•How agency sought presidential directive to release N10b to NBC
THE Economic and Financial Crimes Commission (EFCC) may file charges against a former Director-General of the National Broadcasting Commission (NBC), Emeka Mba, and three others, over alleged N15 billion Digital Switchover project, it was learnt yesterday.
The others are Director of Finance and Accounts Patrick Areh; Basil Udotai, managing director of Technology Advisors Ltd, and Managing Director of In-View Technology Ltd as well as D-Vine Partners Ltd Babatunde Amure.
The EFCC said N15, 038,400,000 was collaterised when the contract sum was N9.6 billion.
Contrary to claims by the NBC, the EFCC asked for a presidential directive to release N10 billion to the Ministry of Information to continue the digitisation project.
According to a document obtained by The Nation, the EFCC uncovered abuse in the procurement process.
It also discovered that of the N15 billion vote, only N4,977,227,400 was accounted for, leaving a balance of N10,061,172,600, unexplained.
The document said: “From the findings, we can clearly state that a prima facie case of criminal conspiracy, money laundering, theft, abuse of office and official corruption has been established against the suspects, namely: Emeka Mba, former NBC DG; Director of Finance and Accounts Patrick Areh; Basil Udotai, MD, Technology Advisors Ltd, and MD of In-View Technology Ltd as well as D-Vine Partners Ltd Mr. Babatunde Amure.
“It was observed that only seven of the 12 companies opened and funded letters of credit amounting to N3.6 billion.
“The companies were supposed to obtain facilities from the banks and execute the contracts after which they shall be paid by the NBC since cash collateral had been secured by the bank, not to use the collaterised fund letters of credit as the bank did.
”That officials of NBC responsible for procurement process, the director of Technology, who is in charge of the spectrum bandwidth and the store officers denied knowledge of such contract.
“That 12 companies were discovered to have been licensed and contracted to supply the digital set top boxes from China by NBC, which placed N15,038,400,600 in Zenith Bank as collateral/guarantee for the supply.
“ However, only seven of the 12 companies opened letters of credit, amounting to N3.6 billion while N1.237,400,000 was for the Digital Access fee paid to In-View Technology, making N4,977,227,400 and leaving a balance of N10,061,172,600 which could not be explained.
“That the managing partners of Technology Advisor, who was paid N2,899,400,000 could not provide any evidence of service(s) rendered by his firm to warrant such payment.
“That the amount paid was beyond the NBC’s threshold. It is an amount that can only be approved by the FEC.”
On the auctioned spectrum, the document said: “That till this moment, the NBC has not provided any documents to show if there was a competitive bidding special auction or tender for the spectrum as directed by the then President as regard the lease of 700MH Spectrum Bandwidth.
The document showed that it was the EFCC, which recommended a presidential directive to release the funds to the Ministry of Information for the Digitisation project.
“The records are clear. What the NBC said was incorrect because it was the EFCC, which asked for a presidential directive to release the N10 billion.
“It is sad that the NBC was trying to mislead the public,” a top source said.
The document gave details of how the alleged fraud was deducted and how the EFCC raised a memo to release the N10 billion to NBC.
The document added: “That a meeting of representatives of NBC, Zenith Bank, EFCC and minister of Information was held at the Minister’s Office where both Zenith Bank and the NBC were queried as to why N15,038,400,000 was collaterised when the total contract sum is N9.6 billion.
“The meeting resolved that there was need for further investigation to be carried out and concluded that excess funds be recovered by the EFCC. About N10, 061,172,600 was eventually recovered by the commission.
“Meanwhile, the N10,061,172,600 in EFCC recovery account may be released to the minister of Information through a presidential directive to enable him continue Digital Switchover project as requested.”
In a letter to EFCC chairman, the ex-NBC DG and others insisted that there was no fraud.
They made their position known through their counsel, Mr. O.J. Onoja (SAN).
The letter reads: “There is and was no scam of N3.4 billion or in any amount that our clients are aware of. Specifically, in relation to Technology Advisors, a proposal was submitted to NBC, which was brought up to the members of the commission for review.
“The salient aspects of the proposal referred to the then members of the commission for consideration were the assignments to be performed by Technology Advisors, and the fees, which the firm demanded.
“Upon review, our clients agreed that the firm should be engaged to proceed with the assignment as presented but that the fees of 20 per cent demanded should be reduced to 10 per cent.”