Date Published: 07/27/09

Another N1 billion missing in UBEC

Dr. Ahmed Modibbo

Members of the board of Universal Basic Education Commission (UBEC) are reportedly up in arms over fears that a billion naira Education Trust Fund (ETF) “take-off grant for the second phase of the production and supply of sitting materials to junior secondary schools” which it’s Executive Secretary, Dr. Ahmed Modibbo received in September, 2007, may have developed wings.

As at press time, Modibbo, according to some members of the UBEC board, “has not been able to give us a satisfactory explanation as to the whereabouts of this grant which was released about two years ago.”

Four days after taking over at UBEC, Modibbo in a “reminder” to his colleague in ETF, Professor Mahmud Yakoob, who alongside Modibbo was appointed a week earlier, asked the funding agency to release “85% of the take-off grant (N722, 500,000) so that we can immediately mobilize the contractor (Intermarkets Ltd., that manufactured and supplied the first set of plastic desks and chairs) accordingly.”

The letter was personally signed by Modibbo, was dated 7 th September, 2007, and bore reference number UBEC/DESS/ETF/34/II/373.

In the six-paragraph “reminder”, Modibbo, who conceded that the N850 million grant came as a result of “requests from states for the same CKD plastic desks and chairs earlier supplied by Messrs Intermarkets Nig. Ltd.”, urged ETF to note that, “the contractor (Intermarkets) was expected to commence production and delivery…within two weeks from the disbursement of the 1 st funds to us.”

He concluded thus: “We look forward to receiving your (ETF) cheque in the sum of N722, 500,000.00”

Pointblanknews.com gathered from informed sources that, in response to Modibbo’s “reminder,” ETF credited UBEC’s account with N722,500.000 “in the second week of September, 2007, and lodged same in fixed deposit accounts with at least two new generation banks."

The UBEC board members in the “war front” against Modibbo claim that he must be made to account for N722.5 million and at least an additional N280 million interest that ought to have accrued to the said grant in since September, 2007.

“At 18% interest rate, the minimum returns N722.5 million would yield in two years is N280 million. So, when the time for coughing out comes, the minimum Modibbo would cough out is N980 million,” explained one of the board members.

A former member of the ETF board however opines that the entire crisis today would have been avoided if Modibbo had adhered to the terms of the agreement on the supply of the plastic furniture, rather than resort to what the member called “monkey tricks.”

“Were I the contractor, I would have done same,” he claimed. “A clear two months after we released N722 million for the production of the plastic chairs, Modibbo had not even communicated the contractor, Intermarkets Ltd. Of course, he wrote Modibbo and copied us.”

“We kindly request you to expedite action urgently to mobilize us due to the daily increase in oil prices which is affecting our plastic raw material,” wrote Intermarkets, concluding, “We look forward to receive your second phase mobilization soonest.” The letter was signed by the company’s managing director, one Alex Cozma.

But in a response six days later, UBEC told Intermarkets pointblank that, “you are to note that, your invitation to a meeting with UBEC board on 22 nd August, 2007, and your submission of quotation did not translate to contract award that will warrant payment of mobilization to your firm.”

Emphasized UBEC: “Any further action on the second phase of the contract is contingent on the outcome of our technical discussion with the two bodies above (ministry of education and ETF). The letter was signed on behalf of Modibbo by Bello Kagara, the commission’s Project coordinator.

It is still not clear as to why UBEC’s response dated 26 th November, 2007 was delivered on the 28 th, a clear eight days after Intermarkets’ reminder. Pointblanknews.com gathered that UBEC‘s headquarters is less than 30 meters from Intermarkets’.

Apparently dissatisfied with the response from UBEC, Intermarkets responded, reminding the commission, among other things, that, “commitments are done with corporate individuals and not individuals.”

Affirmed the contractor: “Your board…initiated Phase 1, and upon the successful conclusion of Phase 1, the same board initiated Phase 2…The meeting of 22 nd August, 2007 with your Due Process automatically translated to the second phase of the manufacturing order as conveyed by Messrs ETF to you, which confirmed to you the approval of their Board of Trustees.”

Intermarkets, in the letter, told Modibbo that, “we are sure that all these facts were not handy to you as at the time you wrote your letter of 26 th November (the previous day), especially attachments marked 2,3,4,5, which show the depth of our commitment with UBEC/ETF.” It added, “in view of the above facts, we look forward to your early mobilization as time is of essence.”

Sources in UBEC told Pointblanknews.com that, following the foregoing correspondence from Intermarkets to Modibbo, which was copied the then Minister of Education, Aja Wachukwu, “our boss (Modibbo) decided that he needed to halt this insolence from this contractor ‘once and for all.’ He and our minister completely ignored the letter and did not communicate Intermarkets for a whole year.”

Investigations by Pointblanknews.com revealed that there was no communication between UBEC and Intermarkets for about a year.

But brushing aside the silence from UBEC, Intermarkets on 11 th August, 2008, wrote: “We wish to point out that the continued delay, for over a year now, in mobilizing us with the approved funds to commence production has led to escalating raw materials/production costs and interest payments which do not benefit our company, …UBEC…ETF, or the Nigerian child for whose benefit we have embarked on this partnership since 2005.”

