Information at our disposal confirms
that the Economic and Financial Crimes Commission, EFCC
consistently ignored volumes of petition calling for the arrest and
prosecution of corrupt members of the ruling All Progressives Congress,
APC, despite overwhelming evidence at its disposal.
This came against the backdrop of
statements credited to the EFCC boss, Ibrahim Magu, trying to defend
allegations of political witch hunt against the opposition Peoples
Democratic Party, PDP, and failing to arrest and prosecute corrupt
members of the ruling APC.
Below is the petition containing verifiable allegations against Rotmi Amaechi sent to the EFCC on 29 July 2015.
But EFCC could not do anything because findings
have revealed that Chibuike Amaechi, the immediate past governor of
Rivers state and current minister of transport, allegedly acquired and
diverted not less than N40 billion of the state funds into the
presidential campaign of the All Progressives Congress (APC).
Magu while responding to allegations
that the ongoing war against corruption appears targeted at members of
the opposition, maintained that the commission has not received any
petition against alleged corrupt APC members.
“Such accusations have come up a lot,
but we work with petitions before us. In fact, I am eager and waiting
for something from the other side, but nothing has come so far,” Magu
had said.
The Opposition Peoples Democratic Party,
PDP, had earlier noted that while former PDP governors and ministers
are being arrested over orchestrated petitions, their APC counterparts,
with more damaging petitions are being shielded by the presidency and
given “juicy” ministerial positions.
“Instead of the anti-graft agency, EFCC,
to act on the petitions against Messrs. Fashola and Amaechi, they were
being “rewarded” with ministerial appointments,” PDP had stated.
Behold the petition against the APC Presidential sponsor, Rotimi Amaechi:
29 July 2015
The Executive Chairman
Economic and Financial Crimes
Commission (EFCC)
No. 5, Fomella Street,
Off Adetokunbo Ademola Crescent,
Wuse II, Abuja, Nigeria
Through:
The Head of Operations
Economic and Financial Crimes
Commission (EFCC)
6A Olumeni Street
Old GRA, Port Harcourt,
Rivers State Nigeria
Dear Sir,
CORRUPTION, CRIMINAL BREACH OF TRUST,
UNLAWFUL ENRICHMENT AND CONVERSION OF OVER 70 BILLION NAIRA STATE
RESOURCES BY FORMER GOVERNOR ROTIMI AMAECHI AND OTHER STATE
FUNCTIONARIES
We are a Non-Governmental
Organization operating in Rivers State. Our basic objective is to fight
corruption and promote good governance at the state level.
We wish to appreciate you for
your determination to fight corruption throughout the country and bring
the perpetrators to justice. We particularly commend you for your recent
and most assuring statement in the United States that nobody, no matter
how highly placed, including your party functionaries, will be spared
in your fight against corruption and mismanagement of public funds.
As an organization, we have
decided to join you in this very important crusade to expose and rid our
nation of the greedy, corrupt and avaricious political class who have
caused and will continue to cause socio-economic hard to our nation if
left unchecked.
It is against this premise that
we have been encouraged to present this petition to intimate to you, the
reckless looting of the treasury of Rivers State by one of your close
political confidant and former Governor of Rivers State, Rt. Honourable
Rotimi Chibuike Amaechi.
Mr. President, the facts as
presented are not cooked or fabricated; they are as true and correct as
facts can be and supported by hard evidence. Besides, we have also sworn
to an affidavit of verification before the Rivers State High Court.
Therefore, we implore you to
carefully read this petition and the supporting documents to enable you
understand that our action is not a political witch-hunt but rather
actuated by a patriotic zeal to further good governance and
accountability by former and present public office holders.
Thus, it will be victories for
impunity and corruption should you fail to direct the Economic and
Financial Crimes Commission (EFCC) to investigate our petition and bring
the former Governor and his cohorts to justice.
We say so out of fear that the
EFCC, which we have already dispatched our petition to, dated July 28
2015, may deliberately refuse or be constrained by the system to act
positively on it.
