Probe Panel Accuses El-Rufai of Alleged Diversion of Funds, Money Laundering

John Shiklam in Kaduna

The ad hoc committee set up by the Kaduna State House of Assembly to investigate all finances, loans and contracts awarded by the administration of ex-governor, Nasir El-Rufai, has recommended that the former governor should be investigated by appropriate law enforcement agencies for alleged diversion of funds and money laundering.

Presenting its report on Wednesday at plenary, the chairman of the committee, Hon. Henry Zacharia, said  most of the loans obtained under the El-Rufai’s administration did not follow due process and were not used for the purpose for which they were obtained.

The committee alleged that a total of N423 billion was siphoned by the El-Rufai’s administration while leaving the state with huge liabilities.

The committee accused El-Rufai of breaching his oath of office and failing to exercise due discretion in the administration of the state, thereby plunging Kaduna into unwanted, unjustified and fraudulent domestic and foreign debts over and above the total loans obtained by Kaduna State from 1965 to 1999.

“The governor of Kaduna State between 29th May, 2015 to 29th May, 2023 as the Chief Executive Officer of the state breached his oath of office contained in the 7th Schedule to the Constitution of the Federal Republic of Nigeria (as amended) and failed to exercise due discretion in the administration of the state thereby indulged in:

“Plunging the state into unwanted, unjustified and fraudulent domestic and foreign debts over and above the total loans obtained by Kaduna State from 1965 to 1999 and majority of which were obtained without due process,” the committee stated in the executive summary of the report.

The committee accused El-Rufai of “reckless awards of contracts without due process and due execution leading to several abandoned projects despite payments.

“Authorised the humongous withdrawals of cash both in naira and dollars with no records of utilization and denied the state of the needed resources for development”.

The report also accused the former governor of:
“Complicit activities with commissioners and heads of parastatals to defraud the state by issuing directives to KADPPA to circumvent due process in the payment of contractors vide letter dated 21 June, 2021.

“Diversion of funds and money laundering contrary to all extant laws and regulations and accordingly should be referred to the law enforcement agencies for in-depth investigation and appropriate action.”

The committee said its findings revealed
several cases of corruption in the running of the affairs of the government, ministries, departments and agencies under El-Rufai administration.

On the huge debt profile left by El-Rufai, the committee declared that: “All loans (domestic and foreign) obtained by the Kaduna State Government between 29th May, 2015 to 29th May, 2023 were found to have been obtained without due process, are not binding on the state and the state government should henceforth stop honouring all.”

It recommended that the Kaduna Internal Revenue Service should withdraw its account domiciled at Zenith Bank pledged as security for N20 billion guaranteed by the previous administration in 2023 forthwith and asked the bank to refund all monies deducted on account of the purported illegal guarantee together with the accrued interest thereof.

The report, which was adopted by the house, further recommended that all those who served as commissioners for finance and accountant generals of the state from 29th May, 2015 to 29th May, 2023 be referred to the appropriate law enforcement agencies for investigation.

Also recommended for investigation by the appropriate law enforcement agencies are the Chairmen of Kaduna State Internal Revenue Service (KADIRS) from2018 to 2023.

 
The committee asked the current Commissioner for Finance to step aside to allow for proper investigation into the activities of the ministry from 29th May, 2015 to 29 May, 2023.

Similarly, the current Chairman of the State Universal Basic Education Board (SUBEB) was asked to step aside to allow for thorough and proper investigation into the activities of the Board from 29th May, 2015 to 29 May, 2023.

Also recommended for further investigations by relevant law enforcement agents, are Jimmy Lawal and Muyiwa Adekeye who served the El-Rufai administration as Senior Adviser-Counsellor and Special Adviser to the governor on Media and communication respectively for eight years.

The committee accused Lawal, who was saddled with the coordination of the activities of government ministries and agencies albeit without any constitutional role, abusing  the trust bestowed on him and used the opportunity to introduce dubious companies to which he secured the award of several contracts at outrageous amount and which contracts were abandoned after payment of substantial contractual thereby defrauding the Kaduna State Government.

Adekeye was recommended for investigation on his involvement in the contracts in Kaduna State Media Corporation (KSMC).

The Managing Directors of Kaduna Roads Agency (KADRA) from11th October, 2017 to November, 2021 with the exception of Amina Ja’afar Ladan, who only spent a month in office, was also referred to the appropriate law enforcement agencies for in-depth investigation into their roles in the award and poor execution of contracts during their tenure.

The committee said all loans (domestic and foreign) obtained by the state government between 29th May, 2015 and 29th May, 2023 were found to have been obtained without due process and are not binding on the state and the government should henceforth stop honouring them.

The committee asked several contractors to refund a total of N36.3 billion “being monies paid for work either not done or overpayment or diversion”.