John Shiklam writes on the report of the ad-hoc committee set up by the Kaduna state House of Assembly to investigate loans, financial transactions and contractual liabilities during the eight year administration of ex-Governor Nasir El-Rufai.

All eyes are now on Kaduna state governor, Senator Uba Sani to implement the recommendations of the state House of Assembly arising from the report of its ad-hoc committee set up to investigate loans, financial transactions and contractual liabilities under the eight year administration of his mentor and predecessor, Nasir El-Rufai.

The report indicted the former governor, some officials who served in the last administration as well as some contractors, accusing them of stealing and mismanaging the resources of the state.

The House had on April 16, 2024, set up an an Ad-hoc committee to investigate the El-Rufai administration following complaints by Governor Sani at a Town Hall meeting that he inherited huge debts and contractual liabilities which are crippling his administration.

Addressing stakeholders at the Town Hall meeting which held on March 30, 2024 in Kaduna, the governor had said the preceeding administration left huge debt burden, comprising of $587m foreign debts, N85 billion local debts and N115 billion contractual liabilities.

He also lamented that he was finding it difficult to pay salaries as the debts were being deducted from the state’s share of federal allocation.

The report of the 13-member ad-hoc committee headed by Hon. Henry Zakariya, was presented at plenary on Wednesday, June 6, 2024 and adopted by the House.

The report made startling and damning revelations about the loans, financial and contractual dealings under the  El-Rufai government between May 29, 2015 to May 29, 2023.

The report declared that between May 29, 2015  and May 29, 2023, a total of N423.1 billion was allegedly looted by government officials.

The 175-page report also disclosed that many of the loans taken by the former governor did not follow due process and were not used for the purposes for which they were collected.

According to the lawmakers, some of the projects executed between 2015 and 2023 were not completed while majority were abandoned.

“The process followed in awarding some of the contracts and the level of compliance with the contractual agreement are in violation of the Kaduna State Public Procurement Law, 2016 (KADPPA Law, 2016)”, the report said.

The lawmakers noted that the major reasons for sourcing of contractors is to get the best man for the job with regards to cognate experience of tenders in related assignment, capacity, knowledge of project size, ability to deliver quality work on time and many more forms of selection of contractors.

It regretted, however, that most of the contracts awarded from 2015-2023 were awarded through single source method, which, apart from contravening the provision of the law, led to inflated contractual sums, substandard work and in some cases non-performance after collecting huge sums of money in advance as part payments.

“The resultant effect is numerous abandoned projects, liabilities, and great losses to the state,” the report said.

The report stated further that the committee established that between 1965 and 31st December, 2014, the total foreign loans as contained in the handover notes of the state was $234m before the inception of El-Rufai’s administration on May 29, 2015.

“That on 29th May, 2015 when Mallam Nasir El-Rufa’i took over the governance of the state, all domestic loans had been paid by the previous administration and therefore no liability on domestic loan was handed over to him as shown in the signed handing over notes by both outgoing and incoming governors.

According to the lawmakers, “when Mallam Nasir El-Rufa’I took over governance of Kaduna state, the mopped up cash in the state paid into the TSA amounted to N34 billion only”.

It also revealed that the total Revenue (Loans, FAAC, IGR, Grants, Refunds and Intervention) received by the Kaduna state government from 29th May, 2015 to 29th May, 2023 amounted to N1.4 trillion and  $758.1 million.

The report said “through the use of unauthorised Debit cards, the Ministry of Finance in collaboration with officers of Kaduna State Internal Revenue Service (KADIRS), withdrew through third parties, the sum of N721.6m from the internally generated revenue account of the state.

The report alleged that the Ministry of Finance, in collaboration with KADIRS,  siphoned the sum of N30 billion from the internally generated revenue account of the state.

The lawmakers also said the total value of  contracts awarded by the El-Rufai administration from 29th May, 2015 to 29th May, 2023 amounted to N510.4 billion, saying out of this alleged amount, only N198.9 billion was paid to contractors.

The report said the committee discovered that the total contractual liabilities as at 29th May, 2023, stand at  N311.4 billion and $26.2 million, respectively.

Public liability (gratuity and pension) as at 29th May, 2023 stood at N23.9 billion, while the liability of the state government to the consultants engaged between 29th May 2015 and 29th May 2023, stood at N602.02 million.

The committee also observed that the total amount of money withdrawn by the Commissioner of Finance and the Accountant General stood at N4.9 billion and $1.4 million.

The report said available evidence showed several cases of corruption in the running of the affairs of the government, ministries, departments and agencies in Kaduna state from 29th May, 2015 to 29th May, 2023.

The lawmakers  recommended that those accused of corrupt practices should be investigated further by relevant security agencies.