NOW HERE IS OUR CASE AGAINST ROTIMI CHIBUIKE AMAECHI
Following the end of the tenure
of the former Governor of Rivers State, Rt. Hon. Rotimi Chibuike
Amaechi, and in line with our mandate, we decided to conduct some
informal inquiries into how some of the assets and finances of the State
were managed by the former Governor.
Preliminary findings from our team
of investigators revealed glaring cases of corruption, criminal breach
of trust, unlawful enrichment and wanton conversion of public funds
amounting to over 70 billion naira by Amaechi and some of his
functionaries between October 2007 and 28 May 2015, when he held sway as
the Governor.
While our investigations revealed
several cases of corruption and abuse of office, our petition is
predicated on our findings in respect of three major transactions
initiated, sanctioned, and directed under the watchful eyes of the
former Governor:
FRAUDULENT SALE OF STATE POWER PROJECTS AND CONVERSION OF PROCEEDS AMOUNTING TO N60, 480,000,000.00
Background
A1. The Rivers State Government
spent billions of naira to build four gas turbines in Omoku, Trans
Amadi, Eleme and Afam to generate electricity and boost socio-economic
activities in the State. The turbines were managed by First Independent
Power Limited – a State-owned company in which the State Ministry of
Finance Incorporated held 299,999,996 out of 300,000,000 fully paid up
ordinary shares on behalf of the State Government.
A2. However, for some unexplained
reasons these assets were hurriedly and irrationally sold on the
impetuous directive and approval of Governor Rotimi Amaechi to NG
Power-HPS Limited, for $302, 400,000.00 (that is, Sixty billion naira)
only, at the official exchange rate of 1 dollar to 200 naira.
A3. There is evidence that NG
Power-HPS Limited paid the full value of the sale to the Rivers State
Government through Power Asset Sale Proceeds Account with Access Bank
Plc.
A4. However, the proceeds of the
sale simply disappeared from the State Government’s account. The
Accountant-General of the State and other very senior management staff,
including the Directors and Permanent Secretaries of the State
ministries of Power and Finance all claimed total ignorance about
whereabouts and or justifiable utilization of the money realized from
the bogus sale of the State’s priceless power assets under very spurious
circumstances actuated by fraudulent intents.
A5. What was evidently criminal in
intent and purpose is that between 1st and 8th December 2014 a total of $
USD 105 million that is, 21 billion naira (N21, 000,000,000.00) was
curiously and hurriedly transferred from the Power Asset Sale Proceeds
Accounts with Access Bank Plc to the accounts of three private
companies, all with the same business addresses, as follows:
S/N Transaction Date Beneficiary Company & Address Amount transferred
1. 1/12/14 Advante Consulting &Mgt Co 25 Trans Amadi Rd, Port Harcourt $USD 10,000,000.00
2. 1/12/14 Result Import Export Co. 25 Trans Amadi Road PHC $USD 15,000,000.00
3. 1/12/14 Capital Index ltd 25 Trans Amadi Rd PHC $ USD 20,000,000.00
4 1/12/14 Capital Index ltd 25 Trans Amadi Rd PHC $ USD 25,000,000.00
5. 8/12/14 Capital Index ltd 25 Trans Amadi Rd PHC $ USD 15,000,000.00
6. 8/12/14 Capital Index ltd 25 Trans Amadi Rd PHC $ USD 10,000,000.00
7. 8/12/14 Capital Index ltd 25 Trans Amadi Rd PHC $ USD 10,000,000.00
A6. There is thus, a glaring case
of stealing, unlawful enrichment and laundering of public funds in
relation to the Power Asset Sale transaction, which gives the EFCC a
reasonable cause to investigate, prosecute and recover such funds for
the State.
UNLAWFUL PAYMENT TO AND FRAUDULENT CONVERSION OF N4, 633,440,000.00 BY CLINORIV SPECIALIST HOSPITALS AND LEISURE LIMITED
Background
B1. The Rivers State Government
purportedly entered into a public private partnership arrangement with
Clinoriv Specialist Hospitals and Leisure Limited to build a
multi-storey Karibi Whyte Specialist Hospital in Port Harcourt.
