‘How Oduah diverted airports fund, by EFCC – TheNigerialawyer

Senator Stella Oduah diverted part of N9.5 billion fund for
security equipment at airports during her tenure as Minister of
Aviation, the Economic and Financial Crimes Commission (EFCC) has
said.

Senator Oduah, who was Minister of Aviation between 2012 and
2014, allegedly connived with banks officials to perpetrate the
fund diversion and allegedly used the money to procure broadcast
equipment for Crystal Television Ltd., newspaper printing press,
six dredgers and quarry.

The anti-graft agency made these claims in an affidavit to
support a suit filed before the Federal High Court against the
senator.

The EFCC has already secured an interim forfeiture order on the
items allegedly procured with the diverted fund. The order was
granted on October 18 by Justice Inyang Ekwo of the Abuja Division
of the FHC. The case will come up for further proceedings on
November 19.

The agency said some of the dredgers and other items are being
kept in many parts of the country, particularly in Bayelsa, Rivers
and the Federal Capital Territory.

The EFCC’s affidavit said: “On the 13th of July 2013, the EFCC
received a petition written against the former Minister of
Aviation, Princess Stella Oduah, alleging that she used her
position as minister to swindle Federal Government of about
N22billion.

“Another petition by the National Union of Air Transport
Employees (NUATE) was. received on 22nd of July 2013 alleging
financial recklessness, duplication of contracts, theft and abuse
of due process against the former minister.

“Preliminary investigation conducted revealed the following
facts: On 7th September, 2012 the Federal Ministry of Aviation
awarded a contract for the procurement and installation of security
equipment at the nation’s 22 airports to I-Sec Security Nigeria Ltd
at the cost of N9,443,549,531.25 only and the award was accepted by
I-Sec Security Nigeria Ltd through its letter dated. 8th September
2012.

“I-Sec Security Nigeria Ltd entered into a contract agreement
with the Federal Ministry of Aviation, dated 11th September
2012

“I-Sec Security Nigeria Ltd opened an account known as ‘Project
Account 2’ for the execution of the contract with First Bank of
Nigeria Plc, No: 2021756955 based on an already existing mandate of
an account opened earlier with the bank on the instruction of the
Minister of Aviation.

“The signatories to the earlier account opened by I-Sec Security
Nigeria Ltd with First Bank Plc are Ayokunle Ajayi and Apochi
Igho.

“One Mrs. Shade Omoniyi, then Group. Head, Public Sector of
First Bank, Lagos was I-Sec Security Nigeria Ltd’s account officer,
who oversees and monitors the operation of the Project Account
2.

“On the 8th October 2012 the Federal Ministry of Aviation
transferred the sum of N5,652,650,414.98 to I-Sec Security Nigeria
Ltd’s Project Account 2.

“The Ministry of Aviation exercised a lien on the funds paid
into I-Sec Security Nigeria Ltd’s Project Account 2 as the company
could only make withdrawals from the account based on milestones
attained, but on the express approval given in writing by the
former minister.

“I-Sec Security Nigeria Ltd on 11th. June 2013 withdrew and
utilised the sum of N1,476,237,652.20 for the purchase of security
equipment through Form M.

“The former minister abused her office and position and
fraudulently conspired with Mrs. Shade Omoniyi, between 13th
September 2013. and 5th February 2013 to transfer the sum of
N3,289,530,738.00 from I-Sec Security Nigeria Ltd’s Project Account
2. to five companies linked to the former minister, without the
authorisation of the two signatories to the account – Messrs Apochi
Igho, who is the Managing Director and Ayokunle Ajayi.

“The five companies to which monies were transferred are:
Broadwaters Resources Company Ltd (N839,780,738.09); Global
Offshore and Marine Ltd (N1,629,250,000.00); Mczoll Resources Ltd
(N216,000,000.00); Glosat Security Services Ltd (N300,000,000.00).
and Merry Aviation Communication Electronics Industry Nig. Ltd
(N285,000,000.00).

“The former minister used Sabora International Ltd to apply for
and obtained a loan facility of N885,711,400.00 from First Bank Plc
to import six IMS dredgers and quarry equipment from the United
States of America and used the dredgers as collateral security.

“Out of the sum of N836, 780,730.09 earlier transferred from
I-Sec Security Nigeria Ltd’s Project Account 2 to Broadwaters
Resources Company Ltd. on 5th February 2014 the sum of
N838,000,000.00 was further transferred to Sabora International
Ltd’s account No: 2022354121 with First Bank on 26th February 2014
as part payment to settle the loan facility of, 885,711,400.00
secured by Sabora International Ltd from First Bank Plc that was
used to import six IMS dredgers from the United States of America
and quarry equipment.

“Broadwaters Resources Company Ltd. was incorporated on 31ts
December 2012 by the law firm of Abraham & Co and later sold to
Ms. Obi Obianuju. Vivian, who made statements to the the effect
that Broadwaters Resources Company Ltd.has no business relationship
with either I-Sec Security Nig Ltd, Ministry of Aviation or Sabora
International Ltd and had no idea how N839,000,000.00 was paid into
the company’s account by I-Sec Security Nig Ltd.

Global Offshore Resources and Marine Ltd and Morgan Stem African
Ltd were registered as Shell Companies by one Mr. Adeleke Adegbola,
a lawyer, who later sold the two companies to Princess Stella Oduah
while she was serving as the Minister of Aviation

“The former Minister of Aviation facilitated a loan facility of
N1,291,865,900.00 from First Bank to Crystal Television Ltd on 4th
March 2013 and an overdraft facility of N50,000,000.00 in June 2013
to set up a radio station/television network and newspaper printing
press and the loan was used as lien. for the equipment.

“The former minister abused her office by fraudulently
conspiring with Mrs. Shade Omoniyi, the account officer to transfer
the sum of N1,600,000,000.00 from I-Sec Security Nig Ltd’s Project
Account 2 with First Bank to Global. Offshore Resources and Marine
Ltd on 12 February 2014 when the company. has no contractual
relationship with either I-Sec Security Nig Ltd or the Federal
Ministry of Aviation.

“The loan facility of N1,291,865,900.00 and overdraft of
N50,000,000.00 obtained by Crystal Television Ltd from First Bank
Plc was paid off with part of the sum of N1,600,000,000.00
fraudulently transferred from I-Sec Security Nig Ltd’s Project
Account that was diverted to Global Offshore Resources Marine Ltd
to the tune of N840.613.092 28 on 28’h April, 2014.

“The sum of N780,000,000.00 out of the N1.600,000,000.00
transferred from I-Sec Security Nig Ltd’s Project Account 2 was
again re-transferred to the accont of Tip Top Global Resources Ltd
to pay off the indebtedness of Crystal Television Ltd.

“The funds fraudulently transferred by the former minister from
the Project Account 2 of I-Sec Security Nig. Ltd and used in
liquidating the two loan facilities granted to Crystal Television
Ltd to set up a radio station/television network and newspaper
printing press and to Sabora International Ltd to purchase six
dredgers are not her money or that of her companies, but funds
belonging to the Federal Ministry of Aviation meant for the
procurement, supply and installation of security equipment at the
nation’s airports.

“The funds used in liquidating the loan facilities granted by
First Bank to Crystal Television Ltd and Sabora International Ltd
are the product of unlawful activity.”