The House noted that at the twilight of the El-Rufai administration, a N20  billion loan was taken from Zenith bank without following due process like several other loans and the IGR account was presented as security for the loan.

The report recommended that the KADIRS should withdraw the IGR account domiciled at Zenith Bank forthwith and to request the bank to refund all monies deducted on account of the purported illegal guarantee together with the accrued interest thereof.

Other recommendations by the lawmakers are: “That, all the commissioners of Finance of the State from 29th May, 2015 to 29th May, 2023 be referred to the appropriate Law Enforcement Agencies for thorough investigation.

“That, all the Accountant Generals of the State from 29th May, 2015 to 29th May,  2023 be referred to the appropriate law enforcement agencies for investigation.

“That, the Chairmen of Kaduna State Internal Revenue Service (KADIRS) from 2018 to 2023 be referred to the appropriate law enforcement agencies for thorough investigation.

“That, the current commissioner of Finance, Kaduna state do step aside to allow for proper investigation into the activities of the Ministry from 29th May, 2015 to 29th May, 2023.

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

“That, the current Executive Secretary of the State Pension Bureau do step aside to allow for proper investigation into the activities of the Bureau from 29th May, 2015 to 29th May, 2023”

The lawmakers further recommended “That, all the Managing Directors of the Kaduna Market Development and Management Company Ltd from 29th May, 2015 to 29th May, 2023 be referred to the relevant Law enforcement agencies for a thorough investigation into their handling of the affairs of the company.

“That, the coordinator of the Kaduna State Government’s Irrigation Programmes for the cultivation of Wheat at Ruwan Sanyi, Kubau Local Government Area in 2016 or thereabout, be referred to the appropriate Law Enforcement Agencies for a thorough investigation.

“That, Ms. Dolapo Popoola, the immediate past Managing Director of KAPSCO whose whereabout is not known, be referred to the appropriate law enforcement agencies for investigation into her handling of the affairs of the company and for the recovery of all government properties in her possession.

“That, Mr. Muyiwa Adekeye, the Special Adviser to the governor of Kaduna State on Media and Communication from 29th May, 2015 to 29th May, 2023 be referred to the appropriate law enforcement agencies for investigation on his involvement in the contracts in Kaduna State Media Corporation (KSMC).

“That, all the Managing Directors of Kaduna Roads Agency (KADRA) from 11th October, 2017 to November, 2021 with the exception of Engineer Amina Ja’afar Ladan, who only spent a month in office, be 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, while the management and senior staff of the agency be redeployed to other relevant ministries and agencies.

“That the Kaduna State Government between 2015 and 2023 engaged consultants to ensure proper execution of the contracts awarded within the period under review and liability stand at ₦ 602, 062,388.55 and the governor is hereby called upon to look into the liability.

“That, all loans (domestic and foreign) obtained by the Kaduna State Government between 29th May, 2015 to 29th May, 2023 and found by the committee to have been obtained without due process are not binding on the state and the state government should henceforth stop honouring all obligations arising from them.”

The lawmakers also recommended that 15 contractors should refund the total sum of N36.3 billion being monies paid for work either not done, overpayment or diversion.

The report also recommended “That, the unjustified cash withdrawals to the tune of N4.9 billion between 2019 to 2022 by Hon. Commissioner of Finance and the Accountant General of the State be referred to the appropriate law enforcement agencies for in-depth investigation and necessary action…

“That, the sum of N632.4 million paid to Tulip Future Associates Ltd without official engagement as consultants be recovered by the state government.

“That, the sum of N80 million paid to Edi-Jen & Co. Ltd  on the 3rd of March, 2023,  as imprest while he is not a government employee be recovered by the Kaduna state government.

“That, the sum of N1.4 billion which the committee found was fraudulently paid into the account of MISHA Travels Agency by the Accountant General of the State be recovered and paid into the Kaduna State Consolidated Revenue Fund Account…”

Similarly, the report recommended “That, Mr. Jimmy Lawal, Senior Adviser-Counsellor to El-Rufai  from May, 29th 2015 to May 29th, 2023 who was saddled with the coordination of the activities of government ministries and agencies albeit without any constitutional role, abused 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 sums, diversion of funds meant for execution of projects thereby defrauding the Kaduna state government, be referred to the relevant law enforcement agencies for thorough investigation and necessary action.

The report noted that ex-governor El-Rufai who was the Chief Executive Officer of the state, breached his oath of office contained in the 7th Schedule to the 1999 Constitution of the Federal Republic of Nigeria (as amended) and failed to exercise due diligence in the administration of the state thereby “plunging the state into unwarranted, unjustified and fraudulent domestic and foreign debts over and above the total loans obtained by Kaduna state from 1965 to 1999, majority of which were obtained without due process”.

The report alleged that the former governor “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”.

El-Rufai was further accused of alleged complicity in the activities of 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 21st June, 2021.

