Tuesday, 4 March 2014
EFCC Report: ATIKU ABUBAKAR
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His Excellency, the vice President, Atiku Abubakar was contacted through a letter EFCC/EC/VP/02/10. dated 18.08.06 to clarify issues raised in relation to his alleged role in approving the release of funds to PTDF without recourse to the Federal Executive Council and their subsequent placements in two banks of his choice. He responded that all placements in Banks approved by him were based on the convincing reasons advanced by the then Secretary of the Fund. He further explained that he was also conscious of the fact that all the projects covered by the approvals would eventually be subjected to ‘Due Process’ certification and Federal Executive approval. And that it was even some few weeks back that approval of some of the contracts were given by the Executive Council. Again, he explained that there is usually a considerable time lag between project approval and actual implementation. It was therefore impracticable to carry out specified projects immediately money was approved or released. Still in his response, the Vice President, went ahead to explain the placement of some of the funds in ETB that it was based on their judgment on the safety of the investment on maturity and the reasonableness of the returns on investment, bearing in mind what obtained in the industry at the material time. However, it is pertinent to mention here that His Excellency kept mute in respect of TIB, keeping in mind what he stated as regards the placements of the fund in ETB.
On the procedure for the approval of funds for PTDF, the Vice President responded that the Executive Secretary usually forwards his request to him, depending on the nature of such request; he made recommendations to Mr. President for approval. On the issue of US50 million transferred from PTDF’ UBA New York account, the VP stated that he cannot remember the circumstances surrounding the movement of the funds to ETB, neither could he recollect giving approval for such movement. Lastly, N30 million initial payment for the purchase of No 555 Adetokumbo Ademola Crescent used as NDTV Headquarters, the Vice President admitted given out the amount, but as a loan at the request of Otunba Fasawe to secure the building for his office.
He also forwarded correspondences between Jefferson and himself but he denied having any knowledge of any correspondence between him on one hand and iGate and NDTV on the other. He further responded that he does not know Rosecom.Net in any capacity but that Mr. Vernon Jackson was introduced to him as Chief Executive of iGate during a private visit to the US. He concluded that we should refer to Mrs. Jamila Atiku Abubakar for any correspondence between her and Mr. Jefferson as he is not in a position to produce any.
ALHAJI IDRIS ISA:
He was born in Kano, in a village called Takai. He came to Abuja in 1989 as a trader. He explained that in 1993 he bought a plot of land along Adetokunbo Ademola Crescent Wuse II, Abuja from one Alhaji Abdulmumini Yahaya. He stated that he developed the plot and used as his resident until late 2002 when he decided to lease it. He further stated that, by December 2002, a gentleman called Dumebi, who saw the lease advert on the property called him severally on the phone while he arranged meeting with him where he came with a Ghanian gentleman called Ahmed. The seal agreement of the property at the rate of N200m,where on the 8th Jan, 2003 Alhaji Isa Idris received the sum of N30m in Habib Bank Drfaft as deposit fee of the property from Dumebi who came in Company of Ahmed. They promised to pay the remaining balance of N170m by the end of June 2003. Alhaji Isa further explained that in July 2003 he received another draft of N100m of Transinternational Bank draft. On October 2nd,2003 the same persons brought a draft of N70m, which he tok them to his bank called at that time Tropical Bank at Maitama, Abuja. Where the title documents were kept. At the maturity of the draft the title documents were hand handed to Dumebi and Ahmed.
From the investigation so far conducted the following facts have been established as follows:-
• That PTDF came into existence in 1973 following the promulgation of Decree No. 25 of 1973 for the sole objective of building capacity in the Oil and Gas Sector of the Nigerian Economy through various activities.
• That to realize this objective, funds are released to PTDF from time to time by the Federal Government after due processes have been followed and approval obtained from the Federal Executive Council.
• In line with this process the sum of $125 Million was approved by His Excellency, Chief Olusegun Obasanjo on 25th April, 2003 for PTDF vide a memo, dated 10/04/03 presented to the Federal Executive Council by the Presidential Adviser on Petroleum and Energy, Alhaji Rilwan Lukman who was the Chairman of the Technical Implementation Committee of the Fund.
• The Vice President (VP), through a letter Ref:SH/VP/254 dated April 29, 2003, granted approval to PTDF to invest the proceeds of US$125million in the following banks and amounts:-
*Trans International Bank (TIB) –US$10m
*Equitorial trust Bank ltd (ETB)- US$115m
•In compliance with the approval –US$62,100,000:00 was transferred to PTDF Dollar Domiciliary Account with Equitorial Trust Bank on 17/07/2003 at an interest rate of 15% per annum.
