Nigeria: A corrupt Vice President?

[Toyin Falola]

 

 The Case Against Atiku - By EFCC's Nuhu Ribadu
BY Nuhu Ribadu    
DATE : Saturday, 30 December 2006
In July 2003, during the first SULLIVAN summit in Abuja, the US Congressman Williams J. Jefferson met with officials of Netlink Digital Television (NDTV) and introduced them to Mr. Vernon Jackson, the Chief Executive Officer of a US based information technology company called iGate. This led to the establishment of business relationship among them. NDTV is a private company in Nigeria established to carry out the business of telecommunications among others.
Consequently, the two companies agreed on a $44,943,400 contract in which iGate would transfer its technology to NDTV for use in Nigeria. Under this arrangement, NDTV agreed to pay the sum of $6.5million to iGate representing 15% of the contract sum, while the balance of 85% or $38.2million was to be financed by US EXIM Bank. Subsequently, there was an ensuing business dispute between the parties which persisted that led the US Congressman to write President Olusegun Obasanjo on the matter.


The letter to the President by the US Congressman dated May 28, 2004 alleged among other things: that the Chief Executive of iGate, Mr. Vernon Jackson, reported to him that he was deeply disturbed by comments made to him [Jackson] by the Managing Director of NDTV, Mr. Ahmed Vanderpuije; that the funds were delayed on the NDTV/iGate contract because they were expecting funds allegedly related to Petroleum Technology Development Fund (PTDF) fixed deposit to pay for the rest of the project. Mr. Jackson was worried that this source of money might be improper or perhaps even illegal.


Mr. President, in a letter dated June 9, 2004, replied the congressman, promising him that he would ensure full investigation of PTDF activities in order to establish the extent of the allegations made on the use of its resources to settle the obligation of a private company. The President directed the EFCC vide a letter ref. PRES/72/-2 dated January 18, 2005 to carry out a thorough investigation on matter. Consequently, the Chairman of NDTV, Otunba Fasawe and the Executive Secretary (ES) of PTDF, Alhaji Hamisu Yusuf Abubakar were invited and interrogated on the matter.


Otunba Fashawe through NDTV and Mofas Shipping Company Limited collected some so-called loans totaling over N1.5billion from Trans International Bank (TIB) Plc. The Bank packaged these loans that were characterized by many irregularities including lack of collateral and compliance with conditions preceding disbursement. The sum of N100million was recovered from him and the money had already been remitted to TIB (now Spring Bank).


During an interview with the ES of PTDF, he admitted that on August 1, 2002, the Fund awarded a contract to a UK-based company called Univation Limited for the upgrade of Petroleum Training Institute (PTI). This company was used as a conduit pipe through which millions of Naira went into the ES' pocket. The Upgrade was supposed to have cost PTDF $3million but was inflated to $5million while the difference of $2million was paid into numerous companies incorporated and owned by him for the payments of phony contracts he claimed they did for Univation. The sum of N200million was recovered from him and had since been remitted back to PTDF.


On June 22, 2006, the authorities of the US Government sent to the Commission a Mutual Legal Assistance Request (MLAR) which led to further detailed investigation, in line with the EFCC Establishment Act 2004, Section 6(k) which states that it is:


"responsible for dealing with matters connected with extradition, deportation, mutual legal and other assistance between Nigeria and any other country involving Economic and Financial Crimes".


The Request called for bank records relating to any payment or transfer of funds from the Petroleum Technology Development Fund to any account held by NDTV, Vanderpuije, Fashawe and Kachikwu among others (including but not limited to any accounts held at the Trans International Bank). Other requests include the following:

        1       Provide U.S. Law enforcement authorities whatever information the government of Nigeria may have with respect to the witnesses (Fashawe, Dumebi, Vanderpuije, Egunjobi,  including employment history, history of travel outside Nigeria, criminal history and other biographical information. In addition, permit for U.S. law enforcement authorities, including the prosecutors and agents who will travel to Nigeria, to communicate directly with the lead investigator in Nigeria involved in collecting this information.

