{"id":54075,"date":"2016-10-27T15:22:57","date_gmt":"2016-10-27T14:22:57","guid":{"rendered":"http:\/\/pointblanknews.com\/pbn\/?p=54075"},"modified":"2016-10-27T15:23:06","modified_gmt":"2016-10-27T14:23:06","slug":"ekiti-house-assembly-drags-fayemi-others-efcc-alleged-n40bn-fraud","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/uncategorized\/ekiti-house-assembly-drags-fayemi-others-efcc-alleged-n40bn-fraud\/","title":{"rendered":"Ekiti House of Assembly drags Fayemi, others to EFCC over alleged N40bn fraud"},"content":{"rendered":"
\n
The Ekiti State House of Assembly has petitioned the Economic and
\nFinancial Crimes Commission (EFCC), calling for the investigation and
\nprosecution of the immediate past governor of the State and Minister
\nof Solid Minerals, Dr Kayode Fayemi and others, for allegedly looting
\nthe State to the tune of over N40 billion.
\nAbuja.<\/p>\n

The petition, dated October 24, 2016 and signed by Speaker of the
\nHouse of Assembly, Pastor Kolawole Oluwawole, was submitted to the
\nEFCC in Abuja today, by the trio of the Deputy Speaker, Hon Segun
\nAdewumi, Chairman House Committee on Information, Dr Samuel Omotoso
\nand Hon Sina Animasaun.<\/p>\n

The petition was titled; \u201cComplaint of fraudulent practices against
\nformer Ekiti State governor and Minister of Solid Minerals, Dr. Kayode
\nFayemi & others: Call for investigation & prosecution.\u201d<\/p>\n

Other people mentioned in the petition are Mr Dapo Kolawole, Mr Yemi
\nAdaramodu, Mr Abiodun Oyebanji, Arc Oyelade (CASA Nig Ltd) and Mr Bayo
\nKelekun.<\/p>\n

The Deputy Speaker, who addressed pressmen after the petition was
\nsubmitted, said; \u201cSince EFCC have claimed that the commission does not
\nhave any complaint against those holding power in Abuja, we have
\ndecided to submit this petition openly so that Nigerians and indeed,
\nthe entire world will be able to follow it up and ask questions from
\nthe EFCC as to what has happened to it.\u201d<\/p>\n

Dr Omotoso, who also corroborated the Deputy Speaker, disclosed that
\nthe petition bordered on 10 major issues, namely; Construction of new
\ncivic centre, construction of new governor\u2019s office, mismanagement of
\nthe N25bn bond and N5bn commercial bank loan, construction of new
\ngovernment house, diversion of State Universal Basic Education Board
\n(SUBEB) N852.9 million, fraudulent purchase of 156 units of Ford
\nvehicles from Coscharis Motors, inflation of road contracts, among
\nothers.<\/p>\n

Also, Hon Animasaun said the State House of Assembly could no longer
\npretend as if nothing was wrong in the face of the monumental looting
\nof the State treasury perpetrated by immediate past APC government of
\nFayemi, hence the complaint to the EFCC.<\/p>\n

The petition, which was accompanied with several documents read;
\n\u201cConsequent upon the resolution of the House of Assembly, we write to
\nrequest for the investigation of the following allegations of
\nfraudulent practices against the former Governor of Ekiti State and
\nincumbent Minister of Solid Minerals, Dr Kayode Fayemi and others.
\nThese fraudulent practices include, but not limited to contracts
\ninflation, misappropriation of fund, diversion of Local Council and
\nState Universal Basic Education (SUBEB) funds, amongst others.<\/p>\n

1:\u00a0 \u00a0 \u00a0 Construction of New Civic Centre (See Document marked ANNEXURE 1)
\nContract for the construction of a New Civic Centre was awarded to
\nTIANJIN-YUYANG Construction Eng. Limited on\u00a0 \u00a0August 30, 2012 at the
\ncost of N2, 573,584,395.75.\u00a0 Consultancy on the construction was
\nawarded to CASA Nig Ltd on June 11, 2012 at the cost of N137,
\n611,325.07.<\/p>\n

As at the end of 2012, a sum of N643,396,098.94 (representing 25% of
\ntotal contract sum) had been paid to TIANJIN-YUYANG Construction Eng.
\nLimited while the consultant, CASA Nig. Ltd was paid N89,801,901.06
\n(representing 80% of total contract sum).<\/p>\n

