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UK-Based NLF Asks EFCC To Investigate Former Head of Civil Service Oronsaye, Auditor-General

November 4, 2014

“Premium Times reported that through its independent investigations, there are some corruption fronts that both the Auditor General of the Federation and the Commission are yet to uncover,” NLF said. “The paper cited its investigations which was published on June 30, 2010, detailing how Mr. Oronsaye transferred N113million from Pension Account Number- 4501040012292 with Union Bank Plc to Unity Bank Account named Contingency; and the Contingency turning out to be a State House Account in the name of Principal Private Secretary to the President, which the former Head of Service operated many years after his removal as Principal Private Secretary to the President.”

The Nigeria Liberty Forum (NLF), a Nigerian pro-democracy group based in the United Kingdom, has asked the Economic and Financial Crimes Commission (EFCC) to investigate Mr. Stephen Oronsaye, a powerful former Head of the federal civil service.

In a letter dated October 27 and copied to various international and local interests, NLF forwarded to the EFCC the Auditor-General’s Special Audit Report of the Head of the Civil Service Pension Accounts entitled, ‘Special Audits of Account of Civil Pensions for the period 2005-2010’, a summary of which it recalled was published recently by Premium Times.

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The group pointed out that the report indicted Mr. Oronsaye of involvement in a N123billion fraud during his tenure between 2009 and 2010, and charged him with: 

Unaccounted N52billion monthly pension payments,

Collection of N1.03billion kickbacks from Pensions Union,

Cornering of N15.6billion meant for settlement of Death Benefits of pensioners, and 

Transfer of N54billion from 58 untraceable illegal accounts.

“Premium Times reported that through its independent investigations, there are some corruption fronts that both the Auditor General of the Federation and the Commission are yet to uncover,” NLF said.  “The paper cited its investigations which was published on June 30, 2010, detailing how Mr. Oronsaye transferred N113million from Pension Account Number- 4501040012292 with Union Bank Plc to Unity Bank Account named Contingency; and the Contingency turning out to be a State House Account in the name of Principal Private Secretary to the President, which the former Head of Service operated many years after his removal as Principal Private Secretary to the President.”

NLF further recalled that on September 19, the office of the Auditor General of the Federation published a disclaimer of the reports, stating that no report ever indicted Mr. Oronsaye in the N123 billion fraud, but that Premium Times responded with a follow up story on September 22 in which it reaffirmed its earlier story and published some sections of the report.  

It further requested the EFCC to investigate the alleged ownership of the multi-billion Naira Protea Hotel in Asokoro by Mr. Oronsaye. 

“The said hotel is alleged to be owned by Mr Oronsaye through a proxy. We also [task] the Commission to investigate how Mrs. Margaret Oronsaye owned another multi billion naira investment named Children’s Affairs, located in a primed area of Kolda Street Wuse II Abuja,” the group stated, saying it has information revealing that Oronsaye’s share of the pension loot is being laundered through these businesses and other real estate interests.

“NLF hereby calls on EFCC, by the powers vested on the Commission under the Economic and Financial Crimes Commission (Establishment) Act 2004, to commence extensive investigation into these fresh allegations, and the extent of involvement of the Office of the Auditor General of the Federation, for necessary action, and make public its findings,” it continued.

“Failure by the Commission to act within reasonable time and speed, this forum will not hesitate to take her advocacy to the next level, in order to ensure justice for these ordinary retirees who are the primary victims of this ungodly act.”

Full text of the letter:

27th October, 2014

The Chairman

Economic and Financial Crimes Commission

5, Fomella Street,

Off Adetokunbo Ademola Crescent,

Wuse 11,

Abuja.

Dear Sir, 

FORWARDING OF AUDITOR GENERAL OF THE FEDERATION’S SPECIAL AUDIT REPORT OF THE HEAD OF CIVIL SERVICE PENSION ACCOUNTS AND REQUEST FOR THOROUGH INVESTIGATION OF THE INVOLVEMENT OF MR. STEPHEN ORONSAYE & OTHERS

Introduction

The Nigeria Liberty Forum is a UK based Nigerian pro-democracy group of sympathizers and volunteers who share a passion for grassroots political engagement and participation. The forum is also in the fore front of advocating for Social justice and entrenchment of Rule of law in Nigeria.

Background:  

Premium Times, an online news medium, on September 15, 2014 made public, summary of a 169-page report at the office of the Nigeria’s Auditor General, allegedly indicting a former Head of Civil Service of the Federation, Mr. Stephen Oronsaye, of involvement in a N123billion fraud during his tenure between 2009 and 2010.

Premium Times detailed that, the report entitled ‘Special Audits of Account of Civil Pensions for the period 2005-2010’, charged Mr. Oronsaye of the following misdeeds: 

Unaccounted N52billion monthly pension payments

Collection of N1.03billion kickbacks from Pensions Union

Cornering of N15.6billion meant for settlement of Death Benefits of pensioners 

Transfer of N54billion from 58 untraceable illegal accounts

Unaccounted N52billion monthly pension payments- According to the report, the pension payroll was purportedly never subjected to internal audit between June 2009 and December 2010; and that, the payments were not presented for internal and federal audits for prepayment audit as required by Nigerian financial regulation: leaving no account of N52 billion monthly pension payments. Also, the report allegedly documented evidence of payment of goods running into millions of naira that were not supplied.

