| N6bn fraud uncovered
in NITEL
By FRANCIS AWOWOLE-BROWNE, Abuja
Thursday, July 6, 2006
Less than 24 hours after the privatisation of the troubled
NITEL, a gale of financial malfeasance running into billions
of Naira ripped opened at the Abuja headquarters of the organisation
triggering the sudden resignation of eight of its top management
staff.
Indeed, a report of the investigative committee set up to
probe the use of the Workers Pension Fund, following series
of agitations by the workers has revealed a mismanagement
of a whopping N5.5 billion pension fund.
The privatisation of the NITEL was concluded on Monday with
Transcorp emerging the preferred bidder, capturing the company
for 750 million dollars
The summary of the report which was forwarded from the office
of the Minister of Communication, Chief Cornelius Adebayo
to the NITEL management indicted 11 of the management staff
for helping themselves to various sums and were recommended
for appropriate sanctions including termination of appointments,
refund of the amount embezzled, and are to face the Economic
and Financial Crimes Commission (EFCC).
Top management staff who have offered to resign as at yeaterday,
though not among those indicted in the report, include Messrs
Tayo Olanrewaju, DGM (CC), S. Edasefiema, SM (L), M.B Shehu,
DGM(Bac), Wash Nwachukwu, DGM (S.I), A. Tijani, DGM(Project),
H. Yar’Adua, CFO, A. Shamswna, H(HR&SC) and Mrs
Z.M Rasheed, CMO.
On page three of the nine-page report which was signed by
the Special Assistant (Technical) to the Minister, Engineer
T.S Oyeyipo, the indicted officers were alleged to have used
not less than 63 banks and discount houses in the fraudulent
transactions with the NITEL Staff Pension Fund (NSPF).
As at December 2005, the report disclosed, the NSPF invested
N4.899billion in various banks in which N1.489 billion is
trapped in distressed banks while a total of N372.101 million
could not be accounted for. Yet a sum of N117.138 million
investment and placement in Kakawa Discount House Limited
(N57.858 million) and Associated Discount House Limited (N24.279
million) could not be traced.
The Seven–man investigative Committee headed by Dr.
Sani Sufi, the Director of Planning Research and Statistics
in the ministry found that the frauds were perpetrated with
several banks and other financial institutions used.
The Managing Director of NITEL Mr A. J. Mashi was also indicted
for directing one Dr. A.T.Popoola, a member of trustee of
the Fund to implement the placement of the moneys in array
of financial institutions some of which are now distressed,
“and should be sanctioned for not getting the board’s
approval before for the transactions.”
The report which indicated that government has equally accepted
the recommendations of the committee said “Government
accepts this recommendation and further note that Mr A. J.
Mashi, whose tenure as chairman witnessed this reckless financial
malpractices is not a very good manager and directs that he
should not be entrusted with the supervision of government
owned parastatals and agencies.
Those indicted of various malfeasance included Mr E.C Ossa,
GM (Special Duties), his appointment was recommended for termination
coupled with the refund of various sum, and Dr. A. T. Popoola,
G.M (FA), he was recommend to be handed over to the EFCC and
to refund N35 million and another N254 million with Mr Ossai.
Others are Mr Oyelade Adeleke and Dr. Aneze Chinwuba, accused
of misleading the board of NITEL to give anticipatory approval
for unblocking N7.2 billion which resulted into the loss of
N354.246 million to defunct Afex bank.
The Committee was set up by the Minister via a letter dated
February 7, 2006 with reference number MC/SAB.0322/1
|