        1       Provide the certified copies of the listed documents, records and articles of evidence stated below.

    1       Any and all documents in the possession of NDTV and its present or former officers, employees, or representative (including, but not limited to, Otunba Oyewole Fashawe, Ahmed Vanderpuije, Dumebi Kachikwu) relating to or involving some of the above listed individuals and entities.

        1       Any and all documents in the possession of any Nigeria public official or agency - including but not limited to the Nigerian Communications Commission, Ministry of Communications, Nigerian Embassy in the United States, NITEL and its Managing Director - relating to or involving some of the above listed individuals and entities.


        1       Correspondences between United States Congressman Williams Jefferson and Vice President Alhaji Atiku Abubakar relating to any U.S. based business venture in Nigeria.
   2       Correspondences between United States Congressman Williams Jefferson and Jamilah Jennifer Atiku-Abubakar, wife  of  Vice President Atiku Abubakar, relating to any U.S. based business ventures in Nigeria.

     1       Correspondence between iGate, including its officers and representatives and Vice President Alhaji Atiku Abubakar and any other Nigerian public official.


       1       Correspondence between NDTV, including its officers and representatives and Vice President Alhaji Atiku Abubakar and any other Nigerian public official.

        1       Correspondence between Vice President Atiku Abubakar (or any of his subordinates or representatives), and any government official or agency, including NITEL relating to some listed individuals and entities including

1       Any and all documents in the possession of Rosecom.Net and its present or former officers, employees, or representatives (including Suleiman Yahyah) and any Nigerian public official or agency (including NITEL and its officials, employees or representatives) relating to business ventures involving iGate or W2-IBBS Limited.

     1       Any and all documents in the possession of the Nigerian Embassy in the United States related to any travel to Nigeria by Congressman Williams Jefferson in connection with U.S. business ventures in Nigeria, including, but not limited to


     1       Records from the Sheraton Hotel & Towers related to the stay of Congressman William Jefferson, Vernon Jackson, and any other party affiliated with Jefferson and Jackson during the February 2004 trip.

1       Records from the Sheraton Hotel & Towers related to the stay of Congressman William Jefferson, Vernon Jackson, Patrick Gerdes, Adolfo Lambaren, BK Son, and any other party affiliated with Jefferson and Jackson during the May, 2004 trip.

    1       Records and filing relating to some of the listed entities. The requested documents include, but are not limited to company formation documents, shareholder documents, ownership record, management documents, documents relating to payment of fees related to company filings, and any other company information. The request was particular on Diverse Communications Limited, a company associated with William J. Jefferson through which he was to collect kickback in form of percentage of profit for his official act in respect of NDTV/iGate deal.
  2       Bank records of accounts held by  Ahmed Vanderpuije, Otumba Fashawe NDTV, and Dumebi Kachikwu from January, 2003 to present, including, but not limited to, accounts held in Trans International Bank, Transcontinental Bank, Citizen International Bank, Standard Trust Bank, and Continental Trust Bank.

      1       Bank Records of accounts held by Maureen Scurry, also known as Maureen Edu, from January 2003 to the present.

        1       Property transfer records and loan/mortgage records (including applications, correspondences, and documents referring to collateral or security for the loan) relating to the purchase of plot 555 Adetokumbo Ademola Crescent, Wuse II, Abuja (Location of NDTV office).

       1       Correspondences and communication (electronic or otherwise) between officials, agents, or employees of Standard Trust Bank and Maureen Scurry, also known as Maureen Edu, related to financing on behalf of NDTV and/ or IGate.

