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Rally for Good Governance and Rule of Law
E.mail:
rggrl@yahoo.com
OPEN LETTER TO THE ECONOMIC AND FINANCIAL
CRIMES COMMISSION
Between falsehood and truth:
The rape of Lagos
A
coalition of Civil Society Organizations
under the aegis of
“Rally for Good Governance and Rule of Law”
has being following the trend of governance
in Lagos
State
in the past three and a half years under the
Action Congress of Nigeria with curiosity.
This coalition conducted an
independent research to establish the effect
of the much celebrated achievements of
Governor Babatunde Raji Fashola (SAN) on the
Nigerian poor resident in
Lagos
State. Our findings are
devastating and unbelievable. Besides the
fact that apart from relative developments
in the urban areas of
Lagos
State, the suburbs, for
instance Ajegunle, Amukoko, Ijora Badia, are
still in perpetual decay and eaten deep by
slum. More disturbing is that Lagosians have
been blindfolded by the media blitz of
government achievements from the enormity of
corruption and impropriety going on in the
state since 2007.
The celebrated achievements
constitute only about 20 per cent of what Lagos residents would have
benefited from the government given the
tremendous financial resources and personnel
in the state. The other 80 per cent IS lost
to mass looting and embezzlement by top
government officials under the supervision
of the governor.
We have chosen this medium to make our
appeal public because several of our
colleagues have sent petitions to the EFCC,
Lagos State Governor, the Lagos State House
of Assembly and others but the petitions
were not given the attention they deserved.
We state our cases as follows, demanding for
your appropriate actions.
Some foreign companies and agencies in Lagos
State
are being deployed as conduit pipe to build
financial empire for Fashola in preparation
for the 2011 general elections. The amount
of looted funds from Lagos in the past three
years is intimidating and Lagosian would be
shocked to the reality of the mass
corruption in the state. Necessary documents
are available for anyone interested in the
facts and details. We are exposing these
improprieties as part of our advocacy
responsibilities to the people without any
partisan bias.
1.
An Italian company,
Messrs Moreno Group Plc and its affiliates
was awarded 16 contracts by the Lagos Sate
Government worth
N12.6 billion between November 2007 and
May 2009.
The contracts were for construction and
infrastructure faciliy projects.
About
N6.3
billion (50% of the total cost) was paid
to Moreno Group as down payment on 15
contracts. The Construction of Office Block
for the Ministry of Science and Technology
was excluded from the down payment.
Details of the Moreno Group loot were
revealed by the report of Lagos State
Tenders Board directed by the State
Executive Council on Monday, 18 January 2010, to inspect project sites
of
Moreno
contracts. Details of the contracts terms
are as follows:
Security Command Centre, Alausa, awarded at
the cost of
N283, 065,939.60 on January 17, 2008 to be
completed within eight (8) months, has 95%
work done.
Construction of 2 Blocks with Raft
Foundation (Block I and J) at Millennium
Housing Scheme G.R.A. Ikeja; at
N263, 226,887.00 awarded on July 16, 2008, within nine (9) months, has 1% work done.
Construction of 2No 12 Classroom Block at
Majolate Primary School, Majolate, Mushin
Local Government Area, at
N144,843,843.00, awarded on June 24,
2008, within 24 weeks, has 55% work
progress.
Construction of the Office of the Public
Defender/Mediation Centre,
Iyun Street,
Surulere, March 12, 2008, at
N215, 841,467.10 within 30 weeks, 35%
work done.
Construction of Nigeria Police Area C
Headquarters, Surulere, awarded on November
1, 2007 at
N427,500,000.00 within six (6) months,
40% work done.
Redevelopment of Eric Moore Schools,
Surulere, awarded on
April 24, 2009
at
N2.22 billion within 34 weeks but 5%
work done.
Construction of Lagos State International
Arbitration Centre, Okunde Blue Water
Scheme, Lekki, awarded on October 29, 2008 at
N1.24 billion within 14 months but 35%
work done.
Construction of New Magistrate Courts, Epe,
on March 12, 2008 at
N326.38 million within 24 weeks, 15%
work done.
