₦airaland Forum

The Presidential Library

When Obasanjo launched his N7 billion library project, government contractors, banks, businessmen, governors, government functionaries and hangers-on fell over one another to donate N4 billion, while the oil majors operating in Nigeria put in US$20 million. Those who donated were a consortium of banks – N622million; 36 state governors – N360million; MikeAdenuga-N250million; Aliko Dangote and friends- N200million; Femi Otedola- N200million; Nigerian Ports Authority, NPA community- US$1million; Ogun State governor-N100million; Obasanjo Holdings- N100million; Sunny Odogwu-N100million; Arisekola Alao-N100million etc.

Also, Fawehinmi took Obasanjo to court, saying that he abused his office and violated the constitution because, the presence of the big donors meant he used his office to “force” out the money from the corporate organisations and those seeking one favour or the other.

Excess Crude Account

When he was in power, Obasanjo withdrew N2.1billion from the excess crude oil funds. That was in March 2006, when he explained that he wanted to use the money to supplement the cost of the extension of the national census. However, the former Nigerian leader failed or refused to inform the National Assembly or those who elected him into power for almost three months.

It was only after the Senate Committee on Finance and Appropriation began to turn its gaze in that direction that Obasanjo wrote a letter to the House of Representatives, claiming $17,290,067 (about N2.1 billion) was withdrawn after he had convened an emergency meeting of the stakeholders–some state governors and the Revenue Mobilisation Allocation and Fiscal Commission members.

However, analysts maintained that Section 80(3) of the 1999 Constitution states that no monies shall be withdrawn from any public fund of the federation, “unless the issue of those money has been authorised–not by governors or stakeholders–by an Act of the National Assembly.”

President Obasanjo used his position to corner considerable shares of Transcorp, a blue chip company that was formed overnight to corner juicy contracts and make fat company acquisitions. It was incorporated in November 2004 and officially launched on 21 July 2005, at the Presidential Banquet Hall, State House, Abuja, with Obasanjo as the special guest of honour.

The Transcorp matter was so serious that Chief Gani Fawehinmi, the human rights lawyer, dragged the former president to the Code of Conduct Bureau. He wanted Obasanjo tried over the activities of Transcorp and his shareholding in the company seized or forfeited to the federal government as provided for under item 18(2)c of the Code of Conduct for public officers contained in the fifth schedule, part 1 of the 1999 Constitution.

Fawehinmi lamented that during its formal launch on Thursday 21 July 2005, Obasanjo announced some concessions to the corporation as part of government support and encouragement.

These include: Licence to build a 400,000-barrel per day refinery, licence to build an independent power plant, access to the federal government cassava project for the construction of cassava processing exports facility, designed land mass for the construction of free port facilities, continued support to help open up market on the African continent and to make Transcorp a partner in Nigeria’s current policy on private/public partnership, creating additional opportunities to develop large scale projects in oil and gas, power and information and communications technology, ICT.

As Fawehinmi put it, the company acquired three prime business interests from Nigeria: four oil blocks, OPL218, 219, 209 and 220 allocated to it on 21 July 2005 by Obasanjo when it was launched; Nicon-Hilton, Abuja in October 2005 for $105million and NITEL on 3 July 2006 for $750million.

The lawyer noted that the Director-General of the Nigerian Stock Exchange, NSE, and Chairman of Transcorp, Dr. Ndi Okereke-Onyiuke, admitted before the House of Representatives that the former president is a subscriber to Transcorp through Obasanjo Holdings Limited.

He added that, the admission by the Trustees–Elder Daniel Atsu and Barrister Lucky Egede–of Obasanjo Holdings Limited compounds the constitutional illegality of the ex-president’s involvement in Transcorp. Obasanjo Holdings Limited, the lawyer maintained, is the nominee of President Olusegun Obasanjo in Transcorp and acts on behalf of the president as a cover.

He argued: “for the president to allocate oil fields or blocs as the Minister of Petroleum Resources to Transcorp, a company in which he has substantial shares, is clearly an abuse of office contrary to section 15(5) of the Constitution of the Federal Republic of Nigeria, 1999 which provides that, “the state shall abolish all corrupt practices and abuse of power.”

The former president used his influence to sway the purchase of NITEL and Nicon-Hilton Hotel in favour of Transcorp, a practice which Fawehinmi regarded as “a corrupt act and violation of the code of conduct.”

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