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Auditor-General uncovers N197bn contract fraud in MDAs

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A report by the Auditor-General of the Federation has exposed irregular payments for contracts totalling over N197.72bn across various ministries, departments, and agencies, raising serious concerns about systemic lapses in financial compliance and procurement processes.

The findings, which are detailed in the Auditor-General’s Annual Report on Non-Compliance and Internal Control Weaknesses, cover activities between 2020 and 2021.

They reveal violations of established financial regulations and procurement laws, with irregularities affecting multiple MDAs.

The report was released to assist stakeholders, including the Public Accounts Committees of the National Assembly, in addressing these lapses and recovering the lost funds.

One of the key findings in the report revealed irregularities in the award of contracts totalling N7.39bn.

The breaches occurred in 32 MDAs and contravened Paragraph 2921(i) of the Financial Regulations (2009), which mandates open competitive bidding for all procurement processes.

The Rural Electrification Agency in Abuja recorded the highest irregularity in this category, amounting to N2.12bn, while the Nigerian Security Printing and Minting Company Plc had the least irregularity, at N11.72m.

The audit report read, “The sum of N7,386,551,051.09 (seven billion, three hundred and eighty-six million, five hundred and fifty-one thousand, fifty-one naira, nine kobo) was the amount of irregularities in the award of contracts by 32 ministries, departments and agencies.

“The Rural Electrification Agency, Abuja, has the highest amount of N2,117,143,168.09 (two billion, one hundred and seventeen million, one hundred and three thousand, one hundred and sixty-eight naira, nine kobo), while the Nigerian Security Printing and Minting Company Plc (NSPM) has the least amount of N11,720,000 (Eleven million, seven hundred and twenty thousand naira).”

Another alarming revelation in the report was the sum of N167.59bn paid for jobs or contracts that were either partially executed or not executed at all.

This contravenes Paragraph 708 of the Financial Regulations, which prohibits payments for services or goods not yet delivered.

The Nigerian Bulk Electricity Trading Plc in Abuja accounted for N100bn of these irregular payments, making it the highest in this category.

The National Centre for Women Development recorded the lowest irregularity at N2.17m.

The report read, “The sum of N167,592,177,559.40 (one hundred and sixty-seven billion, five hundred and ninety-two million, one hundred and seventy-seven thousand, five hundred and fifty-nine naira, forty kobo) was the amount of payments for jobs/contracts not executed by 31 ministries, departments and agencies.

“The Nigerian Bulk Electricity Trading Plc., Abuja, has the highest amount of N100,000,000,000.00 (one hundred billion naira), while the National Centre for Women Development has the least amount of N2,171,766.44 (two million, one hundred and seventy-one thousand, seven hundred and sixty-six naira, forty-four kobo).”

The report also uncovered violations of due process in contract awards amounting to N20.33bn across 24 MDAs.

Section 16(21) of the Public Procurement Act (PPA) 2007 requires strict adherence to procurement plans and mandatory approvals before contract awards.

However, the audit found that these requirements were often ignored.

The NSPM in Abuja was responsible for the highest amount of due process violations, totalling N14.14bn, while the Corporate Affairs Commission had the least, at N8.98m.

The report noted, “The sum of N20,334,104,016.27 (twenty billion, three hundred and thirty-four million, one hundred and four thousand, sixteen naira, twenty-seven kobo) was the amount of contracts awarded in violation of due process by 24 ministries, departments and agencies.

“The Nigerian Security Printing and Minting Company Plc Abuja, has the highest amount of N14,136,472,333.16 (fourteen billion, one hundred and thirty-six million, four hundred and seventy-two thousand, three hundred and thirty-three naira, sixteen kobo) while the Corporate Affairs Commission has the least amount of N8,980,603.72 (eight million, nine hundred and eighty thousand, six hundred and three naira, seventy-two kobo).”

Also, a total of N2.41bn was discovered to have been paid for contracts exceeding approved financial thresholds without obtaining the required “Certificate of No Objection” from the Bureau of Public Procurement.

This violation affected five MDAs, with the Ahmadu Bello University Teaching Hospital, Zaria, recording the highest amount at N1.06bn.

The Federal Medical Centre, Bida, recorded the least amount, at N9.9m.

The report read, “The sum of N2,407,710,913.92 (two billion, four hundred and seven million, seven hundred and ten thousand, nine hundred and thirteen naira, ninety-two kobo) was the amount of contracts awarded above the threshold by five ministries, departments and agencies.

“The Ahmadu Bello University Teaching Hospital, Zaria has the highest amount of N1,065,614,232.70 (one billion, sixty-five million, six hundred and fourteen thousand, two hundred and thirty-two naira, seventy kobo) while the Federal Medical Centre, Bida, has the least amount of N9,900,000.00 (nine million, nine hundred thousand naira).”