Construction of 2Nos Block of 18 Classrooms
at Comprehensive High School, Alapere, awarded on June 4, 2008 at
N202.58 million within three (3) months,
97% work done.
Construction of Prototype New Magistrate
Courts, Ajegunle,
November 1, 2007
within 40 weeks at
N860.18 million, 30% work done.
Construction of Ariyo-Ira-Muwo-Tedi-Abule Oshun Road with
Bridge, Ojo Local Government Area (Phase 1
Bridge Works) awarded on March 26, 2008 at
N2.50 billion within 15 months, 39% work
done.
Proposed 48-Bedroom Hotel, Lagos State
Government VIP Chalet, Badagry, awarded on
August 29, 2008 at
N1.40 billion within 52 weeks, 10% work
done.
Construction of Adisa Ajibulu Road with
Bridge, Oshodi-Isolo Local Government, on
June 13, 2008 at
N1.8
billion within 12 months, 13% work
done.
Construction of Oba’s Palace, Ikorodu,
awarded on July 16, 2008 at
N260.00 million within 24 weeks, 5% work
done.
Construction of Office Block for the
Ministry of Science and Technology awarded
on March 2, 2009 at
N310.85 million within 10 months, 0%
work done.
Demolition of Existing Blocks of 8-in-1
Flats, Abraham Adesanya Housing Estate, Ajah…
on May 23, 2009 at
N152.52 million within 24 weeks.
It is obvious that the
last
projects were expected to be completed in
January 2010, but as at that time no
contract was completed. Thus, Moreno
failed on delivery schedules.
The State Tenders Board found that there are
indications that
“the
company does not have the capacity to
deliver the number of projects it is
handling simultaneously”.
The Board also hinted that
“its
logistical challenges are obvious when all
projects are considered together “. It
also observed that “activities were grounded
to a halt in several sites except for the
Security Command Centre and Eric Moore
Schools Project”.
The Board at its meeting on Friday, January 22, 2010
reviewed the contracts and made
recommendations on each projects. Some of
the recommendations are that:
There are indications that to suggest that
Messrs Moreno Group Plc and its affiliates
do not have the capacity to deliver the
number of projects it is presently handling
simultaneously and its logistical challenges
are obvious.
Three of the 16 contracts be terminated due
to non-performance.
Moreno
should give reasons why a certain contract
should not be withdrawn in view of its
non-performance and absence from contract
site.
Outstanding payments due to the company
certain projects be processed promptly.
There was poor coordination of the nominated
sub-contractors involved in the delivery of
a certain contracts. It suggested that
experienced external consultants be engaged
to closely supervise projects of such
magnitude in conjunction with client of
MDAs; among others.
We also discovered that the Bureau of Public
Procurement (BPP) has been petitioned on the
incompetence of Moreno Group to handle
construction contracts in Nigeria.
Details of that document reveal that:
Moreno Group was registered with the
Corporate Affairs Commission in April 2007.
The share capital of
Moreno D.C. (W/A) Plc is 10 million
and nine (9) million of the shares are held
by AFF Multidimensional Nigeria limited.
The foreign directors of Moreno Group are
operating with forged addresses and hidden
identity.
Their addresses are incomplete and
untraceable.
AFF Multidimensional Nigeria Limited is
owned solely by an Italian, Mr. Nicola
Busacca listed as director and Mrs. Christy
Busacca.
The Italian holds no individual shares in
Moreno Group where he is the Managing
Director, but holds 75 per cent shares in
AFF Multidimensional.
Brigidi David Cobbina, a Peoples Democratic
Party (PDP) chieftain from
Rivers
State and Ukam
Chukwumatinike own 500,000 shares each from
the 10 million shares.
AFF Multidimensional Nigeria Limited, the
majority shareholder in
Moreno
is not a functional company and
only
has share capital of 10,000 but owns 90
per cent of Moreno’s 10 million shares.
Nicola Busacca, the Managing Director of
Moreno, is not an engineer but has a
certificate of study in Accountancy.
