The Sun News On-line

The alleged N600 million fraud rocking the National Institute for Policy and Strategic Studies (NIPSS), Kuru, Plateau State, could just be a tip of the iceberg if details of how the illegal transactions were perpetrated is anything to go by.
Sunday Sun had exclusively reported last week how the former Acting Director-General, Dr Yakubu Sankey, and some ex-DGs allegedly laundered millions of naira and cornered juicy contracts for themselves, family members and cronies.

Documents obtained by Sunday Sun during the week, sequel to an investigation ordered by the Presidency, however revealed that the top officials, particularly Sankey, who was one-time Coordinator to a former DG (Major-General Martin Osahor) and later Secretary to the NIPSS Board/Director of Administration and Finance (SDA), grossly abused their offices by allegedly engaging in various acts of financial irregularities.

Using their links in the corridors of power, they ensured that petitions to the Economic and Financial Crimes Commission (EFCC) never saw the light of day, even during the era of Mallam Nuhu Ribadu as head of the anti-graft agency. Interestingly, Ribadu is currently a student at the National Institute. For instance, one of the documents noted that “the…direct personal transactions by Sankey were reported to both the ICPC (Independent Corrupt Practices and other related offences Commission) and (the) EFCC since October 2007 without response.”

Illegal and unauthorized virement of funds
Millions of naira was reportedly illegally vired to other uses, against strict government budgetary regulations and practices. Through the twisting and deliberate confusing of supervisory and overseeing function, approvals were said to have been obtained from the President for upgrading of roads and that the funds were collected directly from Ministry of Finance. Curiously, another approval (for the same project) was obtained from the SGF to alter the project name and then a further approval was obtained from the National Assembly to use the funds to buy buses for course participants.
Another means of siphoning funds was that the NIPSS Board was made to approve the breaking down of supply cost into units below N20 million, in order to beat approval level for the management.
Contracts were also short-listed and allegedly awarded to front companies, with two of them discovered to be sharing the same address in Lagos.

Internally generated revenue
Course participants’ fee is one of the major channels of ripping-off the institute. For instance, a total of N180 million collected as fees in 2005, 2006 and 2007 (N1m per participant x N60m x 3) was reportedly spent on items not connected with the participants’ welfare or training. Services claimed to have been provided with the money such as running water, ICT and purchase of a new generator were actually provided by the participants themselves.

A second-hand (used but painted) generating set was said to have been supplied by the then DG (Venerable (Prof) Akin Akindoyeni), through a company allegedly run by his nephew, one Engineer Adebayo, and the Bursar. Participants of SEC No. 28-2006 were actually said to have provided the fund (for the generator).
Revenue from workshop, accommodation and other services were also collected in cash by the then SDA (Dr Sankey) through his Secretary, Mr Tanko Dabit. Staff who did not cooperate were queried, demoted and transferred to other units. Clients who demanded for official receipts were reported to the Office of the Vice President, the Police, State Security Service, ICPC and EFCC “for tarnishing the integrity of the nation’s premier Institution.”

Externally generated revenue fraud
A former DG (Akindoyeni) reportedly raised millions of naira as external revenue from oil companies, including TotalFinaElf, Shell, Oando, Mobil, ConOil, Oriental Energy, Chevron, Agip, under the pretext of presidential directive for a project on ‘Resource Mapping and Management.’ But he was said to have personally visited the firms and that the monies collected and lodged in a new generation bank with a branch in the institute’s premises were reportedly not accounted for.

Library and Research Endowment funds
Millions of naira of the NIPSS Library and Research Endowment funds also disappeared without proper accounting. Special accounts for these funds are maintained in three banks (names withheld).
Contract bazaar to ‘cooperating’ Board members, staff, union executive and local hoodlums
A Board member enjoyed regular contracts through two companies - Ganuwa Investment Limited, for general supplies, and Nalado International, for regular supply of diesel at inflated prices and dubious quantity incompatible to existing storage facilities/capacity at NIPSS.

Chairman of the NIPSS Senior Staff Union was allegedly awarded a contract as ‘Albertus & Co.’ by the then SDA (Sankey). Likewise, a cashier was given contract to supply printing materials for N1,415,562.50 vide a company, ‘Victorious Jane Enterprise.’ The request for materials for the award of this contract was prepared in the SDA’s office and not the institute’s press.

Also another contract for supply of computers for the SDA’s office was given to the cashier (‘Victorious Jane Enterprises’) at N607,200 just as the PA to the DG was given contracts through a company, Joy-Irene International, one of which is the furnishing of the DG’s Study amounting to N380,000.
The Secretary of the NIPSS Branch of the Non-Academic Staff Union (NASU) also got contract to supply utensils and household materials amounting to N543,793.50.

