Financial Crimes Commission (EFCC), calling for the investigation and
prosecution of the immediate past governor of the State and Minister
of Solid Minerals, Dr Kayode Fayemi and others, for allegedly looting
the State to the tune of over N40 billion.
Abuja.
The petition, dated October 24, 2016 and signed by Speaker of the
House of Assembly, Pastor Kolawole Oluwawole, was submitted to the
EFCC in Abuja today, by the trio of the Deputy Speaker, Hon Segun
Adewumi, Chairman House Committee on Information, Dr Samuel Omotoso
and Hon Sina Animasaun.
The petition was titled; “Complaint of fraudulent practices against
former Ekiti State governor and Minister of Solid Minerals, Dr. Kayode
Fayemi & others: Call for investigation & prosecution.”
Other people mentioned in the petition are Mr Dapo Kolawole, Mr Yemi
Adaramodu, Mr Abiodun Oyebanji, Arc Oyelade (CASA Nig Ltd) and Mr Bayo
Kelekun.
The Deputy Speaker, who addressed pressmen after the petition was
submitted, said; “Since EFCC have claimed that the commission does not
have any complaint against those holding power in Abuja, we have
decided to submit this petition openly so that Nigerians and indeed,
the entire world will be able to follow it up and ask questions from
the EFCC as to what has happened to it.”
Dr Omotoso, who also corroborated the Deputy Speaker, disclosed that
the petition bordered on 10 major issues, namely; Construction of new
civic centre, construction of new governor’s office, mismanagement of
the N25bn bond and N5bn commercial bank loan, construction of new
government house, diversion of State Universal Basic Education Board
(SUBEB) N852.9 million, fraudulent purchase of 156 units of Ford
vehicles from Coscharis Motors, inflation of road contracts, among
others.
Also, Hon Animasaun said the State House of Assembly could no longer
pretend as if nothing was wrong in the face of the monumental looting
of the State treasury perpetrated by immediate past APC government of
Fayemi, hence the complaint to the EFCC.
The petition, which was accompanied with several documents read;
“Consequent upon the resolution of the House of Assembly, we write to
request for the investigation of the following allegations of
fraudulent practices against the former Governor of Ekiti State and
incumbent Minister of Solid Minerals, Dr Kayode Fayemi and others.
These fraudulent practices include, but not limited to contracts
inflation, misappropriation of fund, diversion of Local Council and
State Universal Basic Education (SUBEB) funds, amongst others.
1: Construction of New Civic Centre (See Document marked ANNEXURE 1)
Contract for the construction of a New Civic Centre was awarded to
TIANJIN-YUYANG Construction Eng. Limited on August 30, 2012 at the
cost of N2, 573,584,395.75. Consultancy on the construction was
awarded to CASA Nig Ltd on June 11, 2012 at the cost of N137,
611,325.07.
As at the end of 2012, a sum of N643,396,098.94 (representing 25% of
total contract sum) had been paid to TIANJIN-YUYANG Construction Eng.
Limited while the consultant, CASA Nig. Ltd was paid N89,801,901.06
(representing 80% of total contract sum).
In 2013, a sum of N350, 116,245.17 was paid to TIANJIN-YUYANG
Construction Eng. Limited, making a total sum of N993, 512,344.11
(representing 45% of total contract sum).
2: New Governor’s Office (See Document marked ANNEXURE 2)
2a. Contract for the construction of earthwork for the New Governor’s
Office was awarded to PONTI-ITALWARE Nig Ltd on March 3rd, 2012 at the
sum of N383, 900,911.06, with a sum of N115, 170,273.32 paid to the
contractor. The New Governor’s Office was proposed to be constructed
from the N25 billion Bond obtained by the State Government, with N3,
474,700.000.00 earmarked for the project.
However, despite that N115, 170,273.32 was paid to PONTI-ITALWARE Nig
Ltd for earthwork, the site was abandoned, with no significant work
done.
BOC ARCHITECTS of 32 Adeola Adeleye Street, Ilupeju, Lagos, the
Project Consultant was paid N11,596,746.41.
