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SENATE REVEALS HOW NBET MISMANAGED N50B ESCROW FUNDS

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4 years ago

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The Senate Committee on Public Account has unravelled how the Nigeria Bulk Electricity Trading Plc (NBET) mismanaged N50 billion in the Escrow Account from Egbin , Omotosho and Olorunsogo power plants’ sales.

The discovery was made by the Senator Mathew Urhogbide – led committee while scrutinizing the 2015 report of the Office of the Auditor General of the Federation.

The Office if the Auditor General had in the report queried NBET on ‘Funds in form of escrows in the possession of EGBIN ESCROW agreement’

FCMB Escrow Account BPE/NBET 2435507018- N30,000,000.000, UBA Escrow Account BPE/NBET 1017699148 – N10,000,000,000.00, FBN Escrow Account BPE/NBET 2024063360 – N10,000,000,000.00″

The query further read “the following observations were made: there was no execution date, as the agreement only stated 2013’.

“This has been left out deliberately and arouses suspicion of malpractices. This is evidenced by a mail sent by the Legal Counsel to Bureau of Public Enterprises (BPE), asking for this information which was never replied.’

” As stated in the original draft agreement, the rate of interest generated on escrow funds shall be agreed between BPE, NBET and the escrow agents (banks) but subsequent manipulated agreement sighted states “The interest shall be CONCESSIONARY taking into account a reasonable compensation of the escrow agents in the CONSIDERATION for their OBLIGATION under the agreement”.

“The minutes of the meeting that decided the concessionary rate and the obligation of the escrow agents necessitating any form of consideration as well as the identities of the attendants and parties to the proposed and implemented 0.025 percent interest on the escrow fund should be produced.

“It is pertinent to note the financial mismanagement in the sum of over N5,000,000,000.00 (Five billion naira) which would have been realized on the investment of the funds in Nigeria Treasury Bills at interest rate of 10%.

“Olorunsogo power plant, OLORUNSOGO escrow agreement FCMB, IBANGB555CBL60910412544458, N10,110,000.00, Omotosho power plant OMOTOSHO escrow agreement Diamond Bank PLC IBAN 021000089, N10,110,000.00.

“Examined documents revealed a meagre interest rate on this escrow at 0.5%. I have requested to know the interest of the parties to this agreement and the reasons for negotiating such ridiculously low interest rate.

“There is a cloud of uncertainty surrounding the status of this account. Documents revealed that the account was to be re-denominated but confirmation of this was not presented during the audit exercise. The managing director/CEO was requested to produce the following documents and evidence:

“Detailed schedule of the 5 accounts showing all interests accrued in the period, detailed document declaring the status of the alleged re-denominated accounts and reasons for this action.

“Detailed financial and economic analysis defending all decisions regarding interest rates, all minutes of meetings and deliberations on decisions for fixing the interest rates and parties involved.”

But, NBET in its written response said, “it was never stated that the fund will be invested in the Treasury Bill. However, with the reduction in CRR, the rates on sitting balance for the Egbin was renegotiated to 2 percent from 0.02 percent per annum effective July 01, 2015.”

It was observed that the renegotiation was done after two years from 0.02 to 2 percent per annum.

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Former Governor Ifeanyi Okowa, Spends Second Night In EFCC’s Cell Over N1.3 Trillion Alleged Fraud

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3 hours ago

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November 7, 2024

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Immediate past governor of Delta State, Ifeanyi Okowa, who was arrested and detained by the Economic and Financial Crimes Commission (EFCC) has spent second night in the custody of the anti-graft commission.

 

Okowa is currently being investigated and detained over the alleged diversion of N1.3 trillion.

 

The N1.3 trillion reportedly represents the 13% derivation fund from the federation account between 2015 and 2023.

 

According to sources within the commission, Okowa was invited to the EFCC office in Port Harcourt, Rivers State, where he’s subsequently detained by officials.

 

One of the sources stated, “Okowa was at our Port Harcourt office following an invitation from investigators probing the allegations against him. He was then arrested. The commission is investigating him regarding the N1.3 trillion 13% derivation fund from the federation account between 2015 and 2023.

