A witness narrated before the court yesterday how former President Olusegun Obasanjo ordered additional cost to be added to the Mambila Power Project contract sum.
Assistant Commissioner of Police (ACP) Umar Hussein Babangida giving evidence in the trial of former Power and Steel Minister, Dr Olu Agunloye, said Obasanjo directed Agunloye to add N11 billion to the N6 billion allocated for the project in 2003.
Agunloye is being prosecuted by EFCC on an amended seven-count charge bordering on disobeying presidential directive, conspiracy, forgery and receiving gratification before Justice Jude Onwuegbuzie sitting at Apo.
He is accused, among others, of conspiring with Leno Adesanya, chairman/chief executive officer (CEO) of Sunrise Power and Transmission Company Limited (SPTCL), to forge a letter titled, “Construction of 3,960MW Mambilla Hydroelectric Power Station on a build, operate and transfer” basis.
Babangida, an investigator with the Economic and Financial Crimes Commission (EFCC) said Obasanjo gave the directive to Agunloye to add the N11 billion at a private meeting.
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Babangida stated that as President, Obasanjo’s utmost desire was to kick-start the project, adding that he (former president) held a private night meeting with Agunloye on May 20, 2003.
The witness said the EFCC investigation revealed that at the meeting, the former president directed Agunloye to add N11billion to the already appropriated N6billion for the take off of the project.
He said: “The former President mentioned it at the Federal Executive Council meeting of May 21. However, the details of the discussion of the previous day(May 20) were not fully given by the former President.”
Babangida said the Federal Government could have paid $1.5billion as its 25 per cent equity participation in the $6billion power project based on build, operate and transfer.
Babangida, Prosecution Witness 3 ( PW3) told the court that it took about 23 years from the feasibility studies on the project in 1981 and 2003 for it to be awarded, adding that seven companies which indicated interest in the construction were screened.
The PW3 further told the court that after FEC members supported the memorandum presented by Agunloye on the 25 per cent equity participation, the then Vice-President, Atiku Abubakar and a sitting minister opined that a review of government participation from 25 per cent should be considered.
He, however, asserted that it was not entirely true that it was on that basis that Agunloye was asked at the FEC meeting to withdraw his memorandum on the Mambilla project.
The witness said: “That was part of the reason. There were several observations raised by the former president, the former vice-president and other members of the Executive Council, which led the Council to direct the former minister (Agunloye) to withdraw the memorandum.”
Babangida further told the court that Agunloye was directed to withdraw his memorandum with a view to engaging investors on constructive negotiation and exploiting various investment options, to get a reduction in the 25 per cent equity participation.
When asked to read a letter of award to Sunrise Power and Transmission Company Limited (SPTCL) written by the defendant and dated May 22, 2003, the prosecution witness said the former minister stated in the letter that, “Eventual equity participation will vary from zero to not more than 10 per cent.”
The award is seen to have secured a reduction between zero percent to 10 per cent of government participation, instead of the initial 25 per cent participation.
The witness, however, added that though the offer by the defendant to SPTCL on the document was a reduced government’s equity participation from 25 per cent to a variation between zero percent to not more than 10 per cent. He said that was not what transpired, but did not give further insight.
Justice Onwuegbuzie adjourned till February 2 for the continuation of PW3 cross examination.