One Mrs Patricia Aliboh was said to have been rewarded for helping the SDA out of the Rent Scandal Committee investigation in 2005, which indicted him (Sankey). She was reportedly Sankey’s mole in the committee and leaked details of every sitting to him. An Assistant Director, Mr Deinbo Allen Briggs, who headed the committee, later became a victim of Sankey’s witch-hunt. Apparently to get even, when he became Acting DG, Sankey suspended Briggs and placed him on half salary over an allegation that the latter stole a camera during a training programme in China. When the Vice President’s Office, which supervises the institute, intervened in the matter and insisted on a proper investigation in accordance with the administration’s principle on due process, Sankey lashed out at the Vice President in the media, accusing him of sabotaging NIPSS’ autonomy.

Due process abuse
This was brazenly abused through appointment, conversion, promotion and posting of staff to strategic units charged with finance-related functions in the Administration Department, Bursary, Audit, Stores, Catering, Housekeeping.
Contractors were short-listed before adverts for bidding were even made public. Companies that bid in response to the adverts ended up losing their bidding fees.
Staff posted and maintained in the Bursary, Stores, Housekeeping, Catering, and other financially strategic units are said to be mostly newly recruited family members, friends and cohorts of the DG, SDA and other key officers.

The Internal Auditor was reportedly appointed and promoted from HATISS 07/GL. 08 to HATISS 13/GL. 14 overnight. Ditto for the wife of Sankey’s Secretary, who was allegedly converted and promoted to Accounts Officer.

False DG’s Tenders Board Meetings and Minutes
The Tenders Board seldom held meetings. Instead, Minutes of Meeting were rather ‘cloned’ without actual seating and false attendance listed. In most cases, the Tenders Board Secretary was instructed by the SDA to issue awards and processes for payments to contractors.
Ratification of contracts by the Tenders’ Board
Contracts that had been allocated to companies serving as fronts for either the DG, SDA or Board members and their cronies were simply ratified and not considered by the Board.

Fraud in African and Foreign tours
Preparations for foreign tours were deliberately delayed to create loopholes for fraud in the purchase of tickets and foreign exchange. Late requests to host countries reduce internal movements and shorten the programme. Therefore, the less number of days means less estacode to participants. But no refund is made to the institute or the participants while the remainder is diverted and converted to the personal use of the top officials and their cohorts.

Fraud in general repair of staff and participants’ quarters
Preparation for repair of participants’ chalets is often delayed from November to end of January in order to contract out ordinary fixing of electric bulbs at highly inflated costs.

Bribe-drops and gifts to Board members
Bribe-drops to ‘fast-forward’ virement and other approvals at the National Assembly, release of funds from the Federal Ministry of Finance and Office of the Accountant General and ‘passages’ at the Due Process Office are said to be regularly conducted by the NIPSS Bursar. Regular ‘gifts’ are also sent to Board members, especially during festive periods or close to Board meetings, along with ‘decided agenda.’

Connivance with course participants
A course participant of SEC No. 28-2006, an officer with the Nigerian Air Force (names withheld), was given a N4million contract to upgrade the NIPSS Internet Service. The money was paid but the service never worked. The said officer (a Group Captain) was later retired from the NAF after he was found guilty of involvement in some large scale scams. He is now an Assistant Director in NIPSS.

Kitchen equipment fraud
Kitchen equipment were often cleaned and repaired through inflated contracts and then recycled in another giant contract as ‘Maintenance of Kitchen Equipment.’
Blackmail of the ‘stubborn’ and favour to the ‘cooperating’ Board members
Board chairmen and members were innocent victims of blackmail and beneficiaries of favour, depending which way they chose to deal with the NIPSS ‘management.’ A former Board Chairman, Prof Dakum Shown, was prematurely removed under the allegation of being Plateau State Atiku Campaign Coordinator after he challenged financial transactions by the DG and SDA. Similarly, the next Board Chairman, Lt-Gen Ibrahim Salihu, was blackmailed by Sankey for sending someone for the contract of the new library furnishing.

Generator maintenance
The three big and two smaller generating sets at NIPSS were often contracted for maintenance at the same time even as the Works Unit performs the function of maintaining the same equipment. The contract for maintenance of the generators is awarded to one Sati Enterprises at over N2.2 million per annum regardless of the thousands of naira paid to the SDA’s Secretary and ‘loyal’ NIPSS electricians for ‘emergency jobs.’

Diesel acquisition fraud
Diesel stocks were regularly supplied at N2 million - N3 million per month with false machine consumption rate of over 200 litres per hour for many ‘false-blackout’ days. The stocks are supplied at over 50% profit and not all are off-loaded. The capacity of the diesel surface tank is 25,000 litres. Records always showed that 33,000 litres was off-loaded into the 25,000 litre tank. The main diesel supplier is a former Board member (name withheld) and the Internal Auditor always endorsed the Way Bill as correct.

