EFCC Begins Probe of Amaechi’s Administration

Strong indications emerged wednesday that the
Economic and Financial Crimes Commission
(EFCC) has commenced a detailed investigation
into some financial transactions during the tenure
of the immediate past Governor of Rivers State,
Mr. Chibuike Amaechi.
The investigation, THISDAY gathered, was based
on a petition by a Port Harcourt-based group, The
Integrity Group, which on July 29, wrote to the
EFCC, detailing three instances of alleged
corruption, graft and abuse of office under
Amaechi’s government.
In the petition, the group alleged that Rivers State
electric power projects were sold and the
proceeds converted to other uses through
payments amounting to N60 billion to three
companies all located at Trans Amadi, Port
Harcourt.
The petitioners alleged that the transfers, made in
US dollars, occurred within a space of one week
between December 1 and 8, 2014.
The Integrity Group also alleged that the
proposed Karibi Whyte Specialist Hospital in Port
Harcourt was a failed contract, which cost the
state a whooping N4.63 billion in what the
petitioners described as questionable
circumstances.
In the third allegation in their petition to the
EFCC, the group stated that Amaechi as governor,
appointed a firm of tax consultants, which was
given a relatively exorbitant fee of 12 per cent of
taxes collected on a much lower monthly
collection target of N2.5 billion, even as the
Rivers State Internal Revenue Service was raking
in about N7.5 billion monthly at five per cent
administrative cost, as prescribed by law.
The consultants were said to have collected over
N1.5 billion in fees within weeks of their being
engaged by Amaechi’s government.
Responding to the petition, the EFCC in three
separate letters titled, “Investigation Activities”,
and dated August 13, 2015, swung into a detailed
probe of Amaechi’s dealings as alleged by the
petitioners.
All the three letters by the anti-graft commission
exclusively obtained by THISDAY, were signed by
the Head, Economic Governance, Olufunke
Adetayo-Ogunbode.
While two of the letters with reference numbers
CR: 30/EFCC/ABJ/EG/T4/Vol.26/386 and CR: 30/
EFCC/ABJ/EG/T4/Vol.26/379, respectively were
addressed to the Permanent Secretary, state
Ministry of Finance, in respect of the sale of the
state power projects as well as Clinoriv Specialist
Hospital and Leisure Limited, which was engaged
to have constructed the still-born Karibi Whyte
Specialist Hospital, the third one with reference
number CR: 30/EFCC/ABJ/EG/T4/Vol.26/380 was
addressed to the state Accountant-General in
respect of the activities of Messrs Collect Nigeria
Limited on the collection of internally generated
revenue (IGR) on behalf of the state.
One of the EFCC letters to the Permanent
Secretary, Ministry of Finance, read in part: “The
commission is investigating a case of conspiracy,
abuse of office and fraud. In view of the above,
you are kindly requested to furnish the following:
Details of all the assets sold to the NG Power-
HPS Limited; total amount received and the
account it was paid into; Sales Agreement/
Memorandum of Understanding; House of
Assembly resolution/approval; investments made
from the proceeds if any; documents indicating
due process; and any other information that will
assist the commission in its investigation.”
In respect of the Karibi Whyte Specialist Hospital,
the EFCC also requested the permanent secretary
to furnish it with the following: MoU with Clinoriv
Specialist Hospital and Leisure Limited; evidence
of due process in the award of the contract;
executive council resolution/approval; total sum
allocated for the project; account number and
bank where the funds were paid; status of the
contract awarded to the company; payment
certificates issued/valuation reports; contract
award documents and; any other information that
will assist the commission in its investigation.
On the tax consultancy allegation, the EFCC asked
the state accountant-general to supply it with the
following information: Details of internally
generated revenue between 2007 to date;
evidence of disbursement and five per cent
retained within the period; the MoU between the
state government and Messrs Collect Nigeria
Limited; details of due process in the award of
the contract; details of payment made to Messrs
Collect Nig. Limited; House of Assembly
resolution/approval; state executives (that is,
State Executive Council) resolution/approval; and
any other information that will assist the
commission in its investigation.
The anti-graft commission concluded in each of
the letters that the request for the specific
information in the on-going investigation of the
allegations against Amaechi’s government was
“made pursuant to Section 38 (1) and (2) of the
EFCC (Establishment) Act 2004"