The Independent Corrupt Practices and Other Related Offences Commission has filed an 18-count charge of corruption against the former Governor of Zamfara, Ahmed Sanni over allegations that he corruptly enriched himself by spending funds above and beyond amounts allowed by law. Mr. Ahmed, now a senator is expected to be arraigned today.

Below is a text of the charges filed at the high court at Gusau, Zamfara state. 

IN THE HIGH COURT OF ZAMFARA STATE

HOLDEN AT GUSAU, ZAMFARA STATE

                                                                      CHARGE NO:

FEDERAL REPUBLIC OF NIGERIA-----------------COMPLAINANT

Vs

AHMED RUFAI SANI                ]
ALHAJI HASHIM A. DIKKO            ]
DEVELOPMENT MANAGEMENT LTD    ]----DEFENDANTS
HAD NIGERIA LTD                ]

Count 1

That you Ahmed Rufai Sani on or about November, 2006 whilst being the Governor of Zamfara State at Gusau within the jurisdiction of this court did commit an offence of spending money allocated for one project on another to wit: out of N 1,000,000,000 (one billion naira) additional budgetary allocation Zamfara State House of Assembly allocated for the repair of collapsed Gusau dam and settlement of the victims of the said dam which was obtained through bank loan you spent the sum of N20,000,000 (twenty million naira) purportedly on assistance to INEC and thereby committed an offence contrary to and punishable under section 22 (5) of the Corrupt Practices and Other Related Offences Act 2000.

Count 2

That you Ahmed Rufai Sani on or about October 2006 whilst being the Governor of Zamfara State at Gusau within the jurisdiction of this court did commit an offence of spending money allocated for one project on another to wit: out of N1,000,000,000 (one billion naira) additional budgetary allocation Zamfara State House of Assembly allocated for the repair of collapsed Gusau dam and payment of compensation to the victims of the said dam which was obtained through bank loan you spent the sum of N10,000,000 (ten million naira) purportedly on donation and thereby committed an offence contrary to and punishable under section 22 (5) of the Corrupt Practices and Other Related Offences Act 2000.

Count 3

That you Ahmed Rufai Sani on or about October 2006 whilst being the Governor of Zamfara State at Gusau within the jurisdiction of this court did commit an offence of spending money allocated for one project on another to wit: out of  N1,000,000,000 (one billion naira) additional budgetary allocation Zamfara State House of Assembly allocated for the repair of collapsed Gusau dam and payment of compensation to the victims of the said dam which was obtained through bank loan you spent the sum of N43,008,000 (forty three million and eight thousand naira) purportedly on surveillance of guests and thereby committed an offence contrary to and punishable under section 22 (5) of the Corrupt Practices and Other Related Offences Act 2000.

Count 4

That you Ahmed Rufai Sani on or about November 2006 whilst being the Governor of Zamfara State at Gusau within the jurisdiction of this court did commit an offence of spending money allocated for one project on another to wit: out of N 1,000,000,000 (one billion naira) additional budgetary allocation Zamfara State House of Assembly allocated for the repair of collapsed Gusau dam and payment of compensation to the victims of the said dam which was obtained through bank loan you spent the sum of N21,450,000 (twenty-one million four hundred and fifty thousand naira) purportedly on settlement of publication equipment and thereby committed an offence contrary to and punishable under section 22 (5) of the Corrupt Practices and Other Related Offences Act 2000.

Count 5

That you Ahmed Rufai Sani on or about November 2006 whilst being the Governor of Zamfara State at Gusau within the jurisdiction of this court did commit an offence of spending money allocated for one project on another to wit: out of N 1,000,000,000 (one billion naira) additional budgetary allocation Zamfara State House of Assembly allocated for the repair of collapsed Gusau dam and payment of compensation to the victims of the said dam which was obtained through bank loan you spent the sum of N64,332,734 (sixty four million three hundred and thirty two thousand seven hundred and thirty four naira) purportedly on sponsorship of government officials to hajj and thereby committed an offence contrary to and punishable under section 22 (5) of the Corrupt Practices and Other Related Offences Act 2000.

Count 6

That you Ahmed Rufai Sani on or about November 2006 whilst being the Governor of Zamfara State at Gusau within the jurisdiction of this court did commit an offence of spending money allocated for one project on another to wit: out of N 1,000,000,000 (one billion naira) additional budgetary allocation Zamfara State House of Assembly allocated for the repair of collapsed Gusau dam and payment of compensation to the victims of the said dam which was obtained through bank loan you spent the sum of N32,646,286 (thirty two million six hundred and forty six thousand two hundred and eighty six naira) purportedly on settlement of accommodation and thereby committed an offence contrary to and punishable under section 22 (5) of the Corrupt Practices and Other Related Offences Act 2000.

Count 7

That you Ahmed Rufai Sani on or about November 2006 whilst being the Governor of Zamfara State at Gusau within the jurisdiction of this court did commit an offence of spending money allocated for one project on another to wit: out of N 1,000,000,000 (one billion naira) additional budgetary allocation Zamfara State House of Assembly allocated for the repair of collapsed Gusau dam and payment of compensation to the victims of the said dam which was obtained through bank loan you spent the sum of N15,800,000 (fifteen million eight hundred thousand naira) purportedly on furniture allowance and thereby committed an offence contrary to and punishable under section 22 (5) of the Corrupt Practices and Other Related Offences Act 2000.

Count 8

That you Ahmed Rufai Sani on or about November 2006 whilst being the Governor of Zamfara State at Gusau within the jurisdiction of this court did commit an offence of spending money allocated for one project on another to wit: out of N 1,000,000,000 (one billion naira) additional budgetary allocation Zamfara State House of Assembly allocated for the repair of collapsed Gusau dam and payment of compensation to the victims of the said dam which was obtained through bank loan you spent the sum of N29,200,000 (twenty nine million two hundred thousand naira) purportedly on purchase of 2000 Nanfang motor cycles and thereby committed an offence contrary to and punishable under section 22 (5) of the Corrupt Practices and Other Related Offences Act 2000.

