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Audit Report Exposes How N12billion Was Stolen From Kwara State’s Treasury Between 2011, 2019

Audit Report Exposes How N12billion Was Stolen From Kwara State’s Treasury Between 2011, 2019
September 1, 2022

Between May 2011 and May 2019, Governor Abdulfatah Ahmed of the Peoples Democratic Party (PDP) served as the state governor. 

About N12billion was allegedly stolen from the Kwara State’s treasury between 2011 and 2019, an audit report by the state government has shown.

“The audit also showed that N2billion cash withdrawals not tied to any project or official expenditure were made within eight days in February 2019, barely one month to the 2019 general elections,” Rafiu Ajakaiye, the current Kwara State governor's principal press secretary, said in a Thursday statement.

Between May 2011 and May 2019, Governor Abdulfatah Ahmed of the Peoples Democratic Party (PDP) served as the state governor. 

Ahmed has previously disputed allegations of corruption, although he is still being investigated by the Economic and Financial Crimes Commission.

In September 2021, the Asset Management Corporation of Nigeria (AMCON) seized a mansion in Ilorin belonging to the former governor, Ahmed, over his alleged indebtedness to the tune of N5billion.

AMCON added that it had traced nine other properties belonging to the ex-governor in Kwara, Lagos and Abuja some of which include: houses at 13, Alhaji Masha Road, Surulere; No. 9 Wharf, Apapa, Lagos; Plot 3632, Cadastral Zone E27 of Apo, Abuja; Plot 4115, Cadastral Zone F14 of Bazango, Abuja; Plot 8502, Cadastral Zone E31 of Carraway Dallas, Abuja; and Plot 494, Cadastral Zone E31 of Carraway Dallas, Abuja.

The development comes barely 24 hours after Ahmed, alongside a former Chairman of the Independent National Electoral Commission, Prof. Attahiru Jega; and foremost Nigerian Professor of Political Economy, Pat Utomi, unveiled the Rescue Nigeria Project ahead of the 2023 elections.

Meanwhile, the release by the state government read, “At least N11.9billion of public funds were carted away from the treasury of Kwara State between 2011 and 2019 without any lawful tie to any project or programme, a forensic audit report has revealed, amid other mind-boggling revelations of alleged malfeasance within the period.

"The audit also showed that N2bn cash withdrawals not tied to any project or official expenditure were made within eight days in February 2019, barely one month to the general elections.

"Speaking during the submission of the report to Governor AbdulRahman AbdulRazaq on Thursday, Partner at the SSAC and Professionals Anthony Iniomoh said the report is in two volumes covering Internally Generated Revenue; Capital Receipts; Internal and External Loans; Recurrent / Overhead Expenditure; Personnel Cost (Salaries and Wages); Capital Expenditure; Assets Disposed; Kwara State Internal Revenue Service; Infrastructural Fund Kwara (IFK); Harmony Holdings Limited; amongst others.

“A few highlights of our findings may be necessary for the record. Our forensic audit revealed a colossal pilfering of N11, 981,268,709 which we recommended should be recovered to the public coffers. Similarly, we recommended to the state government to prosecute certain officers and companies in addition to claiming exemplary damages on transactions totalling N6,023,358,444, amongst other key findings,” Inumoh said at the presentation of the report.

“This is especially so in the cases of firms that we observed were paid huge public funds without any evidence of work done on record. In one instance, records show that a firm that was incorporated at the Corporate Affairs Commission on 14th June, 2016 was paid by the state government for a contract it purportedly executed for the state in April of the same year. It became apparent that this was a preconceived attempt to defraud the state.

“There was an instance of public officer getting paid at two different places for years, which is a clear breach of the law. Other infractions arising as a result of obvious conflict of interest and violation of due process were also spotlighted for the government to draw up new policy instruments to prevent such in the future.

“There was also a cash withdrawal within 8 days of N2.06 billion in February 2019 which was of interest to the audit. However, no documentation was made available to validate the purpose for which the money was withdrawn. There were also several other cash withdrawals within the state over the period running into billions of Naira which we could not validate.

“These and others have been recommended to be referred to an Administrative Panel of Enquiry. Furthermore, the audit revealed that loans were obtained by the Kwara State Government within the period under review.

"The elements of these loans could not be validated. Above all, the bank accounts to which these loans were disbursed to and what the loans were used for could not be established or validated.”

The report suggested to the government to prosecute some individuals and firms indicted in the two volume report, while other issues are to be referred to administrative panel of inquiry for some individuals to explain their roles in the many infractions.