Despite the payment of N115, 170,273.32, nothing significant was done.
2b. Contract for the construction of the New Governor’s Office was
awarded to Messrs Interkel Nig. Ltd (12, Maitama Sule Street,
Southwest Ikoyi, Lagos 0812900918) on March 1, 2014. The contract sum
was N2, 027,495,857.45. Out of the 30% mobilisation fee of N608,
248,757.24, a sum of N100 million was paid to the contractor with
nothing to show.
3. N25bn bond and N5bn commercial bank loan (See document marked ANNEXURE 3)
3a. N25 billion was sourced from the capital market to finance capital
projects. This was obtained in two tranches of N20 billion and N5
billion in October 2011 and January 2014 respectively.
The Bond Prospectus, which was approved by the House of Assembly was
not adhered to as the money was diverted into projects not listed in
the Bond Prospectus. For instance, N1 billion was earmarked for the
construction of Civic Centre whereas N1, 465,401,522.72 was spent on
the project from the bond, with project left uncompleted.
Also, the State Pavilion to which N1, 583,292,358.00 was earmarked and
total sum of N1, 457,945,445.44 was paid to the contractor was left
uncompleted.
Projects funded from the Bond Proceeds but were not within the scope
of the Bond Prospectus are listed in the document marked ANNEXURE 3.
3b. Towards the June 21, 2014 governorship election, N5 billion loan
was obtained, using Fountain Holdings Limited, a company with N15
million share capital. The N5 billion loan was obtained from EcoBank
without recourse to the Debt Management Office (DMO) and it was
claimed that the loan was used to execute capital projects like
construction of roads.
Our question is; is it part of the responsibilities of Fountain Holdings
Limited to execute capital projects like road construction on behalf of
Ekiti State Government?
For your information, Fountain Holdings Limited is an investment
company owned by the Ekiti State Government. The responsibility of
Fountain Holdings Limited is to manage and supervise all companies
owned by the Ekiti State Government. The Share Capital of the company
is N15m, and we wonder how a company with N15m Share Capital could be
granted N5bn loan by EcoBank without any recourse to the DMO!
As at today, there is no single evidence of utilisation of the N5 bilion,
suggesting that the loan was taken to fund Fayemi’s botched re-election
bid.
4. New Government House (See Document marked ANNEXURE 4)
Contract for the construction of a new government house was awarded to
KOURIS Construction Nigeria Limited on July 27th, 2012. The initial
contract sum was N2, 054,573,822.00.
Curiously, another N730, 186,636.87 contract for additional works was
awarded to the same company on October 10th, 2014, FIVE days to the
end of the government of Dr Kayode Fayemi! It was claimed that the
additional works was as a result omissions on the original Bill of
Quantities prepared for the project.
For a contract awarded on July 27th, 2012, the question is; why
waiting till October 10th, 2014, five days to the end of the
government to realise that there were omissions on the original Bill
of Quantities prepared for the project?
Curiously again, another N604, 961,645.72 contract was awarded to
KITWOOD Nigeria Limited on June 18th, 2014 (three days to the June 21,
2014 governorship election) for the furnishing of the government
house.
To show that the State Ministry of Works was not carried along in the
contract award and execution, the contractor was asked to report at
the office of Fayemi’s Chief of Staff, Yemi Adaramodu to sign
contractual agreement and also obtain detailed specifications of the
items to be procured.
5: Diversion of State Universal Basic Education Board (SUBEB) (See
Document marked ANNEXURE 5)
A sum of N852, 936,713.92 was illegal withdrawn from SUBEB Access
Bank Account Number 0065385694 on October 8, 2014, eight days to the
end of Dr Fayemi’s tenure as Ekiti State governor.
The N852, 936,713.92 was counterpart fund paid by the Ekiti State
Government to access the Universal Basic Education Commission (UBEC)
2012 Marching Grant of N852, 936,793.12.
This illegal withdrawal was in contravention of Section 11(2) of the
Universal Basic Education (UBE) Act, 2004.
