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President Tinubu orders N2tn poverty relief funds probe, Betta Edu faces EFCC today……

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10 months ago

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President Bola Tinubu has ordered the Economic and Financial Crimes Commission to launch a full-blown investigation into the finances of the Ministry of Humanitarian Affairs and Poverty Alleviation.

Tinubu handed down the directive in a statement on Monday by his Special Adviser on Media and Publicity, Ajuri Ngelale, who also announced the suspension of the Minister of Humanitarian Affairs and Poverty Alleviation, Betta Edu, over the N585m scandal in the ministry.

The statement was titled ‘President Tinubu suspends Minister of Humanitarian Affairs and Poverty Alleviation from office.’

Edu’s suspension was happening as her predecessor, Sadiya Umar-Farouq, was grilled for about 12 hours by the EFCC detectives over the ongoing probe into the N37.1bn allegedly laundered during her tenure in office, through a contractor, James Okwete.

The ex-minister was questioned from 11am to 11pm by investigators seeking information on how the huge sum was allegedly laundered by top officials who served under her.

Data from the Budget Office indicate that the ministry, erstwhile known as Humanitarian Affairs, Disaster Management and Social Development, had a N2.38tn budget from 2020 to 2024.

In compliance with the presidential directive, the EFCC has also summoned Edu to appear before its detectives on Tuesday (today).

Ngelale in the statement said the President directed the EFCC Chairman, Ola Olukoyede, to conduct a thorough investigation into all aspects of the financial transactions involving the Federal Ministry of Humanitarian Affairs and Poverty Alleviation, as well as the agencies under it.

Furthermore, the President tasked a panel headed by the Coordinating Minister of the Economy and Minister of Finance, Wale Edun, to conduct a comprehensive diagnostic of the financial architecture and framework of the social investment programmes.

This was aimed at reforming the relevant institutions and programmes in a determined bid to eliminate all institutional frailties for the exclusive benefit of disadvantaged households and win back lost public confidence in the initiative.

Edu suspended

The statement read, “In line with his avowed commitment to upholding the highest standards of integrity, transparency, and accountability in the management of the commonwealth of Nigerians, President Bola Tinubu suspends the Minister of Humanitarian Affairs and Poverty Alleviation, Dr. Betta Edu, from office with immediate effect.

“The suspended minister is hereby directed to hand over to the Permanent Secretary of the Federal Ministry of Humanitarian Affairs and Poverty Alleviation, and she is further directed by the President to fully cooperate with the investigating authorities as they conduct their investigation.

“Furthermore, the President has tasked a panel headed by the Coordinating Minister of the Economy and Minister of Finance to, among other functions, conduct a comprehensive diagnostic on the financial architecture and framework of the social investment programmes with a view to conclusively reforming the relevant institutions and programmes in a determined bid to eliminate all institutional frailties for the exclusive benefit of disadvantaged households and win back lost public confidence in the initiative. These directives of the President take immediate effect.’’

The scandal involving Edu burst open after a leaked memo revealed that the suspended minister directed the Accountant-General of the Federation, Oluwatoyin Madein, to transfer N585m to a private account owned by one Oniyelu Bridget, who the ministry claimed currently serves as the Project Accountant, Grants for Vulnerable Groups.

The minister had claimed that the N585m payment was meant for vulnerable groups in Akwa Ibom, Cross River, Ogun, and Lagos states, describing the allegations against her as baseless.

The Media Assistant to the minister, Rasheed Olarewaju, said in a statement that it was legal within the civil service for such payments to be made into private accounts of staff members, especially project accountants.

Unimpressed by her defence, several groups and individuals including the Peoples Democratic Party, Socio-Economic Rights and Accountability Project, Femi Falana, SAN; the Yoruba Youth Assembly, and other civil society groups had demanded Edu’s suspension and an unfettered probe of the leaked memo.

In deference to public pressure, the President suspended Edu and directed her to hand over to the permanent secretary in the ministry.

Consequently, the anti-graft agency on Monday, directed the suspended minister to report at its Jabi, Abuja headquarters on Tuesday (today) for questioning.

Confirming the development in a telephone interview with our correspondent, a senior EFCC official said, “Betta Edu has been mandated to report to the commission tomorrow (today).”

The suspended minister did not respond to calls and a message seeking her reaction to her suspension by the President. Also, her media aide, Olarewaju did not respond to calls and a message sent to his phone.

In a curious development, moves by the suspended minister to see Tinubu hours after her suspension failed as she was denied entry by the security personnel at the Presidential Villa.