Moreno
has no record of any completed contract
either in
Nigeria
or
Italy.
We wonder what rationale guided the Lagos
State Government to consistently award
contracts to Moreno Group with known dubious
and incapacitate credentials, made 50%
payments, when the early contracts were not
completed, to the detriment of competent
Nigerian companies.
Why did the State Tenders Board not consider
it necessary to recommend for the
prosecution of Moreno Group, revoke the
contracts and recover the money paid to the
company after these fraudulent discoveries?
We discovered, however, that:
Moreno Group is merely used as front to loot
Lagos State Government funds on behalf of
certain interests.
The PDP chieftains on the Board of Moreno
are facilitating secret pact and amassment
of money for Governor Fashola and the PDP
for 2011 through the controversial
contracts.
Fashola has negotiated with the PDP
leadership to defect if the Action Congress
of Nigeria denies him the ticket for the
2011 gubernatorial poll.
Even if the ACN gives him the ticket,
Fashola will still decamp to the PDP after
the election to build his own political bloc
in the state and the South West.
The above agenda is in collaboration with
Governor Gbenga Daniel of
Ogun
State, the new Chairman of
Governors Forum, who is coordinating the
South West for PDP’s 2011 Presidential
project.
2.
Furthermore, Governor Fashola has also been
using the
Lagos
State
Signage and Advertisement Agency (LASAA)
to loot the state treasury.
A group,
Majekobaje Eko Integrity Group, in a
petition to the Economic and Financial
Crimes Commission (EFCC), dated May 20, 2010, revealed that between 2007 and 2010
“about
N51.84 million would have gone down the
drain by all the bad eggs within Lagos State
Government system”. It declared that “a
comprehensive investigation of the Books and
Records of the above Agency will show the
enormity of the monumental fraud that has
taken place which is still on-going in the
Agency”.
Mr. Makanjuola Alabi, Managing Director/CEO
of LASAA and other directors, Ajewole
kehinde Johnson, Ronke Ogunsanwo, Toluwalope
Kehinde, Ogunsanya Tayo and Adeyemi Temitope,
were accused of “monumental and
unprecedented fraud and turning LASAA into a
private company...” since its inception
under the supervision of Fashola.
Over
N960 million was disclosed to be looted
in the agency between 2007 and 2009 through
series of vouchers under the guise of
Enforcement operations to justify the
retirement of cash advances and
expenditures.
The vouchers were used to cover one of the
Management numerous illegal spending they
called “PR for the Alausa people”. Copies of
Inter-Office Memorandum and cash advance
forms are available to illustrate the gross
mismanagement and looting and would be made
public soon.
The Integrity Group recalled that former
Governor Bola Tinubu approved
N130
million in 2006, and the money was
released by Governor Fashola in 2007 for the
procurement of operational heavy duty
equipments like Cranes, HIAB, Hydraulic
Man-lift, Trucks, among others, but the
management purchased none.
The management deliberately did not procure
the equipments “so as to continue the
perpetration of fraud of daily inflating the
cost of enforcement activities by hiring
cranes, for instance, which normally costs
N80,
000 per day to
N230, 000 per day…” in addition to
inflating the costs of hiring other
equipments like HIAB, Trucks, Hydraulic Man
lift, etc.
From
the over-cost vouchers the sum of
N240
million was looted in 2007,
N360
million in 2008 and
N360
million in 2009, totaling
N960
million in three years.
The Audit and Enforcement Department in an
Inter-Office Memo on “total cost of
Enforcement activities carried out on the 24th
of January, 2008 (10 teams)” claimed to have
spent N172,500 to hire 115 Laborers at
N1,500 per day; 20 Burners at N4,000
per day; engaged security from Task Force at
N100,000; spent N60,000 on Security and
Refreshment, N560,000 on 29 Hired
Trucks at N20,000/day; fuel for vehicles
N32,000; hired 2 cranes at N230,000/day
N460,000; bought 50 Oxygen Gas at N2,300 per
cylinder - N115,000; 50 NIDO Gas at
N4,000/cylinder N200,000; hired 4 HIAB at
35,000/day N140,000 and Hydraulic lift at
N150,000/day N150,000; amounting to a daily
operational cost of N2.07 million, in which
N1.5 million was noted to be added.