Count 9

That you Ahmed Rufai Sani on or about October 2006 whilst being the Governor of Zamfara State at Gusau within the jurisdiction of this court did commit an offence of spending money allocated for one project on another to wit: out of N1,000,000,000 (one billion naira) additional budgetary allocation Zamfara State House of Assembly allocated for the repair of collapsed Gusau dam and payment of compensation to the victims of the said dam which was obtained through bank loan you spent the sum of N23,859,692 (twenty three million, eight hundred and fifty nine thousand, six hundred and ninety two naira) purportedly on payment to automobile company and thereby committed an offence contrary to and punishable under section 22 (5) of the Corrupt Practices and Other Related Offences Act 2000

Count 10

That you Ahmed Rufai Sani on or about October 2006 whilst being the Governor of Zamfara State at Gusau within the jurisdiction of this court did commit an offence of spending money allocated for one project on another to wit: out of  N1,000,000,000 (one billion naira) additional budgetary allocation Zamfara State House of Assembly allocated for the repair of collapsed Gusau dam and payment of compensation to the victims of the said dam which was obtained through bank loan you spent the sum of N14,000,000 (fourteen million naira) purportedly on payment of auditing of account and thereby committed an offence contrary to and punishable under section 22 (5) of the Corrupt Practices and Other Related Offences Act 2000.

Count 11

That you Ahmed Rufai Sani on or about October 2006 whilst being the Governor of Zamfara State at Gusau within the jurisdiction of this court did commit an offence of spending money allocated for one project on another to wit: out of N1,000,000,000 (one billion naira) additional budgetary allocation Zamfara State House of Assembly allocated for the repair of collapsed Gusau dam and payment of compensation to the victims of the said dam which was obtained through bank loan you spent the sum of N14,170,000 (fourteen million one hundred and seventy thousand naira) purportedly on ramadan feeding and thereby committed an offence contrary to and punishable under section 22 (5) of the Corrupt Practices and Other Related Offences Act 2000.

Count 12

That you Ahmed Rufai Sani on or about October 2006 whilst being the Governor of Zamfara State at Gusau within the jurisdiction of this court did commit an offence of spending money allocated for one project on another to wit: out of  N1,000,000,000 (one billion naira) additional budgetary allocation Zamfara State House of Assembly allocated for the repair of collapsed Gusau dam and payment of compensation to the victims of the said dam which was obtained through bank loan you spent the sum of N14,530,000 (fourteen million five hundred and thirty thousand naira) purportedly on purchase of four 406 Peugeot and thereby committed an offence contrary to and punishable under section 22 (5) of the Corrupt Practices and Other Related Offences Act 2000.

Count 13

That you Ahmed Rufai Sani on or about October 2006 whilst being the Governor of Zamfara State at Gusau within the jurisdiction of this court did commit an offence of spending money allocated for one project on another to wit: out of  N1,000, 000,000 (one billion naira) additional budgetary allocation Zamfara State House of Assembly allocated for the repair of collapsed Gusau dam and payment of compensation to the victims of the said dam which was obtained through bank loan you spent the sum of N36,000,000 (thirty six  million naira) purportedly on settlement of leave grant for teachers and thereby committed an offence contrary to and punishable under section 22 (5) of the Corrupt Practices and Other Related Offences Act 2000.

Count 14

That you Ahmed Rufai Sani on or about November 2006 whilst being the Governor of Zamfara State at Gusau within the jurisdiction of this court did commit an offence of spending money allocated for one project on another to wit: out of N 1,000,000,000 (one billion naira) additional budgetary allocation Zamfara State House of Assembly allocated for the repair of collapsed Gusau dam and payment of compensation to the victims of the said dam which was obtained through bank loan you spent the sum of N46, 591,692.24, (forty six million, five hundred and ninety one thousand, six hundred and ninety two naira, twenty four kobo) purportedly on school  feeding and thereby committed an offence contrary to and punishable under section 22 (5) of the Corrupt Practices and Other Related Offences Act 2000.

Count 15

That you Ahmed Rufai Sani on or about February 2007 at Gusau within the jurisdiction of this court whilst being the Governor of Zamfara State did make a statement vide a letter dated 6th February 2007 captioned “ OFFER FOR SALE OF EXCESS GRAINS”  to the President Federal Republic of Nigeria Chief Olusegun Obasanjo in the course of the exercise of the duty of his office that Zamfara State Government had stock of about 100,000 metric tones of assorted grains in silos and stores out of which 50, 000 metric tons could be sold to the Federal Government of Nigeria which was to your knowledge false and thereby committed an offence contrary to section 22 (1) (a) and punishable under section 68 of the Corrupt Practices and Other Related Offences Act, 2000

 

Count 16

That you Ahmed Rufai Sani on or about May 2007 at Gusau within the jurisdiction of this court used your position as the Governor of Zamfara State  to confer corrupt advantage upon your associate to wit: awarding consultancy services to Development Management  System Ltd for the supply of 50, 000 metric tons (200,000 bags) of grains by Zamfara State Government to the Federal Government with the agreement to pay 10 % i.e. N161million of the total cost of N1,610,000,000 (one billion, six hundred and ten million naira) to Development Management Ltd as consultancy fee but for which only 9,181.89 metric tons (91, 818 bags) were supplied and  for which you paid Development Management Ltd N91,840,000 (ninety one million, eight hundred and forty thousand naira) whereas Development Management Ltd was entitled only to N29,565,685.80 (twenty nine million, five hundred and sixty five thousand, six hundred and eighty five naira eighty kobo)  thus overpaid her the sum of N62, 274,315 (sixty two million, two hundred and seventy four thousand,  three hundred and fifteen naira)  and thereby committed an offence contrary to and punishable under section 19 of the Corrupt Practices and Other Related Offences Act, 2000