Minister barred

The incident which was captured by the TVC News showed the minister’s vehicle being denied access to the State House.

Her convoy was asked to turn back as the security operatives refused to let her into the Presidential Villa.

A source revealed that the Independent Corrupt Practices and Other Related Offences Commission had between July and August 2023, intercepted N32bn which was about to be stolen from the humanitarian affairs ministry.

The money was handed over to the Federal Government.

Sources said the immediate past minister in the ministry, Umar-Farouq, who had a marathon session with investigators over the N37bn money laundering allegation, was still being questioned at 7pm on Monday.

The former minister had tweeted about her presence at the EFCC headquarters, Jabi, Abuja, at about 10.20am.

“I have, at my behest, arrived at the headquarters of the Economic and Financial Crimes Commission to honour the invitation by the anti-graft agency to offer clarifications in respect of some issues that the commission is investigating,” Umar-Farouq tweeted.

Citing health challenges, she had earlier officially written to the EFCC to seek an extension of the deadline to meet with EFCC interrogators to give an account of the alleged monumental fraud that took place under her watch.

Meanwhile, checks by The PUNCH revealed that the total budgetary allocation to the Federal Ministry of Humanitarian Affairs and Poverty Alleviation from 2020 to 2024, is N2.38tn, according to data from the budget office.

Former President Buhari created the Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development on August 21, 2019.

However, after President Tinubu took over in May 2023, the name was changed to the Federal Ministry of Humanitarian Affairs and Poverty Alleviation.

Figures from the budget office showed that in 2020, 2021, 2022, 2023, and 2024, the total allocations to the ministry and agencies under it were N453.3bn, N456.1bn, N507.9bn, N426bn and N532.5bn respectively.

The total allocation to the humanitarian ministry and its agencies in the 2020 appropriation bill was N453.27bn.

From this sum, the ministry, National Emergency Management Agency, National Social Investment Office, North-East Development Commission, National Commission for Refugees, and National Agency for the Prohibition of Trafficking in Persons got total allocations of N4.03bn, N1.24bn, N400bn, N38.1bn, N6.56bn and N3.34bn respectively.

The National Social Investment Office got the highest allocation of N400bn in 2020.

Data in the 2021 Appropriation Act showed that the total appropriation to the ministry and its agencies was N465.1bn.

Figures from the Act indicated that the ministry, NEMA, NSIO, NEDC, NCR, NAPTIP, National Commission for Persons with Disability, and Office of the Senior Special Assistant to the President on Millennium Development Goals got total allocations of N3.9bn, N3.75bn, N400bn, N32.96bn, N14.1bn, N4.14bn, N1.8bn and N4.44bn, respectively.

The NSIO had the highest allocation of N400bn in 2021.

In 2022, the total allocation appropriated to the ministry was N507.9bn.

From this sum, the ministry itself, NEMA, NSIO, NEDC, NCR, NAPTIP, National Commission for Persons with Disability, Office of the Senior Special Assistant to the President on MDGs, and National Senior Citizens Centre got total allocations of N35.6bn, N3.3bn, N398.9bn, N41.78bn, N12.34bn, N3.34bn, N3.17bn, N8.78bn and N655.8m respectively. The NSIO’s N398.9bn allocation was the highest in 2022.

Ministry’s funds

In 2023, the ministry and agencies under it got a total appropriation of N426bn and this was increased to N532.5bn in the 2024 budget.

On December 13, 2023, The PUNCH reported that the suspended minister declared that the N532.5bn in the 2024 budget for her ministry was inadequate.

Edu stated this when she led officials of her ministry and parastatals to defend the 2024 budget before the Joint National Assembly Committee of Humanitarian Affairs and Poverty Alleviation, chaired by Senator Idiat Adebule.

She said the amount allocated to her ministry in the 2024 budget was not capable of fighting poverty across the country, stressing that her ministry was given an overhead ceiling of N532.5bn which represents a 28 per cent increase over the 2023 budget to cushion the effects of inflation.

Meanwhile, following the suspension of the minister, a civil society group, the United Global Resolve for Peace, has called for a comprehensive reformation of the Ministry of Humanitarian Affairs and Poverty Alleviation.

The group made this known in a statement by its President, Shalom Olaseni, on Monday, while commending the President for his decisiveness in suspending the embattled official.

