represents 10% of the contract sum amounts to N64, 400,000( sixty four
million, four hundred thousand naira) while the 70% advance payment is
N32,200,000 (thirty two million two hundred thousand naira)
It is
worthy to note that after the downward review of the grains supply to
20,000 metric tons, the sum of N161million which represents the 10% of
the initial contractual agreement as service fees was never reviewed
downward to reflect the new rate.
By November 2007, only a total of
9,181.89 metric tons of assorted grains were sold by the State
government and hence transported to their respective destinations. This
represents about 46% of work done. Meanwhile a total sum of N91,
840,000.00 was paid to the consultant as service fees.
A thorough mathematical analysis showed that the consultant was being overpaid by the sum of N62, 274,315.
The analysis is as follows:
If 50,000 metric tons is to be sold at N1, 610,000,000.00
Total cost per metric ton = N1, 610,000,000/ 50,000 = N32, 200 per metric
So 20,000 metric x N32, 200= N644, 000,000
If contract sum for 20,000mt = N644, 000,000 then 10% as service charge =N64, 400,000.00
If 10 bags make a metric then cost per bag will be N32, 200/10 bags = N3,200
Actual transaction
Whereas 1 metric of grain =10bags of 100 kg
20,000metric x 10 bags = 200,000 bags
9181.89 tons were delivered, therefore
9,181.89 tons x 10 bags = 91,818.9 bags only were sold and transported.
644,000,000 / 200,000 = N3220 per bag
Therefore 91,818.90 bags x N3220 = N29, 565,685.80
Amount overpaid the consultant=
N91, 840-N29, 565,685.80 =N62, 274,315
The State government gave the consultant the freewill to appoint a
transporter, thus he appointed her sister company HAD Nig Ltd as the
transporter of the sum of N50, 000 metric tons of grains at a total cost
of N444, 040,000.00. A sum of N98, 000,000 was paid to the transporter
for which he transported only 91,818 bags as against 200,000 bags. Hence
Messrs HAD Nig Ltd was overpaid to the tune of N16, 957,472.
The
loan facility of N600million obtained from Platinum Habib Bank was paid
into the bank account of the Accountant-General of the State. Out of
which the sum of N189,840,000 (N98,000,000 + 91,840) was paid to the
consultant and transporter, the sum of N30,000,000 was used to purchase
operational vehicles for the monitoring of sale while the sum of
N16,800,000.00 was paid as VAT and WHT. The balance 363,360,000.00 was
diverted into other unrelated activities such as rehabilitation of road,
payment of zakat and loan to NULGE for purchase of motorcycles based on
the Governor’s approval. (the witness will tender table of analysis and
all relevant documents on these transactions).
6. ABDULKADIR ABDULRASAK to state as follows: He is an investigator
with the ICPC. He will state that sometime in 2009 a group of youths
from Zamfara State acting under an NGO named “Concerned Citizens of
Zamfara State” wrote a petition to the Chairman ICPC against former
Governor of Zamfara State, Ahmed Sani Yarima and few other persons.
Various acts of corruption and abuse of office were leveled against the
suspects in the said petition. These included unlawful diversion of
N1billion approved by the Zamfara State House of Assembly to repair
collapsed Gusau dam, award of phony contract to repair the Gusau dam,
illegal N600million loans obtained to sell grains to the Federal
Government and diversion of substantial part of the loan to the cronies
of the Governor under the guise of contracts, and conversion by the
company awarded the contract part of the contract sum for the supply of
furniture to 14 local government. The Chairman, ICPC sent the petition
to the Head, Financial Investigation Unit of the Commission who in turn
assigned the petition to her team for discreet investigation. Fateemah
Mohammed is leader of the team while he and Ada Ojoma were members. He
will state that the team would give evidence with respect to two of the
allegations for now. That is the diversion of part of N1billion meant to
repair dam to unrelated matters and the N600million loan obtained to
sell grains to Federal Government part of which was diverted to the
cronies of the Governor.
