Business

NDDC IN A MULTIBILLION NAIRA CONTRACT SCAM. + ALL THE DOCUMENTS THAT EXPOSED THEM

Published

9 years ago

August 8, 2015

The Niger Delta Development Commission, NDDC, is reeking of a multibillion naira scam involving the board and top management of the agency.

Documents obtained by PREMIUM TIMES show that the board and management of the commission violated a directive by former President Goodluck Jonathan on probity and accountable handling of funds.

Mr. Jonathan had on December 16, 2013, while inaugurating the Bassey Ewa Henshaw-led board at the Aso Rock Villa, cautioned against the award of fresh contracts until all ongoing ones are completed.

“A body like NDDC should not just go into a voyage of contracts procurement but ongoing projects must be completed for people to benefit before new ones are awarded,” Mr. Jonathan had said.

“There are just too many ongoing projects and we believe that you don’t even have enough manpower to manage the ongoing projects.”

The president also hinted at financial impropriety by previous managements of the NDDC, saying, “If you aggregate the total amount of money the Federal Government has spent on this agency, (it) is enormous. And I don’t believe on ground that we have something to show.”

“The former board at a time had to be dissolved because instead of the board to work with the management to make sure that people from the area benefit from the NDDC, they were busy quarrelling over money.”

But this newspaper can authoritatively report that the commission not only jettisoned Mr. Jonathan’s directive, but it brazenly abused the nation’s procurement law.

Two weeks after it was inaugurated, the commission awarded a curious contract for what it called intelligence gathering, management and mitigation in all the senatorial districts in the nine states within the region.

To circumvent the Public Procurement Act 2007, the commission was said to have split the job into 30 lots and awarded to political gladiators and cronies of board members and top management staff.

A total of N2.7billion was doled out to 30 companies for the contracts, described as spurious by some insiders.

There are claims that some of the firms that benefited from the contracts are not registered with the Corporate Affairs Commission as prescribed by the Nigerian Companies and Allied Matters Act. But that could not be independently verified by PREMIUM TIMES Friday.

In each of the nine catchment states, a total N299.2million was spent on the contract with each contractor in a senatorial district getting N99.7million.

In the execution of the jobs, contractors served as both consultants and executors of the contract.

The jobs emanated from the office of the head of the security department through the Executive Director, Projects, Tuoyo Omatsuli, to the Executive Director, Finance and Administration, Henry Ogiri.

Approval for the payment of the contractors was conveyed via an internal memo, dated December 15, 2014.

Some of the companies that benefited included Osmoserve Global Limited, Merryl Finch Limited, Viva Guarantees Limited, Actinum Limited, Virgin Logistics Limited, Wright Integrated services Limited, among others.

Again on February 25, 2014, the Managing Director, Dan Abia, awarded a N882million contract, above his statutory approval limit of N2.5million, for the purchase of 40 luxury vehicles.

The contract was awarded to Automatt Global Services, located at 167 Aba Road, Port Harcourt, Rivers State, with a Local Purchase Order, LPO, no: 15301.

The order included 18 Toyota Hilux 4×4 pickup vans, two armoured LX570 Lexus jeeps, two regular LX570 Lexus SUVs, two armoured Toyota V8 Land Cruiser SUVs and 16 regular Toyota V8 Land Cruiser SUVs.

The Toyota Hilux van, which was bought by the commission at N156.5 million, with each costing N8.7million is sold for N6.5million at Carmudi, an online car shop.

Equally, a regular Toyota V8 Land Cruiser SUV, which was supplied to the commission at N27.9 million each, sells for N18.5million at Carmudi while a regular Lexus LX570 SUV which it got for N32.4million is sold for N22.5 million at Carmudi.

PREMIUM TIMES could not get the exact prices of the armoured vehicles but dealers, who spoke on the issue, insisted that the NDDC quotes were outrageous.

The vehicles where bought even when the commission has surplus in its garages and even gives away to top politicians across the country.

The commission also awarded contracts for the purchase of vehicles for the police commands in the catchment area at N12.5 billion.

Police commands in Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo and Delta states benefited from the security vehicle contract.

However, instead of routing the contract through the Bureau of Public Procurement and the Federal Executive Council as mandated by the procurement law, the commission was said to have split the job into 12 slots and awarded each at the cost of N985 million.

A source in the commission, who asked not to be named because he is not empowered to speak on the matter, confided in this newspaper how a contract for the acquisition of waste disposal trucks worth over N1.6 billion was awarded against the provisions of the procurement law.

“The contract was split among 85 companies and each got close to one hundred million,” said the source.

“You can see from the local purchase order for the purchase of the 40 luxury vehicles that was awarded to a Port Harcourt-based automobile firm that the NDDC does not obey relevant laws of the land.”

Attempts to speak with the commission’s managing director, Dan Abia, failed as he would neither answer calls nor respond to a text message sent to him.

However, when contacted on the telephone, the commission’s spokesperson, Ibitoye Abosede, said, “I am not aware of all these things. Is the NDDC the only place you are supposed to report? I am not aware of these things you are talking about. Thank you.”