The company urged Modibbo to “expedite action on this matter in accordance with the mutual commitments and agreements reached on 20 th August, 2007, with us and your Resident Due Process Team, acting pursuant to the prior approvals of the respective boards of UBEC and ETF, and mobilize us with the agreed, necessary, and appropriate funds to commence production...”

Also copied were ETF and the minister of education.

Eleven days after UBEC received complaints from Intermarkets over delay in releasing the N722 million released by ETF about a year earlier, the commission advertised the same contract being sought by Intermarkets in some national dailies.

In the advertisements, UBEC simply said it “has received financial support” from ETF “and intends to apply the proceeds for the procurement of high-grade, impact resistant copolymer resin desks and chairs for the basic education sub-sector at the states and FCT level in Nigeria.”

Modibbo was however silent on the value of the “financial support” from ETF or how long ago it “received” it, but urged “interested qualified manufacturers” to submit all their prequalification documents “within one week from the date of this advertisement” to himself.

Jeered a member of UBEC board: “This is the problem with this man, Modibbo. How do you think you can fool all the people all the time? ETF gave you N722.5 million in September, 2007 for a specific project. For a whole year you fix the money, only to wake from sleep in August 2008, to advertised the same project all because a certain contractor wont allow you pocket the money in his name.

“Did Modibbo have any idea how much the plastic chairs would cost before applying to ETF for ‘financial support’ because you don’t just ask for money in a vacuum? How did he arrive at the figures to ask from ETF if contractors had not bided for the project? Did he approach the Federal Executive Council for the approval? In whose custody is the “financial support” from ETF, because N722.5million in 2007 can definitely not be N722.5 million in 2009. These are some of the questions Modibbo and our chairman whom he has long pocketed, Prof. Tunde Adeniran, should answer,” lamented the board member.

But apparently undaunted, Intermarkets on the day UBEC advertised the contracts, wrote the Commission’s boss.

Among the concerns raised by Intermarkets was “whether having already manufactured and supplied 109,440 plastic chairs conforming to the description of Friday 22 nd August, 2008 through a single-source procurement order authorized by the respective boards and managements of UBEC and ETF, our company needs to again apply for prequalification in continuation of the same project?”

Intermarkets asked Modibbo if, “whether having met with your Resident Due Process Team (RDPT) on 22 nd August, 2007, and on the same day submitted our quotation No. 0035 for the manufacture and supply of plastic desks and chairs with our social contribution as agreed under the second phase of this ETF-financed project as a single manufacturer under section 42 (2) of the Public Procurement Act, 2007, it is necessary for our company to again apply for pre-qualification of the same project?”

The contractor also sought to know “whether in view of the fact that the boards and management of UBEC and ETF had already, in 2005, made a decision with respect to the acceptance of our registered design No. 11979 for the manufacture of plastic school desks and chairs, on which basis our company has made a huge and verified investment, our company has not already met the necessary criteria as a single source manufacturer under Section 42 of the Public Procurement Act, 2007, and needs to again apply for pre-qualification in respect of the same project?

“We most humbly and respectfully expect your immediate response to this request…since your response may also be of interest to any other manufacturer wishing to be pre-qualified in respect of a project already awarded to our company,” penned Intermarkets.

“But unknown to Intermarkets, Modibbo was one clever fox who would never allow himself to be outfoxed,” noted one UBEC board member.

“If Intermarkets sought an ‘immediate response,’ Modibbo cleverly replied on the day of the deadline for the submission of tenders, which was on a Friday, but didn’t deliver it to the contractor on the next Monday, automatically shutting off Intermarkets,” he said.

In Modibbo’s five-paragraph response, he told Intermarkets, among other things, that, the award of the contract would be based on “the outcome of discussions with our funding partner (ETF) and our supervising ministry.”

And in what seemed a death knell on Intermarkets intention to continue the “Phase 2” of the project, Modibbo scribbled: “You may also wish to note that this is a completely new project due to the fact that there are new specifications based on ETF’s observations on quality, identification and utility.”

What the UBEC boss however appeared to forget at the time of writing was that, prior to his homily to Intermarkets on “quality, identification and utility” the same ETF he had brandished had passed what seemed a vote of confidence on the quality of plastic chairs and desks supplied by Intermarkets.

Writing on August 14, 2007 to Modibbo’s predecessor, Dr. Lami Amodu, ETF Executive Secretary, Mustapha Jaji, had said: “we expect your manufacturer M/S Intermarkets Nigeria Limited to scrupulously maintain the standard and quality of the goods they have already delivered.”

“This talk about quality, identification and utility, by Modibbo, to me, is hogwash,” one member of UBEC board told Pointblanknews.com. “A man who, three days after resuming couldn’t wait for ETF to mobilize him with N850 million, wakes up a year later to discover that the chairs and desks supplied in 2005 and 2006 didn’t conform to his ‘quality, identification and utility.”

