The contract was reportedly given to a former governor of Imo State and senator representing Imo West senatorial district, Rochas Okorocha, SaharaReporters has learnt.
A fresh contract scandal of $420 million is said to be currently rocking the Association of Local Governments of Nigeria, (ALGON), over a nonexistent contract for the supply of 'breast cancer kits'.
The contract was reportedly given to a former governor of Imo State and senator representing Imo West senatorial district, Rochas Okorocha, SaharaReporters has learnt.
The fraudulent contract, SaharaReporters, gathered has generated controversy and a cold war among officials of ALGON.
It has also created two camps in the association.
An official of the Federal Ministry of Justice in Abuja, who is privy to the details of the scandal and spoke to SaharaReporters on condition of anonymity, said the controversial $420 million supply contract had been lingering for several months now following the refusal of the National President of the Association of Local Governments of Nigeria (ALGON), Kolade David Alabi, approve the deduction of the $420 million from the allocations of the 774 local government areas.
According to the ministry's official, an agreement for the payment of the $420 million for the contract was drafted by the solicitor general of the federation with the ministry serving as the mediator.
The source said, "I can confidently tell you that everything is being done now to speed up all processes concerning the payment of that $420 million before the expiration of the outgoing President Muhammadu Buhari's administration.
“So many interested parties are working around the clock to see that the money is paid so that they can collect their own percentage as promised them. There is a serious in-house fight in ALGON. There is a cabal already battling the ALGON president, Alabi to sign the approval for the deduction of the money. The DG was the one who dragged the deputy national president to see the solicitor general so as to perfect everything regarding the payment.
"The solicitor general of the federation, the director general of ALGON, Hajiya Binta Adamu Bello, director of legal, ALGON Mrs. Evan Enekwe and other officials have vowed to fight with their last drop of blood to battle the ALGON president to sign the approval for the money to enable them to collect their percentage. The former Imo State governor ambushed ALGON and secretly rushed to a federal court here in Abuja in a bid to compel ALGON to pay him the $420 million but ALGON got wind of the case and entered defence. ALGON beat him in Appeal Court and he went to the Supreme Court where both parties were only advised to go home and resolve amicably, so there was no judgement.
"Meanwhile, Okorocha had to write to the Central Bank of Nigeria (CBN) to pay him the $420 million but CBN vehemently refused that they are not bankers of local government councils and as such can't be dragged into some sort of fraudulent and corrupt practice.
“It's so unfortunate that the ALGON DG, a retired permanent secretary, ministry of women affairs and social development and Ministry of Health and wife of a former minister could be aiding and abetting such massive fraud. The ALGON DG is the person in charge of the secretariat who actually brought out these shady deals and seriously mounting pressure on the ALGON president to sign the approval for the deduction of the $420 million.
"On her part, the ALGON Director of Legal is driving the process, she is helping out in looking at the draft document to see how they can cede money to Rochas Okorocha. Don't forget, the ALGON president has the final say in this matter and once his signature is on the document, local governments will begin to bleed to death but he doesn't want to sign and the DG, Director of Legal, deputy national president of ALGON, some NEC members and other officials are putting serious pressure on Alabi. You see this matter, there is a way they are going about it secretly to prevent any leakage to the press but I am not happy with the way and manner fraud and corruption are been allowed to be part of our lives in this country.
“Between 2020 and 2022, the Association of Local Governments of Nigeria, ALGON, was enmeshed in a series of litigation and financial crisis as the association’s Interim Management Committee demanded that past national officers must account for over N5.5 billion illegally diverted from ALGON’s account using a purported consultant to illegally divert ALGON’s share of the Paris Club refund.”
Meanwhile, when contacted, ALGON DG, Hajiya Binta Adamu Bello, who was speechless for a while, declined to comment on the issue and simply said, "I don't have any comment on that." While the ALGON Director of Legal, Mrs. Evan Enekwe simply said, "This is a wrong number please,” and hung up immediately the matter was mentioned to her.
Commenting on the controversial supply contract, the deputy national president of ALGON, Aminu Muazu Maifata, who doubles as the Nasarawa state chapter chairman of the association, said, "I was made the chairman of the committee on that issue. But call my president he will give you more details."
However, when contacted for comments on the issues, the national president of ALGON, Kolade David Alabi, who is also the chairman of Bariga Local Council Development Area of Lagos state, confirmed to SaharaReporters that the issue had been lingering for several months.
He, however, said the controversial supply contract was not done by his administration.
"I got a letter from the Federal Ministry of Justice concerning the contract and to effect payment. But knowing fully well I was not part of it and was confused about the whole issues, I had to send some of my officials to meet and interface with the ministry and report back to me.
“I want to be straightforward in anything I am doing. Please, I will appeal to you, give me some time, I am not in the office now, but when I get to the office, I will check my files and books to enable me to speak more on the issue accurately with facts. I will call you back please."
But he never did and could not be reached till the time of filing this report.
Efforts to reach Okorocha were not successful as calls to his mobile lines did not connect. Text messages sent to him were not replied to.