N12bn Fraud Rocks Rural Electrification Agency

Massive fraud running into over N12 billion is currently rocking the Rural Electrification Agency (REA) where the former managing director, Ahmad Salihijo Ahmad, is alleged to have misappropriated the funds.

This is according to an interim investigation report on an alleged case of criminal conspiracy, criminal breach of trust, misappropriation of public funds, procurement fraud and money laundering reported to the anti- graft commission via a written petition against the managing director, executive director corporate services, Olaniyi Netufo, and other management and staff of the agency, as obtained by LEADERSHIP Friday.

The case was handled by a Special Duty Committee II investigating the activities of the agency.

The complainant (whose name was not mentioned) alleged serious malfeasance at the REA under the leadership of Ahmad, who is alleged to have 37 bank accounts linked to his biometric verification number (BVN), which also show discrepancies in his date of birth.

Other allegations include, “In the asset declaration forms with the Code of Conduct Bureau, Ahmad claimed to have only two accounts, thereby contradicting the 37 accounts actually linked to him.

“That in June 2023, N300 million was reportedly siphoned under the guise of a training programme which was awarded to Braintask Value Resources Limited and Cess Assist Resources Limited while payments in the sum of N139 million made to each of the two companies.

“That between March and June 2023, a whopping sum of N1.2 billion was siphoned from the agency’s account in tranches between March and June, 2023 through eight staff in the agency’s account department.

“During the said period, various sums of money were paid into the personal bank accounts of the eight members of staff with narrations bordering on project supervision which fell outside their job roles. It was further emphasized that the funds received into the staff bank accounts were forwarded to one Usman Kwakwa Ahmed’s various bank accounts who then split the funds to the director of the fund, Abubakar Sambo, the executive director, corporate services, Olaniyi Netufo, one Adudu Yusuf Mohammed and Danmama Mohammed, and others, while also making various payments to Bureau De Change Operators on the instruction.”

The petition further alleged: “That Netufo has been engaging and participating in the management and running of a private business whilst being a public officer, while also emphasising that some notable contractors of the agency had on several occasions paid monies into the account of Necol (Nigeria) Limited, which is his company.

“That two companies, namely Airan Construction & Supplies, and Tungsten Project Nigeria Limited, were paid N24.4 million and N6.1million for doing ‘nothing’ as they had no contract award.”

Part of the report read that “during the course of investigation, the section received intelligence regarding other categories of large-scale misappropriation of public funds within the agency, which are also being substantiated. They are as highlighted below: Gross misappropriation of N12.4 billion COVID- 19 funds disbursed to the agency in two tranches of N6.2 billion each, in 2020 and 2021 by the federal government.

“The agency coerces contractors who execute zonal intervention and capital projects to part with five per cent of the contract sum which they tag as ‘monitoring and evaluation’ charges.

“That payments totalling N728,915,229.04 made by the agency to 15 various contractors in the year 2023 for consultancy jobs were channels  for stealing and diversion of public funds majorly because by virtue of the  job roles of certain staff of the agency being zonal coordinators, project  department as well as monitoring and evaluation department, it was  unnecessary, ridiculous and alarming that external consultants were still  engaged to execute the same responsibilities.”

The interim report also showed that the 37 accounts linked to the managing director comprise 14 corporate accounts, 21 personal accounts, and two other accounts in the names of Bilkisu

Salihijo.

On the case of the N300 million allegedly siphoned under the guise of a training programme, the report stated that “Cees Assist Resources Limited and Braintask Value Resources Limited are owned by one Mr Umaefulem Donatus Chibueze who is a shareholder and director in both companies.

“On the 6th March, 2023 and 10th of April, 2023 respectively, Mr Chibueze dispatched an application/training proposal to the managing director of the Rural Electrification Agency, seeking the training of the agency’s staff.

“Cees Assist Resources Limited application emphasised that the training cost per week for each participant is N450,000 which translates to N128,571.43 for two days, being the duration eventually adopted by the agency.

Braintask Value Resources Limited’s application also stated that the training cost per week for each participant was also N450,000.00 which translated to N128,571.43 for two days as well.

“Based on the computation, the payments due to Cees Assist Resources Limited and Braintask Value Resources Limited for two days training of 203 staff of the agency, as approved, was supposed to be N52,200,000.58.

Between the 16th June, 2023 and 23rd June, 2023, the Rural Electrification Agency made payments totalling N279,330,197.76 to Cees Assist Resources Limited and Braintask Value Resources Limited in the  sums of N139,562,569.76 and N139,767,628.00 respectively.

The payments were made into the companies’ Access Bank account numbers 0094494027 and 0107644861 and the consultant was overpaid in the sum of N227,130,197.18.

“Upon receipt of the N279,330,197.76 by the consultant, the director of administration and human resources of the Rural Electrification Agency gave him instructions to remit the total sum of N144,523,969.00 to other individuals, some of whom are staff of the agency, as well as some contractors of the agency, all of whom were conduits for laundering the N144,523,969.00.

“The consultant heeded the instruction of the director of administration and human resources and disbursed the N144,523,969.00 as instructed.”