• By its letter of August 20, 2003, PTDF transferred additional US$52,900,000:00 to ETB, which brought the total deposit of the fund with ETB to US$115,000,000:00 as approved by the VP.
• The VP also approved that the US$115million be invested as follows:-
*US$100million to be converted to Naira at N128 to $1 and the proceeds invested under Term Deposit at 14% interest per annum.
*US$15million be held in PTDF Domiciliary Account under Term Deposit for 180 days at 1.5% interest per annum
• That on 18/10/03, the VP gave the Accountant General of the Federation (AGF) approval to release $20m to PTDF, without referring to the Executive Council, following a request from the Executive Secretary, Yusuf H. Abubakar for an urgent release of the fund to enable him complete some projects of PTDF, but contrary to the purpose of the request to execute the projects, the ES placed the funds in a term deposit in TIB for 365 days at 1.75% interest rate.
• That the placement of the PTDF’s fund were not done arbitrarily, but deliberately designed to promote some business ventures in which the VP and some of his friends has interest.
• That the placement in TIB for instance was designed to promote Netlink Digital Television – NDTV, a satellite television project and Mofas Shipping Company where the Chairman of both companies is Otumba Fasawe, a long standing friend of the V.P.
• That as soon as the first placement of $10million Dollars was made by PTDF at TIB, the Bank granted loans to NDTV and Mofas in the sums of N400million on the 20/10/2003 and N420million on the 22/10/2003 respectively.
• That equally interesting is the fact that as soon as the second placement of $20million Dollars was made by PTDF with TIB, another loan of N730million was granted to NDTV on the 1/1/2004.
• That it was from this loan of N730million, that NDTV remitted the sum of $6.5million Dollars to iGATE in January 2004 as their contribution to their joint business venture.
• It has also been revealed that Otumba Fasawe remitted the sum of N400milliom to the V.P’s Personal Assistant Alhaji Umaru Pariya on the 4/10/03 which he conveniently recovered through a loan of N420million he received from TIB on the 22/10/03 after the PTDF’s funds placement.
• That a clear demonstration of the V.P’s business interest in NDTV is the fact that on 07/01/03 he paid the initial sum of N30million deposit from his Marine Float account in Bank PHB for the purchase of the property situated at No. 555, Ademola Adetokunbo Street, Wuse II, Abuja and used as its Headquarters.
• That the balance of N170million for the purchase of the NDTV Headquarters was not paid until after PTDF has made the initial $10million Dollars deposit with TIB and loan of N400million was granted to NDTV.
• That to further buttress the long standing business relationship between the V.P. and Otunba Fasawe the latter paid the V.P. the sum of N61million on 29/01/01 from his Mofas shipping account with TIB.
• That a further sum of N250million from Mofas Shipping Company account of Otunba Fasawe in TIB was transferred to V.P.’s Marine Float account in Bank PHB on 18/02/03.
• That one Mrs. Maureen Scurry, now Maureen Edu, a former employee of U.S Exim Bank as a business Development Specialist on Africa who, that time represented Exim bank during the NDTV /iGate deal was wired sum of $100,000 on 27/02/04 to her personal account with FSB Washington DC by NDTV through TIB. And this formed part of loan granted NDTV by TIB.
• That the sum of $133,870 and $40,312 were paid to Sofitel Incorporated by NDTV as commitment and processing fee for the repayment of the $6.5m paid to iGate and exclusive of all the loans granted to NDTV by TIB.
• That the U.S based Lawyer, Jean Michael Malek P.C was also paid the sum of $5000 as legal fee in part as a lawyer representing NDTV in the US over the project with iGate.
• That the loans granted to Otunba Fasawe and related companies by the bank, TIB, stood at N1.5 Billion beside the $6.5m granted the NDTV/iGate venture.
• That the NDTV/iGate venture collapsed and iGate agreed upon negotiation to repay the sum of $4m to NDTV, which uptill date only $1.75m had so far been repaid in two tranche of $1m and $750,000.
• That out of the $30million placement made by PTDF in TIB, $23.75million stood as the current balance yet unpaid.
• That another loan of N300m was granted to Ahmed Vanderpuije (MD NDTV) through his other Company Trans-vari Services Limited on 23/10/03 even without collateral just at the time when the two placements from PTDF had already hit TIB.
• That from these funds granted Ahmed Vanderpuije the sum of $110,000 was used in publishing the Nda Yakubu’s book entitled; Nigeria Laws on Public Finances.