Similar
daily vouchers contain totals ranging from
N1.90 million; N2.09 million; N2.11 million;
N2.04 million; N1.40 million; and so on
since 2007.
At the death of one of the management staff,
Mr. Adebayo T. Kazeem, a former Head of
Department, on November 19, 2008, buried on
November 26, 2008, LASAA spent
N10
million for the burial activities in
three days.
On May 25, 2008, LASAA Management resolved to merge the Audit
unit with Finance and Accounts to be headed
by one person to ensure proper cover up of
all corrupt practices.
Alabi awarded a contract of street naming in
Lagos State at the cost of over
N300
million to a company,
PEKINDOU Limited, owned by his friend
and failing to remove withholding tax from
the contract sum. He has no statutory power
to approve such contract.
LASAA Managing Director is a partner in the
legal firm of Segun Fowowe and Co, an
external Solicitor to LASAA, which has
operational office in the same building with
Alt-Media Limited. He appointed Fowowe’s
sister in the board of LASAA as
Secretary/Legal Adviser.
LASAA Managing Director spent over N80
million on his marriage in 2009
with the knowledge of the state government.
He sponsored some staff and officials in
Governor’s Office to Italy for his
wedding.
Alabi used his position to give undue
business advantage to Alt-Media Limited, an
outdoor advertising company, where he is the
Managing Director.
Alt-Media Limited as at December, 2006, had
only one outdoor advertising site in
Lagos
State but as at December
2009, has 56 outdoor advertising sites.
Other outdoor companies came down from about
200 sites to six (6) sites; 315 sites to
five (5) sites, and so on. Names of the
affected companies will be released on
request.
Alabi incorporated another front company,
PINNACLE Out-of-Home limited, headed by Mr.
Zeldin Stemmet, a British South African who
is also on the Board of Alt-Media Limited.
Alabi also uses another company Road Master
Nigeria Limited, to further defraud the
state government through LASAA. Road Master
is the only company approved to import
directional road signs in LASAA and charges
over 500% above the world price. The signs
do not come with the current international
standard of installation.
There is a big fraud going on in the state
on the street light project. The first set
of street light projects for Kingsway Road,
Ikoyi was awarded to Private Network
Nigeria, an indigenous company at
N75
million; the same contract/project in
terms of specifications and volume is
awarded to Lillekker, a foreign company at
about
N180
million.
Alabi at different times boasted that he
sponsored Fashola’s election with N20
million and is prepared to spend billions
this time to fund the governor’s second term
campaign. He also declared settling
officials in Governor’s office to keep the
system going.
Alabi sold all the dismantled outdoor
advertising structures in
Lagos
State valued over
N2
billion without approval from the
appropriate authorities.
Alabi also awarded street light contract to
Pinnacles, using South Africans as front,
worth over
one
(1) billion naira.
The reports/protests of these improprieties
were sent to the governor by other concerned
persons but he swept them under the carpet.
3.
The fraud in the Internally Generated
Revenue in
Lagos State is frightening. Available data
shows that:
Records of total internally generated
revenue often differ between the Ministry of
Finance, Lagos State Internal Revenue
Service (LIRS) and Alpha Beta Consulting.
The Ministry of Finance in
2008
declared
N142
billion as
total internal revenue for the year.
Lagos State Internal Revenue Service
declared
N146
billion while Alpha Beta consulting
declared
N150
billion. The Ministry of Finance
afterwards declared a reconciled figure of
N142.43 billion.
Between January and
June
2009, the Ministry of Finance declared
N82
billion for the six (6) months; the
Ministry of Economic, Planning and Budget
declared
N85.5 billion; LIRS declared
N86.5 billion and Alpha Beta declared
N86.6 billion.
It is clear that a good chunk of the tax
payers’ money is being stolen from the
internally generated revenue in
Lagos
by the executive. Over
N6.4
billion was stolen from the 2008 annual
internal revenue.
