A petition filed by the Progressive Youth Movement of Ikeja, Lagos State, accuses Obasa of using proxy companies to embezzle funds from the Lagos House of Assembly and violating due process and procurement regulations.
Nigeria's Economic and Financial Crimes Commission (EFCC) has been petitioned to investigate Mudashiru Ajayi Obasa, Speaker of the Lagos State House of Assembly, over allegations of financial misconduct, breach of public trust, and abuse of office.
A petition filed by the Progressive Youth Movement of Ikeja, Lagos State, accuses Obasa of using proxy companies to embezzle funds from the Lagos House of Assembly and violating due process and procurement regulations.
The petition, dated December 17, says the Finance Management Committee has not met officially since the 10th Assembly was inaugurated, allowing Obasa to make unauthorized financial decisions.
The Lagos State Anti-Corruption Coalition previously filed a petition with the EFCC to investigate allegations of mismanaging N17 billion earmarked for constructing a gate at the Lagos State House of Assembly, as reported by SaharaReporters.
According to the fresh petition obtained by SaharaReporters on Wednesday, the Progressive Youth Movement alleged that the Speaker awarded N469 million contract for the Construction of Ikeja Local Government Secretariat to Orgnitek Consult Limited, identifying it as one of the companies used to perpetrate his fraudulent activities.
The group also alleged that the Speaker approved N200 million for thanksgiving at the Lagos State House of Assembly, saying it shouldn't have cost more than N2 million.
The petition partly reads: "We urge the EFCC to investigate Hon. Obasa's involvement in fraudulent activities in cohort with one of his proxies, Hon Nurein Akinsanya representing Mushin constituency (1) in the Lagos state House of Assembly.
"Since the inception of the 10th Assembly, the Finance Management Committee responsible for the expenditure of the House has not been in operation as no official meeting has been held where decisions were taken on the expenditure of the House of Assembly.
"Rt. Hon Obasa and Hon Akinsanya has been using proxy companies to loot recurrent and capital expenditures from the coffers of the Lagos House of Assembly in manners that constitute breach of due process and statutory procurement regulations."
The Movement listed some other companies allegedly used for the fraudulent activities as: "De-Kingrun Multipurpose Nigeria Limited; Davedab Global Services; Swifthill International Ventures; Cream On Ice Services; Whitehoney Enterprises; Quick Solution International Ventures; Adesav International Ventures; Skye-Joyce Macosh Company; Fabric Splash Ventures; and A.B Delco Nigeria Company."
The Movement also alleged that Obasa had perpetrated corrupt activities through some individuals identified as "Ganiyu Kola Egunjobi, the incumbent Chairman of Agege local Government who has auctioned Agege local Government landed properties to Hon Obasa as gift in breach of public trust. Taiwo Elegbede, Tunde Borokini, Savage Adedoyin Gabriel, Adebayo Adedoyin David, Baruwa Okeowo Idris, Ajibosin Adenike Basirat and Lookman Fowotade.
"It is important to emphasize that Obasa as speaker of Lagos state House of Assembly operates two separate budgets in criminal breach of the statute of the legislative arm of Lagos State Government.
"We therefore urge your commission to investigates Hon, Mudashiru Obasa and his corrupt activities to bring about justice and protect the sanctity of democratic process in Lagos state and Nigeria in general despite his blackmail that he is close to the Chairman of the Commission.”
"We assure you of our unflinching co-operation towards entrenching probity and accountability in the affairs of Lagos State House of Assembly," it added.
When SaharaReporters contacted the Speaker, he described the allegations as nonsensical and political.
He said: "...We should do ourselves favour, all this nonsense (unfounded allegations) is not going to help all of us at all. N200 million for a whole institution; let me break it down, a whole an institution which the members of the institution alone are almost one million people not to talk of extended invitation to the public including children's party.
“When you consider the economic situation of today and in your own mind with your experience, do you believe that N200 million is so much to carry out such an event? I have not even agreed that it is N200 million that was spent but let me go with your figure.
"Secondly, the awarded contract - the company they mentioned, is it in my name? Do they see my name or the names of my family members as directors?
“And in the same manner I was accused of using N17 billion to construct a gate. How much is the House of Assembly allocation that I will now carry out the construction of a gate at the rate of N17 billion? For the fact that you want to satisfy some people, at least they should be reasonable.”
“When election is approaching all manner of allegations will start coming up. So, I don't know what you expect me to say," he added.