But the minister of Niger Delta, Elder Godsday Orubebe, has denied any involvement in the alleged dirty deals.
The scam involved payments for phantom projects, over-budgeting and violation of Bureau of Public Procurement (BPP) guidelines for the award of government contracts.
According to official documents made available to LEADERSHIP yesterday by Anti-Corruption Network, a whistle-blowing organisation headquartered in Abuja, the award of these fake contracts, which had been ongoing, violated the BPP rules but were nevertheless fully paid for with the authority of Nigeria's Ministry of Finance.
Examples of such non-existent projects, which the group said have been exhaustively investigated and found to be fraudulent, are: contract for the canalization of Odoubou-Bololou creek project in Ogbaba- Gbene, Burutu LGA, at a cost of N1.259bn; contract for land reclamation and shoreline protection at Ogbobagbene, for which the sum of N2.431bn was fraudulently paid; and the contract for canalization training of Foupolo-Bunu Ndoro creek project in Burutu LGA for which N2.370bn was paid even though the project did not exist.
According to a Ministry of Niger Delta Affairs document obtained yesterday by LEADERSHIP at the media briefing convened by Anti-Corruption Network, contract for land reclamatinon /shoreline protection project at Ogbobagbene, Burutu LGA, Delta State, under the watch of the ministry and awarded in 2010 at the cost of N5,813,743,373.92 was found to have been over-funded to the tune of N12,925,132,704.00.This was despite the cost-reduction review totalling N1,067,349,380.28 given by the BPP.
Briefing journalists yesterday, the executive secretary of the anti-corruption group, Otunba Dino Melaye, said over N29bn had been siphoned through a list of fictitious contracts by the ministry, adding that, also in 2010, a contract for land reclamation/ shoreline protection and canalization in the Niger Delta region, Batch 1, was awarded by the ministry to one Messrs Hanslum Construction Ltd and six others at the sum of N14,270,966,124.99.
"We are resolute to expose corruption at all levels. We are going to take this fight to the next level by not only exposing them but also going to court to challenge those who perpetrate it. In the Niger Delta Ministry, it is unfortunate that we have discovered three phantom projects. They are not just phantom but non-existent. We say that it is satanic, the collaboration between the Niger Delta Ministry and the Ministry of Finance in this scam," he said.
He noted that the anti-corruption network would send copies of the documents proving these scams to the presidency, the ministers of the affected ministries as well as the relevant anti-corruption agencies such as the EFCC and the ICPC for further investigations. The move, he said, would be followed by a court action against the key players of the fraud, adding that, as a whistleblower, he owed it a duty to the nation to uncover corrupt dealings wherever it was found.
Elder Orubebe has denied any knowledge of the alleged fraud of N29billion meant for the contracts' funding in his office.
The minister, who described the allegation of embezzlement of public funds as very untrue, a fallacy and a miscounted one, said via telephone that he was open to an investigation by "any authority".
Orubebe, who further described the allegation as cheap blackmail by unrepentant liars and cheap popularity seekers, advised them go back and check their facts as the minister of finance and coordinating minister of the economy would never release funds without carrying out proper inspection of projects sites.
"The minister of finance and coordinating minister of the economy cannot allow that at all; there is no way the minister will approve funds for projects that are not on ground. Projects are inspected before the release of funds," he stated. "If we had done a fraud on such a massive scale, wouldn't they have found out? In 2010 and 2011 we carried out contracts according to the funds availed us and have lamented bitterly of shortfalls and there are just three allegations out of the hundreds of contracts."
Our papers are open to scrutiny. Every allegation they have made, we have countered. We have got the documents for everything. I have all the facts and figures to show the allegations are false," Orubebe told LEADERSHIP.
Jonathan wants Ribadu report submitted Friday
Meanwhile, barely a week after the Mallam Nuhu Ribadu-led Petroleum Revenue Special Task Force announced that it had discovered shady deals and crude oil theft in the petroleum industry, President Goodluck Jonathan yesterday gave a marching order to the task force: it should present its report to him on Friday this week at the presidential villa, Abuja.
Jonathan also ordered two other committees set up by the federal government early this year on different aspects of the petroleum industry to submit their reports to him on the same Friday.
A statement issued by the special adviser to the president, Dr. Reuben Abati, said Jonathan's directive was in furtherance of "the administration's commitment to transparency, probity, and accountability in the petroleum sector".
"President Goodluck Jonathan has directed that a comprehensive report of the Petroleum Revenue Special Task Force chaired by Mallam Nuhu Ribadu should be presented to him this week," he stated.
The statement made available to LEADERSHIP reads in part: "The Committee, which was set up in February 2012, was required to, among other tasks, determine and verify all petroleum upstream and downstream revenues (taxes and royalties, etc) due and payable to the Federal Government of Nigeria, and to take all necessary steps to collect all debts due and owed; to obtain agreements and enforce payment terms by all oil industry operators.
"The presentation of the Committee's report will take place on Friday, November 2, at 11am, at the State House, Abuja."
Abati noted that the president further directed "two other committees set up by the federal government earlier this year on different aspects of the country's petroleum industry to also present their reports" to him on Friday, November 2, 2012.
Similarly, the senior special assistant to the president on public affairs, Dr Doyin Okupe, in a release made available to LEADERSHIP, said the president had not even seen nor received any copy of the Ribadu Committee report. He said what had been released to the media prematurely is a draft copy which will be subjected to clarifications and due process from the originating ministry before the official handing over to the presidency.
"President Goodluck Ebele Jonathan should be commended for his personal resolve to fight institutionalized corruption in Nigeria. President Jonathan ordered the probe of the oil industry for the period of ten years (2002 - 2011) which also covers the tenure of his administration. No president in our history has gone this far and this explains why the rot in our system has persisted for so long.
"President Jonathan approved the appointment of a well-known anti-corruption crusader, Mallam Nuhu Ribadu, who ran against him at the presidential poll on the platform of the Action Congress of Nigeria, ACN.
"It is also noteworthy that the secretary of the Committee, Mr. Supo Sasore, was a former attorney-general of Lagos State under an ACN government.
President Jonathan's unwavering and commendable determination to fight corruption is clearly demonstrated by his approval of the appointment of credible Nigerians, anti-corruption crusaders and members of the opposition party in the committee," Okupe said.
The president's aide said Jonathan was committed to exposing fraud at all levels including the oil sector as illustrated by the Aig Imokhuede committee on fuel subsidy.
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