Government Ministries, Parastatals and Agencies affected, as well as individual witnesses identified were invited for interviews and they volunteered written statements. Among the individuals invited were Mr. Kachikwu, who provided useful information and documents that unraveled the mystery behind NDTV, Mr. Uko Nwafor (the then Assistant General Manager, Finance of PTDF), Mr. Egunjobi Olusegun (the then Branch Manager of TIB, Abuja), Umar Pariya (Personal Assistant to the Vice President), Musa Garba (a friend and business associate of the Vice President), Nda Yakubu (the then Assistant Director Special Duties, Office of Accountant General of the Federation) among others. The Vice President was contacted through letter, dated 18/08/06 to clarify issues raised in relation to his alleged role and he responded in writing. Bank statements of accounts, copies of cheques, vouchers, correspondences, etc. were also received by the Commission for analysis/examination together with the books of accounts of PTDF from 1999 to 2006.

Although investigation did not reveal direct transfer of PTDF funds to NDTV or iGate, the request directed our attention to the relationship between the various 'loans' collected by NDTV and its directors and the timing of the transfer of PTDF funds to the bank that granted the facilities.



1.         Petroleum Technology Development Fund (PTDF)

PTDF was established following the repeal of the Gulf Oil Company Training Fund (GOCTF) Act 1964 and the promulgation of Decree No. 25 of 1973 for the purpose of training and education of Nigerians in the petroleum and gas industry. The source of money for the Fund is the balance of monetary assets in the account of the GOCTF, all further sums payable to or received by the Minister of Mines, Power and Steel in term of any agreement made by the Government and any company in relation to petroleum oil prospecting or mining concessions and any other sums freely donated or accruing to the Government or the Funds for the training and education of Nigerians in the petroleum and industry.


The fund is empowered in the Act to:

                     i.      Provide scholarships and bursaries wholly or partially in universities, colleges, institution and in the petroleum undertaking in Nigeria or abroad

                   ii.      Maintain, supplement, or subsidize such training or education as mentioned above

                  iii.      Make suitable endowments to faculties in Nigerian Universities, colleges, or institutions approved by the Minister

                 iv.      Make available suitable books and training equipment in the institution aforesaid

                   v.      Sponsoring regular or as necessary visits to oil fields , refineries, petrochemical plants, and for arranging any necessary attachments of personnel to establishments connected with the development of the petroleum industry;

                 vi.      Financing of and participating in seminars and conferences which are connected with the petroleum industry in Nigeria or abroad


On September 4, 2000, the VP inaugurated an Interim Management Committee (IMC) to manage the Fund.. The IMC comprising six members representing the six geopolitical zones of the country with Yusuf Hamisu Abubakar as Executive Secretary was constituted and inaugurated with the mandate to review the existing laws of the Fund, make suggestion for its amendment, come up with a programme of action to guide the activities of the Fund and make further recommendation that will meet government aspiration and target, especially on capacity building in the petroleum and gas sector of Nigerian economy.

To realize these objectives, funds were released to PTDF from time to time by the Federal Government after due processes have been followed through approval by the Federal Executive Council (FEC). On April 10, 2003, the Presidential Adviser on Petroleum & Energy, Alhaji Rilwan Lukman, wrote to the President and passed through the VP requesting for funds to implement PTDF projects during 2003 fiscal year.  The memo specifically listed the following as the projects to be implemented by the Fund.


      *       Capital expenditure on Phase II of the upgrading the of facilities and infrastructure of the Petroleum Training Institute, Effurun;
     *       The establishment of Offshore Technology Development Centres (OTDCs) for training of manpower for off-shore petroleum activities
        *       The strengthening and expansion of on-going programs for the universities; provision of quality laboratory and library facilities in the petroleum technology-related areas, with special attention to basic and applied research on petroleum technology
       *       Establishment of a Central National Petroleum Laboratory for inter-university and industry collaboration, expertise enrichment, and information flow, with a comprehensive network of on-line inter library system
      *       Establishment of a National Geodata Base, in line with current practice in all oil exporting countries, to be a national repository and storage facility for all oil exploration and production data for easy retrieval, analysis and utilization
       *       Indigenous capacity building to enable Nigerians engage themselves in the gas sub sector and preserve and protect our long-term national interests in the West African and Trans-Saharan Gas Pipeline projects
  *       Commencement of feasibility studies and need analysis on the establishment of the College of Petroleum Studies, Kaduna
  *       Indigenous capacity building in solid minerals development in line with the statutory schedule of the activities added to the PTDF in the draft amendment law now before the National Assembly. 