In the course of the investigation the team visited Zamafara state
and few other places. The team also invited some officials of Zamafara
State Government who made statements to the team. Relevant documents
and records were retrieved and these included:
contract agreements and correspondences between Zamfara State
government and federal government including Federal Ministry of
Agriculture and Water Resources in respect of the sale of grains
contract
agreement between Zamfara State government and consultant, Messers
Development Management Ltd and the transporter HAD Nig. Ltd
correspondences between Zamfara State government and Directorate of Commodity, Marketing and Distribution
Bank statement of Zamfara State Commodity Account
Payment vouchers and other relevant documents as regards loan disbursement
sale of grains and silos distribution file
With respect to the N1billion loan for the repair of Gusau collapsed
dam alleged to have been diverted, investigation revealed that on 3rd
October 2006, the Secretary to the State Government (SSG) wrote a memo
to the Speaker of the House of Assembly Zamfara State requesting for
additional budgetary provisions for the repairs of the damaged Gusau
Barrage which collapsed on the 30th September 2006 (The witness will
tender a copy of the request)
The Zamfara State House of Assembly during its 70th sitting held on
3rd October 2006 deliberated on the request and unanimously approved the
sum of N1billion to the Zamfara State government for the purpose of
effecting urgent repairs to the damaged Gusau water barrage and payment
of compensation to the affected victims of the collapsed dam.
Subsequently on the 9th October 2006, the Ministry of Finance,
Zamfara State obtained a loan of N1billion from UBA purportedly for
flood disaster and the rehabilitation/ dredging of the collapsed Gusau
dam (the witness will tender correspondences on the loan)
Investigation revealed that a reputable water management company
Messrs China Geo Engineering Company was initially identified to do the
job with an estimate of N800million. Conversely, Messrs China Geo
Engineering Company was never involved in the repairs of the damaged
dam, rather the Governor approved the award of the contract to repair
the dam to another company called ITALCO BUILDERS. The witness will say
that the team had inkling that the company was a foreign company which
must register in Nigeria before it could be awarded a contract. Inquiry
from the CAC showed that the company did not register in Nigeria. The
Governor claimed to have repaired the damaged dam but the team has
reason to doubt this claim. The witness will say that the Commission is
investigating this matter and as soon as the investigation is concluded
the Commission will determine the next line of action.
Investigation revealed that only the sum of about N574, 508,263.25
was purportedly utilized for flood disaster related matters, while the
balance of N425, 491,736.75 was diverted to unrelated activities such as
settlement of leave grant to the teachers, feeding during ramadhan,
payment of auditing of final accounts 1999-2005, surveillance to guest,
assistance to INEC etc without the approval of Zamafara State House of
Assembly. (the witness will tender relevant documents and a table of
analysis showing the funds paid the company and how the balance was
diverted to these unrelated matters)
Regarding the N600million loan obtained to sell grains to the federal
government which was alleged was spent to confer corrupt advantage on
the cronies of the former Governor, investigation revealed that in
February 2007, Ahmed Sani Yerima as the governor of Zamafara State wrote
a memo vide a letter dated 6th February 2007 No GHG/Z/S/256/VOL.1
captioned “ OFFER FOR SALE OF EXCESS GRAINS” to the President of the
Federal Republic of Nigeria Chief Olusegun Obasanjo that Zamafara State
government had stock of about 100,000 metric tons of assorted grains in
its silos and stores. The Governor appealed to the president to direct
the Federal Ministry of Agriculture and Water Resources to buy 50,000
metric tones out of the said 100,000 metric tons. Investigation revealed
at the end of the day the statement made by Sani Yerima as contained in
his letter to the President was false. Even when the Federal Government
reduced the supply from 50,000 metric tons to 20,000 metric tons the
State government could not supply 20,000 metric tons. It could only
supply 9, 181.89 metric tons. The witness will say that the outcome of
the false statement was that Ahmed Sani put his State in unnecessary
debt and made her to engage in a needless transaction that did not
benefit the State but only enriched his cronies at the expense of his
State
Investigation revealed that these grains were to be supplied and
deposited at 7 reserve silos across the contrary. These included: i
Akure 10,000 metric tons ii Irrua 10,000 metric tons iii Jahun 1,000
metric tons iv. Markudi 10,000 metric tons v. Ogoja 10,000 metric tons
vi. Jos 5,000 metric tons vii Minna 4,000 metric tons.