Count 17

That you Ahmed Rufai Sani, Alhaji Hashim A. Dikko and Development Management Ltd  on or about May 2007 at Gusau within the jurisdiction of this court did conspire to commit an offence of using office for gratification to wit: Ahmed Rufai Sani on or about May 2007 used his position as the Governor of Zamfara State to award consultancy services to Development Management  System Ltd for the supply of 50, 000 metric tons (200,000 bags) of grains by Zamfara State Government to the Federal Government with the agreement to pay 10 % i.e. N161million of the total cost of N1,610,000,000 (one billion, six hundred and ten million naira) to Development Management Ltd as consultancy fee but for which only 9,181.89 metric tons (91, 818 bags) were supplied and for which Development Management Ltd was paid N91,840,000 (ninety one million, eight hundred and forty thousand naira whereas Development Management Ltd was entitled only to N29,565,685.80 (twenty nine million, five hundred and sixty five thousand, six hundred and eighty five naira eighty kobo)  thus overpaid her the sum of N62, 274,315 (sixty two million, two hundred and seventy four thousand,  three hundred and fifteen naira)  and thereby committed an offence contrary to section 26 (c ) and punishable under section 19 of the Corrupt Practices and Other Related Offences Act, 2000

Count 18

That you Ahmed Rufai Sani on or about April 2007 at Gusau within the jurisdiction of this court  used your position as the Governor of Zamfara State to confer a corrupt advantage upon your associate to wit: awarding contract for the transportation of 50, 000 metric tons of grains (200,000 bags) to HAD Nigeria Ltd to be supplied by Zamfara State to the Federal Government at the total cost of N1,610,000,000 (one billion, six hundred and ten million naira) with the agreement to pay N444, 040,000 (four hundred and forty four million, forty thousand naira) to HAD Nigeria Ltd as contract sum but for which only 9, 181.89 metric tons (91,181 bags)  were transported and for which HAD Nigeria Ltd was paid N98 million (ninety eight million naira) whereas she was entitled only to N81,042 525 (eighty one million forty two thousand five hundred and twenty five naira) thus overpaid her the sum of N16, 957,472 (sixteen million, nine hundred and fifty nine thousand four hundred and seventy two naira) and thereby committed an offence contrary to and punishable under section 19 of the Corrupt Practices and Other Related Offences Act 2000

 

Count 19 

That you Ahmed Rufai Sani and HAD Nigeria Ltd on or about April 2007 at Gusau within the jurisdiction of this court did conspire to commit an offence of using office for gratification to wit: Ahmed Rufai Sani on or about April 2007 used his position as the Governor of Zamfara State at Gusau, Zamfara State to award a contract for the transportation of 50, 000 metric tons of grains (200,000 bags) to HAD Nigeria Ltd to be supplied by Zamfara State to the Federal Government at the total cost of N1,610,000,000 (one billion, six hundred and ten million naira) with the agreement to pay N444, 040,000 (four hundred and forty four million, forty thousand naira) to HAD Nigeria Ltd as contract sum but for which only 9, 181.89 metric tons (91,181 bags)  were transported and for which HAD Nigeria Ltd was paid N98 million (ninety eight million naira) whereas she was entitled only to N81,042 525 (eighty one million, forty two thousand five hundred and twenty five naira) thus overpaid her the sum of N16, 957,472 (sixteen million, nine hundred and fifty nine thousand, four hundred and seventy two naira) and thereby committed an offence contrary to section 26 (c) and punishable under section 19 of the Corrupt Practices and Other Related Offences Act 2000

DATED        DAY OF                2015

A.I RAHEEM ESQ

KALU JOSEPH UGBO 

ICPC HQ, ABUJA

FOR: ATTORNEY-GENERAL OF THE FEDERATION

FOR SERVICE ON:

The Defendants

O/c ICPC investigators

IN THE HIGH COURT OF ZAMFARA STATE

HOLDEN AT GUSAU, ZAMFARA STATE

                                                          CHARGE NO:

FEDERAL REPUBLIC OF NIGERIA------------COMPLAINANT

Vs

AHMED RUFAI SANI                    ]
ALHAJI ISHAM DIKKO            ]
DEVELOPMENT MANAGEMENT LTD    ]----DEFENDANTS PERSONS
HAD NIGERIA LTD

PROOF OF EVIDENCE

1.ENG LAWAL JIBRIL to state as follows: He will give brief history of himself. He will say that he was the Special Assistant ( SA) Commodity from 2003 August to 2005 July. As the SA Commodity his schedule was to receive directives from the Governor on commodity and advice appropriately. The commodity board received and released grains whenever directed by an appointed committee. The board also made payments to the suppliers when grains are sold and coordinated the sale when grains are sold to others. He will say that on February 2007, the government of Zamfara State agreed to sell 50,000 metric tons of assorted grains at the total cost of N1.6billion. The transaction was sealed after the approval of the State and Federal Executive Council. A consultant has to be appointed because of the need to supervise the scattered grains at the various locations, the transportation of large quantity up and down, the process of payment from the federal government and quantification at the grain silos at different location. A company was mandated by the state government to do the job at an approved rate of 10% of total cost of the 50,000 metric tons. The locations as approved by the Federal Government for the delivery are Akure 10,000 metric tons, Ogoja 10,000 metric tons, Jos 5,000metric tons and few others. After payment the job was started by the consultant and the transporter who was appointed by the consultant with the approval of the state government at marked cost of truck. During his stay as the SA to the Governor a total quantity of grains was transported in bags by the consultant and transporter to the various locations thus: maize=13,680 bags, sorghum =72,980 bags, totaling =86,660 bags with 2751/2 loads of trucks which started during his tenure 26/5/2007-10/7/2007. He handed over to his successors Alhaj Ibrahim Mohd, the permanent secretary and Alh Salisu Bawa the SA to the Governor on 9/7/2007. A payment for the consultant and transporter was made as approved by the FG & PC.  The sum of N112, 700,000 part payment was paid to the consultant while N100, 000,000 was paid to the transporter. The total contract sum for the consultant was N161million   that of the transporter was N440, 000 of the total quantity of the grains 50,000 metric tons. He will say that the commodity board recommended the payment of the 50% of the total contract sum but the FG & PC approved more than that for the consultant. He will say further that 10 bags of 100kg bag is equal to one metric tones. Therefore 50,000 metric tones is equal to 500,000 bags. In his hand over note a total sum of 86,660 bags of assorted grains was transported to the grain silos at different locations 