In the memo, the Special Adviser requested FEC's approval for the sum of US $125Million to the operational account of the PTDF for the implementation of the PTDF projects outlined above and for the overall sustenance of the PTDF, which was duly approved by Council after the initial anticipatory approval by the President.


Contrary to the normal procedure and practice, another request of US$20million for PTDF was made by the ES on October 14, 2003  and referred to the VP for approval without the knowledge of the Presidential Adviser who is supposed to have made the request. The VP approved the request and release of the additional funds on October 18, 2003, without reference to FEC, through the President. It is worthy to note what was stated in the letter to the VP requesting for the additional funds:


''in the course of the execution of the projects, we observed the need to achieve uniformity and complete spread of the projects, also the project have some linkages with the existing programmes of the institutions, therefore, it has become expedient to ensure that the projects are executed as scheduled. These needs have consequently exposed some funding gaps which have to be filled through an urgent supplementary release".


The question one may likely ask is; what was the rationale for additional funds when it was hardly three months earlier that $125million was released, which the VP and the ES were fully aware of, and which were even invested in TIB and ETB, contrary to the insinuation that the projects had started. It is also important to note too that the placements were even done at below Minimum Rediscount Rate (MRR) of the CBN, as evidenced in a memo dated 28/08/2003 addressed to the ES by his Assistant General Manager (AGM)-Mr. Uko U. Nwafor.


It is true that as a Fund, it is supposed to be its financier but PTDF lost several millions of Naira through placements even below the prevailing MRR which is not supposed to be so. The liquidity created by the deposit of PTDF funds led to the packaging of so called loans by  TIB to a friend and business associate of the VP, Otumba Fashawe, through his companies; Mofas and NDTV.  The Fund also lost the income that would have accrued on the $23.75million that could not be returned to CBN in line with Federal Government directives since 2004.

The purpose of the "urgent" need for the supplementary release of the additional $20million in 2003 for "immediate" implementation of the Fund's projects was therefore defeated. PTDF would have also lost huge funds as there must have been upward review of the cost of the projects/contracts.


2                    Trans International Bank (TIB)- (now Springbank Plc)
This was one of the banks the VP approved for the deposit of $10million out of the initial $125million meant for the execution of the various PTDF projects. On July 16, 2003 the fund was placed in term deposit and subsequently rolled over severally. The additional USD $20million approved unilaterally by the VP was also fixed with TIB for 360days at 1.75% on December 24, 2003 contrary to the request made for their release.


On 20/10/03, shortly after the first placement of USD$10m by PTDF, the bank packaged a so called loan of N400million to NDTV, a company owned by Otunba Fashawe, a friend and associate of the VP. On October 22, 2003; the same Otumba Fashawe, using his other company Mofas Shipping Company Limited, collected another 'loan' of N420m;  Yet on October 23, 2003, Ahmed Vanderpuije, the Managing Director of NDTV also collected a 'loan' of N300million through his other company, Transvari Services Limited, pretty much in the way Fashawe did. Ahmed Vanderpuije, who is a Ghanaian, is now a fugitive from justice elsewhere.


Sometimes in January 2004, NDTV again collected a 'loan' of N730million after the deposit of the USD20million from PTDF in December 2003. It is important to note that the loan was not reflected in the account of NDTV until a year later.


It is pertinent to note that all the various 'loans' collected by Mofas, NDTV and Transvari were without adequate and proper collateral. Thus, $23.75 million of the $30million deposited by PTDF in this bank was stuck. This is contrary to claims from some quarters that the safety of the fund and the health of the bank were major considerations before the placements.




