The Minister of Agriculture and Rural Development, Chief Audu Ogbe and the
Minister of State in the ministry, Senator Heineken Lokpobiri, have been
named in a N2 billion bribery scandal. This is coming in spite of the
anti-corruption posture of the President Mohammadu Buhari-led Federal
Government.
Pointblanknews.com uncovered a bribery scheme by the two ministers
concerning a recent part-payment of N15 billion to contractors owed by
the ministry. The contractors executed projects under the fertilizer
subsidy programme, Growth Enhancement Support Scheme (GESS), introduced
by the administration of former President Goodluck Jonathan in order to
enhance farmers’ access to subsidised fertilizer.
The amount is part of a N56 billion debt owed the contractors by the
Federal and state governments participating in the programme but the
ministry is in charge of payments to contractors.
All participating states gave an Irrevocable Standing Order (ISO) for
their portion (25%) of the Subsidy amount to be deducted directly from
their statutory monthly allocation from the federation account as due. The
Federal Ministry of Agriculture & Rural Development (FMARD), as the agency
in charge of the administration of the program has the responsibility of
coordinating, managing and effecting the payment of the subsidy to all
participating inputs supplier companies.
The Growth Enhancement Support Scheme (GESS) is a Federal government
initiative aimed at subsidising the costs of major agricultural inputs,
such as fertiliser and seedlings for farmers, yam tubers and yam
plantation, yam tubers and yam plantation based on the GESS policy, the
federal and state governments equally contribute the balance of 50 per
cent being the approved subsidy amount for onward payment to participating
inputs (fertilizer) suppliers.
The Farm Inputs Suppliers Association of Nigeria (FUISAN ), is the
association that made the programme successful.
But following the release of N350 billion by government for the payment of
contractors owed by government as contained in the 2016 budget, the
Ministry of Agriculture and Rural Development was allocated funds
including N15 billion to effect the part-payment to over 50 contractors
owed by the ministry.
Following the release of the money to the ministry, the two ministers
called a meeting of all the contractors owed by the ministry in Abuja. At
the meeting, Chief Ogbeh confirmed the release of some funds to the
ministry including N15 billion being part-payment for work done by the
contractors, most of which were carried out in 2014.
The contractors were assured that payment would be made in such a way to
cover all the contractors owed by the ministry pending the release of more
funds by government. The ministers assured the contractors that they would
be paid on “pro-rata” basis. But to the chagrin of the contractors, the
ministry expended the N15 billion on only three contractors, one of which
was Notore Chemicals PLC, a fertilizer and agro-allied company linked to
Chief James Ibori who is currently serving jail time in U.K for
corruption.
Pointblanknews.com investigations showed that the payment was a product of
a decision to deduct N2 billion from source and concentrate the payment on
only three contractors, who were part of the deal. The three contractors
were paid N13 billion leaving in the lurch the rest of the contractors,
who were earlier promised payment on pro-rata basis.
A group, Society for Good Governance (SGG), is therefore asking the
Independent Corrupt Practices and Other Related Crimes Commission (ICPC)
to investigate the payment.
“We are, by this petition, asking the ICPC to carry out a comprehensive
investigation into the payment to determine why the ministers and the
permanent secretary reneged on the earlier arrangement to pay all the
contractors who have been owed for many years now and decided to pay only
three contractors.
“We urge you to look into the deal between the two ministers, the
permanent secretary and the three contractors that resulted in the payment
of N13 billion to them. What happened to the remaining N2 billion. Why
renege on the payment of the other contractors?”, the group queried.
A source familiar with the development told Pointblanknews.com that the
decision to pay only three contractors a whooping N15 billion was curious
after the minister had promised to expend the part-payment on all the
contractors involved.
“The question on everybody’s lip is why pay only three contractors after
the agreement that all the contractors would be captured . These are
people who collected bank loans to execute these projects. The initial
amount borrowed has not been paid and they are not even talking about the
interest that has gone out of the roof after many years”, the source said.
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