He will say that one car, Honda was attached to him and after the termination of appointment, the car was asked to be taken to the EFCC headquarters in Abuja. He will further evidence of what he knows about this case.

2. BELLO SANI JABAKA to state as follows: He was the Deputy Accountant General from 2003-2007, Accountant General Zamfara State from 2007 to 2009 and Permanent Secretary from 2009 and posted to Ministry of Lands and Survey Zamfara State.  He will give brief summary of his schedules. He will say that a loan of N600million was sourced from Bank PHB Gusau to facilitate sales of grains to Federal Government around April/May 2007. A payment order of about 3-4 months was issued on UBA Plc to Bank PHB. The issuance of the irrevocable order (ISPO) plus lodgments of proceeds from the sale of grains into the Accountant General’s account with Bank PHB served as guarantee for the loan. The offer of the loan was addressed to Honourable Commissioner Ministry of Finance informing him of loan approval and other terms attached to the loan. He will say that the purpose of obtaining the loan was to facilitate the sales of grains to the Federal Government. Disbursement was made to the commodity board for the purchase of vehicles and other related activities and at the ministry, payment was made to the consultant engaged in the sales. The remaining amount was also utilized in other payments outside the purpose. He will say that signatories to accountant general’s account include Isiyaku Mohammed Zurmi, Permanent Secretary, Bello Sani Jabaka, Accountant-General and Aminu Nabanga, Deputy Accountant-General and Sanusi Garba Rikiji who signs schedules of payment. However in his absence the PS signs on his behalf. He will say that the N600million loan sourced from the Bank PHB was utilized as follows: 1. N250million was paid to Italco Builders for the purpose of restoration of Gusau Barrage that broke down in 2006. 2. N100million was paid to the Permanent Secretary, Directorate of Commodity Board for the purpose of grains transportation from the 14 local government areas in the State. 3. N30million was also paid to the Permanent Secretary Commodity Board for the purpose of vehicles for the monitoring and transportation of grains. 4. N91.84 million was paid to Messers Development Management –a consultant engaged for the sale of the grains to the Federal Government. 5. N11.2million was deducted and paid as withholding tax to the Federal Inland Revenue Service.6. N5.60million was deducted and paid as V.A.T  . N1.2 million was deducted and paid to Accountant-General’s account as Education tax. 7. N1.2 million was deducted as 1% levy and paid to Zamfara State agency for poverty alleviation (ZAPA) 9. N1.12m was paid as 1% levy and paid to Zakat Board as alms 10. N110milliom was paid to Permanent Secretary Ministry for Local Government and Chieftaincy Affairs for onward extension as loans to the local government employees to be administered by Nigerian Union of local government employees of the state (NULGE). Repayment of this loan is normally realized from the beneficiaries’ monthly salaries and remitted to the Ministry of Finance. The witness will also give evidence on the N1billion the House approved for the repair of the dam and how part of it was diverted. He will give more evidence where necessary.

4. MOHAMMED MUJTABA ISAH to state as follows: He will give brief background of himself. He will say that in 2005 he was the Permanent Secretary in the Ministry of Science and Technology and Technical Education. In 2006 he was posted to Zamfara State Liaison Office Abuja as Permanent Secretary. In February 2008 after the completion of his course at kuru, he was posted to the Ministry of Finance as Permanent Secretary, the position he holds till date. He will say that as the PS he is Chief Accounting Officer in charge of payment due to the contractors, ministries and parastatals. He is also in charge of personnel matters in the ministries with regards to promotion, discipline etc.

He will say that the process of awarding contract starts with the ministry that proposes the project based on budgetary provision. Such proposal will go to the FG & PC for consideration. The FG & PC then recommends the award of the contract to any company or individual to the Governor for approval. If such contract is approved, the FG &PC will issue a contract notification to the company. The contractor will them go to the Ministry of Justice for contract agreement which will be signed by the contractor and the Commissioner in charge of the Ministry that proposed the contract. Thereafter the document will be forwarded to the Ministry of Finance for payment of mobilization fee. Subsequently payment will be based on certification of work done by contractor which will be issued by the client Ministry. Membership of FG & PC include the Deputy-Governor who sits as the Chairman, members include Commissioners for Health, Finance, Agriculture. The Secretary of the Committee who signs all notifications of contract is the Permanent Secretary FG & PC. He will say that the FG & PC has an advisory committee that usually vet all submissions of bills of quantities of would be contractors. The name of the Permanent Secretary of the FG & PC is Ahmad Abdulnasir. Contracts awarded to individuals in their own names are usually as a result of decisions taken at the FG & PC. He is of the opinion that this is done because most of the contractors have not registered any company with CAC. He will say that it will become advantageous because such contract will yield necessary withholding tax into State government. He will say that it is wrong to award contract to individuals names because beneficiary companies are usually well known and could be traced out when the needs arises. That is why contract are seldom awarded to individuals in their own names as against registered company’s names. This has been long practice since the creation of the State in 1996. He will say it is difficult to stop despite his verbal advice as the PS Ministry of Finance. 