Here are the documents below:

Business

ATMs empty as banks ration withdrawals

Published

1 day ago

November 14, 2024

Sahara Weekly

ATMs empty as banks ration withdrawals

The Automated Teller Machines of Deposit Money Banks have consistently remained empty in recent months as banks grapple with a sustained low cash supply.

It was also gathered on Wednesday that some DMBs, particularly in the Federal Capital Territory, have begun another round of cash rationing, restricting maximum over-the-counter withdrawals to a daily limit between N5,000 and N20,000.

While banks struggle to get cash, Point-of-Sales operators have been fulfilling the cash needs of customers.

Speaking at the Facts Behind the Rights Issue Presentation of FBN Holdings at the Nigerian Exchange Limited recently, the Executive Director/Chief Financial Officer of First Bank, Patrick Iyamabo, said that the matter was an industry-wide one and not peculiar to a specific bank.

He said, “It is an industry problem. Most customers after exhausting the options available in other banks, tend to settle at FirstBank to address their cash needs. The challenge differs by location but we know it is a challenge that the regulator is looking into to address. But as we speak of physical cash, we must appreciate that the direction of the industry is to go digital.

“A lot of our customers do most of their transactions digitally, and you heard the GMD speak to this, very often people don’t want to transact in cash. In terms of this new order, your bank, FirstBank is very well positioned so if you look at the statistics and I’m speaking to independent statistics, just pick up your NIBSS report, the bank with the most stable platform meaning availability to always transact digitally is FirstBank. So, all our customers have the benefits of having their cash in First Bank and having access to this cash anytime anywhere and as necessary. It’s a huge advantage.”

Speaking anonymously with The PUNCH, a banker at a tier-1 bank put the blame on the Central Bank of Nigeria.

As a result, many people have turned to Point-of-Sale operators, who have become the primary channel for cash withdrawals, albeit often at higher transaction fees.

Major commercial banks visited by one of our correspondents on Wednesday claimed not to have sufficient cash allocation hence the ration withdrawals to serve more customers.

The banks visited include Guaranty Trust Bank, Zenith Bank along Airport Road, and EcoBank at Jabi in Abuja.

A bank customer at EcoBank, who spoke without mentioning her name, said she was only allowed to withdraw N5,000 from N20,000 previously allowed.

“I was just informed that I can only withdraw N5,000 from my account. Can you imagine? The amount will can’t even take me home.”

Our correspondent received the same answer when he attempted to obtain cash.

At GTBank and Zenith Bank along the airport road, customers were permitted a maximum withdrawal of N20,000 from N100,000 previously disbursed as a daily limit.

A customer, Mr Faith, who visited the bank expressed shock about the new limit. He said the banks didn’t give any cogent reason for reducing the withdrawal limit.

“I just visited these banks, and I was informed that I can only withdraw N20,000 from N100,000, which was the previous limit. They didn’t even give any reason for reducing, now I have to start looking for cash elsewhere. This country is just so annoying,” He vented.

Cash scarcity became a recurring and widespread issue across Nigeria after the Central Bank of Nigeria introduced a controversial policy in January 2023, which significantly reduced the daily and weekly cash withdrawal limits to N100,000 daily, N500,000 weekly for individuals, and N5m for business entities.

This decision, aimed at encouraging a cashless economy, led to long queues at ATMs, increased difficulty in accessing physical cash, and a general disruption of daily financial transactions for millions of Nigerians.

The policy’s impact was felt particularly by those in rural areas and lower-income groups, who rely heavily on cash for their day-to-day needs, exacerbating economic hardships across the country.

Last week, data from the CBN showed that currency in circulation climbed 56.1 per cent year-on-year to reach N4.31tn, up from N2.76tn in September 2023, reflecting an increase of N1.55tn.

This is just as currency outside banks surged by 66.2 per cent in September 2024, reaching N4.02tn compared to N2.42tn in September 2023, a notable rise of N1.60tn in just one year.

This indicates that the volume of currency retained outside the banking sector outpaced the total released for circulation within the past year.

Compared to August 2024, currency in circulation rose by 4.0 per cent month-on-month, adding N166.2bn from the previous figure of N4.14tn.

The CIC is the amount of cash–in the form of paper notes or coins–within a country that is physically used to conduct transactions between consumers and businesses. It represents the money that has been issued by the country’s monetary authority, minus cash that has been removed from the system.

Earlier in September, the CBN announced plans to sanction banks that fail to dispense cash through their automated teller machines, as part of efforts to improve cash availability in circulation.

The CBN also revealed plans to release an additional N1.4tn into circulation over the next three months to ease cash flow within the banking system.

This strategy aims to ensure that ATMs and bank branches have sufficient cash, addressing ongoing challenges faced by customers over cash shortages.

Efforts to get a reaction from the apex bank on the new situation proved abortive as the acting Director, Corporate Communications, Sidi Ali Hakama, did not respond to enquiries sent to her phone number.