3.         Netlink Digital Television (NDTV)
This company was incorporated on June 6, 2002 to provide a high quality digital services and modern telecommunication services. The board members are Otunba Oyewole Fashawe (Chairman), Ahmed Vanderpuije (Managing Director), Dumebi Kachikwu (Director) and Martin Wright representing Kites International Holding. For the provision of this technology, sometimes in July 2003, NDTV went into an agreement with iGate, a US based technology vendor. There was a provision in the agreement that US Export-Import Bank is to finance 85% or $38.2million of the project, while NDTV through TIB, was to make a contribution of 15% or $6.5million. This transaction involving US Exim Bank is questionable. This subsequently led to the beginning of relationship between NDTV and TIB which led to the financing of their 15% contribution. While this NDTV/TIB relationship was being cemented on the one hand, on the other hand PTDF funds where being deposited in TIB, within the same period, to improve the bank's liquidity.


NDTV used the proceeds of the first so-called loan, collected from TIB after the deposit of $10million by PTDF, and paid for the balance of N170million for the purchase of a property located at No 555 Adetokunbo Ademola Crescent, Wuse II, Abuja, which serves as its office. The property was bought at N200m and the initial payment of N30million was made on January 7, 2003 by Marine Float Ltd, an account domiciled in Bank PHB Plc, being controlled by the VP. The VP confirmed in his response to a letter from the Commission that he gave the N30million to NDTV from Marine Float Ltd as a loan.


NDTV also used some part of the proceeds of the 'loan' from TIB to transfer $1.5million to iGate, a US based technology vendors associated with Congressman Williams Jefferson, as part of their agreement for the acquisition of right to use iGate technology in Nigeria.

NDTV collected another presumed loan of N730million from the TIB after the deposit of $20million by PTDF, and wired $5million to iGate in line with their agreement to contribute 15%. Similarly, and from the same 'loans', the following payments were made by NDTV:

·                    Mrs. Maureen Scurry, now Maureen Edu, a former employee of US Exim Bank as a Business Development Specialist on Africa, who at that time represented US Exim Bank during the NDTV/iGate deal, was wired the sum of USD100, 000 on February 27, 2004 to her personal account with FSB Washington DC.


·                    The sums of USD 133,870 and USD 40,312 were paid to Sofitel Incorporated USA as commitment and processing fees for the refinancing of the USD6.5milliom paid to iGate.


·                    A US based Lawyer, Jean Michael Malek P C was also paid the sum of USD 5,000 as legal fee in part, as a lawyer representing NDTV in the US over the project with iGate. These are all independent of the $6.5million NDTV wired to iGate.



4.         Mofas Shipping Co. Limited (Mofas)
Mofas is a group of merchandize importers, exporters, manufacturers, clearing and forwarding agents. It is also engaged in business relating to shipping generally. The company was incorporated on October 8, 1990 with the following persons as Board Members: Alhaji Zannah Mustapha Deribe, Mr. Johnson Oyewole Fashawe, Mr. Adamu Abubakar, Prince Emanuel O. O. Olagbegi and Olusegun Aina.  


Contrary to the VP's claim that he has no business dealings with Fashawe whatsoever nor is he involved in anyway or with his companies or businesses, Adamu Abubakar, a director of Mofas is his first son. The signature of Adamu Abubakar in the Memorandum and Article of Association of the company was simply "Turaki", which is the title of the VP [Probably he was a minor at that time.].  "Turaki" was also the signature of Hajiya Fati Abubakar as evident in a document of Meenat Trading Company Limited. The VP was also a referee to NDTV at Nigeria Communications Commission. The same VP paid the initial deposit of N30million to acquire a property that is the Head Office of NDTV. The VP forwarded a letter on the business venture between iGate and Rosecom.Net to the Honourable Minister of Communications when the interface between iGate and NDTV ruptured thereby necessitating a new business venture.