5. AHMED ABDUL NASIR to state as follows: In 2007 he was posted to the government house and in 2008 he became the Secretary of the FG & PC. He will state schedules of his duty. He will say that one of the guidelines for issuing contracts is that if after the approval of the Governor, the amount is over N50million, the recommendation has to reach the Executive Council. It is after that the contract notification would be issued.  The committee awarded contracts to both the individuals and companies.

6. MOHAMMMED FATEEMAH to state as follows: She is an investigator with the ICPC. She will state that sometime in 2009 a group of youths from Zamfara State acting under an NGO named “Concerned Citizens of Zamfara State” wrote a petition to the Chairman ICPC against former Governor of Zamfara State, Ahmed Sani Yarima and few other persons. Various acts of corruption and abuse of office were leveled against the suspects in the said petition. These included unlawful diversion of N1billion approved by the Zamfara State House of Assembly to repair collapsed Gusau dam, award of phony contract to repair the Gusau dam, illegal N600million loans obtained to sell grains to the Federal Government and diversion of substantial part of the loan to the cronies of the Governor under the guise of contracts, and conversion by the company awarded the contract part of the contract sum for the supply of furniture to 14 local government. The Chairman, ICPC sent the petition to the Head, Financial Investigation Unit of the Commission who in turn assigned the petition to her team for discreet investigation.  She is the leader of the team while Abdulkadir Abdulrasaq and Ada Ojoma were members. She will state that the team would give evidence with respect to two of the allegations for now. That is the diversion of part of N1billion meant to repair dam to unrelated matters and the N600million loan obtained to sell grains to Federal Government part of which was diverted to the cronies of the Governor.

  In the course of the investigation the team visited Zamafara state and few other places. The team also invited some officials of Zamafara State Government who made statements to the team.  Relevant documents and records were retrieved and these included:

contract agreements and correspondences between Zamfara State government and federal government including Federal Ministry of Agriculture and Water Resources in respect of the sale of grains
contract agreement between Zamfara State government and consultant, Messers Development Management Ltd and the transporter HAD Nig. Ltd
correspondences  between Zamfara State government and Directorate of Commodity, Marketing and Distribution
Bank statement of Zamfara State Commodity Account
Payment vouchers and other relevant documents as regards loan disbursement
sale of grains and silos distribution file

With respect to the N1billion loan for the repair of Gusau collapsed dam alleged to have been diverted, investigation revealed that on 3rd October 2006, the Secretary to the State Government (SSG) wrote a memo to the Speaker of the House of Assembly Zamfara State requesting for additional budgetary provisions for the repairs of the damaged Gusau Barrage which collapsed on the 30th September 2006 (The witness will tender a copy of the request)

The Zamfara State House of Assembly during its 70th sitting held on 3rd October 2006 deliberated on the request and unanimously approved the sum of N1billion to the Zamfara State government for the purpose of effecting urgent repairs to the damaged Gusau water barrage and payment of compensation to the affected victims of the collapsed dam. 

Subsequently on the 9th October 2006, the Ministry of Finance, Zamfara State obtained a loan of N1billion from UBA purportedly for flood disaster and the rehabilitation/ dredging of the collapsed Gusau dam (the witness will tender correspondences on the loan)

Investigation revealed that a reputable water management company Messrs China Geo Engineering Company was initially identified to do the job with an estimate of N800million. Conversely, Messrs China Geo Engineering Company was never involved in the repairs of the damaged dam, rather the Governor approved the award of the contract to repair the dam to another company called ITALCO BUILDERS. The witness will say that the team had inkling that the company was a foreign company which must register in Nigeria before it could be awarded a contract. Inquiry from the CAC showed that the company did not register in Nigeria. The Governor claimed to have repaired the damaged dam but the team has reason to doubt this claim. The witness will say that the Commission is investigating this matter and as soon as the investigation is concluded the Commission will determine the next line of action. 

Investigation revealed that only the sum of about N574, 508,263.25 was purportedly utilized for flood disaster related matters, while the balance of N425, 491,736.75 was diverted to unrelated activities such as settlement of leave grant to the teachers, feeding during ramadhan, payment of auditing of final accounts 1999-2005, surveillance to guest, assistance to INEC etc without the approval of Zamafara State House of Assembly. (the witness will tender relevant documents and a  table of analysis showing the funds paid the company and how the balance was diverted to these unrelated matters) 

Regarding the N600million loan obtained to sell grains to the federal government which was alleged was spent to confer corrupt advantage on the cronies of the former Governor, investigation revealed that in February 2007, Ahmed Sani Yerima as the governor of Zamafara State wrote a memo vide a letter dated 6th February 2007 No GHG/Z/S/256/VOL.1 captioned “ OFFER FOR SALE OF EXCESS GRAINS” to the President of the Federal Republic of Nigeria Chief Olusegun Obasanjo that Zamafara State government had stock of about 100,000 metric tons of assorted grains in its silos and stores. The Governor appealed to the president to direct the Federal Ministry of Agriculture and Water Resources to buy 50,000 metric tones out of the said 100,000 metric tons. Investigation revealed at the end of the day the statement made by Sani Yerima as contained in his letter to the President was false. Even when the Federal Government reduced the supply from 50,000 metric tons to 20,000 metric tons the State government could not supply 20,000 metric tons. It could only supply 9, 181.89 metric tons. The witness will say that the outcome of the false statement was that Ahmed Sani put his State in unnecessary debt and made her to engage in a needless transaction that did not benefit the State but only enriched his cronies

Investigation revealed that these grains were to be supplied and deposited at 7 reserve silos across the contrary. These included: i Akure 10,000 metric tons ii Irrua 10,000 metric tons iii Jahun 1,000 metric tons iv. Markudi 10,000 metric tons v. Ogoja 10,000 metric tons vi. Jos 5,000 metric tons vii Minna 4,000 metric tons.  

