*Cash lodged
in Rep’s account through proxy
*EFCC places
restriction on NGF’s N8b, $80m
Detectives
have traced $3m of the controversial London-Paris Club loan refund to a
governor. The cash is believed to be part of the N19bn illegally deducted from
the refund by Nigeria Governors Forum (NGF), according to EFCC sources.
The cash has
been found in the account of a member of House of Reps who got it through a
proxy, the lawmaker’s brother.
The $3million
is being spent on building a 100-room hotel in Lagos, which the governor may
forfeit to the Federal Government. Also, the EFCC has placed a restriction on
N8billion and $80million in the naira and dollar accounts of the NGF.
According to
The Nation, the Presidency has released N1.266.44trillion to the 36 states in
the past one year. The cash includes N713.70billion special intervention funds
to states.
Following
protests by states against over deduction for external debt service between
1995 and 2002, President Muhammadu Buhari had approved the release of N522.74
billion (first tranche) to states as refund pending reconciliation of records.
Each state was
entitled to a cap of N14.5 billion being 25% of the amounts claimed.
Finance
Minister Mrs. Kemi Adeosun said the payment would enable states to offset
outstanding salaries and pension which had been “causing considerable
hardship”.
The governors
sought for the refund to states and local governments at a meeting with
President Buhari on May 24, last year.
A source, who
spoke in confidence with our correspondent, said: “The EFCC is still
investigating the N19billion allegedly diverted from the loan refund. The
commission has so far interrogated 15 companies, more than 10 individuals and
over eight bureaux de change used to divert the cash.
“The latest
bend of the investigation is the discovery of $3million linked with another
governor who benefited from the illegal deduction. The governor had engaged a
member of the House of Representatives(who was also a former commissioner) to
launder his share.
”The lawmaker
was said to have wired the $3million into his brother’s account before moving
it into his own.
“Upon
interrogation, one of the suspects admitted that the cash was for the ongoing
construction of a 100-room hotel for the governor.
“About
$500,000 of the $3million has been recovered by the EFCC. It is a scam in which
many people benefited and a sizeable number of proxies used to launder the
funds,” the source said.
The $3million
was transferred to the lawmaker for the governor from the $86million in the
NGF’s domiciliary account.
“We will do
our best to recover the already diverted part of the $3million. We may also
apply for the forfeiture of the hotel to the Federal Government,” the source
said, pleading not to be named so as not to jeopardise the investigation.
The $86million
is said to be for the payment of consultants who worked for the refund for the
35 states. But none of the consultants has been paid. Some of them have already
gone to court.
The source
added: “The EFCC has placed a Post No Debit restriction on the NGF’s account
with N8billion and domiciliary account with $80million.
“Out of the
$86million, $3million was wired to the governor through a proxy and another
$2million shared out.
“The EFCC is
ready to lift the restriction on the two accounts of the NGF on a condition
that the consultants and legal advisers who deserve to be paid will be given
what they are entitled to in line with the agreement signed with the NGF.
“We want the
NGF to involve the EFCC in the disbursement to avoid another diversion of the
cash. As it is now, consultants and legal advisers are complaining that they
are being shortchanged by the governors.”
The EFCC had
earlier traced about N500million, which was meant for a consultant, to the
account of a governor.
The cash has
been retrieved.
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