The House of Representatives ad hoc committee on emergency and disaster preparedness has indicted the governing board of National Emergency Management Agency (NEMA).
The board, chaired by Vice-President Yemi Osinbajo, was accused of illegal approval of N5.8 billion north-east intervention fund.
The lawmakers, in a report released on Thursday, recommended the dismissal of Mustapha Maihaja, director-general of NEMA, over alleged fraud, accused him of “corruption and embezzlement of N33 billion emergency intervention fund” meant for the agency.
Read the full report below:
REPORT OF INVESTIGATIVE HEARING ON THE VIOLATION OF PUBLIC TRUST IN THE NATIONAL EMERGENCY MANAGEMENT AGENCY (NEMA) SUBMITTED BY THE HOUSE COMMITTEE ON EMERGENCY AND DISASTER PREPAREDNESS. HR 52/2018
The House of Representatives in Plenary on Thursday, 15th February, 2018, mandated the Committee on Emergency and Disaster Preparedness to investigate the alleged “Violation of Public Trust in National Emergency Management Agency (NEMA)” and report back to it for further legislative consideration.
In furtherance to the above Resolution contained in the Votes and Proceedings of the House, dated 15th February, 2018, the Committee adopted the following terms of reference to determine the propriety or otherwise of the transactions undertaken and expenditures incurred in the following areas of concern by management of NEMA.
(i) The release of N5,865,671,389.26 and N3,153,000,000.00 as emergency intervention of Food Security to support the population affected by insurgency in the North-East in June 2017 and other releases for the North-East intervention;
2.0 MODUS OPERANDI
The Committee took the following legislative measures in the course of discharging this assignment:-
(i) The Committee held number of meetings to determine its modus operandi;
(ii) Letters were written to critical stakeholders to elicit their views on the issue under investigation;
(iii) Committee placed adverts in both Print and Electronic Media soliciting for memorandum and sensitizing the Public and stakeholders to the Public Hearing to ensure overall success of the investigation;
(iv) All submissions/documents received at the hearing were objectively scrutinized and analysed for informed findings and recommendations to the House for adoption.
3.0 INVESTIGATIVE PUBLIC HEARING
The Committee conducted investigative hearing on the matter. The well-attended hearing was officially declared open on Wednesday, 21st March, 2018, by His Excellency, the Honourable Speaker of the House of Representatives, Rt. Hon. Yakubu Dogara who was represented by the House Leader, Rt. Hon. Femi Gbajabiamila. The Committee conducted the investigation over a period of three months in 11 Public Sitting with various stakeholders.
Invited stakeholders who made presentations at the hearing were from:
(i) The National Emergency Management Agency (NEMA)
(ii) Office of the Accountant General of the Federation
(iii) Federal Ministry of Finance
(iv) Central Bank of Nigeria
(v) Federal Ministry of Budget and National Planning
(vi) Federal Ministry of Agriculture
(vii) Economic and Financial Crimes Commission
(viii) Governing Council of NEMA
(ix) Contractors: –
– Golden Agric Input Ltd.
– Olam Nig. Ltd.
– 3 Brothers Nig. Ltd.
(x) Office of Head of Service of the Federation
(xi) The Nigeria Customs Service
(xii) Nigeria Port Authority
(xiii) MAESK Line Clearing and Forwarding Agents & Transporters
(xiv) APMT & Maresk Line Clearing Agents & Transporter
(xv) SEMA (16 states affected by the flood and 5 out of the 6 states of the North East).
4.0 ANALYSIS OF THE SUBMISSIONS
A. DONATION OF 6,779 METRIC TONS OF RICE BY CHINESE GOVERNMENT FOR IDP’S IN THE NORTH EAST.
Committee appraised the submissions made by stakeholders involved in the matter and observed as follows:
Percentage and Tons Equivalence in Trucks
35% = 2,372.7 M/Tons 79.09 Trucks
20% = 1355.8 M/Tons 45.1 Trucks
15% = 1016.85 M/Tons 33.89 Trucks
10% = 677.9 M/Tons 22.5 Trucks
5% = 339 M/Tons 11.3 Trucks
5% = 399 M/Tons 11.3 Trucks
7 Kwali FCT
10% = 677.9 M/Tons 22.5 Trucks
Ministry of Finance provided Certificate for Import tax waiver with tax deduction on the consignments donated to Nigeria by Chinese government
The 5 State governments in the North-East except Borno State who did not appear before Committee, denied receiving any single bag of rice from the consignment purported to have been delivered and distributed to the IDPs by NEMA.
B. RECEIPT AND UTILIZATION OF N1.6 BILLION FOR FLOOD VICTIMS IN 16 STATES
– NEMA confirmed receiving the sum of N1.6 Billion released to it by the Federal Government as Intervention Fund to purchase food items and other relief materials for distribution to all the 16 States which was affected by the flood disaster in June 2017. The States are: Lagos, Oyo, Edo, Kwara, Ebonyi, Niger, Ekiti, Kebbi, Akwa Ibom, Plateau, Sokoto, Bayelsa, Enugu, Ondo, Abia State and FCT.