Subsequently Sani Yerima approved consultancy contract to a company
called Development Management System even though the State has commodity
board that could have done the job. The consultancy contract was
awarded at a sum of N161million which represents 10 % of the total
contract sum. A transporter HAD Nig Ltd was also appointed to transport
the grains to their respective silos across the country at a cost of
N444, 040,000. (The witness will tender notification of contracts issued
to the two companies).
The witness will say that investigation revealed that in May 2007 the
State government obtained a loan of N600million from bank PHB PLC
because of the sale of grains the State government wanted to sell to the
federal government. (The witness will tender relevant correspondences
on this loan). Investigation revealed that the Governor did not seek the
approval of the State House of Assembly before obtaining the loan from
the bank. The findings from the investigation revealed as follows:
The contract was later reviewed downward from 50,000 metric tons to
20,000 metric tons by the Federal Ministry of Agriculture and Water
Resources due to limited funds available to them in that the contract
was awarded in anticipation of funds from the Finance Ministry. (the
witness will tender the letter reviewing the contract)
The
consultant Development Management System (DMS) was appointed as a
consultant vides a letter dated 14th May 2007. The contract agreement
stated that Zamfara State government would pay the consultant 10% of the
total contract sum as service fees and 70% advance would be paid to DMS
Ltd on signing of documents. Thus based on the new contract to supply
20,000 metric tons which put the total contract sum to N644million (six
hundred and forty four million naira), the service charge which
represents 10% of the contract sum amounts to N64, 400,000( sixty four
million, four hundred thousand naira) while the 70% advance payment is
N32,200,000 (thirty two million two hundred thousand naira)
It is
worthy to note that after the downward review of the grains supply to
20,000 metric tons, the sum of N161million which represents the 10% of
the initial contractual agreement as service fees was never reviewed
downward to reflect the new rate.
By November 2007, only a total of
9,181.89 metric tons of assorted grains were sold by the State
government and hence transported to their respective destinations. This
represents about 46% of work done. Meanwhile a total sum of N91,
840,000.00 was paid to the consultant as service fees.
A thorough mathematical analysis showed that the consultant was being overpaid by the sum of N62, 274,315.
The analysis is as follows:
If 50,000 metric tons is to be sold at N1, 610,000,000.00
Total cost per metric ton = N1, 610,000,000/ 50,000 = N32, 200 per metric
So 20,000 metric x N32, 200= N644, 000,000
If contract sum for 20,000mt = N644, 000,000 then 10% as service charge =N64, 400,000.00
If 10 bags make a metric then cost per bag will be N32, 200/10 bags = N3,200
Actual transaction
Whereas 1 metric of grain =10bags of 100 kg
20,000metric x 10 bags = 200,000 bags
9181.89 tons were delivered, therefore
9,181.89 tons x 10 bags = 91,818.9 bags only were sold and transported.
644,000,000 / 200,000 = N3220 per bag
Therefore 91,818.90 bags x N3220 = N29, 565,685.80
Amount overpaid the consultant=
N91, 840-N29, 565,685.80 =N62, 274,315
The State government gave the consultant the freewill to appoint a
transporter, thus he appointed her sister company HAD Nig Ltd as the
transporter of the sum of N50, 000 metric tons of grains at a total cost
of N444, 040,000.00. A sum of N98, 000,000 was paid to the transporter
for which he transported only 91,818 bags as against 200,000 bags. Hence
Messrs HAD Nig Ltd was overpaid to the tune of N16, 957,472.
The
loan facility of N600million obtained from Platinum Habib Bank was paid
into the bank account of the Accountant-General of the State. Out of
which the sum of N189,840,000 (N98,000,000 + 91,840) was paid to the
consultant and transporter, the sum of N30,000,000 was used to purchase
operational vehicles for the monitoring of sale while the sum of
N16,800,000.00 was paid as VAT and WHT. The balance of 363,360,000.00
was diverted into other unrelated activities such as rehabilitation of
road, payment of zakat and loan to NULGE for purchase of motorcycles
based on the Governor’s approval. (the witness will tender table of
analysis and all relevant documents on these transactions).