This report categorised these issues as “cross-cutting”, meaning they were systemic and occurred in at least four MDAs.

It criticised the weak internal controls within the MDAs and highlighted the need for stricter enforcement of financial regulations.

The Public Accounts Committees of the National Assembly have been notified of the findings, with recommendations to ensure accountability and prevent recurrence.

The revelations have sparked concerns about the government’s ability to manage public funds efficiently, particularly at a time when Nigeria is grappling with economic challenges such as inflation and rising debt.

The audit findings highlight the urgent need for reforms to restore public confidence in the country’s financial management system.

CACOL demands probe

Meanwhile, the Centre for Anti-Corruption and Open Leadership has called for a thorough investigation into the alleged misappropriation of N4.64bn by the Ministry of Works and Housing, under the leadership of Babatunde Fashola.

An audit report by the Auditor-General for the Federation had also uncovered financial irregularities totaling over N4.64bn in the Federal Ministry of Works (Housing Sector) between 2020 and 2021.

The report details several issues, including payments made without proper documentation, extra-budgetary expenditures, mobilisation fees exceeding approved thresholds, and contracts awarded without following due process.

The Auditor-General recommended that the Permanent Secretary of the ministry justify the payments, recover the funds, and remit them to the treasury.

The audit report also recommended that evidence of compliance should be submitted to the National Assembly’s Public Accounts Committees, failing which sanctions under Paragraph 3106 of the Financial Regulations should apply.

Reacting to the report, the Executive Director of CACOL, Debo Adeniran, expressed concern over the findings, describing it as a betrayal of public trust.

Adeniran urged the Economic and Financial Crimes Commission to expedite the investigation into the matter and hold those responsible accountable.

“It is not surprising that such cases of misappropriation, misapplication of funds, outright embezzlement, and other misdemeanor will happen. President Bola Tinubu must not be nepotistic about this revelation.

“This must not be covered up; the government must ensure that justice is done and anybody who is found culpable in the allegations must be punished.

“Further investigation should be carried out and nobody should be bigger than the law; whoever is culpable should be made to face the course of justice,” Adeniran said.

Efforts to get Fashola to respond to the allegations proved unsuccessful, as calls and messages to his number were neither answered nor replied.

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Alleged Forgery: EFCC Set To Arraign Oba Otudeko, Ex-First Bank MD Bisi Onasanya For N12.3Bn Fraud