Business

NNPCL Makes New Leadership Appointments

Published

1 day ago

November 14, 2024

Sahara Weekly

NNPCL Makes New Leadership Appointments

The Board of Directors of Nigerian National Petroleum Company Limited (NNPCL) has just made fresh leadership appointments.

A communication by Olufemi Soneye, Chief Corporate Communications Officer of the nation’s oil company, announcing the development reads…

The Board of Directors of NNPC Limited is pleased to announce a series of strategic leadership appointments. These changes
reflect our continued dedication to enhancing corporate governance, improving operational efficiency, and ensuring long-term success in Nigeria’s energy sector.

The following key appointments have been made:
1. Mr. Adedapo A. Segun has been appointed as the Chief Financial Officer (CFO). Mr. Segun previously served as the Executive Vice President, Downstream, where he made significant contributions to the company’s downstream operations.
2. Mr. Isiyaku Abdullahi has been named Executive Vice President (EVP), Downstream.
3. Mr. Udobong Ntia has been appointed Executive Vice President (EVP), Upstream.

These appointments align with NNPC Limited’s commitment to building a unified and competent leadership team to drive operational excellence and support the organization’s strategic objectives.

The Board and Management also extend their deepest appreciation to Mr. Umar Ajiya and Mrs. Oritsemeyiwa A. Eyesan for their outstanding dedication and service to NNPC Limited.

NNPC Limited remains committed to achieving operational excellence, enhancing global competitiveness, and ensuring financial sustainability, while prioritizing the interests of the Nigerian public in the petroleum industry.

Olufemi Soneye
Chief Corporate Communications Officer
NNPC Limited
November 13, 2024S

Business

Oil Cabals crippled Govt Refineries, now working against Dangote Refinery – Pastor Adeboye

Published

2 days ago

November 13, 2024

Sahara Weekly

How Prophet Kingsley Predicted The Rumble In Pastor Adeboye Led RCCG

Oil Cabals crippled Govt Refineries, now working against Dangote Refinery – Pastor Adeboye

The General Overseer of the Redeemed Christian Church of God (RCCG), Pastor Enoch Adeboye, has urged Nigerians to pray for divine intervention in the face of efforts by unscrupulous oil marketers to thwart the operations of the Dangote Petroleum Refinery, following the previous sabotage of Nigeria’s four state-owned refineries.

The respected clergyman made the call for nationwide prayers during the November 2024 Abuja Special Holy Ghost Service themed ‘Total Restoration’, which held in the capital city. While Adeboye did not explicitly name the Dangote Petroleum Refinery, his remarks echoed the ongoing attempts by oil marketers to prevent the refinery from functioning as it was designed to.

The Dangote Refinery based in Ibeju-Lekki, Lagos is the only facility currently refining petrol in Nigeria, and Adeboye’s comments reflected the dispute between the refinery and oil marketers, who seek to continue importing fuel for personal gain.

Pastor Adeboye reminded the congregation that it was God who raised Aliko Dangote to establish a refinery after years of failed attempts to revive Nigeria’s four public refineries, which had consumed billions of Naira with little result. He questioned the persistence of fuel imports despite Nigeria’s status as a major crude oil producer.

“Are we under a curse?” he asked. “We have four refineries, we poured all kinds of money into them, none of them is working. But God raised someone to build a refinery that works. He is not my relative, he is not from my village. He is not even a Christian, but he is a Nigerian who says, ‘Why should my people suffer when I have the means to build a refinery that can work?’ Now he is refining petrol, and some people want to stop him from selling it, so they can keep importing.”

Adeboye also pointed out the damage caused by the fuel subsidy, describing it as a significant drain on Nigeria’s resources, contributing to the country’s mounting debts and corruption. He stressed that when President Bola Ahmed Tinubu announced the end of the subsidy in 2023, Nigerians largely welcomed the decision, but oil marketers, who benefitted from the subsidy regime, were furious.

These marketers, the renowned pastor claimed, have formed alliances with some International Oil Companies (IOCs) and other powerful interests to obstruct the Dangote Petroleum Refinery. This includes restricting access to crude oil, forcing Dangote to import crude from countries like the United States, among others.

He called for prayer for the total restoration of the country, noting that the Nigerian people are suffering the consequences, as the prices of essential goods have soared, pushing many items beyond the reach of ordinary citizens. “The masses are the ones suffering because these marketers, who are bent on keeping imports alive, already have more money than they can ever spend,” he said.

Despite the Dangote Petroleum Refinery’s capacity to meet Nigeria’s entire demand for petroleum products – and even to export surplus fuel – oil marketers continue to pressurise the government to allow ongoing petrol imports. This has placed additional strain on the Naira, which has continued to depreciate.

Recently, the Crude Oil Refineries Owners Association of Nigeria (CORAN) urged the government to protect local refineries from unfair competition posed by importers and international petroleum traders, in line with provisions in the Petroleum Industry Act (PIA).