C. FUNDS RELEASED FOR EMERGENCY INTERVENTION OF FOOD SECURITY IN THE NORTH-EAST
– On the emergency intervention of food security to the North-East to support the population ravaged by insurgency, a sum of N5,865,671,939.26 was approved and released in June 2017 vide a memo raised from the Office of the Acting President, directing the Hon. Minister of Finance and the Accountant General of the Federation to so act. The details further specified a directive to the Governor of CBN from the Ministry of Finance to pay the sum from the Consolidated Revenue Fund Account which the AGF is to raise a mandate for. This is in contravention of approval of NASS on the issuance of Euro Bond from which the Hon. Minister authorized the payment. The Euro Bond is for specified infrastructural projects and not for discretionary intervention. Furthermore, there is no specific appropriation by the National Assembly.
This contravenes Section 80 (4) of the 1999 constitution as amended: which states:
“No money shall be withdrawn from the Consolidated Revenue Fund or any other public fund of the Federation, except in the manner prescribed by the National Assembly”.
1. Dangote Rice Ltd.
2. Golden Agric Input Ltd.
3. BUA Rice Ltd.
4. WACOT Ltd.
5. WACOT Ltd
– Committee noted the flaws and infractions on the authorization granted and removal of such huge sum of money from the Consolidated Revenue Fund Account of the Federation in violation of section 80(2) of the Constitution, Section 16(2) of the Procurement Act and provisions of the Appropriation Act as approval of the Legislature was not sought nor obtained for such expenditure.
– Due process was not followed as taxes and interest accruable to government were not deducted and remitted to the FIRS on the sums released and paid into the accounts of the different corporate entities shown above, this created colossal loss of revenue to the Federal Government.
– It was revealed in the Public Hearing testimonies that Dangote Rice Ltd, WACOT Ltd, BUA Rice Ltd and Golden Agric Input Ltd had earlier received N2billion each from CBN as loan to mop up grains across the country.
– Out of about N5.8Billion. NEMA got N829,026,456 for logistics and it claimed it spent it as follows, without satisfactory evidence:
(i) General Logistic N369.5 million
(ii) Branding and packaging N189.00 million
(iii) Others (Marketing, Security, tracking and media) N248.6 million
(iv) Contingency N21.9 million
D. RELEASE OF N3,153,000,000.00 TO NEMA FOR FOOD INTERVENTION TO THE NORTH-EAST
– The Committee noted that NEMA released 2.4 Billion Naira to Olam Nigeria Limited to supply 8,000 metric tons of rice, gave 3 Brother Rice Mill Limited the contract to supply 2,000 metric tons of rice at N600,000,000 and N153,160,000 for logistics and transportation of the items, all totaling N3,153,000,000.00.
E. EVACUATION OF NIGERIANS FROM LIBYA
– Committee confirmed that the sum of N1.6Billion was released to NEMA for the evacuation of Nigerians stranded in Libya in year 2017.
F. UNACCOUNTED N17,889,050,401 RELEASED FROM ECOLOGICAL FUND TO NEMA
– The Committee established that 20% of the Statutory Ecological funds are released to the National Emergency Management Agency on monthly basis. This is in compliance with Section 13(2B) of the NEMA Act.
1. On the issue of donation of 6,779 metric tons of rice by Chinese Government for IDP’s in the North East, the Committee recommends as follows:
2. Alhassan Nuhu – Director Disaster & Risk Reduction
3. Mr. Emenike Umesi –
Ag. Director, Special Duties
4. Mohammed Kanar – Deputy Director Welfare
5. Mr. Mamman Ibrahim – DD Captain of the Air Ambulance
6. Yunusa Deji Ganiyu – Asst. Chief Administrative Officer
2. On the issue of receipt and utilization of N1.6 billion for flood victims in 16 states, the Committee recommends;
(i.) that the House condemns in its entirety the display of insensitivity to the plight of flood victims showed by NEMA management in the handling of the relief materials.
(ii) that the ICPC and EFCC should further investigate the matter and recover the sum of N700m from the Director-General of NEMA, Engr. Mustapha Yunusa Maihaja, who is the Accounting Officer of the Agency.
3. On the issue of funds released for emergency intervention of food security in the north-east, the Committee recommends;
(i.) that all the government officials involved in the approval, processing, release and diversion of the sum of N5.8billion for the emergency intervention of food security in the North East, which contravened the provisions of S.80(2) and 80(4) of the Constitution, infraction of due process for procurement and loss of government revenue, flouting of the terms of the Eurobond loan are hereby indicted and the relevant Security Agencies should take steps to recover the money from them.
(ii.) that the Central Bank of Nigeria (CBN) being a banker to the Federal Government should not be involved in giving loans to private companies. Consequently, the N2billion said to be given to four named companies is a fundamental infraction and should be further investigated.
4. On the issue of release of N3,153,000,000.00 to NEMA for food intervention to the North-East, the Committee recommends,
(i.)that ICPC and EFCC should recover N1,150,000,000.00 being subsidised cost of 5000 metric tons of rice from the present Director General of NEMA, Eng. Mustapha Yunusa Maihaja, who claimed to have donated same to World Food Programme (WFP) when they were ready to pay for it or import same.
(i.) that Federal Government should make available adequate funds to the relevant agencies of government for the rehabilitation of those Nigerians evacuated from abroad, in order to prevent them from going back.
(ii.) that the process, procedure, method and cost of evacuation of Nigerians stranded abroad is opaque and should be made more transparent in order to ensure better accountability.
(i.) that NEMA should submit through the appropriate authority all the Ecological funds accruing to it yearly to the National Assembly for Appropriation in order to meet the Constitutional requirements.
The Committee expresses its appreciation to the Leadership and Members of the House for the opportunity given to us to serve, as we pledge our unflinching support to the House leadership.
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