B2. Under the terms of agreement,
Rivers State was allocated an equity contribution of N4,633,440,000.00
(Four billion,, six hundred and thirty-three million, four hundred and
forty thousand naira) only or the equivalent of $39,200,000.00
(Thirty-nine million, two hundred thousand Dollar) only at the then rate
of N188.2 per dollar).
B3. Governor Amaechi, in apparent
fulfillment of terms of the partnership, subsequently approved and
authorized the payment of the aforesaid sum to Clinoriv Specialist
Hospitals and Leisure Limited on the 12th of April 2008 through their
bankers, First Bank Plc.
B4. However, sadly, Clinoriv
Specialist Hospitals and Leisure Limited completely reneged and
defaulted to make its own equity contributions to the project, a
situation that completely voided the public private partnership
initiative between it and the Rivers State Government.
B5. Curiously, instead of making
efforts to recover the money already paid to Clinoriv Specialist
Hospitals and Leisure Limited, the former Governor turned 360 degrees to
award a fresh contract to Clinotech Limited to construct this same
hospital he had earlier contracted with Clinoriv to provide under a PPP
arrangement. Funny enough, Clinotech and Clinoriv are one and the same
entity as the latter barely transmuted to the former.
B6. Even at that, not even a single
stone has been laid at the proposed site of the hospital up till today
while Clinoriv has disappeared with the equivalent of Eight billion
(N8,000,000,000.00) only, at the official exchange rate of the naira to
the dollar.
B7. Yet, Governor Rotimi Amaechi
out of criminal negligence or sheer connivance had maintained a studied
silence for seven years without making any efforts to retrieve the money
he unlawfully paid to Clinoriv for the failed Karibi Whyte Specialist
Hospital project.
B8. Here also, our findings
revealed a glaring case of abuse of office, unlawful enrichment and
criminal conspiracy to convert public funds to private use requiring the
intervention of the EFCC.
UNLAWFUL ENRICHMENT OF MESSRS
COLLECT (NIG) LIMITED WITH PUBLIC FUNDS TO THE TUNE OF ONE BILLION, FIVE
HUNDRED AND FIVE MILLION, EIGHT HUNDRED AND NINETY-FIVE THOUSAND, SIX
HUNDRED AND NINETY-EIGHT NAIRA, SEVENTY-TWO KOBO
Background
C1. The Rivers State Internal
Revenue Services (RSIRS) was generating an average sum of N7,
500,000,000.00 as Internally Generated Revenue (IGR) for the Rivers
state Government every month, wherein it retains 5% to meet its
administrative/overhead cost.
C2. On or about the 22nd of
December 2014, the former Governor of the State, Rt. Honourable Rotimi
Amaechi, contracted Messrs Collect Solutions (Nig) Ltd. as a Revenue
Consultant to support the RSIRS.
C3. By a curious and spurious term
of engagement, the Rivers State Government under Governor Amaechi
fraudulently conceded to paying a whopping 12% fee to Messrs Collect
Solutions (Nig) Limited, for any sum of IGR collected in excess of Two
billion, five hundred million naira (N2,500,000,000.00) only, for the
State Government.
C4. By a letter dated March 30
2015, the RSIRS protested against the outrageous arrangement/fees
donated to the consultant as completely unjustified. The RSIRS
questioned the rationale behind reducing the monthly collectable revenue
from N7, 500,000,000.000 on the average to N2, 500, 000, 00.00 and the
illegal exclusion of the RSIRS from performing its lawful duties under
the contract agreement.
C5. In spite of the protest, former
Governor Amaechi approved and authorized the payment of a total sum of
one billion, five hundred and five million, eight hundred and
ninety-five thousand, six hundred and ninety-eight naira, seventy-two
kobo (N1, 505,895,698.72) in two installments to Messrs Collect
Solutions Nig. Ltd between February and March 2015.
C6. It should be noted that Collect
Solutions Nig limited was not qualified to be contracted as a revenue
consultant in the first place at the time it was so engaged and in
questionable circumstances.