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Justice Chukwujekwu Aneke of the Federal High Court in Lagos has fixed Monday, January 20, 2025, for the Economic and Financial Crimes Commission, EFCC, to arraign the Chairman of Honeywell Group, Chief Oba Otudeko and a former First Bank Managing Director Stephen Olabisi Onasanya for allegedly looting N12.3billion naira from First Bank.
Otudeko – former Chairman of First Bank of Nigeria, FBN Holdings – and Onasanya are to be arraigned alongside a former board member of Honeywell Soji Akintayo and a firm, Anchorage Leisure Limited connected to Otudeko.
According to the EFCC, the four committed the fraud in tranches of N5.2billion, N6.2billion, N6.150billion, N1.5billion and N500million, N6.2bbillion and N2.09 Billion between 2013 and 2014 in Lagos.
The 13-count charge, filed by EFCC counsel Bilikisu Buhari on January 16, 2025, further claimed that the defendants made and uttered forged documents to deceive the bank.
Otudeko, Onasanya, Akintayo and Anchorage will be brought before Justice Aneke, to whom the case, registered as FHC/L/20C/2025, has been assigned.
Specifically, count 1 accused the defendants of conspiring “to obtain the sum of N12.3Billion from First Bank Limited on the pretence that the said sum represented credit facilities applied for by V-TECH DYNAMIC LINKS LIMITED and Stallion Nigeria Limited, which representation you know to be false.”
In Count 2, it was alleged that the defendants, on or about the 26th day of November 2013 in Lagos, “obtained the sum of N5.2 Billion from First Bank Limited on the pretence that the said sum represented credit facilities applied for by V TECH DYNAMIC LINKS LIMITED which representation you know to be false.”
The 3rd count claimed that the defendants, between 2013 and 2014 in Lagos, obtained N6.2 Billion from First Bank Limited on the pretence that the said sum represented credit facilities applied for and disbursed to Stallion Nigeria Limited, which representation you know to be false.”
In the 4th count, they were accused of conspiring to spend the N6,15 Billion, out of the monies.
According to the Commission, the offences contravened Section 8(a) of the Advance Fee Fraud and Other Fraud Related Offences Act 2006 and are punishable under Section 1(3) of the same Act.
Counts 5 and 6 read: “That you, CHIEF OBA OTUDEKO, STEPHEN OLABISI ONASANYA, SOJI AKINTAYO AND ANCHORAGE LEISURE LIMITED on or about 11th day of December 2013 in Lagos, procured Honeywell Flour Mills Plc to retain the sum of N1,5 Billion, which sum you reasonably ought to have known forms part of proceeds of your unlawful activities to wit: Obtaining by False Pretense and you thereby committed an offence contrary to Section 18(c), 15 (2) (d) of the Money Laundering (Prohibition) Act, 2011 (as amended) and punishable under Section 15(3) of the same Act.
“That you, CHIEF OBA OTUDEKO, STEPHEN OLABISI ONASANYA, SOJI AKINTAYO, AND ANCHORAGE LEISURE LIMITED on or about the 17th day of December 2013 in Lagos, converted to the use of Honeywell Flour Mills Plc the sum of N500 Million Naira Only which sum you reasonably ought to have known forms part of proceeds of your unlawful activities to wit: Obtaining by False Pretense and you thereby committed an offence contrary to Section 15(2 (b)) of the Money Laundering (Prohibition) Act, 2011 (as amended) and punishable under Section 15(3) of the same Act.”
Other charges are as follows:
“Count 7. That you, CHIEF OBA OTUDEKO, STEPHEN OLABISI ONASANYA, SOJI AKINTAYO AND ANCHORAGE LEISURE LIMITED on or about the 3rd day of September 2013 in Lagos and within the jurisdiction of this Honourable Court conspired amongst yourselves to commit an offence to wit: uttering a forged document – titled “Letter of Application” with the intent that it may be used by the First Bank in the belief that the said document is genuine and emanated from V-Tech Links Dynamic Limited, and you thereby committed an offence contrary to Section 3(6) of the MISCELLANEOUS OFFENCES ACT, Cap M17 Laws of the Federation of Nigeria 2004 and punishable under Section 1(2)(c) of same Act.
“COUNT 8: That you, CHIEF OBA OTUDEKO, STEPHEN OLABISI ONASANYA, SOJI AKINTAYO AND ANCHORAGE LEISURE LIMITED on or about the 3rd day of September 2013 in Lagos and within the jurisdiction of this Honourable Court uttered a forged document titled “Letter of Application” with intent that it may be used by the First Bank in the belief that the said document is genuine and emanated from V-Tech Dynamic Links Limited, and you thereby committed an offence contrary to Section 1(2)(c) of the MISCELLANEOUS OFFENCES ACT, Cap M17 Laws of the Federation of Nigeria 2004 and punishable under same Act.
“COUNT 9 That you, CHIEF OBA OTUDEKO, STEPHEN OLABISI ONASANYA, SOJI AKINTAYO AND ANCHORAGE LEISURE LIMITED on or about the 3rd day of September 2013 in Lagos and within the jurisdiction of this Honourable Court conspired amongst yourselves to commit an offence to wit: making false document titled “AUTHORIZATION TO ISSUE INVESTMENT CERTIFICATE TO FIRST BANK” with intent that it may be used by First Bank in the belief that the said document is genuine and emanated from V-Tech Links Dynamic Limited, and you thereby committed an offence contrary to Section 3(6) of the MISCELLANEOUS OFFENCES ACT, Cap M17 Laws of the Federation of Nigeria 2004 and punishable under Section 1(2)(c) of same Act.
“COUNT 10: That you, CHIEF OBA OTUDEKO, STEPHEN OLABISI ONASANYA, SOJI AKINTAYO AND ANCHORAGE LEISURE LIMITED on or about the 3rd day of September 2013, in Lagos and within the jurisdiction of this Honourable Court made a forged document titled “AUTHORIZATION TO ISSUE INVESTMENT CERTIFICATE TO FIRST BANK” with Intent that it may be used by the First Bank in the belief that the said document is genuine and emanated from V-Tech Links Dynamic Limited, and you thereby committed an offence contrary to Section 1(2) (c) of the MISCELLANEOUS OFFENCES ACT, Cap M17 Laws of the Federation of Nigeria 2004 and punishable under same Act.
“COUNT 11: That you, CHIEF OBA OTUDEKO AND STEPHEN OLABISI ONASANYA on or about the 31st day of October 2014 in Lagos, within the jurisdiction of this Honourable Court procured Abiodun Olatunji and Raymond Eze to transfer the sum of N6,200,000,000 (Six Billion, Two Hundred Million Naira Only), to STALLION NIGERIA LIMITED’s account number “2015708429” domiciled with First Bank, which sum you reasonably ought to have known formed part of the proceeds of unlawful activities to wit: Fraudulent False Accounting and you thereby committed an offence contrary to Sections 18 (c) and 15(2 (b) of the Money Laundering (Prohibition) Act, 2011 (as amended) and punishable under Section 15(3) of the same Act.
“COUNT 12: That you, CHIEF OBA OTUDEKO AND STEPHEN OLABISI ONASANYA on or about 11th day of December, 2013 in Lagos, within the jurisdiction of this Honourable Court procured Abiodun Olatunji and Raymond Eze to transfer the sum of N2, 090, 000,000 (Two Billion, Ninety Million Naira Only), from STALLION NIGERIA LIMITED’s account number “2015708429” domiciled with First bank, to Emmerado Logistics Limited’s account number “0688985010” domiciled with First City Monument Bank, which sum you reasonably ought to have known formed part of the proceeds of unlawful activities to wit: Fraudulent False Accounting and you thereby committed an offence contrary to Sections 18 (c) and 15(2 (b) of the Money Laundering (Prohibition) Act, 2011 (as amended) and punishable under Section 15(3) of the same Act.
“COUNT 13: That you, CHIEF OBA OTUDEKO on or about the 3rd day of September 2013 in Lagos, within the jurisdiction of this Honourable Court whilst being the Chairman of First Bank Plc indirectly had a personal interest in a loan facility sought for by V Tech Dynamics Links Limited in the sum of N6,150,000,000.00 (Six Billion, One Hundred and Fifty Million Naira Only), which interest was not declared to the Bank and you thereby committed an offence contrary to Section 18(1) BANKS AND OTHER FINANCIAL INSTITUTIONS ACT 2004 and punishable under Section 18(2) of same Act.”