The state government pays
N750
million bank charges on the 20 Local
Governments and 35 Local Council Development
Areas allocation from the Federation Account
to the receiving banks. Government officials
and receiving banks are suspected to be
involved in fraudulent deals in this
transaction.
Deductions from Local Government allocations
are sometimes diverted from its purpose. For
instance,
N500
million deducted for waste collection
was not paid to LAWMA and not accounted for.
Governor Fashola also engages in
extra-budgetary expenditures. For instance,
over
N1.03 billion contract was awarded to
Ocean Beach Company for the dredging of
Badagry-Marina water way without budgetary
appropriation.
N700
million has been paid to the contractor
with 15% work done.
About
N7.5
billion was realized in 2008; and
N1.01 billion in 2009, from
Land
Use Charges but the Governor’s Office
did not share the funds with the Local
Government Areas according to agreed
formula. This is part of Fashola’s hatred
for the poor who he denies speedy
development at the grassroots.
Fashola also
interferes with the award of contracts
in LAWMA to favour his cronies and
loyalists.
N2.04 billion contract for the supply of
100 new waste collection trucks was awarded
to Messrs Deux Project Nigeria Limited
without due process.
In the Maiyegun Tourism Scheme scandal, the
Maiyegun plot was sold at about
N5.02 billion but the Ministry of
Waterfront and Infrastructure Development
accounted for only
N2.4
billion while about
N2.6
billion cannot be found.
Moreover, about
N2.6
billion part of the revenue from the
Maiyegun Scheme between January and June
2009 was diverted from the state treasury.
In 2009, while the total capital fund
disbursed to the Ministry of Works was
N20.99 billion, the Ministry of Finance
claimed to have released over
N28.45 billion to Works, creating
financial leakage of over
N8
billion.
While the Ministry of Land Bureau generated
revenue of
N15.99 billion in 2009,
N7.7
billion was claimed to be deposited in
Dedicated Account to provide infrastructure
for Government Scheme but only
N239.17 million was accessed by the
ministry that year.
There numerous other cases but till another
opportunity. We are also looking at the
State House of Assembly and shall make
public our findings at the appropriate time.
It is disheartening that Lagosians have
witnessed the most tyranny under the
pretence of adhering to law by Fashola. The
Okada Riders which even include universities
and polytechnics graduate were brutally
restricted from free operation in Lagos. Shops and stores where ordinary
citizens carry out businesses for survival
are violently destroyed. The right to
economic life is no longer secured in Lagos State.
Governor Fashola even declared that those
who cannot cope with his anti-poor policies
should come to collect N10, 000 and depart
from Lagos.
In spite of the assumed achievements by
Fashola,
Lagos is still
being ravaged by flood. Doctors and
university workers have been on strike in a
state that the party-government claims to be
progressive and a model for other states.
We demand urgent action by the EFCC, ICPC,
code of Conduct Bureau and other anti-graft
agencies to save Lagos from gross looting and deceitful
propaganda. We shall visit the EFCC office
to defend our case.
The Action Congress of Nigeria (ACN) has
remained the only vibrant opposition
political party in Nigeria to which
the poor will continue to identify with. We
strongly appeal that the leadership of the
party should look into these issues to
sanitize the party to sustain its belief in
progressive politics.
We commend the recent Court judgment in Ekiti
State
that retrieved the stolen mandate of the
people. We also salute the judiciary for
their courageous judgments in
Edo, Ondo states and we
encourage them to do same in Osun State.
Signed:
COMRADE ALIYU WAMBA
CHIEF M. CHINEDU ISIENYI
State General Secretary,
(Onunaekwuruigbo)
All Nigerian Automobile,
National Coordinator,
Commercial Owners and
Igbo Traders
Union, Lagos.
Workers Association
Lagos
State.
KOLAWOLE EMMANUEL
Secretary-General
Movement for Grassroots Democracy,
Agege, Lagos.
Comments:
Just Wondering:Can
these riff-raffs please allow Gov. Fashola
to continue the good work he is doing
in Lagos. We are begging them.
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