Official and unofficial corruption will continue to bedevil any developmental efforts in Nigeria until we elevate serious ones like this to the leve of capital punishment as they have in China.

Enough said.

EFCC Busts $3.5b Power Project Scam (By Yusuf Alli07/08/2011 00:05:00)

The Economic and Financial Crimes Commission (EFCC) has foiled an attempt to swindle a US-based company, Sunergy Worldwide Incorporated of about $3.5billion over a non-existing power project in the country.

Also, the commission has launched a manhunt for the Managing Director of the Nigerian firm, Arvokad Resources Plc, Mr. Jonathan Dike, who was allegedly central to the scam.

Investigation by our correspondent showed that the MD and directors of Arvokad had sought partnership with the American firm to build a $7billion solar energy plant.

Based on bid documents with purported official endorsement of the project by the Ministry of Power and Energy, the American company accepted to fund the project.

But at the point of remitting its 50 per cent of the cost of the project, the bubble burst following discovery by the American firm that Arvokad was not involved in any IPP plant in Nigeria .

A top source in the anti-graft commission, who spoke in confidence, said: “The controversial Nigerian firm, Arvokad, is purportedly located at 138, Aba – Owerri Road in Abia State.

“According to preliminary findings by the EFCC, Arvokad sought a deal with the American company by claiming that it was acting on behalf of the Ministry of Power and Energy.  Arvokad sought for partnership with Sunergy and asked the American firm to submit a quotation of $7bilion for a solar energy power project for the Federal Government.

The US company did as directed and thereafter, it was informed that it has been short-listed as the favoured bidder by the Contract Award Committee of the Ministry of Power and Energy.”

The source added, “As part of our discovery, officials of Arvokad impersonated a former Minister of Power, Nuhu Wya , by presenting documents claiming that the ex-Minister presided over the contract award committee,” and asked the American firm to remit 50 per cent of the counterpart funding valued at $3.5 billion.

“But shortly before the remittance, the CEO of Sunergy Worldwide Incorporated, Yua Xu contacted the recently established EFCC’s Transaction Clearing Platform (TCP) to verify the authenticity of the contract details. The TCP cautioned the American firm to withhold the remittance of the counterpart funds pending verification. And at the end of the day, it turned out to be a big scam and the affected foreign firm was communicated, and advised not to remit any money.”

The source said the EFCC is already on the trail of the Managing Director of Arvokad, Jonathan Dike and any of its directors.  “We have launched a manhunt for all those with stakes in the company; we will certainly arrest them for necessary grilling, “the source said.

Contacted, the Head of Media and Publicity of the EFCC, Mr. Femi Babafemi said: “We have bust the scam but investigation is in progress.”

http://www.thenationonlineng.net/2011/index.php/news/15007-efcc-busts-3-5b-power-project-scam.html

Someone tell the scammer to go eat a dick!! Do you know what a solar plant will do? geeezzz good energy source mehn and it will be constant!!!! The company seem highly interested in the biz !!! shiiiiit!! mehn these mindless fools don't know what they just did? I wish the company will go to Nigeria and see things for themselves!!! Damn!!!!!

This can be successful without insider connection. Most of the corruption cases are facilitated because some people compromised the Nigerian people.

na them them

this shouldn't be on the home page. imo

Good job EFCC.

Ibo

Some people in government will be involved in this scam.

i mean dis is why people dont like to deal with nigerian even africans generally

do people wake up thinking " i need to make money lemmi make up a fake billion dollar plan"

Double folly. First of all by the scammers. You can imagine the damage this will do in the attempts to attract FDI's into the country and the power sector in particular. I can just imagine some dark knights in government and PHCN vermin rubbing their hands in glee. This is very sad. And this is why I say without any contradiction that the real possibility of our development and the pace at which it will happen is ultimately in the hands of all Nigerians and not just those in government. For goodness sake why do we have to keep shooting ourselves in the foot.

Secondly like it happened a few weeks ago with the Custom Service and months ago with the police why did the EFCC not choose to plan a sting. The real possibility of catching not just the front man but possibly the entire chain of perps including their government backers was real. Why this ineptitude. Was someone going to get killed. What was the emergency to publish this. Why the haste. Now chances are that they may never get their man thoughtless of breaking the chain of command that must obviously run through the Power Ministry. This is not very good. They'd better get it right next time.

WTF? $3.5bn USD? Chei, aru eme! One guyman is very mad at EFCC. But on a serious note, if that company was duped of the $3.5 bn, then they deserved it. Who would want to invest that kind of money over the internet without visiting the company? Some du.mb phuck I guess.

I think there is some element of doubt or would i say suspicion even with the US company.Before you do any such high volume job with a foreign company your foreign ministry would have been involved and told about it.Why on earth was the company going to send a counterpart fund without due diligence check either with the their own foreign embassy here or with atleast a visit to Nigeria itself to do a site survey.

tunde300us:

I think there is some element of doubt or would i say suspicion even with the US company.Before you do any such high volume job with a foreign company your foreign ministry would have been involved and told about it.Why on earth was the company going to send a counterpart fund without due diligence check either with the their own foreign embassy here or with atleast a visit to Nigeria itself to do a site survey.