The company opened an account with TIB Abuja branch on 14/05/03, barely two months to the first PTDF deposits of $10million in the bank on 16/07/03. By October 22, 2003, Otunba Fashawe through the company secured a 'loan' of N420million meant to augment its working capital. This facility was granted without adequate collateral and the fulfillment of the conditions preceding disbursement. The same house purchased with the loans granted Otumba Fashawe, which was not even enough security, was used as collateral for the loan. Contrary to augmenting its working capital as agreed, the money was disbursed to other companies, organizations and individuals. The balance in the account of the company as at 31/5/06 was still in debit to the tune of N1, 083,755,459.44.


It is important to note that the VP has interest in Mofas as evidenced by the payments of N61milion on 29/01/03 to him, N250million to Marine Float Ltd. on 18/2/03, over N104million at various times to Alhaji Umar Pariya (the P.A to the VP), N60million on 22/06/02 to Musa Garba (a friend of the VP and a contractor handling ABTI University project). As earlier stated, Adamu Abubakar, is the son of the VP. The reference to these payments in isolation by Mofas is only to show the interest and long standing relationship of the VP in the company.


Ahmed Vanderpuije also used the proceeds of the N300million loan collected after the $10million PTDF deposit to finance the publishing of Nda Yakubu's book titled: 'Nigerian Laws on Public Finances'. Nda Yakubu was the then Assistant Director, Special Duties in the Office of the Accountant General. The claim being investigated against him is that: ''by virtue of his long stay in AGF's office, he was privy to the various financial status of the Federal Government and where the funds were kept. That he used to divulge the information to Alhaji Ahmed Vanderpuije who was a business associate of Otumba Fashawe who eventually got the VP informed". Though no direct evidence was obtained, it is curious to note that the $20million additional request by the ES of PTDF coincided with the only remaining balance in the account of PTDF with the Accountant General of the Federation from where the money was transferred on the instruction of the VP. This suggests that there was information from the OAGF on the balance of PTDF funds.

5.                  Equatorial Trust Bank Plc (ETB)
Otumba Mike Adenuga is the Chairman of this bank and it was the second bank, where $I65million PTDF funds were fixed at various times. The first placement was on June 25, 2002 in the sum of USD50million transferred from its account in UBA Plc, New York, US. After the deposit, Mr. Mike Adenuga, an associate of the VP, paid the sum of $20million sometime in 2002 as part payment for Globacom's license. Some few months after the receipt of the $50million, Mike Adenuga, through one of his accounts called Deep Sea Ltd, gave Marine Float Ltd the sum of N300million (on 27/11/02). Deep Sea Ltd is an internal account in ETB funded by another related account, Yuletide Ventures, whose source of funds was unauthorized overdrafts granted by the bank. Another N22 million was also given to Marine Float on 06/03/03 by same Mike Adenuga through Deep Sea Ltd. These funds were transferred from Lagos to Messrs Akinyera and Ajibade in Abuja but drafts were raised in favour of Marine Float Limited. These payments showed direct benefit of the VP in ETB. There was another ETB draft of N21million issued in favour of Alhaji Umar Pariya, an aide to the VP around the same time the $50million deposit was made. Messrs Akinyera and Ajibade are close aides of Otumba Mike Adenuga just as Alhaji Umar Pariya is a close aide of Alhaji Atiku Abubakar.


The trio of VP, ES of PTDF (Alhaji Yusuf Hamisu Abubakar) and Otumba Mike Adenuga met in the office/residence of the VP to discuss the placement of the USD115million in ETB by PTDF.  It was at this meeting that Hamisu Yusuf Abubakar was introduced to Otumba Mike Adenuga as the chairman of ETB. Immediately after the meeting, the placement of the $115million by the PTDF in ETB followed and Mike Adenuga rolled out his Globacom Network in the country.