The statement read, “The United Global Resolve for Peace applauds President Bola Tinubu for his decisive action in suspending Dr Betta Edu, the Minister of Humanitarian Affairs and Poverty Alleviation, in response to corruption scandals and controversies surrounding her tenure. The UGRFP acknowledges the President’s responsiveness to the cries from the civil society space and well-meaning Nigerians. This commendable move demonstrates a commitment to transparency, accountability, and the overall well-being of the nation.

“In line with our earlier call, we appreciate the President’s prompt establishment of a panel to reform the social programs of the Ministry. We further advocate for the extension of the panel’s mandate to comprehensively reform the entire humanitarian ministry. Such measures are essential to ensure the effectiveness and integrity of humanitarian efforts aimed at poverty alleviation and addressing societal needs.

Interior minister kicks

In a related development, the Minister of Interior, Olubunmi Tunji-Ojo has denied involvement in the N438.1m consultancy contract between New Planet Project Limited and the Ministry of Humanitarian Affairs and Poverty Alleviation.

There were reports on Monday that a company owned by the minister of interior was allegedly paid a total amount of N438.1m by Edu as consultancy services.

“The company, New Planet Project Limited was one of the numerous consultants awarded contracts from N3bn given out by the suspended minister for the National Social Register contract, it stated.

Reacting, Tunji-Ojo while appearing on Channels TV Politics Today, on Monday night said that he founded the company 10 years ago, but resigned from directorship in 2019 when he contested the House of Representatives poll

The minister who described the report as shocking, said he was not involved in the day-to-day running of New Planet Project Limited.

He said “I have to say this, I saw it and I was shocked because the company in question was a company, where I was the director. About five years ago, I had resigned my directorship. Yes, I founded the company 10 years ago. In 2019 when I got to the House of Representatives, when I won the election precisely, I resigned. I resigned 4th of February 2019 with a Certified True Copy of Corporate Affairs Commission as far back as 2019 to prove this.’’

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Cyberstalking of GTCO, CEO Case: Court Constrained To Grant Bail Due To History of Repeated Offences by Bloggers

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2 days ago

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November 15, 2024

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Justice Ayokunle Faji of the Federal High Court in Lagos has ordered an accelerated trial of the four bloggers charged with defaming and cyberstalking the management of GTCO (Guaranty Trust Holding Company), including its Group CEO, Mr. Segun Agbaje.

The four accused—Precious Eze, Olawale Rotimi, Rowland Olonishuwa, and Seun Odunlami—are facing 10 amended charges for allegedly publishing false information about the company through various social media platforms.

 

At the resumed hearing of the matter on the 13th and 14th of November, Justice Faji also dismissed the bail applications, citing the serious nature of the alleged offences, which include charges that could lead to up to 14 years in prison.

 

The judge also held that one of the defendants – Precious Eze has shown the tendency to commit a similar offence again if let out as he is currently charged with a similar offence in another court and was only on bail when he went ahead to commit the alleged offence for which he is now standing trial.

Justice Faaji also highlighted the potentially destabilizing impact such actions could have on the banking sector, particularly since some of the charges involve cross-border activities on the Internet.

 

The defense counsel, Afolabi Adeniyi, had at the last hearing of the matter while moving an application for bail for the accused persons argued that the defendants should be granted bail on liberal terms, emphasizing that the charges were bailable and that the accused were willing to face trial.

 

Opposing the application, the prosecution Counsel, Chief Aribisala, SAN, urged the court to reject the bail request, highlighting the risk of the defendants absconding and stressing the need for an expedited trial.

 

In delivering his ruling, Justice Faji not only denied bail but also ordered an accelerated trial, underlining the gravity of the charges.

 

He also noted that the defendants’ actions challenged the authority of regulatory bodies, including the Central Bank of Nigeria (CBN), which had approved GTCO’s audited statements.

 

The matter has been adjourned until the 10th and 12th of December for continuation of the trial.

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All NCDMB Investments Under My Watch Very Successful, Progressing – Wabote Says, Dismisses Fraud, Arrest Report

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4 days ago

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November 14, 2024

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A former Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote, says all the 17 strategic investments undertaken by the board of the agency under his leadership are very successful and progressing except one, contrary to what he described as the deliberate disinformation being fed to the public by some persons he described as disgruntled.