In 2013, a sum of N350, 116,245.17 was paid to TIANJIN-YUYANG
\nConstruction Eng. Limited, making a total sum of N993, 512,344.11
\n(representing 45% of total contract sum).<\/p>\n

2:\u00a0 \u00a0 \u00a0 New Governor\u2019s Office (See Document marked ANNEXURE 2)
\n2a. Contract for the construction of earthwork for the New Governor\u2019s
\nOffice was awarded to PONTI-ITALWARE Nig Ltd on March 3rd, 2012 at the
\nsum of N383, 900,911.06, with a sum of N115, 170,273.32 paid to the
\ncontractor. The New Governor\u2019s Office was proposed to be constructed
\nfrom the N25 billion Bond obtained by the State Government, with N3,
\n474,700.000.00 earmarked for the project.<\/p>\n

However, despite that N115, 170,273.32 was paid to PONTI-ITALWARE Nig
\nLtd for earthwork, the site was abandoned, with no significant work
\ndone.<\/p>\n

BOC ARCHITECTS of 32 Adeola Adeleye Street, Ilupeju, Lagos, the
\nProject Consultant was paid N11,596,746.41.<\/p>\n

Despite the payment of N115, 170,273.32, nothing significant was done.<\/p>\n

2b.\u00a0 \u00a0 Contract for the construction of the New Governor\u2019s Office was
\nawarded to Messrs Interkel Nig. Ltd (12, Maitama Sule Street,
\nSouthwest Ikoyi, Lagos 0812900918) on March 1, 2014. The contract sum
\nwas N2, 027,495,857.45. Out of the 30% mobilisation fee of N608,
\n248,757.24, a sum of N100 million was paid to the contractor with
\nnothing to show.<\/p>\n

3. N25bn bond and N5bn commercial bank loan (See document marked ANNEXURE 3)
\n3a. N25 billion was sourced from the capital market to finance capital
\nprojects. This was obtained in two tranches of N20 billion and N5
\nbillion in October 2011 and January 2014 respectively.<\/p>\n

The Bond Prospectus, which was approved by the House of Assembly was
\nnot adhered to as the money was diverted into projects not listed in
\nthe Bond Prospectus. For instance, N1 billion was earmarked for the
\nconstruction of Civic Centre whereas N1, 465,401,522.72 was spent on
\nthe project from the bond, with project left uncompleted.<\/p>\n

Also, the State Pavilion to which N1, 583,292,358.00 was earmarked and
\ntotal sum of N1, 457,945,445.44 was paid to the contractor was left
\nuncompleted.<\/p>\n

Projects funded from the Bond Proceeds but were not within the scope
\nof the Bond Prospectus are listed in the document marked ANNEXURE 3.<\/p>\n

3b.\u00a0 \u00a0 \u00a0Towards the June 21, 2014 governorship election, N5 billion loan
\nwas obtained, using Fountain Holdings Limited, a company with N15
\nmillion share capital. The N5 billion loan was obtained from EcoBank
\nwithout recourse to the Debt Management Office (DMO) and it was
\nclaimed that the loan was used to execute capital projects like
\nconstruction of roads.<\/p>\n

Our question is; is it part of the responsibilities of Fountain Holdings
\nLimited to execute capital projects like road construction on behalf of
\nEkiti State Government?<\/p>\n

For your information, Fountain Holdings Limited is an investment
\ncompany owned by the Ekiti State Government. The responsibility of
\nFountain Holdings Limited is to manage and supervise all companies
\nowned by the Ekiti State Government. The Share Capital of the company
\nis N15m, and we wonder how a company with N15m Share Capital could be
\ngranted N5bn loan by EcoBank without any recourse to the DMO!<\/p>\n

As at today, there is no single evidence of utilisation of the N5 bilion,
\nsuggesting that the loan was taken to fund Fayemi\u2019s botched re-election
\nbid.<\/p>\n

4.\u00a0 \u00a0 \u00a0 New Government House (See Document marked ANNEXURE 4)
\nContract for the construction of a new government house was awarded to
\nKOURIS Construction Nigeria Limited on July 27th, 2012. The initial
\ncontract sum was N2, 054,573,822.00.<\/p>\n

