Senate says SGF used personal companies to siphon funds meant for IDPs

The Senate on Wednesday indicted the Secretary to the Government to the Federation (SGF), Mr. David Babachir Lawal over alleged fraud involving funds meant to cater for Internally Displaced Persons (IDPs) in the North-east.

Senate decision followed the adoption of a report of its adhoc committee on North-East Humanitarian Crisis presented by Sen. Shehu Sani (APC, Kaduna), Chairman of the adhoc committee.

The report which was unanimously adopted by Senators with some slight amendments, recommended that the SGF be suspended and prosecuted by relevant anti-corruption agencies for violating the provisions of the Public Procurement Act, 2007 and the Federal Government Financial Rules and Regulations pertaining to the award of contracts.

Senator Sani in his report said the Presidential Initiative on North East (PINE) took undue advantage of the provision of emergency situation contract award in the PUblic Procurement Act, 2007 to over inflate contracts.

He said: “Contracts were awarded to companies belonging to top government officials’ cronies, family members and close associates. For example, Rholavision Engineering Limited incorporated in 1990 with RC No. 159855 at the Corporate Affairs Commission, Abuja to carry out information and communication technology services, anchored by David Babachir Lawal, the current Secretary to the Government of the Federation was awarded consultancy contract for the removal of the invasive plant species in Yobe state on 8th March, 2016.

“Although, Lawal resigned the directorship of the said company in September, 2016, it is on record that he is still the signatory to accounts of the company. About 95 to 100 per cent payments of all contracts awarded by PINE have been paid even as some contracts are yet to be fully executed, e.g, payment of One Hundred and Eight Million naira (N108 million) only for the supply of 1100 units of temporary tarpaulin carbines at Three Hundred and Two Thousand naira (N302,000:00) per unit made to Dantex Nigeria Limited despite the fact that 125 units valued at N37.7m were yet to be supplied.”

Confirming the alarming humanitarian crisis in the area, Senator Sani said: “lt is absolutely true, that there is serious humanitarian crisis in the North-East as evidenced by the plight of the Internally Displaced Persons (IDPs) both in camps and within the host communities.

“There is hunger, disease, squalor, deprivation and want amongst the lDPs. This observation is corroborated by a statement accredited to the United Nations’ Deputy Coordinator of the Office for the Coordination of Humanitarian Affairs (OCHA), Mr. Peter Lundberg to the effect that ”a projected 5.1 million people will face serious food shortages as the (Boko Haram) conflict and risk of unexploded improvised devices prevented farmers from planting for the third year in a row, causing a major food crisis in the North East”.”

Speaking on the non-availability of Federal Government’s health workers in almost all the camps visited, Sani said: “There was vivid absence of the Federal Ministry of Health in all camps visited, however, while the few critical government agencies like National Emergency Management Agency (NEMA) as well as States Emergency Management Agency (SEMA) were noticed, but without synergy with other agencies. However, the Nigerian Air force medical , team was found rendering medical services to the lDPs with the little equipment at their disposal.”

He continued: “Despite the claim by some Federal government agencies to the effect that huge sum of money is being spent on lDPs in the North East, what is on the ground as seen by the Committee does not justify/reflect the claims. For example:

“Over 70 per cent of displaced children both in camps and with host communities were out of schools due to lack of classroom infrastructure, inadequate teaching materials and even teachers. They were also seen loitering in the camps mal-nourished, sickly, and poorly dressed.

“Generally, there is acute shortage of food amongst the lDPs, as observed in one of the lDPs visited, three(3) bags of rice of 50kg each, a bag of beans of 50kg and a 4 liter of palm oil were given to 30 people for 15 days. These were considered too insufficient as confirmed by many lDPs that interacted with the Committee.”

In their contributions, senators lampooned the SGF and backed the position of the interim report which called for the suspension and prosecution of Mr. Lawal.

Senator Dino Melaye (APC, Kogi) while making his contribution said: “The SGF rushed to the Corporate Affairs Commission in September only when the Senate started investigating him. He awarded a contract to his own company where he is a signatory. The SGF has exhibited anti-Buhari tendencies.

“This is a gross abuse of office. I call for the immediate resignation of SGF and after that, he should be prosecuted by the Federal Government. It is time to call a spade a spade. It is time for the Senate President to act.”

Melaye got dramatic when he said “yesterday I felt like crying but today I actually need to cry,” and was promptly handed a white handkerchief by a colleague which he used to dab his face.

Incidentally, at same time the presiding officer, Bukola Saraki also raised a handkerchief to his face as if to also wipe a tear.

Senator Adeola Solomon (APC, Lagos) on his part, said: “While the SGF was giving his testimony to the committee, what he was saying was not in tandem with the documents we had. This is just the interim report. What we have now is just the phase value. The companies were only created for the award of these contracts.

“We are asking him to resign and also calling for his immediate prosecution. When you go to the IDP camps, there is nothing there to write home about.”

Leader of the Senate, Senator Ali Ndume (APC, Borno) however sounded a note of caution: “I am a bit worried. This is an interim report. If we have a report that is interim, what decision can we take? Why can’t we wait till the full report is ready.”

But he was ignored by Senators and Saraki quickly intervened, saying “when we get there, we will look at the issue and do the right thing.”

In his final remark, Saraki added: “Let me thank the committee for being able to do a report and for coming out with this daring infractions that are commendable. I hope the relevant agencies will take note of the recommendations.

“The message from the Senate is that business cannot continue as usual. Those that have contravened the relevant acts must be prosecuted. This government that is seen to be fighting corruption must not cover up this fraud. We must do something about it.”

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