C7. Furthermore, it was obvious
that Collect Solutions Nig limited was used as a conduit pipe to defraud
the State Government under the guise of consultancy. The entire
transaction was just a scam.
PRESUMPTIONS AND A FEW ISSUES FOR DETERMINATION/QUESTIONS FORMER GOVERNOR ROTIMI AMAECHI SHOULD ANSWER.
FRAUDULENT SALE OF STATE POWER PROJECTS AND CONVERSION OF PROCEEDS AMOUNTING TO N60,480,000,000.00
PRESUMPTIONS
That SALE is about the permanent
divestment/complete loss of government interest in a public
asset/property, and so it is completely different from Public-Private
Partnership.
That under this particular
transaction, about 70% out of the 100% ownership interest in the State
power assets were sold and money paid by the buyer, before the second
phase called partnership could commence (a contract of sales would have
been made under the procurement law before another contract, of
partnership can be made under the PPP law).
That the sale of the State owned
power plants is only subject to Rivers State public procurement law No. 4
of 2008 and not to the State Public Private Partnership Law, this is
because the word SALE was expressly use in the under section 52(6) as a
means of disposal of public assets, but the word SALE was never
mentioned anywhere in the PPP law.
That this transaction of sale is
not the same in meaning as public private partnership, hence it cannot
be subject to the Rivers State Public-Private Partnership in
infrastructural development law of 2009. As the power assets were
created through public expenditure/annual budgets as stated in section
52(5)(a) of the State procurement law.
A few issues for determination on the Sale of the Power Assets:
Did the Government of former
Governor Rotimi Amaechi comply with section 53(1) of the Rivers State
public procurement law which states that ‘Before slating any public
property for disposal, the accounting officer (whether acting on his own
authority or at the direction of any superior or other authority) in
charge of any public property set for disposal shall authorize the
preparation of a valuation report for such property by an independent
evaluator or such professional with the appropriate competence to carry
out the valuation’? If the answer is yes, then the valuation report by
an independent evaluation and the procurement proceeding on how the
evaluation was hired as a consultant and all other documents as proof of
evidence should be produced.
Did the transaction also comply
with section 53(3) of the Rivers State public procurement law which
states that ‘the disposal of assets shall be timed to take place when
the most advantageous returns can be obtained for the assets in order to
maximize revenue accruing to the government’? If the answer is yes,
then the reports and other documents as proof of evidence should be
produced.
Did the transaction also comply
with section 53(4) of the Rivers State public procurement law which
states that ‘all procuring entities shall distribute responsibilities
for the disposal of public property between the procurement unit and the
Tenders Board’? If the answer is yes, then the reports and other
documents as proof of evidence should be produced.
Did the transaction comply with
section 52(3) of the Rivers State public procurement law which states
that ‘the open competitive bidding shall be the primary source of
receiving offers for the purchase of any public property offered for
sale’?
If the then Governor claims to have
done these transactions under section 21(4) of the Rivers State public
procurement law, then did the Bureau supervise these sales in compliance
with section 21(4)? If yes, then the procurement Bureau must show
evidence of their supervision through a report and job completion
certificate, as no supervision of a project or service can be concluded
and project paid for without a detailed project supervision report and a
job completion certificate.
A few issues for determination on the
award of contract and the disbursement of funds from the Sale of the
Power Assets account to Advante, Rezult and Capital companies:
Where these transactions provided for in the Rivers State 2014 appropriation law?
Why would the Rivers State
Government go into a contract in foreign currency with Advante
Consulting & Mgt. Co., Rezult Import Export Co. and Capital Index
Ltd. And paid in foreign currency (US Dollars ($)) when their business
address as clearly stated on the Access Bank Plc. Fund Transfer Order
Forms No. 02685926, 02685924, 02685923, 02685925, amongst others here
attached, is 25 Trans Amadi Road, Port Harcourt, in Rivers State,
Nigeria?
How come the three companies above,
who were paid from the sale of power assets share the same address, 25
Aba Road, Port Harcourt?