Curiously, another N730, 186,636.87 contract for additional works was
\nawarded to the same company on October 10th, 2014, FIVE days to the
\nend of the government of Dr Kayode Fayemi! It was claimed that the
\nadditional works was as a result omissions on the original Bill of
\nQuantities prepared for the project.<\/p>\n

For a contract awarded on July 27th, 2012, the question is; why
\nwaiting till October 10th, 2014, five days to the end of the
\ngovernment to realise that there were omissions on the original Bill
\nof Quantities prepared for the project?<\/p>\n

Curiously again, another N604, 961,645.72 contract was awarded to
\nKITWOOD Nigeria Limited on June 18th, 2014 (three days to the June 21,
\n2014 governorship election) for the furnishing of the government
\nhouse.<\/p>\n

To show that the State Ministry of Works was not carried along in the
\ncontract award and execution, the contractor was asked to report at
\nthe office of Fayemi\u2019s Chief of Staff, Yemi Adaramodu to sign
\ncontractual agreement and also obtain detailed specifications of the
\nitems to be procured.<\/p>\n

5:\u00a0 \u00a0 \u00a0 Diversion of State Universal Basic Education Board (SUBEB) (See
\nDocument marked ANNEXURE 5)
\nA sum of\u00a0 N852, 936,713.92 was illegal\u00a0 withdrawn from SUBEB Access
\nBank Account Number 0065385694 on October 8, 2014, eight days to the
\nend of Dr Fayemi\u2019s tenure as Ekiti State governor.<\/p>\n

The N852, 936,713.92 was counterpart fund paid by the Ekiti State
\nGovernment to access the Universal Basic Education Commission (UBEC)
\n2012 Marching Grant of N852, 936,793.12.<\/p>\n

This illegal withdrawal was in contravention of Section 11(2) of the
\nUniversal Basic Education (UBE) Act, 2004.<\/p>\n

It should be noted that UBEC Deputy Executive Secretary, Dr. Yakubu
\nGambo told the Senate Committee on Finance\u2019s Budget Defence that Dr
\nFayemi, used the N852.9 million counterpart funds dedicated for
\neducation by the federal government through the UBEC for other
\npurposes.<\/p>\n

Mr Dapo Kolawole, who was Fayemi\u2019s Commissioner for Finance, while
\ndefending the allegation, said there was no law forbidding States from
\nborrowing counterpart funds to support states capital development
\noperations.<\/p>\n

Consequent upon this illegal withdrawal, UBEC caused a letter to be
\nwritten to the Ekiti SUBEB in which the commission called for the
\nreturn of the N852, 936,713.92 to the account of SUBEB.<\/p>\n

UBEC also suspended Ekiti SUBEB from accessing any further FGN-UBE
\nIntervention Fund until further notice.<\/p>\n

UBEC, in the letter dated April 16, 2015, with Reference Number;
\nUBEC\/FA\/SUBEB\/EK\/183\/Vol.II\/162 described the withdrawal as criminal
\nact that violated Section 11(2) of UBE Act 2004 and conveyed its
\nsuspension of Ekiti State from accessing any further FGN-UBE
\nIntervention Fund.<\/p>\n

UBEC letters dated April 16, 2015 and April 29, 2015 as well extract
\nfrom Ekiti SUBEB Statement of Account are herewith attached.<\/p>\n

6:\u00a0 \u00a0 \u00a0 Diversion of State Universal Basic Education Board (SUBEB)
\nIn 2012, contracts worth N4, 246,094,751.14 were awarded through the
\nBureau of Special Projects (under the Governor\u2019s office), headed by
\nMr. Kelekun. The contracts were for renovation of schools, supply of
\nschool furniture and construction of classrooms. Funds for these
\nprojects were taken from SUBEB and Local Governments accounts.<\/p>\n

Of these contracts, N3, 672,078,820.14 were for renovation of schools
\nalone. Atlantic Offshore & Properties got N1, 152,562,555.14, Strabic
\nNig. Ltd got N1, 107,744.408.21, Bam Darley Nig. Ltd. got N924,
\n977,310.95 while Fatub Nig. Ltd got N486, 794,545.84.<\/p>\n

Immediately the renovation contracts were awarded, Atlantic Offshore &
\nProperties was paid N750 million (70% of contract sum), Strabic Nig.
\nLtd was paid N600 million (65% of contract sum), Bam Darley Nig. Ltd
\nwas paid N600 million (70% of contract sum) while Fatub Nig.
\nEngineering Ltd was paid N150 million (60% of contract sum).<\/p>\n