A scrutiny of Globacom revealed its ownership structure as follow; Conpetro Limited-51%; Alhaji G. Subair-24%; Prince Babatunde Akinyera-12.5% and Festus Okechukwu Igbomor-12.5%.  This is contrary to Otumba Mike Adenuga's statement of being the sole owner of the company. The given address of Alhaji G. Subair of 2/3, Dawaki Road, Kaduna, was found to be a property belonging to Mohammed Badamasi Babangida. When the other addresses of the shareholders were checked, they were found to be non-existent.


Mr. Jeffrey Tesler, a business associate and friend of both Ibrahim B. Babangida and Mike Adenuga facilitated the payment of $180milion for Globacom license. Jeffrey Tesler also facilitated the granting of a loan of $700million to Con Oil, a company owned and controlled by Otunba Mike Adenuga.


The ES was rewarded with a so called loan in excess of N200million by ETB after the placements of the $165million in the bank, for transportation/dealership business with Conoil, a company belonging to Otumba Mike Adenuga. The duos are now fugitive from justice.


The business of banks is basically to mobilize funds (deposits) and advancing them as loans to their customers, among others, but not as unsecured and unauthorized loans that was distributed to companies, relations and politicians. It is clear that these monies were paid to companies and individuals contrary to the original intention of the so called loans.



6.         iGate Inc. US (iGate)

iGate is a US based technology company that is into  communication technology. Sometimes in June 2003, while in Nigeria, Congressman Jefferson introduced the officials of NDTV (Otumba Fashawe, Dumebi Kachikwu and Ahmed Vanderpuije) to Vernon Jackson, the Chief Executive of iGate Inc. Through various negotiations, NDTV ultimately entered into a Distributor Agreement with iGate whereby NDTV agreed to pay iGate $44,943,400 for the rights to iGate's technology and to distribute its products in Nigeria. By January 2004 and in accordance with the agreement, NDTV paid approximately 15% or $6.5million to iGate as an advance for the right. $1.5million was initially remitted to iGate and the balance of $5million was later wired to iGate being the balance of the 15% with the remaining 85% or $38.4million expected to be financed by US EXIM bank.

Business relationship between NDTV and iGate became strained towards the end of 2003 and ultimately broke off in 2004. Consequently, NDTV hired legal representative, Jean Micheal Malek, in the US to seek the refund of the $6.5million it paid iGate. The sum of $5000 was paid to the lawyer as his fee to facilitate the refund to NDTV.


iGate agreed to return $4million after negotiation but only $1.7million had been refunded to NDTV through TIB, leaving a balance of $2.3million unpaid. It was at this stage that Congressman Jefferson wrote to the President in defense to an alleged petition sent to the president by Otumba Fasawe. Jefferson wrote that Mr. Vernon Jackson had told him that before the payments to iGate, the MD of NDTV, Ahmed Vanderpuije, informed him that they were expecting funds from PTDF which would be used for the payments for the contract between NDTV and iGate.


After the business relationships between NDTV and iGate soured, Congressman Jefferson continued to look for an investor in telecommunication venture that would utilize iGate's technology and products. This effort yielded fruits with the agreement between Rosecom. Net, an Internet Service Provider (ISP), and iGate Inc. for the use of iGate technology to provide internet services in Nigeria over Nitel's copper wire infrastructure (Co-location). However, Nitel refused to allow the co-location agreement to subsist because it had already entered into another agreement with a Chinese based company for the same purpose.


As a result of Nitel refusal, Congressman Jefferson decided to enlist the cooperation of the VP, first, for assistance in extinguishing the $2million debt to NDTV relating to the previous NDTV procurement of the right to use iGate technology in Nigeria and secondly, for assistance in gaining Nitel's cooperation for the co-collocation of iGate technology at Nitel's facilities.


It is pertinent to note that on May 3, 2006, Mr. Jackson pleaded guilty to charges of conspiracy to bribe and bribery in the US. He claimed to have bribed Jefferson with more than $400,000 in cash, company stock and shares in iGate technology business ventures in Nigeria and other African countries.