7. BANK OFFICIALS to state as follows: Officials of Bank PHB, UBA,
STB, FBN, Zenith Bank and ICB to tender the statements of account, loan
agreements, cheques and other documents relevant to this case.
DATED DAY OF 2015
A.I RAHEEM ESQ
KALU JOSEPH UGBO,
ICPC HQ, ABUJA
FOR: ATTORNEY GENERAL OF THE FEDERATION
FOR SERVICE ON:
The defendants
O/c ICPC investigators
IN THE HIGH COURT OF ZAMFARA STATE
HOLDEN AT GUSAU, ZAMFARA STATE
CHARGE NO:
FEDERAL REPUBLIC OF NIGERIA------------COMPLAINANT
Vs
AHMED RUFAI SANI ]
ALHAJI ISHAM DIKKO ]
DEVELOPMENT MANAGEMENT LTD ]----DEFENDANTS PERSONS
HAD NIGERIA LTD
LIST OF EXHIBITS
Statement of account in GTB
Petition
Statement of the 1st defendant, Ahmed Rufai Sani
Statement of the 2nd defendant, Hashim Dikko
Statement of Engineer Lawal Jubril
Statement of Ahmed Abdul Nasir
Statement of Bello Sani Jabaka
Statement of Mohammed Mujtaba Isah
Offer for sale of excess grains
Offer of appointment as consultant
Notification of contract
Letter of acceptance
Sale of grains to the Federal Ministry of Agriculture
Quotation for the transportation
Quotation for the transportation of grains from Gusau
Had Nig Ltd, quotation for transportation
Progress report
Memo to the governor on sale of grains to the FG (3)
Application for N600million loan
Irrevocable standing payment (2)
Re : application for N600million loan
Offer of N600million loan
Acceptance of offer
Interest etc on N600million
Bank PHB Plc
Revision of contract by the Federal Ministry of Agric
Grains supply agreement
Progress report
Summary of sale of grains to FG
Zamafara State task force
Submission of grains delivery certificate
Bank PHB letter and cheques
HAD Nig Ltd
Document on utilization of N600million loan
Distribution of vehicles
Authority letter
Report
Conveyance of Excellency approval
Request for additional budgetary provision
Resolution
Utilization of N1billion loan
Offer letter
Incorporation document of HAD Nig Ltd
Statements
of account of Zamfara State including loan agreements and other
documents where applicable in UBA, STB, Bank PHB, FBN, Zenith Bank, ICB (
to be provided later)
Table of analysis (to be provided later)
DATED DAY OF 2015
A.I RAHEEM
KALU JOSEPH UGBO
ICPC HQ, ABUJA
FOR: ATTORNEY GENERAL OF THE FEDERATION
FOR SERVICE ON:
The defendants
O/c ICPC investigators
IN THE HIGH COURT OF ZAMFARA STATE
HOLDEN AT GUSAU, ZAMFARA STATE
CHARGE NO:
FEDERAL REPUBLIC OF NIGERIA------------COMPLAINANT
Vs
AHMED RUFAI SANI ]
ALHAJI ISHAM DIKKO ]
DEVELOPMENT MANAGEMENT LTD ]----DEFENDANTS PERSONS
HAD NIGERIA LTD
LIST OF WITNESSES
Engineer Lawal Jubril
Bello Sani Jabaka
Ahmed Abdul Nasir
Mohammed Mujtaba Isah
Fateemoh Mohammed
Abdulkadir Abdulrasak
Officials of UBA, FBN, ICB, STB, Bank PHB and Zenith Bank
DATED DAY OF 2015
A.I RAHEEM
KALU JOSEPH UGBO
ICPC HQ, ABUJA
FOR: ATTORNEY GENERAL OF THE FEDERATION
FOR SERVICE ON:
The defendants
O/c ICPC investigators
Culled from Sahara Reporters
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