Subsequently Sani Yerima approved consultancy contract to a company called Development Management System even though the State has commodity board that could have done the job. The consultancy contract was awarded at a sum of N161million which represents 10 % of the total contract sum. A transporter HAD Nig Ltd was also appointed to transport the grains to their respective silos across the country at a cost of N444, 040,000. (The witness will tender notification of contracts issued to the two companies).  

The witness will say that investigation revealed that in May 2007 the State government obtained a loan of N600million from bank PHB PLC because of the sale of grains the State government wanted to sell to the federal government. (The witness will tender relevant correspondences on this loan). Investigation revealed that the Governor did not seek the approval of the State House of Assembly before obtaining the loan from the bank. The findings from the investigation revealed as follows:

The contract was later reviewed downward from 50,000 metric tons to 20,000 metric tons by the Federal Ministry of Agriculture and Water Resources due to limited funds available to them in that the contract was awarded in anticipation of funds from the Finance Ministry. (the witness will tender the letter reviewing the contract)
  The consultant Development Management System (DMS) was appointed as a consultant vides a letter dated 14th May 2007. The contract agreement stated that Zamfara State government would pay the consultant 10% of the total contract sum as service fees and 70% advance would be paid to DMS Ltd on signing of documents. Thus based on the new contract to supply 20,000 metric tons which put the total  contract sum to N644million (six hundred and forty four million naira), the service charge which represents 10% of the contract sum amounts to N64, 400,000( sixty four million, four hundred thousand naira) while the 70% advance payment is N32,200,000 (thirty two million two hundred thousand naira)
It is worthy to note that after the downward review of the grains supply to 20,000 metric tons, the sum of N161million which represents the 10% of the initial contractual agreement as service fees was never reviewed downward to reflect the new rate.
By November 2007, only a total of 9,181.89 metric tons of assorted grains were sold by the State government and hence transported to their respective destinations. This represents about 46% of work done. Meanwhile a total sum of N91, 840,000.00 was paid to the consultant as service fees. 
A thorough mathematical analysis showed that the consultant was being overpaid by the sum of N62, 274,315.

 The analysis is as follows:

If 50,000 metric tons is to be sold at N1, 610,000,000.00

Total cost per metric ton = N1, 610,000,000/ 50,000 = N32, 200 per metric

So 20,000 metric x N32, 200= N644, 000,000

If contract sum for 20,000mt = N644, 000,000 then 10% as service charge =N64, 400,000.00

If 10 bags make a metric then cost per bag will be N32, 200/10 bags = N3,200

Actual transaction 

Whereas 1 metric of grain =10bags of 100 kg

20,000metric x 10 bags = 200,000 bags

9181.89 tons were delivered, therefore 

9,181.89 tons x 10 bags = 91,818.9 bags only were sold and transported.

644,000,000 / 200,000 = N3220 per bag

Therefore 91,818.90 bags x N3220 = N29, 565,685.80

Amount overpaid the consultant=

N91, 840-N29, 565,685.80 =N62, 274,315

The State government gave the consultant the freewill to appoint a transporter, thus he appointed her sister company HAD Nig Ltd as the transporter of the sum of N50, 000 metric tons of grains at a total cost of N444, 040,000.00. A sum of N98, 000,000 was paid to the transporter for which he transported only 91,818 bags as against 200,000 bags. Hence Messrs HAD Nig Ltd was overpaid to the tune of N16, 957,472.
The loan facility of N600million obtained from Platinum Habib Bank was paid into the bank account of the Accountant-General of the State. Out of which the sum of N189,840,000 (N98,000,000 + 91,840) was paid to the consultant and transporter, the sum of N30,000,000 was used to purchase operational vehicles for the monitoring of sale while the sum of N16,800,000.00 was paid as VAT and WHT. The balance 363,360,000.00 was diverted into other unrelated activities such as rehabilitation of road, payment of zakat and loan to NULGE for purchase of motorcycles based on the Governor’s approval. (the witness will tender table of analysis and all relevant documents on these transactions).

6. ABDULKADIR ABDULRASAK to state as follows: He is an investigator with the ICPC. He will state that sometime in 2009 a group of youths from Zamfara State acting under an NGO named “Concerned Citizens of Zamfara State” wrote a petition to the Chairman ICPC against former Governor of Zamfara State, Ahmed Sani Yarima and few other persons. Various acts of corruption and abuse of office were leveled against the suspects in the said petition. These included unlawful diversion of N1billion approved by the Zamfara State House of Assembly to repair collapsed Gusau dam, award of phony contract to repair the Gusau dam, illegal N600million loans obtained to sell grains to the Federal Government and diversion of substantial part of the loan to the cronies of the Governor under the guise of contracts, and conversion by the company awarded the contract part of the contract sum for the supply of furniture to 14 local government. The Chairman, ICPC sent the petition to the Head, Financial Investigation Unit of the Commission who in turn assigned the petition to her team for discreet investigation.  Fateemah Mohammed is leader of the team while he and Ada Ojoma were members. He will state that the team would give evidence with respect to two of the allegations for now. That is the diversion of part of N1billion meant to repair dam to unrelated matters and the N600million loan obtained to sell grains to Federal Government part of which was diverted to the cronies of the Governor.