Did the Government of former
Governor Rotimi Amaechi comply with section 16 and other relevant
sections of the Rivers State public procurement law for procuring and
engaging the services of these consultants/contractors and the Bureau’s
procurement methods and threshold of application (RSBoPP – Regulation
No.1 of 2010) for goods and services?
If the then Governor claims to have
done these transactions under section 21(4) of the Rivers State public
procurement law, then did the Bureau supervise the services/jobs these
consultant or contractors did? If yes, then the Bureau must show
evidence of their supervision report and service/job completion
certificate, as no supervision of a project or service can be concluded
and project paid for without a detail project supervision report and a
job completion certificate.
UNLAWFUL PAYMENT TO AND
FRAUDULENT CONVERSION OF N4,633,440,000.00 BY CLINORIV SPECIALIST
HOSPITALS AND LEISURE LIMITED.
PRESUMPTIONS
That Clinotech and the then Rivers
State Government came together under a Public-Private Partnership (PPP)
arrangement with equity contributions, to form CLINORIV Specialist
Hospitals And Leisure Ltd.
That the $39,200,000.00
(N4,633,440,000.00) paid to CLINORIV Specialist Hospitals and Leisure
Ltd. by the Rivers State Government, through First Bank of Nigeria, via a
transfer order dated 12th April, 2008.
That by the equity contribution
agreement, the then Rivers State Government must have appointed their
own representatives to serve in the management and administration of the
$39,200,000.00 (N4,633,440,000.00) paid to the CLINORIV Dollar and
Naira accounts respectively, for the execution of the project. If this
was not done, then why?
That the then Rivers State
Government full payment of its equity contribution without Clinotech’s
counterpart equity contribution is very worrisome, and that until date,
the project (Karibi Whyte Specialist Hospital) for which the money was
paid for is yet to commence.
That as at 12th April, 2008 when
the money was paid into the CLINORIV account, neither the Rivers State
Public Procurement law which was signed into law on 3rd of May 2008, nor
Rivers State Public-Private Partnership in Infrastructure Development
law which was signed into law on the 20th of October 2009 were in
existence, however, this transaction is still subject to other laws,
regulations and standards in Nigeria.
A few issues for determination on the payment:
Was this transaction provided for in the Rivers State appropriation law of 2008?
Why was the money not used for
the building of the Karibi Whyte Specialist Hospital (the particular and
very reason for which it was paid/release by the then Rivers State
Government)?
Who were the managers of the $39,200,000.00 (N4,633,440,000.00) in the CLINORIV and what was the money used for?
How were monies from
the CLINORIV Dollar account No. 2902900729390 and Naira account No.
2902030007351 distributed? Who were the beneficiaries and for what
purpose?
What legal steps did the then
Government take to ensure that the Hospital was built or the money
recovered, if there was no conspiracy to defraud the State?
UNLAWFUL ENRICHMENT OF
MESSRS COLLECT (NIG) LIMITED WITH PUBLIC FUNDS TO THE TUNE OF ONE
BILLION, FIVE HUNDRED AND FIVE THOUSAND, SIX HUNDRED AND NINETY-FIVE
THOUSAND, SIX HUNDRED AND NINETY-EIGHT NAIRA, SEVENTY-TWO KOBO
PRESUMPTIONS
That the Rivers State Public
Procurement Law was in full force and is still in force as at the time
this contract was awarded.
That this consultancy services
contract/agreement is 100% subject to the State Public Procurement Law
only and cannot under any guise, be said to come under the Rivers State
PPP law.
That this transaction must have been approved by a tender board.
The company/consultant Collect
Solutions (Nig.) Ltd. Had never done any business elsewhere according to
the letter from the Executive Chairman of the Rivers State Internal
Revenue Services (RIRS) dated March 30, 2015 and addressed to the then
commissioner for Finance.
On page 4 of the Memorandum of
Agreement between the Rivers State Government and the revenue consultant
(Collect Solutions) it was observed that 25 Trans Amadi Road, Port
Harcourt, Rivers State, was the official address of the consultant for
receiving all notices and other communications from the Rivers State
Government, the same address quoted and used by the three companies
(Avante, Result and Capital) who received millions of Dollar from the
sold gas turbine/power asset account.