• That the first placement of funds by PTDF with Equitorial Trust Bank (ETB), took place on the 25/06/02 in the sum of $50million Dollars from the account of PTDF with UBA New York.
• That it was after the placement of the $50million that Otunba Mike Adenuga paid $20million Dollars non refundable deposit to NCC for the bidding of the Second National Order (SNO) to Globacom on the 06/08/02.
• That the V.P. directed PTDF to make two additional placements of funds with ETB in the sums of $52.9million Dollars on the 20/08/03 and $62.1million Dollars on the 17/07/03
• That the trio of the Vice President, the Executive Secretary of the PTDF, Yusuf H. Abubakar and Otunba Mike Adenuga met in the office/Residence of the Vice President to discuss the placement of the $115m in ETB by PTDF.
• That Globacom equity structure was found to be Conpetro Ltd 51% Alh G. Subair 24%, Prince Babatunde Akinyera 12.5% and Festus Okechukwu Igbomor 12.5% contrary to Chief Adenuga’s claim of sole ownership. That Prince Babatunde Akinyera is believed to be fronting for His Excellency Alhaji Atiku Abubakar for the 12.5% against his name.
• That the Federal Executive Council meeting that approved the NSO license to Globacom was chaired by the V.P.
• That the erstwhile Executive Secretary of PTDF Alhaji Hamisu Yusuf Abubakar was also rewarded with a N200million loan from ETB and a trucking contract with Conoil, a company owned by Mr. Mike Adenuga.
• That contrary to the believe that it was only the sum of $115million Dollars was placed in ETB by PTDF, it has been discovered again that another $50million Dollars was transferred from UBA New Work PTDF Account to ETB with the knowledge of the approving authority just at the time Otumba Mike Adenuga was to pay his $20m fee deposit for Globacom to NCC.
• That $165million invested in ETB by PTDF was returned to CBN, including the accruing interest, when directives were issued in July 2004 that all accounts of Government Ministries and Parastatals were to return to Central Bank of Nigeria, CBN.
• That even the initial N30 million paid by NDTV as deposit for the purchase of the property situated at No. 555, Ademola Adetokunbo Street, Wuse II, Abuja and used as its Headquarters was sourced from an account in Bank PHB owned and controlled by His Excellency the V.P.
• That it has been ascertained the V.P. stood as one of the referees to Otunba Fasawe when NDTV applied for Value Added Network (internet) Service from NCC and the offer was granted.
• That the given address of Alhaji G. Subair, 2/3 Dawaki Road Kaduna is a property belonging to Mohammed Badamasi Babangida, first son to the former military President, pointing to the fact that the shares might belong to the latter.
• That it has been established, Yusuf H. Abubakar, demanded and received $2million kick back from UNIVATION Ltd a UK based Company that was awarded $5million upgrade contract of PTI by PTDF in which he has already retuned N200million out of it.
His Excellency is hereby invited to note:
i. That this investigation was initiated at the instance of a request from the United States Department of Justice.
ii. That the request was sequel to an investigation carried out by the U S authorities which involved certain Government officials, institutions and Private individuals in both U S and Nigeria.
iii. That among those directly affected by the investigation in Nigeria, is the Vice President of the Federal Republic of Nigeria in the person of Alhaji Atiku Abubakar.
iv. That two state Executive Governors in the persons of their Excellencies Chief Victor Attah and Alhaji Ibrahim Saminu Turaki, the Governors of Akwa Ibom and Jigawa States, respectively were also mentioned in the request.
v. That in the investigation so far carried out, no wrong doing could be traced to them unlike the case of the Vice President who has been found to have mismanaged the PTDF funds and abused his office.
vi. That the use of the PTDF funds to promote businesses is instrumental to the large scale mismanagement, misappropriation and abuse of office as highlighted in this report.
vii. That Otunba Mike Adenuga who was earlier arrested, interrogated and granted bail failed to turn up when he was invited for further interview as he was said to have absconded.
viii. That the investigation is still on going and may lead to more individuals being prosecuted.
The Government is hereby requested to approve the following:
a) That PTDF should be removed from the supervision of the office of the Vice President.
b) That the Commission should recover all Public funds embezzled from individuals and institutions involved in this case.
c) That the erstwhile Executive Secretary of the PTDF, Yusuf Hamisu Abubakar, Otunba Fasawe and all those who aided or facilitated in the embezzlement and mismanagement of the funds should be prosecuted.
d) That the corporate entity of Globacom will be protected and preserved, while legal processes will be taken to recover all shares acquired fraudulently or with public funds.
Sir, I respectfully submit to you this report for your kind consideration and necessary action, please.