Panel Clears Soludo, Faults Formation, Funding

It was officially confirmed on Tuesday that the $462.923 million invested by the Bank Central of Nigeria (CBN)in the Africa Finance Corporation (AFC)has been recovered by the Presidential Committee which investigated the matter.

Committee Chairman, Tunde Ogunshaki, disclosed this in Abuja, where he also faulted the formation and funding of the AFC, saying the Federal Government should review the autonomy granted the Central Bank of Nigeria (CBN).

The panel acknowledged that errors were made in the setting up of the AFC, but absolved CBN Governor, Chukwuma Soludo, of any wrongdoing in the investment.

It noted that the CBN relied on the approval of former President Olusegun Obasanjo to invest the fund, and that the then federal Attorney General, Bayo Ojo, signed the AFC agreement on May 28 last year.

It confirmed that the CBN funded the investment from the sale of treasury bills, not from Nigeria's account with the Bank of England. The investment was approved by the CBN board on August 2, 2006.

However, the panel frowned at the enormous powers of the CBN board, and recommended that the CBN Act be amended to reduce them.

It noted that a decision such as investment in the AFC should not be left for the CBN board alone and should require the approval of the Federal Executive Council (FEC).

And it recommended that AFC President and Chief Executive Officer, Austine Ometoruwa, and Isaac Sam should be investigated by the Economic and Financial Crimes Commission (EFCC)for money laundering and roundtripping.

It said Soludo should be AFC Chairman in his official capacity, not in personal capacity, if the government decides to continue with the investment.

The AFC board resolved at a meeting in Lagos on Tuesday that Ometoruwa should proceed on indefinite suspension, following his alleged decision to unilaterally place the funds of the AFC in some local banks.

Back in Abuja, Ogunshaki - Deputy Commissioner of Police and the Director of Operations in the EFCC - spoke when the Committee submitted its report to the federal Attorney General, Michael Aondoakaa.

Said he: "A fundamental finding by the Committee is the ascertainment of the exact amount invested by the CBN in the AFC as $462,923,000 instead of the initial $480 million which was originally reflected in the Committee's terms of reference.

"In line with our mandate, we have recovered this amount, which is now in the custody of JP Morgan Chase Bank, New York in an interest yielding account, pending a final determination of the Federal Government's continued participation in the AFC project.

"The Committee has equally ascertained the interest generated by the CBN's investment since it was made in November, 2007 and has also resolved the puzzles about the actual legal status of the AFC.

"The Committee has made several findings as regards the role of the CBN, its functionaries as well as other persons and institutions in the setting up and funding of the AFC. We have made necessary recommendations, arising from our findings, in order to ensure that the mistakes we have identified are not repeated."

Some of the mistakes related to statutory and procedural issues which the Committee believes that the government will determine how best to handle.

"There is no doubt, however, that we have also had to apportion blame to individuals for their actions/in-actions that led to what we consider certain avoidable steps in the formation and funding of the AFC.

"Our Committee, in the course of this national assignment, held several sittings and visited relevant institutions within and outside the country.

"The Committee equally undertook a thorough examination of relevant documents in order to come up with a report that we hope states the facts as accurately as possible, and devoid of sensationalism and undue emotions.

"We have worked assiduously towards an objective assessment of the facts and circumstances surrounding this issue, so that Nigerians may know the truth, in the light of the intense media interest generated by this assignment."

Aondoakaa thanked the Committee for a thorough job and promised to consider the report and present it to President Umaru Yar'Adua for implementation.

The government set up the committee on April 14 to investigate the AFC, particularly with respect to the role of the CBN in its formation, funding, and operation.

It was to determine the laws and procedures relating to the setting up of the AFC, ascertaining its ownership structure, and doing any other thing as may be appropriate.