7.                  The VP, Atiku Abubakar
Atiku Abubakar is the Vice President of Nigeria and he was the one overseeing the activities of PTDF. He inaugurated the Interim Management Committee of the Fund in September 2000.

He played prominent roles in the approvals for release of PTDF funds and their placements in two banks.  The VP had an outstanding interest in the placement of the PTDF funds in these two banks. For one, even the $125million for the implantation of some specific projects was not utilized for that purpose, rather caused their diversion to their placements in the two banks (TIB & ETB). Prior to the placements of the PTDF funds, the VP held several meetings with either the ES alone and sometime the ES and Mike Adenuga to discuss modalities regarding the placement of the funds either in TIB or ETB. The placements were done at the detriment of the Fund as they were made at interest rates below the average CBN Minimum Rediscount Rate (MRR) even when he was strongly advised against that.
                    
The request for the release of the $20million, was predicated on the issue of the ongoing projects being executed by the Fund, whereas it was not so. The funds were released again by the VP and were sent straight to the same placement in TIB. This second release was done without the knowledge and approval of the Presidential Adviser on Petroleum and Energy, Mr. President and the FEC. As these funds were hitting the two preferred banks, "loans" were packaged by TIB, even without adequate collateral, for his long time friend and business associate, Otumba Oluwole Johnson Haliru Fashawe through NDTV and Mofas. In Mofas, one of the directors is Alhaji Adamu Abubakar, a son of the VP. Though the VP's name was not stated as a director of Marine Float, evidence abounds that the account is controlled by him. First, the VP admitted he paid N30million for the property from that account; secondly, most of the beneficiaries from the account are his friends, associates.

Similarly, as the funds were hitting ETB, Otumba Mike Adenuga made  $20million deposit for Globacom license, the second national carrier. A little scrutiny of the equity ownership structure of the company revealed that Otunba Mike Adenuga lied about the ownership of the company. When the transfer of the $50million by PTDF from its account in UBA Plc New York was made in ETB, Mike Adenuga gave the VP the sum of N322million (i.e N300m on 27/11/02 & N22m on 06/03/03) through his Marine Float account domiciled in Bank PHB Plc through his aides - Akinyera and Ajibade.       The sum of N21m was paid to the VP through a draft raised in the name of  Umar Pariya, his Personal Assistant.

The VP held several meetings with the US Congressman Williams J. Jefferson both in Nigeria and abroad in relation to business ventures which included NDTV and Rosecom.Net, an ISP. When the business relationship between NDTV and iGate collapsed, his assistance was sought to extinguish the outstanding approximately $2million already paid by NDTV. Even though he denied assistance on extinguishing the amount, he accepted conveying a letter from US Congressman Jefferson to the Honourable Minister of Communication, Chief Cornelious Adebayo in relation with iGate and Rosecom.Net business venture.

The VP's business interest in NDTV was confirmed when he made an initial deposit of N30million on January 7, 2003 from his Marine Float account in Bank PHB Plc for the purchase of the N200million property being used as NDTV Head Office. His interest also influenced the placement of PTDF funds in TIB from where Otunba Fashawe obtained 'loan' and completed the payment of N170million for the property at Wuse. The VP's interest in NDTV is further buttressed by the fact that he even acted as a referee to Otumba Fashawe for the sourcing of the licensing of NDTV in Nigeria Communications Commission (NCC).  Ref. Appendix AB.  Investigation also revealed that the VP severally met contractors of NDTV at Jada, his hometown on his interest in the company.
Distinguished Senators, this is submitted for your necessary action.
Thank you very much.

           NUHU RIBADU
           EXECUTIVE CHAIRMAN
           Economic and Financial Crimes Commission (EFCC)

A PRESENTATION BY EFCC CHAIRMAN TO SENATE AD HOC COMMITTEE ON THE PROBE OF PTDF

 

  
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Toyin Falola
Department of History
The University of Texas at Austin
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