EFCC probes fresh N3bn arms scandal
The Economic and Financial Crimes Commission(EFCC) is
extending its investigation of arms deals during the
Jonathan administration to a $3 billion contract said to
have been awarded by the Office of the National Security
Adviser (NSA) under the late General Andrew Owoye.
Several arms dealers , a military chief and some other
officials who served under Azazi have already been invited
by the EFCC for interaction on the matter, The Nation
gathered yesterday.
The arms dealers are being quizzed over the alleged
inflation of N3billion contract for the supply of 20 units of
K-38 patrol boats to the Nigerian Army by the disbanded
Presidential Implementation Committee on Marine Safety
(PICOMMS).
The agency is also understood to have made a
breakthrough in tracking how some of the $2billion arms
votes and extra-budgetary funds were withdrawn from the
Central Bank of Nigeria (CBN) based on orders from
above.
Similarly, the commission has quizzed a former
Chairman of the Presidential Implementation Committee
on Marine Safety (PICOMMS), Air Vice Marshal, Salihu
Atawodi(rtd), for a N600m arms scam.
A top-level source familiar with the development said the
arms dealers were invited “for interaction on the
contracts given to them.”
“We noticed some discrepancies like the short supply of
equipment, non-delivery and outright refusal to execute
contracts.
“One of the areas we are looking into is how PICOMMS was
allegedly mismanaged under AVM Atawodi. We have
allegations of inflation of N3billion contract for the supply
of 20 units of K-38 patrol boats to the Nigerian Army.
“There are issues about lack of due process in the award of
the contract and non-delivery of the 20 units of K-38 patrol
boats to the Nigerian Army.
“From records so far, the nation might have been short-
changed to the tune of over N2billion out of the contract
sum.
“In an instance, N620million was withdrawn from the
contract sum, changed to dollars and shared by some
officials of PICOMMS in one day. We will fish out the
culprits.”
A top source in EFCC said: “Atawodi was arrested for
alleged case of conspiracy, abuse of office and
misappropriation of public funds.
“He allegedly abused his position as chairman of
presidential implementation committee on marine safety
to defraud the Nigerian government to the tune of over
N600m through dubious contract to procure military boats.
“He awarded the contract to one Hypertech Nigeria
Limited. The contractor was fully paid, but the boats were
never supplied. The contract award process violated the
Procurement Act.
“AVM Atawodi, who has been on the radar of the anti- graft
agency since 2013, was quizzed for several hours on
Wednesday after he responded to the invitation extended
to him.”
The EFCC spokesman, Wilson Uwujaren, confirmed the
grilling of Atawodi by the commission.
“He is assisting ongoing investigation,” he added.
About two years ago, a businessman blew the lid open on
N3billion contract for the supply of six units of K-38 patrol
boats to the disbanded Presidential Implementation
Committee on Maritime Security (PICOMSS).
The businessman alleged that one of the officials of
PICOMSS converted N620million down payment for the
contract into personal use.
The same PICOMSS was enmeshed in the theft of over
200m Euros.
On the alleged massive withdrawal from the CBN,sources
said that although the apex bank was hamstrung, it was
careful in obtaining a written directive from ex-President
Goodluck Jonathan.
It was unclear at press time whether the EFCC would
interact with CBN officials.
But some vital documents have been retrieved from the
apex bank to aid ongoing investigation.
One of the curious aspects of the investigation was the
withdrawal of N620m from the contract sum in cash and
the sharing of the loot in a day.
Investigation by our correspondent revealed that apart
from probing spurious transactions in commercial banks,
the EFCC has started looking at alleged “compelling and
forceful” withdrawals from the CBN for security matters.
The actual figures in question were not disclosed last night,
but a highly-placed source said some part of the $2billion
was sourced from the apex bank.
The source said: “Investigation has shown some requests
for funds or intervention funds from the CBN for security
reasons. We are tracking all these requests, approvals and
remittances.
“We are already retrieving some relevant documents from
the apex bank in order to ascertain what such funds were
actually meant for.
“One of the key things we discovered was that the CBN
management was, however, careful because it made sure
it got presidential approval of such requests.
“We will confront some of the suspects with these
documents we have retrieved. They have the opportunity
to give the details of how they spent such funds and the
arms procured.”
It was learnt last night that the Acting Executive Chairman
of the EFCC, Mr. Ibrahim Magu, had a meeting with the
Attorney-General of the Federation, Abubakar Malami
(SAN), on how to fast-track the trial of some key suspects in
custody for the $2b arms scandal.
A source said: “The EFCC under Magu is doing its best to
apply international best practices in managing the suspects
arrested with $2b arms deals.
“The EFCC chairman has met with the Attorney-General of
the Federation and Minister of Justice on how to fast-track
the trial of the suspects. What the anti-graft agency did was
only to approach a Chief Magistrate’s Court for an order to
remand the suspects.
“But these suspects can go to a High Court to vacate such
order. We are trying to tidy up to arraign the suspects in
court for an order to keep them in prison custody. In fact,
the EFCC cell is becoming overstretched.”