A total of N2.1bn was paid from SUBEB and LG accounts to these
\ncontractors even before the commencement of work, and over 40% of the
\npayment was diverted into private pockets.<\/p>\n

In the 2014 Capital Projects Report, payments to the contractors were
\npresented as;
\na:\u00a0 \u00a0 \u00a0 Atlantic Offshore & Properties\u00a0 –\u00a0 \u00a0 \u00a0 \u00a0N1, 022,130,415.64
\nb:\u00a0 \u00a0 \u00a0 Strabic Nig. Ltd\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 –\u00a0 \u00a0 \u00a0 \u00a0N957, 237,829.62
\nc:\u00a0 \u00a0 \u00a0 Bam Darley Nig. Ltd\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0–\u00a0 \u00a0 \u00a0 \u00a0N742, 730,990.25
\nd:\u00a0 \u00a0 \u00a0 Fatub Engineering Nig. Ltd\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 –\u00a0 \u00a0 \u00a0 \u00a0N431, 327,270.41<\/p>\n

As at the time N1, 022,130,415.64 was paid to Atlantic Offshore &
\nProperties, only 60% work had been done, meaning that Atlantic
\nOffshore & Properties was only entitled to N691, 537,551. Bam Darley
\nNig. Ltd that was paid N742, 730,990.25 had done 60% work too and
\nought to have been paid N554, 986,386.57.<\/p>\n

7:\u00a0 \u00a0 \u00a0 Inflation of Road Contracts
\nContracts for REHABILITATION of Roads were awarded at highly inflated
\ncost, with some of the roads costing as high N50 million per
\nkilometre. The REHABILITATION only involved cutting of failed portion,
\nfilling with laterite and stone base and asphalt overlay. No subsoil
\ndrainages, new pipe culverts and box culverts were constructed.<\/p>\n

For instance, 10.7km Ado-Afao was awarded at N538, 638,704.26, 17km
\nIlawe-Igbara Odo-Ibuji road, which was awarded at a little above N200m
\nby the government preceding Fayemi\u2019s government was re-awarded at
\nN894,698,043.75, 11.5km Ado-Ilawe road was awarded at N482,849,098.20,
\n3.6km Ijigbo-Baptist College (Ilawe road) was awarded at
\nN788,038,599.60 while Fajuyi-University Teaching Hospital Road that is
\nless than3km was awarded at N447,544,063.50<\/p>\n

Rehabilitation of 13km Old Garrage-Ado-Ikere road was awarded to
\nPlycon Nig Ltd at N2, 369,833,077.15.<\/p>\n

Construction of 0.8km Old Garrage-Ojumose (Ado-Ekiti) road was awarded
\nto Heartland Nig. Ltd at N866, 872,873.13.<\/p>\n

8:\u00a0 \u00a0 \u00a0 Diversion of LG Funds to Pay For Roads Awarded By State Govt.
\nUsing the State Public Works Corporation (PWC), rehabilitation 5km
\ntownship roads were embarked upon in each of the 16 LGs. Contracts for
\nthe rehabilitation of these roads were awarded without any imput from
\nthe respective LGs while fund for the project was deducted from the
\nlocal councils allocation.<\/p>\n

For instance, rehabilitation of 5km roads in Moba LG was awarded for
\nN368, 950,821.09, Ido\/Osi LG for N329, 950,821.50 and Ilejemeje LG for
\nN347, 914,157.68. Apart from the PWC, cronies of Governor Kayode
\nFayemi were also given the contract. Most of the road projects have
\nbeen abandoned.<\/p>\n

9.\u00a0 \u00a0 \u00a0 Fraudulent Purchase of 156 Units of Ford vehicles from Coscharis Motors
\nN1.2 billion loan was obtained from First Bank Plc for the purchase of
\n156 units of Ford vehicles from Coscharis Motors Limited, for
\ntraditional rulers in the State.<\/p>\n

It is on record that only 156 units of the vehicles were delivered
\nwhile Coscharis, in its letter dated May 2, 2014 said it delivered 235
\nunits. Up till today, the remaining 79 vehicles are yet to be
\naccounted.<\/p>\n