Very sad but true

@tunde300us

What you said is the truth. How come a descent company will do such a job without going through the official procedure or having the high commission check out the company and also confirm the so called contract. Contract of that magnitude can never be done just through the back door. I beleive that the American firm was trying to cut a deal and the Nigerian guy was trying to be smarter than him.

EFCC  should have  asked them to play along with the Nigerian company here  in order to get them arrested. How can  EFCC  just stop the payment and now start looking for the scammer?. Sell a dummy and ask them to come to the airport to meet with the foreign partner. From there, you get them arrested. This is to show you that if EFCC acted this way, it is unprofessional. Why look for the guys now. Who will you arrest? Just arrest the building.

andyanders:

@tunde300us

What you said is the truth. How come a descent company will do such a job without going through the official procedure or having the high commission check out the company and also confirm the so called contract. Contract of that magnitude can never be done just through the back door. I beleive that the American firm was trying to cut a deal and the Nigerian guy was trying to be smarter than him.

EFCC  should have  asked them to play along with the Nigerian company here  in order to get them arrested. How can  EFCC  just stop the payment and now start looking for the scammer?. Sell a dummy and ask them to come to the airport to meet with the foreign partner. From there, you get them arrested. This is to show you that if EFCC acted this way, it is unprofessional. Why look for the guys now. Who will you arrest? Just arrest the building.

But wasn't it in the process of vetting the deal they found out it was fake. By their story they had forgeries looking very official and you know how things work with these crooks they can go to extreme lengths. Heard about one a few years, pretty weird, perhaps folklore but can't be far from the truth, that a syndicate actually penetrated NNPC Towers in Abuja to stage a fake meeting in the office of a manager during break time complete with wall pictures, desk name plate and even a little souvenir exchange. Pray you're not under attack.

~Bluetooth:

Ibo

Slowpoke

If the story we've read here is all there is about the Nigerian coy and her American partner in a
purported multi-billion dollar project supposedly signed, sealed and almost delivered over the
internet without the corresponding inputs from internationally recognised and independently
verifiable project professionals or neither of the country's relevant trade/investment agencies
and/or ministerial apparatus, then really, these people need to get their heads examined. Period!!   

And if the information as contained here is how the EFCC handled this case, then we are in a deep mess!

false news

hbrednic:

false news

exactly what im thinking, they are trying to look busy!!

Reference:

Double folly. First of all by the scammers. You can imagine the damage this will do in the attempts to attract FDI's into the country and the power sector in particular. I can just imagine some dark knights in government and PHCN vermin rubbing their hands in glee. This is very sad. And this is why I say without any contradiction that the real possibility of our development and the pace at which it will happen is ultimately in the hands of all Nigerians and not just those in government. For goodness sake why do we have to keep shooting ourselves in the foot.

Secondly like it happened a few weeks ago with the Custom Service and months ago with the police why did the EFCC not choose to plan a sting. The real possibility of catching not just the front man but possibly the entire chain of perps including their government backers was real. Why this ineptitude. Was someone going to get killed. What was the emergency to publish this. Why the haste. Now chances are that they may never get their man thoughtless of breaking the chain of command that must obviously run through the Power Ministry. This is not very good. They'd better get it right next time.

You noticed also!! They just make up stories in my opinion!! I mean we hear the customs saying on national news station they are 'waiting for the importers, they have impounded the goods' lol #Why don't they ever wait and trace the owners to the warehouse or distributors?

deadie:

WTF? $3.5bn USD? Chei, aru eme! One guyman is very mad at EFCC. But on a serious note, if that company was duped of the $3.5 bn, then they deserved it. Who would want to invest that kind of money over the internet without visiting the company? Some du.mb phuck I guess.

My brother that is how business is done in Nigeria. For instance "Agitator knows someone close to the President, State Governor, LG Chairman, etc. He/She gets the presidents, etc consent and a contract is awarded and the job is done or not done. Cash is paid. Everybody involved in the deal smiles to the bank. case closed.

When some of us condemn and complain that the Nigerian business environment is not favourable, countless others will tell you how foreign companies and some individuals are raking in millions of dollars, operating in the same system.

So any sharp(crooked) businessman knows doing business in Nigeria is a gamble. you win some you lose some.