Collection of N1.03billion kickbacks from Pensions Union- The newspaper recounted contents of the report included the detection of a serious infraction in the payment of N2.08billion check-off dues to the Nigerian Union of Pensioners during Stephen Oronsaye’s reign (2009-2010); there was an overpay of N1.03billion when the auditors computed and analyzed the figures in accordance with the 1% deducted from statutory pension allocations. This amount is alleged to have been passed to the Ex-head of Service as Kickbacks. 

Furthermore in the report, Premium Times narrated that, the auditors found no shred of evidence which indicated that any state government had actually received the 5% of federal government’s contribution and reimbursements purportedly made to them.

Cornering of N15.6billion meant for settlement of Death Benefit- Expounding on the report, Premium Times related that the N15.6billion released by the federal Government for the death benefits of deceased civil servants in July 2010 could not be accounted for. The newspaper stated that based on its investigations, the money was moved to an illegal account in Federal Secretariat branch of Union Bank which is personally operated by Mr. Oronsaye and managed by his sister-in-law. 

Transfer of N54billion from 58 untraceable illegal accounts- Lastly in the report, between 2009 and 2010, 58 bank accounts were allegedly opened at the instance of Mr. Oronsaye without the approval of the Accountant General of the Federation; over N54billion were ostensibly transferred to these illegal accounts and eventually withdrawn for undisclosed purposes. The accounts were found to have had no cashbooks, payment vouchers, bank reconciliation statements, transcript or any evidence of expenditure returns.

The said report has further buttressed need for thorough probe into the tenures of Mr. Oronsaye and other  Former Heads of Service of the Federation. Nigerian Liberty forum recalls that Saharareprters had on November 26, 2013 reported that the EFCC has invited Mr. Oronsaye for questioning, base on his involvement in the Pension scam, since then nothing has been heard about the case. 

Premium Times reported that through its independent investigations, there are some corruption fronts that both the Auditor General of the Federation and the Commission are yet to uncover. The paper cited its investigations which was published on June 30, 2010, detailing how Mr. Oronsaye transferred N113million from Pension Account Number- 4501040012292 with Union Bank Plc to Unity Bank Account named Contingency; and the Contingency turning out to be a State House Account in the name of Principal Private Secretary to the President, which the former Head of Service operated many years after his removal as Principal Private Secretary to the President. The newspaper stated that, further delving revealed that a certain Shola Aiyedogbon withdrew substantial part of the illegally transferred funds for onward delivery to Mr. Oronsaye and that it was only on January 27, 2011 that Unity Bank alerted the Permanent Secretary, State House of the illegal operation of the account before Mr. Oronsaye desisted from operation of the account.

However, on September 19, 2014, the office of the Auditor General of the Federation issued a disclaimer of the media reports on pages: 28 (ii) of ThisDay; 51 of The Nation; 60 of Daily Sun and 14 of Daily Trust National Newspapers, stating that no report ever indicted the Nigeria’s former head of service, Mr. Oronsaye in a N123billion fraud.

In a detailed response to the disclaimer by the Office of Auditor General, PremiumTimes did a follow up story on Monday, 22nd September, 2014, reaffirming its stand on the earlier story and publishing some section of the report. The paper lampooned the Auditor General for encouraging corruption and shielding corrupt officers with his rebuttal and failure to forward the report in question to the National Assembly as required under the constitution. NLF is greatly concerned by the EFCC’s deepening silence in the midst of these monumental fraud allegations. 

NLF wish to further request the Commission to investigate the allege ownership of a multi billion naira Protea Hotel Asokoro by Mr. Oronsaye. The said hotel is alleged to be owned by Mr Oronsaye through a proxy. We also tasked the Commission to investigate how Mrs. Margaret Oronsaye owned another multi billion naira investment named Children’s Affairs, located in a primed area of Kolda street wuse II Abuja. Information available to  NLF reveals that Oronsaye’s share of pension loot is laundered through the above mentioned existing businesses and other real estates

NLF wish to also refer the Commission to section 27 of the EFCC Act. 2004, which states that: “where a person is arrested for committing an offence under this Act, such a person shall make full disclosure of all assets and properties by completing the declaration of Assets form....”. The Act further directs the Commission to investigate the Asset declaration filled by any arrested person.

NLF hereby calls on EFCC, by the powers vested on the Commission under the Economic and Financial Crimes Commission (Establishment) Act 2004, to commence extensive investigation into these fresh allegations, and the extent of involvement of the Office of the Auditor General of the Federation, for necessary action, and make public its findings.

Failure by the Commission to act within reasonable time and speed, this forum will not hesitate to take her advocacy to the next level, inorder to ensure justice for these ordinary retirees who are the primary victims of this ungodly act.

Attached herewith alongside the petition is the complete 169 page Auditor General Pension special report for ease of reference. While awaiting your formal acknowledgement of this petition and immediate commencement of investigation, NLF wish to inform you that the petition and the report has been copied and circulated to various stakeholders all over the world.

Sincerely yours,

Oluwakayode Ogundamisi

Coordinator

CC

UK Embassy, Nigeria

US Embassy, Nigeria

French Embassy, Nigeria

Canadian Embassy, Nigeria

Spanish Embassy, Nigeria

South African Embassy, Nigeria

Financial Action Task Force (FATF) Paris

US FINCEN

NCA UK

National Assembly, Abuja

Civil Society Organisations