It should be noted that UBEC Deputy Executive Secretary, Dr. Yakubu
Gambo told the Senate Committee on Finance’s Budget Defence that Dr
Fayemi, used the N852.9 million counterpart funds dedicated for
education by the federal government through the UBEC for other
purposes.
Mr Dapo Kolawole, who was Fayemi’s Commissioner for Finance, while
defending the allegation, said there was no law forbidding States from
borrowing counterpart funds to support states capital development
operations.
Consequent upon this illegal withdrawal, UBEC caused a letter to be
written to the Ekiti SUBEB in which the commission called for the
return of the N852, 936,713.92 to the account of SUBEB.
UBEC also suspended Ekiti SUBEB from accessing any further FGN-UBE
Intervention Fund until further notice.
UBEC, in the letter dated April 16, 2015, with Reference Number;
UBEC/FA/SUBEB/EK/183/Vol.II/
act that violated Section 11(2) of UBE Act 2004 and conveyed its
suspension of Ekiti State from accessing any further FGN-UBE
Intervention Fund.
UBEC letters dated April 16, 2015 and April 29, 2015 as well extract
from Ekiti SUBEB Statement of Account are herewith attached.
6: Diversion of State Universal Basic Education Board (SUBEB)
In 2012, contracts worth N4, 246,094,751.14 were awarded through the
Bureau of Special Projects (under the Governor’s office), headed by
Mr. Kelekun. The contracts were for renovation of schools, supply of
school furniture and construction of classrooms. Funds for these
projects were taken from SUBEB and Local Governments accounts.
Of these contracts, N3, 672,078,820.14 were for renovation of schools
alone. Atlantic Offshore & Properties got N1, 152,562,555.14, Strabic
Nig. Ltd got N1, 107,744.408.21, Bam Darley Nig. Ltd. got N924,
977,310.95 while Fatub Nig. Ltd got N486, 794,545.84.
Immediately the renovation contracts were awarded, Atlantic Offshore &
Properties was paid N750 million (70% of contract sum), Strabic Nig.
Ltd was paid N600 million (65% of contract sum), Bam Darley Nig. Ltd
was paid N600 million (70% of contract sum) while Fatub Nig.
Engineering Ltd was paid N150 million (60% of contract sum).
A total of N2.1bn was paid from SUBEB and LG accounts to these
contractors even before the commencement of work, and over 40% of the
payment was diverted into private pockets.
In the 2014 Capital Projects Report, payments to the contractors were
presented as;
a: Atlantic Offshore & Properties – N1, 022,130,415.64
b: Strabic Nig. Ltd – N957, 237,829.62
c: Bam Darley Nig. Ltd – N742, 730,990.25
d: Fatub Engineering Nig. Ltd – N431, 327,270.41
As at the time N1, 022,130,415.64 was paid to Atlantic Offshore &
Properties, only 60% work had been done, meaning that Atlantic
Offshore & Properties was only entitled to N691, 537,551. Bam Darley
Nig. Ltd that was paid N742, 730,990.25 had done 60% work too and
ought to have been paid N554, 986,386.57.
7: Inflation of Road Contracts
Contracts for REHABILITATION of Roads were awarded at highly inflated
cost, with some of the roads costing as high N50 million per
kilometre. The REHABILITATION only involved cutting of failed portion,
filling with laterite and stone base and asphalt overlay. No subsoil
drainages, new pipe culverts and box culverts were constructed.
For instance, 10.7km Ado-Afao was awarded at N538, 638,704.26, 17km
Ilawe-Igbara Odo-Ibuji road, which was awarded at a little above N200m
by the government preceding Fayemi’s government was re-awarded at
N894,698,043.75, 11.5km Ado-Ilawe road was awarded at N482,849,098.20,
3.6km Ijigbo-Baptist College (Ilawe road) was awarded at
N788,038,599.60 while Fajuyi-University Teaching Hospital Road that is
less than3km was awarded at N447,544,063.50
Rehabilitation of 13km Old Garrage-Ado-Ikere road was awarded to
Plycon Nig Ltd at N2, 369,833,077.15.