  In the course of the investigation the team visited Zamafara state and few other places. The team also invited some officials of Zamafara State Government who made statements to the team.  Relevant documents and records were retrieved and these included:

contract agreements and correspondences between Zamfara State government and federal government including Federal Ministry of Agriculture and Water Resources in respect of the sale of grains
contract agreement between Zamfara State government and consultant, Messers Development Management Ltd and the transporter HAD Nig. Ltd
correspondences  between Zamfara State government and Directorate of Commodity, Marketing and Distribution
Bank statement of Zamfara State Commodity Account
Payment vouchers and other relevant documents as regards loan disbursement
sale of grains and silos distribution file

With respect to the N1billion loan for the repair of Gusau collapsed dam alleged to have been diverted, investigation revealed that on 3rd October 2006, the Secretary to the State Government (SSG) wrote a memo to the Speaker of the House of Assembly Zamfara State requesting for additional budgetary provisions for the repairs of the damaged Gusau Barrage which collapsed on the 30th September 2006 (The witness will tender a copy of the request)

The Zamfara State House of Assembly during its 70th sitting held on 3rd October 2006 deliberated on the request and unanimously approved the sum of N1billion to the Zamfara State government for the purpose of effecting urgent repairs to the damaged Gusau water barrage and payment of compensation to the affected victims of the collapsed dam. 

Subsequently on the 9th October 2006, the Ministry of Finance, Zamfara State obtained a loan of N1billion from UBA purportedly for flood disaster and the rehabilitation/ dredging of the collapsed Gusau dam (the witness will tender correspondences on the loan)

Investigation revealed that a reputable water management company Messrs China Geo Engineering Company was initially identified to do the job with an estimate of N800million. Conversely, Messrs China Geo Engineering Company was never involved in the repairs of the damaged dam, rather the Governor approved the award of the contract to repair the dam to another company called ITALCO BUILDERS. The witness will say that the team had inkling that the company was a foreign company which must register in Nigeria before it could be awarded a contract. Inquiry from the CAC showed that the company did not register in Nigeria. The Governor claimed to have repaired the damaged dam but the team has reason to doubt this claim. The witness will say that the Commission is investigating this matter and as soon as the investigation is concluded the Commission will determine the next line of action. 

Investigation revealed that only the sum of about N574, 508,263.25 was purportedly utilized for flood disaster related matters, while the balance of N425, 491,736.75 was diverted to unrelated activities such as settlement of leave grant to the teachers, feeding during ramadhan, payment of auditing of final accounts 1999-2005, surveillance to guest, assistance to INEC etc without the approval of Zamafara State House of Assembly. (the witness will tender relevant documents and a  table of analysis showing the funds paid the company and how the balance was diverted to these unrelated matters) 

Regarding the N600million loan obtained to sell grains to the federal government which was alleged was spent to confer corrupt advantage on the cronies of the former Governor, investigation revealed that in February 2007, Ahmed Sani Yerima as the governor of Zamafara State wrote a memo vide a letter dated 6th February 2007 No GHG/Z/S/256/VOL.1 captioned “ OFFER FOR SALE OF EXCESS GRAINS” to the President of the Federal Republic of Nigeria Chief Olusegun Obasanjo that Zamafara State government had stock of about 100,000 metric tons of assorted grains in its silos and stores. The Governor appealed to the president to direct the Federal Ministry of Agriculture and Water Resources to buy 50,000 metric tones out of the said 100,000 metric tons. Investigation revealed at the end of the day the statement made by Sani Yerima as contained in his letter to the President was false. Even when the Federal Government reduced the supply from 50,000 metric tons to 20,000 metric tons the State government could not supply 20,000 metric tons. It could only supply 9, 181.89 metric tons. The witness will say that the outcome of the false statement was that Ahmed Sani put his State in unnecessary debt and made her to engage in a needless transaction that did not benefit the State but only enriched his cronies at the expense of his State 

Investigation revealed that these grains were to be supplied and deposited at 7 reserve silos across the contrary. These included: i Akure 10,000 metric tons ii Irrua 10,000 metric tons iii Jahun 1,000 metric tons iv. Markudi 10,000 metric tons v. Ogoja 10,000 metric tons vi. Jos 5,000 metric tons vii Minna 4,000 metric tons.  

Subsequently Sani Yerima approved consultancy contract to a company called Development Management System even though the State has commodity board that could have done the job. The consultancy contract was awarded at a sum of N161million which represents 10 % of the total contract sum. A transporter HAD Nig Ltd was also appointed to transport the grains to their respective silos across the country at a cost of N444, 040,000. (The witness will tender notification of contracts issued to the two companies).  

The witness will say that investigation revealed that in May 2007 the State government obtained a loan of N600million from bank PHB PLC because of the sale of grains the State government wanted to sell to the federal government. (The witness will tender relevant correspondences on this loan). Investigation revealed that the Governor did not seek the approval of the State House of Assembly before obtaining the loan from the bank. The findings from the investigation revealed as follows:

The contract was later reviewed downward from 50,000 metric tons to 20,000 metric tons by the Federal Ministry of Agriculture and Water Resources due to limited funds available to them in that the contract was awarded in anticipation of funds from the Finance Ministry. (the witness will tender the letter reviewing the contract)
  The consultant Development Management System (DMS) was appointed as a consultant vides a letter dated 14th May 2007. The contract agreement stated that Zamfara State government would pay the consultant 10% of the total contract sum as service fees and 70% advance would be paid to DMS Ltd on signing of documents. Thus based on the new contract to supply 20,000 metric tons which put the total  contract sum to N644million (six hundred and forty four million naira), the service charge which represents 10% of the contract sum amounts to N64, 400,000( sixty four million, four hundred thousand naira) while the 70% advance payment is N32,200,000 (thirty two million two hundred thousand naira)
It is worthy to note that after the downward review of the grains supply to 20,000 metric tons, the sum of N161million which represents the 10% of the initial contractual agreement as service fees was never reviewed downward to reflect the new rate.
By November 2007, only a total of 9,181.89 metric tons of assorted grains were sold by the State government and hence transported to their respective destinations. This represents about 46% of work done. Meanwhile a total sum of N91, 840,000.00 was paid to the consultant as service fees. 
A thorough mathematical analysis showed that the consultant was being overpaid by the sum of N62, 274,315.

