The uncovered N12.3bn fraud in ISOPADEC
In order to alleviate the
sufferings of the oil producing communities of the state, the Imo State
Government in 2007 established an interventionist agency called the Imo State
Oil Producing Areas Development Commission. It was modelled after the federal interventionist
agencies such as the Niger Delta Development Commission and the North East
Development Commission. Unfortunately, rather than ISOPADEC, as the agency is
called, improving the welfare and well-being of the people of the oil producing
areas of Imo State, it is at present embroiled in allegations of fraud.
Some national newspapers last
Sunday, August 2, 2020 published different versions of the report of the
forensic audit of the agency where an estimated N12bn was allegedly unaccounted
for. The reports claimed that N12.3bn was misappropriated between 2007 and
2020. Out of the sum, N10bn claimed to have been used for execution of projects
by the commission during the years in review was discovered to be false as the
acclaimed projects were nonexistent. The audit was conducted by Corporate
Development & Assets Management Ltd, was commissioned by the Hope Uzodinma
administration.
According to The Sun
newspaper, a breakdown of some of the findings of the audit report which covers
the 2007 to May 2020, shows that N3.5bn was an inexplicable online transfers
from ISOPADEC to “sundry payees” from inception in 2007 to January 2020. Most worrisome
of the report was a N3bn spent between June 2019 and January 2020 under the
ousted shortlived administration of Emeka Ihedioha.
It was also revealed that only
44 transactions under the sub-head of unexplained expenditure and online
transfers were carried out in 12 years (2007 to 2018) while 88 of such illegal
transactions were carried out in less than eight months (June 2019 to January
2020) The report also showed that the overall expenditure profile of ISOPADEC
within the period under review witnessed an unprecedented high in seven months
than in any single year in 12 years. This period happens to coincide with
when Ihedioha was in the saddle briefly
as the governor of the state.
In 2008, the commission
allegedly spent N3.1bn, N1.7bn in 2009, N1.4bn in both 2012 and 2013 and N1bn
in 2017. The remaining years, from 2007 to 2018, were less than a billion
naira. But between June 2019 and January 2020 alone, less than eight months,
the commission spent N3.3bn.
The report also revealed that
huge sums of money were paid to contractors without following due process in
direct violation of extant laws; huge serial online transfers were also made to
either unknown or unidentified recipients. It further showed that payments to
contractors were made without any guaranteed APG or certificates earned and
that there was no project history, tender records or evidence of approvals from
the board as well as lack of adherence to existing protocols on award of
contract above N1m.
In short, the report gave a
breakdown of the unaccounted N12.272bn as comprising of N9.611bn from statutory
allocation, miscellaneous inflows of N2.203bn, N410.721m deductions and N48.1m
gifts to staff. The report however recommended that the state government should
take steps for the immediate recovery of the misappropriated sums.
Earlier in January, this year,
a former governor, Rochas Okorocha, was indicted for allegedly misappropriating
over N6bn funds allocated to the commission. The committee set up to
investigate ISOPADEC’s activities from May 2011 to May 2019 disclosed this
while presenting its report to Ihedioha. Presenting the report at the
Government House, Owerri on January 8, 2020, the Committee Chairman, Romanus
Ezeogu, said, “It is painful to note that citizens and some Managing Directors
colluded with Okorocha to misappropriate ISOPADEC’s funds with impunity.’’
The investigative panel also
alleged that Okorocha arbitrarily released part of ISOPADEC funds to purchase
vehicles and transformers for campaigns and diverted huge sums that accrued to
the commission from bailouts, Paris Club refund, local governments joint labour
salary/pension, and Secondary Education Management Board Account, among others.
The committee also indicted Chike Okafor and Paschal Obi, who represent Okigwe
South and Ideato South respectively at the House of Representatives for their
alleged involvement in the misappropriation of ISOPADEC funds. Before they were
elected into the House of Representatives, the duo served as Commissioner for
Finance and Principal Secretary to the governor respectively. Expectedly, Okorocha
dismissed the allegations.
The Nigerian Voice newspaper
of January 15, 2020 also reported that about 50 youths suspected to come from
oil producing areas of Imo State descended on the headquarters of ISOPADEC on
January 14, 2020 allegedly carting away TV sets, laptops, fridges, bags of rice
meant for distribution, and money worth hundreds of millions of naira. The
attack on the corporate headquarters of the interventionist agency reportedly
happened immediately news filtered into the state that the Supreme Court had
pronounced Uzodimma as governor replacing Ihedioha.
As a neutral and apolitical
observer of events in Imo State I dare say that these whole probes and
counter-probes of ISOPADEC seemed like a hatchet job meant to spite
predecessors in office. How do I mean? Ihedioha set up the Romanus Ezeogu Panel
that indicted Okorocha. That panel only investigated management of ISOPADEC
funds during Okorocha’s eight years in office. Expectedly, being that they
belong to different political camps, Okorocha was indicted. Some people allege
that Okorocha probably decided to hit back at Ihedioha by persuading the
incumbent governor, who belongs to the same party as him, to carry out a
forensic audit of ISOPADEC since inception in 2007 to date. Anyone that reads
between the lines will know that the brief tenure of Ihedioha is being accused
of committing the bulk of the fraud in ISOPADEC within the seven months of his
being in office. Ihedioha’s administration was accused of 88 illegal
transactions between June 2019 and January 2020 as well as spending the highest
sum of N3.3bn in the 13 years’ existence of the commission.
It is my opinion that what is
playing out in Imo State over ISOPADEC is partly power play among the political
elite trying to score cheap political scores. It all smacks of vendetta,
shadow-boxing and witch-hunt of political enemies. This is however not to say
that no fraud could not have taken place in the commission. It may actually be
true that the funds of the agency have been misappropriated and embezzled; but
all past administrations from the inception of the agency may have all been
culpable in the mismanagement of the commission.
On the whole, it is saddening
that an agency meant to bring about development has been turned into a cash cow
and honeypot of some powerful elite. Who will deliver Nigerians from the hands
of these ‘locust-like leaders’? If indeed the gargantuan fraud of N12.3bn could
be proved on the aftermath of the forensic audit of the agency, I do expect
Uzodinma will do the needful by ensuring the prosecution of all those whom
prima facie cases of fraud may have been established against by the forensic
audit irrespective of party lines. On the other hand, there is a need to put
the necessary checks and balances in place to prevent future abuse of due
process and financial controls in the organisation. It is unfortunate that the
state House of Assembly committee, oversighting ISOPADEC, did not discover the
alleged mismanagement of state resources in the agency.
I challenge the media and
civil society organisations to beam their attention to happenings at the
sub-national levels, that is, state and local government areas. Not a few
people believe that while there is over-concentration of attention on the
Federal Government, little or no attention is focused on the other two tiers of
government. Everyone, no matter how highly placed, who has joined forces to
plunder Imo State must be investigated, arrested and duly prosecuted to serve
as a deterrent to others. Ndi Imo deserve a better life from their leaders!
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