The Rivers state Board of Internal
Revenue Service Law N0 12 of 2012 granted the Board administrative and
financial autonomy. in view of this autonomy, can the Commissioner of
Finance under any guise go into contract with Collect Solutions Limited
and also cede the functions of the Board to Collect Solutions Limited
without the knowledge and consent of a Board that is administratively
and financially autonomous by Law? is it not an abuse of powers as the
Procurement was done behind the Board in 2014 and was only imposed by
the Governor, through the Commissioner of Finance via a Letter in 2014
in the face of a protest by the Revenue Board?
A few issues for determination on the payment.
Was this transaction provided for
in either the Ministry of Finance or the State Board of Internal Revenue
Service 2015 appropriation law?
Why should the former Governor
reduce the threshold of an average of N7.5 billion that was been
generated by the State Revenue Board, to a mere N2.5 billion as target
for the consultant who was supposed to come and add value by increasing
the revenue of the State from N7.5 billion before earning any commission
from the excess of the N7.5 billion, instead of earning commission from
what the board was already generating?
Which award such a multi-million
Naira revenue generation contract to a company that has neither
experience nor antecedent in revenue generation?
Which tenders board approved this
contract, what were the evaluation criteria and which accounting officer
was in charge of this transaction?
Did the Government of former
Governor Rotimi Amaechi comply with section 16 and other relevant
sections of the Rivers State public procurement law for procuring and
engaging the services of this consultant and the Bureau’s procurement
methods and threshold of application (RSBoPP – Regulation No.1 of 2010)
for consultancy services?
If the then Governor claims to have
done these transactions under section 21(4) of the Rivers State public
procurement law, then did the Bureau supervise the services/jobs this
consultant? If yes, then the Bureau must show evidence of their
supervision report and service/job completion certificate, as no
supervision of a project or service can be concluded and project paid
for without a detail project supervision report and a job completion
certificate.
How come the three companies who
benefitted from the proceeds of the sale of the State power asset
account in foreign currency (between 1st of December, 2014) share and
maintain the same business address (25 Trans Amadi Road, Port Harcourt)
with Collect Solutions (the revenue consultant whose contract/Memorandum
of Agreement was made on the 22nd of December, 2014)? Will it not be
proper to remove the veil/unveil the true owners/Directors of Avante
Consulting & Mgt. Ltd., Rezult Import Export Co., Capital Index Ltd.
and Collect Solutions (Nig.) Ltd?
CONCLUSION
Clearly, the Rivers State Government
incurred heavy financial losses amounting to over 70 billion naira from
the afore-mentioned criminal transactions. Above all, the conduct,
actions or inactions of Rt. Hon. Rotimi Amaechi and his functionaries in
each and every of these transactions were unlawful and done intently
for CORRUPT and CRIMINAL purposes.
PRAYERS:
On the strength of the above, we respectfully request Mr. President to consider and:
(i) Direct the EFCC to
investigate and prosecute Rt. Hon. RotimiAmaechi and all other State
functionaries and companies involved in or connected with the
corruption, criminal breach of trust, unlawful enrichment, and criminal
diversion and conversion of public funds in relation to the
above-mentioned and other transactions;
(ii) Recover all monies
illegally paid out to third parties from these transactions and return
same to the coffers of the Rivers State Government.
All relevant documents relating to the petition are herewith attached.
Thank you for acting promptly on this open letter.
Please be assured of our highest respect and loyalty to your government.
Attached herewith are annexures to the petition:
Annexure N0 i-v(Issues
Annexure N0 a,b,c.d, and others page 1-70
Yours sincerely,
For: Integrity Group
Comrade Livingstone Wechie
Director, Media/Publicity
08038657860
THE INTEGRITY GROUP
KM 11 ELEME JUNCTION INTERCHANGE
PORT HARCOURT – ABA EXPRESS WAY
ELELENWO – RIVERS STATE
Our ref: IG/AC/VOL.V/082 
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