The Economic and Financial Crimes Commission (EFCC) has recovered over ₦9.4 billion, $21.2 million, and several landed properties in an ongoing investigation into the alleged diversion of funds released for the rehabilitation and turnaround maintenance of Nigeria's refineries, PREMIUM TIMES can report.
Based on the Central Bank of Nigeria's official market rate of N1,380/$1 posted on Friday, the $21.2 million recovered is approximately ₦29.26 billion, bringing the total amount recovered so far to ₦38.66 billion.
The recoveries are part of what investigators described as one of the most extensive probes into the management of billions of dollars committed to reviving the country's moribund refineries.
Sources at the EFCC, briefed on the investigations, told this newspaper that the investigation centres on allegations of criminal conspiracy, breach of trust, diversion of public funds, economic sabotage, abuse of office and money laundering involving officials of the Nigerian National Petroleum Company Limited (NNPCL), its subsidiary, the NNPC Engineering and Technical Company Limited (NETCO), former and serving managing directors of the Port Harcourt, Warri and Kaduna refineries, as well as major contractors including Daewoo Engineering Nigeria Limited and Tecnimont SPA.
The federal government, through the NNPCL, awarded contracts worth approximately $2.79 billion between 2021 and 2023 for quick-fix repairs, turnaround maintenance and rehabilitation of the Port Harcourt, Warri and Kaduna refineries.
The contracts included approximately $740.7 million for Kaduna Refining and Petrochemical Company, $492.3 million for Warri Refining and Petrochemical Company, and $1.56 billion for the Port Harcourt Refining Company, which was awarded to Daewoo Engineering Nigeria Limited, Tecnimont SPA and other subcontractors.
Despite the huge financial commitment, investigators said they found no evidence of commensurate improvements in the operational status of the facilities, which suggests that over time, funds released have been criminally diverted or embezzled.
Investigators say their findings show that substantial portions of the funds were diverted, misappropriated or fraudulently disbursed by officials entrusted with executing the projects.
Last year, PREMIUM TIMES reported that the EFCC arrested several top officials of the NNPC in connection with the alleged multi-billion naira fraud associated with the rehabilitation of the refineries. At the time, both former and current officials of the company were apprehended, including a former Chief Financial Officer, Umar Isa; Tunde Bakare, managing director, Warri Refinery; Ahmed Adamu Dikko, former managing director, Port Harcourt Refinery; and Ibrahim Onoja, former managing director, Port Harcourt Refinery.
Investigators scrutinised procurement procedures, analysed how contract funds were utilised, assessed the level of project execution and sought to identify systemic weaknesses allegedly exploited to facilitate fraud. Over the past year, the EFCC has interrogated over 30 top officials of the NNPC in connection with the alleged crime. Similarly, more than 50 officials of the companies and subcontractors involved in the maintenance deals have been quizzed by investigators so far.
In the course of the investigation, the EFCC sought clarifications from the Corporate Affairs Commission (CAC). Several letters were reportedly written to ascertain the authenticity and original owners of companies involved, several bank accounts of individuals involved were thoroughly reviewed, and information was sought from the Central Bank and several commercial banks on the matter.
According to the findings, the investigators uncovered widespread violations of contractual procedures, questionable payment approvals and alleged manipulation of procurement processes.
EFCC sources told this newspaper that many of the irregularities were facilitated by officials across different levels of management, with several senior staff allegedly approving questionable payments and execution certificates in violation of established financial controls.
One of the officials named in the investigation, Ahmed Dikko, a former managing director of the Port Harcourt Refinery, was accused of abusing due process in the execution of the Port Harcourt refinery rehabilitation contract.
Investigators alleged that Mr Dikko approved the direct payment of contractors from provisional sum funds, contrary to contractual provisions requiring such contractors to be engaged and paid by Tecnimont.
The EFCC said it traced ₦983.9 million, $227,030 and three landed properties to the official, assets it said he could not satisfactorily account for.
An interim forfeiture order has already been secured over the properties, while prosecutors are preparing criminal charges against him.