Save Ekiti Coalition Asks EFCC, ICPC to Probe Fayemi’s Administation for Alleged N20b Fraud

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A group known as Save Ekiti Coalition has sent a petition to the Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices and Other Related Offences Commission (ICPC) against Dr. Kayode Fayemi, the outgoing governor of Ekiti State alleging fraud involving over N20 billion.

The petition signed by SEC’s Secretary, Oke Ayodele was titled: “Complaint of traudulent practices against Ekiti State Governor, Dr. Kayode Fayemi, and others: call for investigation and prosecution.” The petition which was dated September 26, 2014 and which has been served on EFCC and ICPC reads in part:

“Contract for the construction of a New Civic Centre was awarded to TIANJIN-YUYANG Construction Engineering Limited on August 30, 2012 at the cost of N2, 573,584,395.75, while consultancy on the construction was awarded to CASA Nigeria Limited on June 11, 2012 at the cost of N137, 611,325.07.

“Curiously, as at the end of 2012, a sum of N643,396,098.94 (representing 25 per cent of total contract sum) had been paid to TIANJIN-YUYANG Construction Engineering Limited, while the consultant, CASA Nigeria Limited was paid N89,801,901.06 (representing 80 per cent of total contract sum).

“In 2013, a sum of N350, 116,245.17 was paid to TIANJIN-YUYANG Construction Engineering Limited, making a total sum of N993, 512,344.11 (representing 45 per cent of total contract sum).

“While the project contractor was paid 25 per cent of the contract sum in 2012, why was the consultant paid 80 per cent of the contract sum?

“Information available to us indicates that the consultant was hurriedly paid 80 per cent of the contract sum so as to enable some officials of the government get N50million of the contract sum.

“Also, payment to the contractor was changed to N350,116,245.17 in the 2014 Capital Projects Report, as against the sum of N643, 396,098.94 presented in the 2013 Capital Projects Report.

“Contract for the construction of earthwork for the New Governor’s Office was awarded to PONTI-ITALWARE Nigeria Limited on March 3, 2012 at the sum of N383, 900,911.06, with a sum of N115,170,273.32 paid to the contractor.

“The New Governor’s Office was proposed to be constructed from the N25bn Bond obtained by the state government, with N3, 474,700.000 earmarked for the project.

“However, with N115, 170,273.32 paid to PONTI-ITALWARE Nigeria Limited  for earthwork, as at today, the site has been abandoned, with no significant work done.

“By our own assessment, what was spent on the site cannot be more than N5million.

“Also, in the 2014 Capital Projects Report, the N115,170,273.32 paid for the earthwork was deleted, raising poser as to why the payment was missing from the 2014 updated account.

“In 2012, contracts worth N4, 246,094,751.14 were awarded through the Bureau of Special Projects (under the Governor’s Office), headed by Mr. Kelekun. The contracts were for the renovation of schools, supply of school furniture and construction of classrooms. Funds for these projects were taken from SUBEB and local governments accounts.

“Of these contracts, N3, 672,078,820.14 were for the renovation of schools alone. Atlantic Offshore & Properties got N1, 152,562,555.14, Strabic Nigeria Limited got N1, 107,744.408.21, Bam Darley Nigeria Limited got N924, 977,310.95 while Fatub Nigeria Limited  got N486, 794,545.84.

“Immediately the renovation contracts were awarded, Atlantic Offshore & Properties was paid N750 million (70 per cent of contract sum), Strabic Nigeria Limited was paid N600 million (65% of contract sum), Bam Darley Nigeria Limited  was paid N600 million (70 per cent of contract sum) while Fatub Nigeria. Engineering Ltd was paid N150 million (60 per cent of contract sum).

“A total of N2.1bn was paid from SUBEB and LG accounts to these contractors even before the commencement of work, and over 40 per cent of the payment was diverted into private pockets.

“In the 2014 Capital Projects Report, payments to the contractors were presented as:  (a) Atlantic Offshore & Properties-N1, 022,130,415.64 (b) Strabic Nigeria Limited N957, 237,829.62 (c) Bam Darley Nigeria Limited N742, 730,990.25 (d) Fatub Engineering Nig. Ltd-N431, 327,270.41

“As at the time N1, 022,130,415.64 was paid to Atlantic Offshore & Properties, only 60% work had been done, meaning that Atlantic Offshore & Properties was only entitled to N691, 537,551. Bam Darley Nigeria Limited  that was paid N742, 730,990.25 had done 60 per cent work too and ought to have been paid N554, 986,386.57.

“Contracts for the rehabilitation of roads were awarded at highly inflated cost, with some of the roads costing as high N50 million per kilometre when the immediate past government awarded construction of roads at less than N45m per kilometre. The rehabilitation only involved cutting of failed portion, filling with laterite and stone base and asphalt overlay. No subsoil drainages, new pipe culverts and box culverts were constructed.

“For instance, 10.7km Ado-Afao was awarded at N538, 638,704.26, 17km Ilawe-Igbara Odo-Ibuji road, which was awarded at a little above N200m by the immediate past government was re-awarded to at N894,698,043.75, 11.5km Ado-Ilawe road was awarded at N482,849,098.20, 3.6km Ijigbo-Baptist College (Ilawe road) was awarded at N788,038,599.60 while Fajuyi-University Teaching Hospital Road that is less than three kilometre was awarded at N447,544,063.50

“Rehabilitation of 13km Old Garrage-Ado-Ikere road was awarded to Plycon Nig Ltd at N2, 369,833,077.15.

“Construction of 0.8km Old Garrage-Ojumose (Ado-Ekiti) road was awarded to Heartland Nig. Ltd at N866, 872,873.13.

“Using the state Public Works Corporation (PWC), rehabilitation 5km township roads were embarked upon in each of the 16 local government. Contracts for the rehabilitation of these roads were awarded without any input from the respective local government while fund for the project was deducted from the local councils allocation.

“For instance, rehabilitation of 5km roads in Moba LG was awarded for N368, 950,821.09, Ido/Osi LG for N329, 950,821.50 and Ilejemeje LG for N347, 914,157.68. Apart from the PWC, cronies of Governor Kayode Fayemi were also given the contract.

Most of the road projects have been abandoned. (See Annexure 5).

“In 2010, the World Bank in collaboration with the federal government released $7.5 million (about N1.2 billion) for FADAMA III Project. The state government was expected to provide counterpart fund of N100 million. FADAMA III was for livestock farmers.

“However, the N100 million counterpart fund was not provided by the state government until 2013.

“Instead of using this fund for the purpose for which the World Bank and federal government released it, the state government set up a scheme called Youths Commercial Agriculture Development Programme (YCAD) and used the FADAMA III grant from the World Bank and FG to fund it.

“6-10 YCAD farmers were purportedly given N6 million each while FADAMA farmers, who registered FUGs of 10 farmers collectively applied for N690,000 per farmer were left unfunded.

“There were just 142 YCAD members, but the government claimed they were 15,000.

“The government also claimed that it bought NINE Tractors at N98m and constructed abattoir for N18m. However, the tractors claimed to have been bought with N98m were the ones supplied to Ekiti State by the federal government during the immediate past administration of Mr. Segun Oni.

“Also, the N100m counterpart fund paid by the State government into FADAMA’s ECO Bank, Ado-Ekiti account was later returned to the government coffers.

“For FADAMA IV, a sum of $10.5m (about N1.7bn) was released in August, this year by the World Bank in collaboration with the FG for cassava plantation. Moves are now being made to siphon this fund.”

Source: Thisday

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