Rent scandal on NIPSS office complex in Abuja
An office complex with conference facilities and accommodation owned by NIPSS at the Central Business District in Abuja was scandalously rented out at a colossal sum of over N34 million to Geological Survey (a parastatal under the Solid Mineral Ministry). The money was allegedly not paid immediately into the NIPSS’ coffers but the rent agreement was said to have been drafted by Sankey’s in-law, that is, his sister’s husband (name withheld).
The total amount of N34 million was later returned to NIPSS after it had spent four months in Sankey’s bank account.

The report of a fact-finding committee (Briggs’ committee) set up in 2005 by the then DG, Maj Gen Osahor, was allegedly ‘rigged’ by Sankey through the appointment of a mole on the committee, who was in turn rewarded with re-conversion and contracts. This investigation later cost Gen Osahor his job.
Acquisition of house allocated to NIPSS by the FCDA as DG’s personal property
House No. 14, Road 22, Kado Estate, Abuja earlier allocated to NIPSS by the Federal Capital Development Authority became the personal property of the former DG, Akindoyeni.

Companies owned by and associated with Sankey as regular contractors
Sankey’s Curriculum Vitae submitted to NIPSS indicated that he had been a Consulting Partner for a company, Sail International Consulting Group, since 1983. But the same company, in a cluster with others (Pam Ruthers Int. Ltd, Joriada Integrated Services, Kachat Associates), are directly involved in various contracts in NIPSS. A certain Ruth Pam, who manages Joriada Integrated Services, is same person as Ruth Philibus that manages Kachat Associates.

Sail international also got food supply contracts running into millions of naira per month.
It was also discovered that Sail International shares the same address and post office box number with other companies like Pam Ruthers. In fact, Pam Ruthers had one of its contracts determined at one time due to poor performance but it is still enjoying lucrative patronage at the institute.

Contract analysis
One of the documents revealed that an analysis of contracts awarded to ‘fronting’ companies in 2005 alone, amounting to over N600 million, showed rampant cases of over-invoicing, contract-splitting, nepotism, job-recycling, self-execution of jobs, illegal collection of NIPSS revenue, abuse of registration, false addresses of contractors, self-enrichment, deception of authorities, initiated and conducted by Sankey.

Curiously, these were committed with the endorsement and approval of the Due Process Office, Abuja, just as a list of over 160 companies showed on investigation that most of them do not exist. Many addresses of the companies could also not be traced. One of the major and regular contractors supplying foodstuff, electronic wares, building roads, renovating and refurbishing buildings in NIPSS has its headquarters in a small hairdressing saloon along Tafawa Balewa Street, Jos.

Some of the companies reflect residential address of Sankey’s mother-in-law (name withheld) in Jos.
Food supply contracts to companies either owned by or linked to the SDA/DG
Sankey is said to be the principal food supplier to the NIPSS restaurant since 2003 when he was appointed Coordinator in the DG’s Office and later made the SDA. Prominent among food suppliers are Sail International, Kachat, Adefunke Kamac, Hammdes Ventures, Incomparable, Joriada, Petals, Sari Ent., and Samac. Most of the contractors share and reshuffle same addresses and staff. Same food suppliers also renovate buildings, furnish houses, build roads, supply and install electronics and ICT equipment.

Meteoric rise
Sankey joined NIPSS in February 2002 as a Senior Research Fellow 3 on Salary Grade Level 13 from the Ahmadu Bello University (ABU), Zaria, where he was a senior lecturer. In less than six years, he rose to the topmost position in the institution under quite debatable circumstances. For instance, he got his tenure extended as Director of Administration contrary to laid down rules.
The Decree setting up NIPSS stipulated the maximum of four years for the position of Director of Administration, Studies, and Research. This means those to occupy such positions are to come in for two years, and, perhaps, renewed for another two years where necessary.

But, Sankey’s tenure had actually expired some months ago. While the tenure remained few months to lapse, he reportedly lobbied the immediate past DG (Akindoyeni) and other Board members for them to extend it for him for ‘life.’ In other words, he asked that they allow him serve as the Director of Administration until he reaches retirement age, and they budged, curiously.
According to a source, a member of the dissolved Board, Mrs Tomi Shoboyejo, vehemently opposed the extension and argued that Sankey be deployed back to the Research Department as Senior Fellow 3. But she was roundly defeated.

FG sacks Sankey
Sunday Sun learnt that on Monday, October 13, it was a shocked Sankey that received a query from the Secretary to Government of the Federation (SGF), Ahmed Yayale, on why he should not be disciplined for insubordination and disrespect for the office of the Vice President. But the end finally came for him on October 16 via a directive from the SGF Office. In a letter signed by the Permanent Secretary, Hakeem Baba Ahmed, the government said it was not satisfied with Sankey’s reply to the query and that he should proceed on indefinite suspension immediately. It asked him to hand over to the most senior director in the institute and await further directive.
On Friday, Sankey held a valedictory meeting with the NIPSS staffers, during which he handed over to the Acting Director of Studies Mr James Opadiran.
A source at the meeting said he faulted his suspension and blamed the Vice President, Goodluck Jonathan, and the Attorney General, Michael Aondoakaa, for his travail.