It is also on record that proposal for the supply of vehicles was
\nsubmitted on November 14, 2013 while the vehicles were distributed to
\nthe Obas on August 27, 2013! The supplier, Coscharis also registered
\nas a civil\/building contractor in Ekiti State on November 13, 2013.<\/p>\n

Coscharis, which supplied the vehicles only registered as a
\ncivil\/building contractor in Ekiti State on November 13, 2013 and
\nsubmitted proposal for the supply of the vehicles on November 14, 2013
\nwhile the vehicles were supplied in August 2013 and distributed on
\nAugust 27, 2013, three clear months before the proposal to supply the
\nvehicles was made.<\/p>\n

Furthermore, it is also on record that instructions were sent to Local
\nGovernment Chairmen on November 15, 2013 to deliberate on the proposal
\nsent by Coscharis on November 14, 2013 in their F&GPC meetings and
\ntheir decision to get back to the Ministry of Local Government and
\nChieftaincy Affairs not later than November 22, 2013; while the
\nvehicles they were to deliberate upon in the F&GPC meetings in
\nNovember were delivered in August and distributed to the Obas on
\nAugust 27, 2013.<\/p>\n

Also, while the vehicles were distributed on August 27, 2013 and the
\ntracking done on September 13, 2013, certificate of no objection to
\nprocure the vehicles was issued on February 24, 2014.<\/p>\n

10.\u00a0 \u00a0 \u00a0Ado Ekiti Beautification Project (See Document marked ANNEXURE 6)
\nContract worth N596, 151,159.10 was awarded for construction walkways
\nand beautification of Ado Ekiti, the Ekiti State capital was awarded
\nto nine contractors. (See Annexure \u2026 for list of contractors).<\/p>\n

Total sum of N306, 165,425.90 was paid to the contractors. A visit to
\nthe project sites will reveal that nothing significant was done to
\njustify this payment.<\/p>\n

Apart from Dr Kayode Fayemi, the following people are involved in the
\nalleged fraudulent practices amongst others.
\n1.\u00a0 \u00a0 \u00a0 Mr Dapo Kolawole – 08135063506
\n2.\u00a0 \u00a0 \u00a0 Mr Yemi Adaramodu – 08035019919
\n3.\u00a0 \u00a0 \u00a0 Mr Abiodun Oyebanji \u2013 08072074878
\n4.\u00a0 \u00a0 \u00a0 Arc Oyelade (CASA Nig Ltd) \u2013 07059825045
\n5.\u00a0 \u00a0 \u00a0 Mr Bayo Kelekun \u2013 08129020900
\n6.\u00a0 \u00a0 \u00a0 Interkel Nig Ltd \u2013 08129009118, 08033223296
\nConsequent upon these alleged fraudulent practices perpetrated by the
\nimmediate past government of Dr Fayemi, Ekiti State has been finding
\nit difficult to meet up with its responsibilities.<\/p>\n

It will also interest you that several petitions have been written to
\nyour commission both by concerned citizens of the State and the State
\nGovernment itself.<\/p>\n

We are however miffed that nothing has been done to these petitions
\ndespite that they were duly received by the commission.<\/p>\n

In view of the need for an all-inclusive anti-corruption fight, we
\nimplore that you act promptly by directing thorough investigation into
\nthe alleged fraudulent practices enumerated above with a view to
\nbringing anyone fund culpable to justice.<\/p>\n

Thanking you for your anticipated prompt action.<\/p>\n

<\/div>\n<\/div>\n<\/div>\n
\u00a0\"EFCC<\/a> \"EFCC<\/a> \"EFCC<\/a> \"EFCC<\/a> \"EFCC<\/a> \"EFCC<\/a> \"EFCC<\/a> \"IMG-20161027-WA0007-1\"<\/a>emi<\/div>\n
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The Ekiti State House of Assembly has petitioned the Economic and Financial Crimes Commission (EFCC), calling for the investigation and prosecution of the immediate past governor of the State and…<\/p>\n","protected":false},"author":1,"featured_media":45601,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-54075","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"\nEkiti House of Assembly drags Fayemi, others to EFCC over alleged N40bn fraud - Pointblank News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pointblanknews.com\/pbn\/uncategorized\/ekiti-house-assembly-drags-fayemi-others-efcc-alleged-n40bn-fraud\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ekiti House of Assembly drags Fayemi, others to EFCC over alleged N40bn fraud - 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