 The analysis is as follows:

If 50,000 metric tons is to be sold at N1, 610,000,000.00

Total cost per metric ton = N1, 610,000,000/ 50,000 = N32, 200 per metric

So 20,000 metric x N32, 200= N644, 000,000

If contract sum for 20,000mt = N644, 000,000 then 10% as service charge =N64, 400,000.00

If 10 bags make a metric then cost per bag will be N32, 200/10 bags = N3,200

Actual transaction 

Whereas 1 metric of grain =10bags of 100 kg

20,000metric x 10 bags = 200,000 bags

9181.89 tons were delivered, therefore 

9,181.89 tons x 10 bags = 91,818.9 bags only were sold and transported.

644,000,000 / 200,000 = N3220 per bag

Therefore 91,818.90 bags x N3220 = N29, 565,685.80

Amount overpaid the consultant=

N91, 840-N29, 565,685.80 =N62, 274,315

The State government gave the consultant the freewill to appoint a transporter, thus he appointed her sister company HAD Nig Ltd as the transporter of the sum of N50, 000 metric tons of grains at a total cost of N444, 040,000.00. A sum of N98, 000,000 was paid to the transporter for which he transported only 91,818 bags as against 200,000 bags. Hence Messrs HAD Nig Ltd was overpaid to the tune of N16, 957,472.
The loan facility of N600million obtained from Platinum Habib Bank was paid into the bank account of the Accountant-General of the State. Out of which the sum of N189,840,000 (N98,000,000 + 91,840) was paid to the consultant and transporter, the sum of N30,000,000 was used to purchase operational vehicles for the monitoring of sale while the sum of N16,800,000.00 was paid as VAT and WHT. The balance of 363,360,000.00 was diverted into other unrelated activities such as rehabilitation of road, payment of zakat and loan to NULGE for purchase of motorcycles based on the Governor’s approval. (the witness will tender table of analysis and all relevant documents on these transactions).

7. BANK OFFICIALS to state as follows: Officials of Bank PHB, UBA, STB, FBN, Zenith Bank and ICB to tender the statements of account, loan agreements, cheques and other documents relevant to this case.

DATED        DAY OF                2015

A.I RAHEEM ESQ

KALU JOSEPH UGBO,

 ICPC HQ, ABUJA

FOR: ATTORNEY GENERAL OF THE FEDERATION

FOR SERVICE ON:

The defendants

O/c ICPC investigators

 

IN THE HIGH COURT OF ZAMFARA STATE

HOLDEN AT GUSAU, ZAMFARA STATE

                                                          CHARGE NO:

FEDERAL REPUBLIC OF NIGERIA------------COMPLAINANT

Vs

AHMED RUFAI SANI                    ]
ALHAJI ISHAM DIKKO            ]
DEVELOPMENT MANAGEMENT LTD    ]----DEFENDANTS PERSONS
HAD NIGERIA LTD

LIST OF EXHIBITS

Statement of account in GTB
Petition
Statement of the 1st defendant, Ahmed Rufai Sani
Statement of the 2nd defendant, Hashim Dikko
Statement of Engineer Lawal Jubril
Statement of Ahmed Abdul Nasir
Statement of Bello Sani Jabaka
Statement of Mohammed Mujtaba Isah
Offer for sale of excess grains
Offer of appointment as consultant
Notification of contract
Letter of acceptance
Sale of grains to the Federal Ministry of Agriculture
Quotation for the transportation
Quotation for the transportation of grains from Gusau
Had Nig Ltd, quotation for transportation
Progress report
Memo to the governor on sale of grains to the FG (3)
Application for N600million loan
Irrevocable standing payment (2)
Re : application for N600million loan
Offer of N600million loan
Acceptance of offer
Interest etc on N600million
Bank PHB Plc
Revision of contract by the Federal Ministry of Agric
Grains supply agreement
Progress report
Summary of sale of grains to FG
Zamafara State task force
Submission of grains delivery certificate
Bank PHB letter and cheques
HAD Nig Ltd
Document on utilization of N600million loan
Distribution of vehicles
Authority letter
Report 
Conveyance of Excellency approval
Request for additional budgetary provision
Resolution
Utilization of N1billion loan
Offer letter
Incorporation document of HAD Nig Ltd
Statements of account of Zamfara State including loan agreements and other documents where applicable in UBA, STB, Bank PHB, FBN, Zenith Bank, ICB ( to be provided later)
Table of analysis (to be provided later)

DATED        DAY OF                2015

A.I RAHEEM

KALU JOSEPH UGBO

 ICPC HQ, ABUJA

FOR: ATTORNEY GENERAL OF THE FEDERATION

FOR SERVICE ON:

The defendants 

O/c ICPC investigators

 IN THE HIGH COURT OF ZAMFARA STATE

 HOLDEN AT GUSAU, ZAMFARA STATE

                                                          CHARGE NO:

FEDERAL REPUBLIC OF NIGERIA------------COMPLAINANT

Vs

AHMED RUFAI SANI                    ]
ALHAJI ISHAM DIKKO            ]
DEVELOPMENT MANAGEMENT LTD    ]----DEFENDANTS PERSONS
HAD NIGERIA LTD

LIST OF WITNESSES

Engineer Lawal Jubril
Bello Sani Jabaka
Ahmed Abdul Nasir
Mohammed Mujtaba Isah
Fateemoh Mohammed
Abdulkadir Abdulrasak
Officials of UBA, FBN, ICB, STB, Bank PHB and Zenith Bank

DATED        DAY OF                2015

A.I RAHEEM

KALU JOSEPH UGBO

ICPC HQ, ABUJA

FOR: ATTORNEY GENERAL OF THE FEDERATION

FOR SERVICE ON:

The defendants

O/c ICPC investigators

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