Group Petitions EFCC To Investigate Suspended NPA MD, Hadiza Bala-Usman For Fraud

 

The Economic and Financial Crimes Commission has been called upon to investigate suspended MD of the Nigerian Ports Authority, Hadiza Bala-Usman over her alleged involvement in N165 billion fraud.

 

 

PETITION TO INVESTIGATE HADIZA BALA USMAN OF MASSIVE CORRUPTION FINANACIAL FRAUD MONEY LAUNDERING AND ABUSE OF OFFICE AS MANAGING DIRECTOR OF NIGERIAN PORTS AUTHORITY NPA

 

Friday, May 7th, 2021

 

Executive Chairman

EFCC

Abuja

 

"We the Stakeholders in the Nigerian Ports wish to forward to you for Investigation the many acts of Corruption Financial Fraud and Money Laundering sins of Hadiza Bala Usman, who was at the saddle at Nigerian Ports Authority for past 6 years,"

 

Alleged Corrupt Practices

 

*Awarding Cargo Surveys Contracts to Unqualified Companies and to self through her Brother Attahiru and acolytes for 10 years;

 

* Corporate Social Responsibility (CSR) projects that are supposed to serve as Palliatives for communities impacted by port operations , she has turned into a jamboree and avenue for indiscriminate award of inflated contracts at all locations in Contravention of Procurement Laws and Extant Financial Rules and above her Financial Limits ,

 

* The Palliatives intended to assist Internally Displaced Persons turned into an avenue for contract awards at exhorbitant cost.

 

* PBT approved the purchase of Toyota Coaster staff buses but chinese made buses were supplied. Ditto for ambulances;

 

* Most contracts in NPA allegedly being awarded to her brother Alhaji Attahiru through many phony companies and other fronts;

 

* Generally, over invoicing and inflation of contracts and non compliance with the provisions of the Public Procurement Act and extant regulations on pricing.

 

*. There was a contract that was recently awarded for the supply of 200 torchlights for 8m.

 

MALADMINISTRATION

 

* Serving corps members were employed in NPA which is against the law and service rules;

 

* Fresh graduates were employed and promoted to one or two grade levels within two years in contravention of NPA Conditions of service and other civil service rules

 

* Misleading the Board into approving promotions for select officers over their seniors through improper placement and promotion in contravention of Federal Government circular referenced FC.6243/S.1/Vol.XV111/5 of 28th May, 2010 and the Presidential Directive conveyed vide letter referenced PRES/30-1 dated 20th September, 2004.

As clarified and reiterated by circular referenced FCSC/CHMN/CL/17/Vol.1/36 of 22nd October, 2013 which conveys the applicable policy as at today;

 

* Misleading the Board to approve the retention of officers who retired on contract without the fulfilment of the prerequisites for that kind of appointment under the conditions of service and extant Service rules.

 

HIGH HANDEDNESS

 

* Auditors have been transferred for simply questioning and querying supplies being made by contractors, particularly with regards to quantity, quality and conformity with the approved standards by the PTB as reflected in.

 

Investigation shows how spending under Hadiza Usman keeps rising even as the NPA flunks its audit.

 

The fraud which runs into billions of naira was uncovered by an ‘audit query’ of activities of the NPA between 2016 and 2018, Per Second News gathered.

 

The Auditor General’s Office concluded, however, that the NPA’s financial records were riddled with so many bookkeeping deficiencies, irregularities, and errors that a reliable audit was simply impossible.

 

The office of the Auditor General of the Federation also came hard on the NPA boss for gross “betrayal of public trust” as demonstrated by her flagrant abuse for due process in the way and manner she runs the agency, citing documents obtained by this newspaper.

 

Highlights of the damning report from the office of the Auditor General of the Federation include her refusal to remit VAT deductions running into billions of naira and in foreign currency denomination to the Federal Inland Revenue Service.

 

For instance, the query highlighted unremitted deduction to Federal Inland Revenue Service (FIRS) to include N3,667,750,470. $148,845,745.04, Euro 4,891,449.50 and £252,682.14.

 

The NPA under Hadiza Bala Usman was also accused of” excessive increase in administrative operational expenses” extra budgetary expenditures on hotel accommodation and under disclosure of expenditures on hotel expenses”, Corporate social Responsibility Projects, diversion of funds through the Nigerian Port Today, to the sponsorship of National Assembly Programmes, amongst other.

 

The queries which covered over 100 issues, also asked Hadiza Bala Usman to make various refunds to government, especially in instances where such expenditures could not be justified.

 

Investigation also uncovers that the Audit team reviewed NPA’s policy on implementation of Corporate Social Responsibility Projects/ Programmes and discovered that records relating to CSR fell short of the level of compliance with the Public procurement Act 2007.

 

In 2016, the NPA spent N286,412,628.00 on CSR while in 2017, the figure rose to N2,496,248,775.00 and N5billion in 2018. The Audit team found out that “beneficiary needs were not properly assessed or identified before the implementation of CSR projects/ programmes.

