Nigeria: No budgetary provision made for $6bln Mambilla power project — EFCC witness tells Court
The third prosecution witness (PW3) in the trial of a former Minister of Power and Steel, Dr Olu Agunloye, for alleged infractions in the award of contract for Mambilla Hydropower Station in Taraba State before the High Court of the Federal Capital Territory on Wednessday told the court that the Economic and Financial Crimes Commission (EFCC) discovered in the course of investigation that no budgetary allocation was made for the project.
Agunloye is standing trial on an amended seven-count charge bordering on forgery, disobeying presidential directive and gratification brought against him by EFCC, on behalf of the Federal Government, before Justice Jude Onwuegbuzie, sitting at Apo, Abuja.
In the charge, marked FCT/HC/CR/617/2023, EFCC alleged that Agunloye awarded contract for the Mambilla project in May 22, 2003 to Sunrise Power and Transmission Company Limited (SPTCL) without any budgetary provision, approval and cash backing.
The commission also, among others, alleged that the former minister received the total sum of N5.212million from SPTCL and Leno Adesanya, through Jide Abiodun Sotirin through Agunloye's Guaranty Trust Bank account, for conveying the Federal Government's approval for the construction of the Mambilla power project in favour of SPTCL while serving as minister.
The former minister, however, pleaded not guilty to the charge against him.
At the resumed hearing of the case today, the PW3, Umar Babangida, an Assistant Commissioner of Police on secondment to EFCC from the Nigeria Police Force, told the court that the commission discovered from the Ministry of Power and Steel's response to an investigative activity letter written to it a letter dated May 22, 2003 from the ministry signed by Agunloye to Sunrise Power and Transmission Company Limited.
According to him, the letter conveyed the Federal Government's approval for the construction of the Mambilla project at the cost of $6billion on a built, operate and transfer basis and also stating that N6billion was set aside for the take-off of the project.
He informed that in compliance with the directive to indicate acceptance within seven days as contained in the said letter, Sunrise Power accepted the offer through a letter dated May 26, 2003.
Babangida, led in evidence by the prosecuting counsel, Abba Mohammed SAN, told the court that the approval letter sent to Sunrise Power was issued 24 hours after the then-minister was directed to withdraw his memo for the award of the contract at the Federal Executive Council held on May 21, 2003 presided by the President, Chief Olusegun Obasanjo.
He added that investigators also discovered from the ministry's response another letter, dated September 3, 2003, from Senator Liyel Imoke, who was then the Minister of Power and Steel, addressed to Sunrise Power.
'The letter informed the company that the Federal Government at the Federal Executive Council meeting did not approve the award of the contract to Sunrise Power as recommended by the former Minister of Power and Steel, Dr Olu Agunloye.
'The letter further advised Sunrise Power to participate in the bid process along with other investors when it is advertised,' the PW3 told the court.
He said that based on the assertion in the letter dated May 22, 2003 that N6billion was set aside for the take off of the project, EFCC wrote to the Ministry of Power and Steel to provide the commission, among others information, evidence of budgetary allocation for the Mambilla project.
According to him, in its response, the ministry stated that there was no budgetary allocation for the project 'because it was awarded on built, operate and transfer basis'.
Justice Onwugbuezie later adjourned the matter to June 16 and 18 for continuation of the hearing.
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