 

“He is also accused of failing to account for the funds, as well as another N40 billion he allegedly claimed was used to acquire shares in UTM Floating Liquefied Natural Gas. He reportedly bought shares worth N40 billion in one of the country’s major banks, representing an 8% equity stake, to support the offshore LNG project. The funds are alleged to have been misappropriated for other purposes.

Investigators are also examining the alleged diversion of funds by the former governor to acquire estates in Abuja and Asaba, Delta State. He is currently being held at the EFCC facility in Port Harcourt.

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Lagos Government Shuts Down Redeemed Church, Celestial Church, Clubs, Event Centres Over Noise Pollution

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16 hours ago

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November 6, 2024

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The Lagos State government has shut down a branch of Pastor E. A. Adeboye’s Redeemed Christian Church of God, a Celestial church, nightclubs and event centres over noise pollution.

The Commissioner for Environment and Water Resources, Tokunbo Wahab, who made this known on Wednesday, said the churches, clubs and event centres were sealed on Tuesday by the Lagos State Environmental Protection Agency (LASEPA) in the Ogudu, Gbagada, Iyana Ejigbo, Isolo, Ajao Estate, Oshodi, Ilasamaja, and Okota areas of the state.

The sealed establishments include: Redeemed Christian Church of God, Celestial Church of God, OMA Nightclub and Lounge, Lounge & Lodging, Bridge Spot Bar, Okiki Event Center and Hall, Emota Paradise Hotel (Phase 2), CF Hotel & Suites, House 27 Hotel & Suites, Echo Spring Hotel, and Smile T Continental Hotel.

The commissioner in a post on X said, “In a bid to address noise pollution and other environmental violations, the Lagos State Environmental Protection Agency (LASEPA) took action yesterday, closing down several establishments across different parts of the state.

“This enforcement drive, focusing on areas like Ogudu, Gbagada, Iyana Ejigbo, Isolo, Ajao Estate, Oshodi, Ilasamaja, and Okota, is part of LASEPA’s continuous efforts to uphold environmental standards and safeguard public health.

“The affected establishments include Honourable Lounge & Lodging, Redeemed Christian Church of God, Celestial Church of God, OMA Nightclub and Lounge, Bridge Spot Bar, Okiki Event Center and Hall, Emota Paradise Hotel (Phase 2), CF Hotel & Suites, House 27 Hotel & Suites, Echo Spring Hotel, and Smile T Continental Hotel.”

 

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Gen. Taoreed Lagbaja: Tinubu directs flags be flown at half-mast

Published

17 hours ago

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November 6, 2024

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President Bola Tinubu has directed that Nigeria’s national flags be flown at half mast for seven days across the country to mourn the passing of the late Chief of Army Staff, Lt. Gen. Taoreed Lagbaja.

The late Army chief, who was appointed by Tinubu on 19 June 2023, was said to have passed away on Tuesday night after a prolonged illness.

The Secretary to the Government of the Federation, George Akume, in a statement on Wednesday by his office Director of Information & Public Relations, Segun Imohiosen, said the president expressed regret over Lagbaja’s death.

Akume said, “President Bola Tinubu has expressed regret following the death of the Chief of Army Staff, Lieutenant General Taoreed Abiodun Lagbaja, after a brief illness at the age of 56.

“The President has directed that national flags be flown at half mast throughout the country for seven days in honour of the departed Army chief.

“He profoundly appreciates the services of the departed to the nation and wishes the family the fortitude to bear the great loss.”

Meanwhile, the Ministers of Defence, Mohammed Badaru and Bello Matawalle, have commiserated with the president, the military, and Lagbaja’s family over his death.

In a statement by the Ministry’s spokesperson, Henshaw Ogubike, the ministers described Lagbaja’s death as a great loss to his family, the Army, and the nation at large.

“The passing on to eternal glory shocked us at the Ministry of Defence, as our working relationship with him was commendable; he exhibited the spirit of camaraderie and cooperation with us in the discharge of our mandate.

“The late Chief of Army Staff contributed significantly to internal security operations across Nigeria and also exhibited a high level of professionalism.

“He will be greatly missed by the family, the military, and the nation, as he served the nation with commitment and dedication,” the statement added.

 

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