 

The Audit team observed to its chagrin that there was no evidence of compliance with public procurement Act and that most of the CSR projects/ programmes were inflated and accordingly ordered that the “sum of N5.18 billion should be recovered from the Managing Director of NPA, being the value of, inflated amount under her watch.

 

The committee also observed that delivery of CSR items were not accompanied with delivery letters and that in most cases, there was no evidence of actual items delivered and who signed for them.

 

Per Second News gathered that the NPA boss and accountants have been perpetrating a gigantic, unconstitutional accounting fraud, deliberately cooking the books to mislead the government and drive the NPA’s budgets ever higher, regardless of port necessity.

 

The NPA has literally been making up numbers in its annual financial reports to the National Assembly—representing billions of dollars’ worth of seemingly nonexistent transactions—knowing that the National Assembly would rely on those misleading reports when deciding how much money to give the Authority.

 

The fraud works like this, for instance while a contract with Ref. HQ/GM/PROC/CON/C.11/PBT/16/322 dated 16/10/17 was awarded in favour of Messrs Ecomaxx Engineering Projects Ltd for the supply of items to the old people’s Home Yaba, Lagos to the tune of N19,760,460.00 which was paid vide invoice no HQ/CS/0711 dated 01/06/17 there was no documentary evidence that the items were indeed delivered to the Home. In the same vein, the contract for supply of items to Yaba children’s orphanage followed the same pattern.

 

For instance, whilst a contract awarded in favour of Trans-secure Ltd was N19,467,000.00 the survey conducted by the audit team found out that N6,520,500.00 was the actual market price. This NPA expenditure fraud is déjà vu all over again for Spinney, prompting the office of the AGuF to demand an explanation from Hadiza Bala Usman reasons for the sharp excessive increase in the Authority’s expenditure profile between 2016 and 2018. “It was observed that total expenditure by the Authority increased astronomically by 128% from N87.47 billion in 2016 to N198.98 billion in 2017. Of particular concern was the administrative expenses which increased by 72% from N26.126 billion in 2016 to N44.93 billion in 2017.

 

Among the laundering tactics uncovered by the Audit Query revealed that whereas in 2016 N22.16 billion was expended on revenue monitoring, the amount rose to a whopping N1.06 billion in 2017, an increase of over 4,689%. Similarly, overseas training rose from N20.48 million in 2016 to N470 million, an increase of over 2194%.

 

Also, whereas N15.31 million was spent on vessels / craft in 2016, the amount rose to N117.4 million in 2017, an increase of 666%.

 

The excessive expenditure of pollution control also attracted the scrutiny of the auditors who insisted that Hadiza Bala Usman must tell Nigerians why and how N4.2 billion was spent in 2017 as against N29 million in 2016, an increase of 14,310 %. Other over bloated increase in expenditure include local and foreign medical expenses, legal fees, Corporate souvenirs and expenditure on other government agencies which rose from N50.29 million in 2016 to N338.59 million in 2017, a 573 per cent rise.

 

The Audit also raised its yellow flag on an alleged “diversion of N369.71 million through the Nigerian Ports Today” the official in-house magazine of the NPA. “Payments to Nigerian Ports Today were reviewed to confirm whether they were properly initiated, authorised processed, documented and paid in line with the Public procurement Act 2007,”the report said.

 

However “findings revealed the sum of N369,718,130.82 was paid to Nigerian Ports Today, a Limited liability company that is fully owned and controlled by NPA during the period under review. There was no evidence of contractual relationship in the form of award of contract to the company nor was there anything to show the company rendered services to the Authority to justify these payments and concludes that the Authority paid the company without a contract and thereby contravening the Public procurement Act 2007, and that this was viewed as a means to divert public funds,” the report alleged.

 

The Audit query also took serious exceptions to various expenditure incurred by the NPA on behalf of the Minister of Transportation, Rotimi Amaechi for which a whopping $604,598.95 was paid without supporting documents .

 

Hadiza Bala Usman was asked to refund the said sum into government treasury. Usually dependable source at the office of the Audit General of the Federation told Shipping World that the Audit queries cuts across all units and departments of the agency and that massive over invoicing and flagrant disregard for due process were uncovered.

 

In all, at least a mind-boggling N20 billion of NPA’s financial transactions between 2016 and 2018 could not be traced, documented, or explained.

 

This is submitted for urgent Investigation in National Interest

 

Best Regards

 

Comrade Olayiwole Oke

 

Comrade Charles Dike

 

Comrade Musa Yola

 

Cc. Muhammadu Buhari President FRN

Cc. Transparency International TI

Cc. Chairman ICPC

Cc. IGP of Police Force

Cc. US Embassy

Cc. British High Commission

Cc. EU

Cc. UAE Embassy

Cc. Interpol

 

Cc Nigerian and International Media houses