He continued: “Equally hogwash is all the talk about 85% mobilizations running against the Procurement Act, 2007. We first approached Intermarkets in January, 2004. The contract was awarded on 31 st October, 2005. So, please tell me how the contract with Intermarkets in 2005 could have breached a Procurement Act that was signed into law in 2007?

“I read the court-certified true copies of the reports by the SSS and EFCC and concluded the reports were written by the same person. Or else, why would two principal security organizations be dumb enough not to realize that you cannot breach a law retroactively. Even at that, Intermarkets won the bid by mono sourcing otherwise called selective tendering.

“What is more, I read reports that there was no bank guarantee. That is not true. Inland bank guaranteed every kobo of the N722.5 million we granted UBEC. And note that grants don’t go the Federal Executive Council for approval; otherwise they would not be called grants. If, as alleged by Modibbo, the Phase 1 contract to Intermarkets didn’t go through FEC approval, how come he didn’t go through the same FEC before collecting the N722.5 million that has now ballooned into over N1 billion,” demanded the board member.

Meanwhile, Pointblanknews.com gathered that the storm may not be over yet for UBEC authorities. The sack, last week, of five principal directors has reportedly pitched some members of the board against Modibbo and their chairman, Professor Babatunde Adeniran.

Pointblanknews.com had exclusively reported the miasma of corruption in the Federal Teachers’ Scheme (FTS), alleged to be conduit pipes for Adeniran and Modibbo to siphon billions of naira from the coffers of UBEC.

Modibbo, according to very dependable sources in the Nigerian media circles, has earmarked a whopping N100 million to stem the tide of what he considers negative reports on the scams in his organization. In the past two weeks, he has hosted newspaper editors in Abuja to “dinner” twice, and met with select editors in Lagos once. He has reportedly dispatched his Public Relations Officer, David Apeh, with close to N80 million to bribe editors to “kill” negative stories against him, apart from the million used last week to publish wishy-washy advertorials in select newspapers.

Daily Sun had penultimate week broken the story on Modibbo’s illegal “redeployment” to head UBEC, even when he had clearly overstayed his six-year tenure in National Teachers’ Institute (NTI), by over a year and half. A follow-up was done by Sun’s sister publication, The Spectator, which reportedly sent Modibbo on the canvass.

Since Daily Sun broke the story, the Nigerian media has been awash with stories on the whereabouts of the N850 million released to Modibbo’s UBEC. A radical newspaper in the North, Leadership had early in the week done a “fearless” full-page features on the “missing” N850 million.

Since the publication, including another one that ran in the Daily Sun on Thursday, Modibbo has been reportedly avoiding his office, preferring to hole himself up in Adeniran’s country home in far away Ekiti State.

Some members of the board of UBEC are reportedly worried that Modibbo could connive with Adeniran to employ a certain Auwal Lawal, an assistant director of accounts at Modibbo’s former station, NTI. Lawal is now UBEC’s deputy director of accounts. And with the sack, last week, of the commission’s director of accounts, Mrs. Hadiza Kura, the stage, according to informed sources, is set for Modibbo to appoint his protégé, Lawal, the substantive director of accounts.

“NTI is considered a grade 2 parastatal, while UBEC grade 1. Now, tell me the rationale behind bringing in an assistant director from a junior parastatal and promoting him a deputy director in UBEC. We expect Lawal’s announcement as UBEC’s director of accounts any moment. Modibbo’s UBEC has become so lawless that it has become illegal to be law-abiding,” an insider told Pointblanknews.com.

“It is a shame for Yar’Adua to be preaching ‘Rule of Law’ when several officers in his kitchen cabinet, particularly Said Abba Ruma, Aishatu Dukku and Jalal Arabi, to name a few, cut all known corners in their greedy pursuit of material acquisition. UBEC shall continue to be a test case for his rule of law. I am happy that the scam cannot be wished away, no matter how much Modibbo and Adeniran spend to bribe journalists, some conscientious ones would still stand to be counted,” he declared.

Modibbo and Adeniran have both frustrated all attempts to give their own side of the story. For instance, Tunde Adeniran insisted on meeting one-on-one with Pointblanknews.com to “tell the whole truth of the issues you raised.” When Pointblanknews.com suggested sending his response via email, Adeniran hesitated but later agreed, gave stagevictory@yahoo.com as his email address, and promised to “send my response before 12pm on (last) Saturday.” He even requested a copy of the questionnaire be sent to his mobile number 0806085640. We promptly did, and he acknowledged.

As at press time, Adeniran had yet to send his response via email or sms. He instead chose to blackmail Pointblanknews.com by forwarding our questionnaire, which he requested to enable him “take the issues point by point,” to The Nation newspapers, claiming they were “threat messages” he got from some “faceless individuals” for “having the courage to reform UBEC” the sack of five directors.

He had earlier vowed that “under no circumstance” would not give out Modibbo’s telephone numbers since, according to him, “I don’t want to do anything that would pour sand-sand for my garri”, meaning, he wouldn’t want anything that would threaten his daily bread (perhaps his appointment as Nigeria’s ambassador to the United States). “Modibbo would also not call you because he doesn’t have to,” boasted Adeniran.