Construction of 0.8km Old Garrage-Ojumose (Ado-Ekiti) road was awarded
to Heartland Nig. Ltd at N866, 872,873.13.
8: Diversion of LG Funds to Pay For Roads Awarded By State Govt.
Using the State Public Works Corporation (PWC), rehabilitation 5km
township roads were embarked upon in each of the 16 LGs. Contracts for
the rehabilitation of these roads were awarded without any imput from
the respective LGs while fund for the project was deducted from the
local councils allocation.
For instance, rehabilitation of 5km roads in Moba LG was awarded for
N368, 950,821.09, Ido/Osi LG for N329, 950,821.50 and Ilejemeje LG for
N347, 914,157.68. Apart from the PWC, cronies of Governor Kayode
Fayemi were also given the contract. Most of the road projects have
been abandoned.
9. Fraudulent Purchase of 156 Units of Ford vehicles from Coscharis Motors
N1.2 billion loan was obtained from First Bank Plc for the purchase of
156 units of Ford vehicles from Coscharis Motors Limited, for
traditional rulers in the State.
It is on record that only 156 units of the vehicles were delivered
while Coscharis, in its letter dated May 2, 2014 said it delivered 235
units. Up till today, the remaining 79 vehicles are yet to be
accounted.
It is also on record that proposal for the supply of vehicles was
submitted on November 14, 2013 while the vehicles were distributed to
the Obas on August 27, 2013! The supplier, Coscharis also registered
as a civil/building contractor in Ekiti State on November 13, 2013.
Coscharis, which supplied the vehicles only registered as a
civil/building contractor in Ekiti State on November 13, 2013 and
submitted proposal for the supply of the vehicles on November 14, 2013
while the vehicles were supplied in August 2013 and distributed on
August 27, 2013, three clear months before the proposal to supply the
vehicles was made.
Furthermore, it is also on record that instructions were sent to Local
Government Chairmen on November 15, 2013 to deliberate on the proposal
sent by Coscharis on November 14, 2013 in their F&GPC meetings and
their decision to get back to the Ministry of Local Government and
Chieftaincy Affairs not later than November 22, 2013; while the
vehicles they were to deliberate upon in the F&GPC meetings in
November were delivered in August and distributed to the Obas on
August 27, 2013.
Also, while the vehicles were distributed on August 27, 2013 and the
tracking done on September 13, 2013, certificate of no objection to
procure the vehicles was issued on February 24, 2014.
10. Ado Ekiti Beautification Project (See Document marked ANNEXURE 6)
Contract worth N596, 151,159.10 was awarded for construction walkways
and beautification of Ado Ekiti, the Ekiti State capital was awarded
to nine contractors. (See Annexure … for list of contractors).
Total sum of N306, 165,425.90 was paid to the contractors. A visit to
the project sites will reveal that nothing significant was done to
justify this payment.
Apart from Dr Kayode Fayemi, the following people are involved in the
alleged fraudulent practices amongst others.
1. Mr Dapo Kolawole – 08135063506
2. Mr Yemi Adaramodu – 08035019919
3. Mr Abiodun Oyebanji – 08072074878
4. Arc Oyelade (CASA Nig Ltd) – 07059825045
5. Mr Bayo Kelekun – 08129020900
6. Interkel Nig Ltd – 08129009118, 08033223296
Consequent upon these alleged fraudulent practices perpetrated by the
immediate past government of Dr Fayemi, Ekiti State has been finding
it difficult to meet up with its responsibilities.
It will also interest you that several petitions have been written to
your commission both by concerned citizens of the State and the State
Government itself.
We are however miffed that nothing has been done to these petitions
despite that they were duly received by the commission.
In view of the need for an all-inclusive anti-corruption fight, we
implore that you act promptly by directing thorough investigation into
the alleged fraudulent practices enumerated above with a view to
bringing anyone fund culpable to justice.
Thanking you for your anticipated prompt action.
emi