Nna men, that man would have tore his state to pieces had that money been paid. The obscene opulence that would have followed. I love the way ibo people flaunt their wealth. He has definitely learnt from this and next time, he'll have an ally in the Efcc

@ Reference
You dont vet a multi billion dollar deal in the process of payment, where is the place of due process even before they started the project sef.Like i said i think there is an element of lie somewhere

tunde300us:

@ Reference
You dont vet a multi billion dollar deal in the process of payment, where is the place of due process even before they started the project sef.Like i said i think there is an element of lie somewhere

tunde300us:

@ Reference
You dont vet a multi billion dollar deal in the process of payment, where is the place of due process even before they started the project sef.Like i said i think there is an element of lie somewhere

if you're looking for an element of lie,you'll probably find it in the EFCC's story. The story has so many gaping holes and draws rather funny questions. How did the arkovad (or whatever) CEO figure out that the EFCC were unto him? Did he read it in the papers or did they inform him themselves? Even the details of the transaction are sketchy. The EFCC haven't properly explained how they conducted themselves in this matter and allowed the perpetrators of the act to slip through their fingers.

hmmm, i'm sensing there is no story here at all. They just wanted to renind Nigerians that the EFCC still exists. Investigation ke. I laugh in muhehe.

These people don't know that wealth dubiously acquired will definitely bring sorrows and heartaches.

But the foreign company is not too serious. How come is it as the point of payment that they started their due diligence Or is it that there is a 419 insider in the company?

Preposterous story! I think in my humble opinion, d EFCC is only trying to blow their trumpet 4 what never happened.

tunde300us:

@ Reference
You dont vet a multi billion dollar deal in the process of payment, where is the place of due process even before they started the project sef.Like i said i think there is an element of lie somewhere

Sure you don't but who does the vetting and how possibly they are hand in glove, can be infiltrated or can be faked determines how far the perps can go. The figure reported if true is not one 'eaten' by one man alone. 3.5 billions pigs is not cash register stuff. The Siemens saga went to the very top, the Presidency. It could be the deal was pseudo-real and someone balked at the sharing money stage.

It was reported on another thread that a fellow died stuffed full of drugs. He passed through our ports and perhaps could have made it at the other end. Such is the vetting process for deals in Nigeria. Its a cat and mouse, high wire, high stakes game conducted many times not in official premises but in secret hotel meetings at the dead of night. They want a seal of approval they call the DG or MD to meet them in one top class hotel room and when he gets there and sees the calibre of folks he promptly signs and collects his envelope. These guys can do things you'd simply be amazed.

Talk of any massive contract of late, privatizations, allocations, and the lot. Papers for those are not signed in offices and are not seriously vetted. There is always some vested interest. What I think may have happened is that the team probably took its eye of the ball and forgot to see the EFCC before the investor did.

However how the EFCC handled it was not right. They should have at least laid an ambush and even though they probably would have seen the unclothedness of the king so be it. Just keep the files for the rainy day. There is surely more than meets the eye. If we don't hear anything about it again then its more official than we think.

This EFCC we have is a charade. They have not arrested the man, no arrest and next thing we hear the case is burried and forgotted . The mr. scammer goes and restrtegizes. EFCC you guys are not serious. Shame on YOU

this is serious o!

The address given by the scammer has no such company. Yahoo boyz are not smiling!

the story is bullchit

google search for scammer and scammee turns up nothing

'yua xu' turns up nothing either

neither arvokad nor the american energy company about to invest 7billion dollars  - sunergy have websites

a web site will be an integral part of such a scam, and it would still be cached by google search.

efcc making up  thunder. incompetent jackasses. you tell them sting they will say we be insect?

no company will come near such an investment without due diligence.

they would have demanded to meet with the contractors, design team,visit the proposed site , determine project viability, ROI,  etc. there would have been a formidable legal team to insert multiple clauses.

people just drop money like that, and with a company that for all intents and purposes is a mushroom company , no track record, no partners, no nada?

this is just efcc tales by moonlight.

and as has been pointed out - you onnly bust a syndicate when you make arrests of the top dogs. not when you announce that they got away. SMH at incompetent glory hound nigerian police.

^^^ see how things are done in Nigeria.

Reference:

Sure you don't but who does the vetting and how possibly they are hand in glove, can be infiltrated or can be faked determines how far the perps can go. The figure reported if true is not one 'eaten' by one man alone. 3.5 billions pigs is not cash register stuff. The Siemens saga went to the very top, the Presidency. It could be the deal was pseudo-real and someone balked at the sharing money stage.

It was reported on another thread that a fellow died stuffed full of drugs. He passed through our ports and perhaps could have made it at the other end. Such is the vetting process for deals in Nigeria. Its a cat and mouse, high wire, high stakes game conducted many times not in official premises but in secret hotel meetings at the dead of night. They want a seal of approval they call the DG or MD to meet them in one top class hotel room and when he gets there and sees the calibre of folks he promptly signs and collects his envelope. These guys can do things you'd simply be amazed.

[size=14pt]Talk of any massive contract of late, privatizations, allocations, and the lot. Papers for those are not signed in offices and are not seriously vetted.[/size] There is always some vested interest. What I think may have happened is that the team probably took its eye of the ball and forgot to see the EFCC before the investor did.

However how the EFCC handled it was not right. They should have at least laid an ambush and even though they probably would have seen the unclothedness of the king so be it. Just keep the files for the rainy day. There is surely more than meets the eye. If we don't hear anything about it again then its more official than we think.

Yahoo boys aint smiling, Remain small dey for don hammer big time