The lawmakers accused the governor of alleged diversion of funds and money laundering contrary to all extant laws and regulations and recommended that he should be referred to the law enforcement agencies for in-depth investigation and appropriate action.

Reacting to the allegations, El-Rufai dismissed the report of the lawmakers, saying it is politically motivated.

In a statement by his spokesperson, Muyiwa Adekeye, he said he led “a government of integrity”  during his eight-year administration.

The statement reads: “Malam Nasir El-Rufai is immensely proud of his record of governance and the legacy he left in Kaduna state.

“This record of consistently high performance in public and private office cannot be altered by any malicious effort to use the auspices of a state legislature for defamation and undeserved smears.

“Many of the officials who served in the El-Rufai government appeared before the ad-hoc committee because of their confidence in the quality of their service and the rectitude which they served Kaduna state.

“They were under no illusion that they were participating in a fair process. It was obvious that the ad hoc committee was merely going through the motions of an inquiry just to give some gloss to predetermined conclusions.

“It is sad to see such a shameful departure from any notion of decency and fairness by a state legislature.

“We dismiss with contempt the claims being peddled in connection with the report.

“Malam El-Rufai wishes to assure discerning Nigerians that he has served Kaduna state with integrity and to the best of his capacity, assisted by a hardworking and patriotic team. He complied with all extant laws in all his activities while he was the governor.

“This jaundiced probe should be disregarded as the politically motivated hatchet job it is.”

Also reacting, a former senator who represented Kaduna central senatorial zone, Shehu Sani, said  Kaduna state was  plundered by fraudulent technocrats, thieving consultants and contractors domiciled under the administration of ex-governor Nasir El-Rufai.

Sani who opposed the $350 million World Bank loan which eventually led to his losing his senatorial seat in 2019, said the humongous amount of money allegedly stolen during the  El-Rufai administration must be recovered. 

He commended the house of assembly for a good  job.

“The Kaduna Assembly has done a good job. I wish to congratulate them. The next step is to ensure the recovery of our stolen money from those leeches and vultures, “Sani said. 

He added that all “Kaduna state was simply plundered by fraudulent technocrats, thieving consultants and contractors domiciled in Sir Kashim Ibrahim House.

“For anyone who cared to go through that published report, I don’t know what serving with integrity means”.

According to Sani: “Kaduna was a victim of two types of banditry – the one in our forests and the one in the government house. They left behind estates and malls for their children and left behind a mountain of debt for the children of the poor.”

On its part, the opposition Peoples Democratic Party  (PDP) in the state called on Governor Sani to ensure that all the monies allegedly looted  during the eight year administration of El-Rufai  are recovered

In a statement, state publicity secretary of the party, Abraham Catoh called on the governor to, as a matter of urgency, invite the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and other related matters Commission (ICPC) to further investigate and recover all the monies allegedly “looted by  El-Rufai and his cronies.”

Catoh said the PDP had been vindicated by the report of the ad-hoc committee.

“The reports of the Kaduna State House of Assembly investigations on financial expenditure of the immediate past administration of Nasir El-Rufai has vindicated the PDP, that has always challenged the government on certain expenses of the El-Rufai government.

The PDP wish to called on the governor of the state, Senator Uba Sani to, as a matter of transparency and posterity, immediately invite the Economic and Financial Crimes Commission and the Independent Corrupt Practices and other related matters Commission to further investigate and recover all the monies allegedly looted by Nasir El-Rufai and his cronies and those found guilty be prosecuted, as revealed and recommended by the committee’s report”.

Catoh said the PDP is following events as they unfold and will always react accordingly.

The statement said the PDP is in full support of  government action towards enthroning transparency and good governance across all levels of government in the state.

The party commended members of the House of Assembly “for a job well done and for standing on the good side of posterity as, history will never judge them in bad light”.

Observers, however, wondered why the committee did not invite the former governor to defend himself of all the allegations or hear his side of the story.

It was also gathered that some individuals and contractors who were accused of  corruption and asked to refund some money were not invited to defend the allegations against them.

Some supporters of the former governor also wondered why Governor Sani, who facilitated the $350 million World Bank loan, was not invited before the committee.

The ad-hoc committee was also accused of conducting its affairs in secrecy as the media was not invited to monitor deliberations during its sittings.

Supporters of El-Rufai also alleged that the whole thing is politically motivated as some powerful people see the former governor as a threat to their 2027 ambition.

“Some people somewhere instigated this probe for political reasons to smear El-Rufai image for their political gains”, a supporter of the former governor said.

Notwithstanding, many residents of Kaduna state have commended the lawmakers for a job well done.

Some residents are also calling on the lawmakers to set up another committee to investigate how people’s houses were illegally demolished and plots of lands seized and allocated to the friends and cronies of the ex-governor.