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Certificate Scandal: We don’t have your record as a lawyer. – Supreme Court To Ex Speaker Obasa….

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More trouble may be brewing for the former Speaker of the Lagos State House of Assembly, Mudashiru Obasa, as the Supreme Court of Nigeria has revealed that there was no record of him as a lawyer in their registry.

 

 

The apex court keeps records of all certified lawyers allowed to handle cases in any Nigerian court.

 

Obasa’s profile on Wikipedia and the Lagos Assembly’s website describes him as a lawyer and solicitor of the Federal Republic of Nigeria even though there is no mention of where he practiced or a case he handled.

 

He is also described on the Assembly’s website as graduating from the Nigerian Law School in 2007, a year after he obtained a Bachelor of Law degree from the Lagos State University.

 

But in a response to an enquiry on the subject matter on July 24, 2020, the Supreme Court categorically stated that Obasa’s name was not found on the numerous rolls of legal practitioners kept with it.

 

 

The letter signed by one Gertrude B. Karenton-Mordi on behalf of the Chief Registrar of the Supreme Court and seen on Monday, said, “This is to inform you that we have checked our records and cannot find the name: MUDASHIRU AJAYI OBASA on the nemerous Rolls of Legal Practitioners kept in this honourable court.

 

 

MUDASHIRU AJAYI OBASA is at liberty to come to the honourable court with his call to bar and qualifying certificates for enrollment.”

 

Interestingly, this is not the first time that the 47-year-old Lagos Assembly Speaker will be linked to a scandal — this merely adds to a long list of alleged wrongdoing Obasa had been discovered to be involved in.

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National Sports Festival: FG, Enugu govt sign host state agreement

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The Federal and the Enugu State Government have signed the host state agreement in respect of the 2026 National Sports Festival billed to hold in the South East State.

The agreement, which was signed by the Director-General of the National Sports Commission, Hon. Bukola Olopade for the FG and Governor Peter Mbah for Enugu State, on Tuesday, now awards Enugu State the full hosting rights for the 2026 edition of the National Sports Festival.

Speaking at the signing ceremony at the Government House, Enugu, Governor Peter Mbah thanked the Commission and other sports stakeholders for the confidence reposed in the state and his administration to stage the event, assuring that it would discharge its hosting responsibilities in a way that would leave a lifelong memory and experience on the athletes and all lovers of sports in Nigeria and beyond.

“We also appreciate the value and significance of this award. I want to commend the commission for finding Enugu worthy of being the next host of the 23rd National Sports Festival. We are going to discharge ourselves creditably.

“As you know, we like to be a role model as a state that gained preeminence over 115 years ago. We will not want to let our forebears down. We will live up to that standard.

“We have already set forth at dawn. Immediately that announcement was made, we mobilised our team. We are already working on revamping the Awgu Games Village and a whole lot. We have decided to deliver a brand new Games Village. We are also completely renovating the stadium to brand new.

“We are making sure that by the time you come here by the end of this year, you are going to be highly impressed. It is not revamping, rebranding or re-equipping, but we are also going to build additional facilities to the existing one.

“We are looking forward to having a word-class experience befitting the sports men and women, making our hosting a lifelong memory and experience,” he stated.

Earlier in his address, Hon. Olopade said the commission was encouraged by Enugu’s bid, available facilities, improved security in the state, and Governor Mbah’s determination to turn around the sports and social infrastructure to grant Enugu the right to host the event after the 22nd edition to be hosted by Ogun State.

The National Sports Commission boss added that the hosting would boost investment and tourism in the state before, during and after the event.

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