 

Engr. Wabote, who spoke to THEWILL on Wednesday morning, dismissed reports of his purported arrest by the Economic and Financial Crimes Commission (EFCC), saying he honoured the anti-graft agency’s invitation on its investigation into the $35 million equity contribution of the NCDMB into the Energy Infrastructure Park project promoted by Atlantic International Refinery and Petrochemical Limited, whose CEO, Mr Akintoye Adeoye Akindele, is also behind the completed and ready to commission Duport Midstream refinery project in Edo State, where NCDMB is also invested. The Atlantic International Refinery project, which is located in Okpoama Community in Brass LGA of Bayelsa state, is currently stalled because of funding issues on Akindele’s part.

 

 

Speaking again on Wednesday afternoon, Wabote, who led the NCDMB between 2016 and 2023, dismissed claims of any misappropriation of funds during his term at the NCDMB.

 

 

THEWILL checks revealed that 16 of the 17 projects of the board under his leadership as Executive Secretary are running efficiently with some awaiting official commissioning except the Atlantic International refinery project which currently has financial issues. NCDMB owns 40% of the business. Despite successfully fabricating and completing the refinery in Dubai, Atlantic’s plan to ship it to Bayelsa and complete the project had been hampered by issues between Akindele and his partners in the Duport Midstream refinery, where he had hoped to raise cash from their daily turnover to fund his financial obligation in the project. Akindele and his partners in Dupont are currently in court over their dispute, THEWILL can report.

 

 

Though further checks showed that the site for the refinery project including the staff facility, is ready, Atlantic International has been unable to raise more funds to pay off about $700,000 balance owed by the Dubai-based fabricator to facilitate the shipment of the refinery to the site. THEWILL checks also showed that NCDMB and Atlantic International are in talks on the best way to move the project forward.

 

Wabote, who spoke glowingly of his achievements at the helm of affairs at the agency, declined to comment on our findings on the Atlantic International refinery project because it is now a subject of investigation.

 

 

The NCDMB under me got involved in 17 different investments ranging from gas projects to refineries. Out of this 17,16 are progressing and some have been completed. An example is the Watersmith Refinery which made a profit after tax of N23bn in 2023. 30% of this belongs to the NCDMB as a dividend. The refinery is also expanding from 5,000 to 10,000bpd. Hopefully, it will be commissioned by the first quarter of 2025”, he said.

 

Wabote insists that the NCDMB investments in the business ventures under his tenure are very lucrative and would yield great returns for the agency and the country. “We designed all the projects we invested in, in a way that allows us to cash out in 5 years because our role at the NCDMB is to catalyse these businesses”, he added.

 

Below are some of the partner projects of the NCDMB.

 

THE WILL

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FBI launches manhunt for Nigerian fraudsters who stole $60 million from top global carbon supplier

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4 days ago

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November 14, 2024

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The FBI has launched a manhunt for suspected Nigerian fraudsters who allegedly swindled Orion, an energy company, of millions of dollars, specifically $60 million, according to Securities and Exchange Commission (SEC) filings on August 10.

 

 

Although the SEC withheld the names of the fraudsters and their personal identifying information to avoid spooking them into hiding before their arrest, law enforcement agents told Peoples Gazette that the fraudsters were of Nigerian descent.

 

The suspects stole $60 million from Orion, a Luxembourg-based company that produces carbon black, a major material for making tyres, ink, batteries, plastics and more.

 

An SEC filing showed that the suspect targeted an Orion employee in the scheme and used him as bait to make fraudulent wire transfers from the company to other accounts under their control, a criminal tactic that many Nigerian fraudsters have adopted.

 

 

“Orion S.A. (the “Company”) determined that a company employee, who is not a named executive officer, was the target of a criminal scheme that resulted in multiple fraudulently induced outbound wire transfers to accounts controlled by unknown third parties,” SEC filing stated on August 10. “As a result of this incident, and if no further recoveries of transferred funds occur, the Company expects to record a one-time pre-tax charge of approximately $60 million for the unrecovered fraudulent wire transfers.”

 

In a similar scheme, Ramon Abbas, also known as Ray Hushpuppi to his millions of Instagram fans, and his partner Woodberry, whose real name is Olalekan Ponle, were jailed for coordinating multimillion-dollar scams involving business email compromise schemes by the U.S. government.

 

The two fraudsters are serving their respective sentences at the Fort Dix correctional facility for scamming individuals and companies in similar fraud schemes.

 

 

In October, The Gazette reported that the FBI contacted their Nigerian counterpart, EFCC, to track down two fugitives wanted for scamming the American healthcare system of $13 million.

 

Babatunde Shodiya and Yinka Jamiu targeted at least four Minnesota-based health service providers and tricked them into paying $13 million to a manipulated account rather than the intended beneficiaries.

 

 

* The Gazette

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