Running costs
The sum of =N=80 million was appropriated to PPO as running costs in each of 2010 and 2011. Of this total sum of =N=160 million, the sum of =N=133,333,333.33 had been released to PPO for the 20 month period covering 1 January 2010 to 31 August 2011. The analyses provided to us by PPO reflected that PPO reflected that PPO had incurred as running cost, the sums of =N=639,757,491.03 in 2010 and =N=978,836,231.44 between 1 January 2011 and 31 August 2011.
This means that PPO exceeded its budgetary allocations for running cost by 699.69% and 112355% in 2010 and 2011 (31 August 2011), respectively. Of the sum of =N=978,836,231.44 the sums of 359,329,292.33 and 49,391.393.51 were incurred in July 2011 and August 2011, respectively, under the leadership of Maina.
2.3 Allegations by Afolabi
2.3.1 Allegation of exceeding mandate by Maina
Afolabi appointed Maina to “oversee the operations of the Police Pension Office for a period of three (3) months commencing from June 9, 2011.” He also mandated Maina to “restructure the entire operations and processes of the Police Pension Office...” and handover to the new Director of PPO after three months (that is by 8 September 2011). Our discussions with Maina and the Task Team reflected that they interpreted the clause “oversee the operations of the Police Pension Office...” to give the Task Team the authority to take over the management of PPO with Maina assuming the role of Accounting Officer of PPO.
It would appear that the wording of the letter might be at variance with the intention of Afolabi who claimed that he only intended Maina and the Task Team to restructure the operation of PPO with three (3) months and leave according to him he never expected Maina and the Task Team to take over the actual payment of pensions or the operation of PPO bank accounts.
Afolabi also appointed Adeyemi as Directed of PPO to replace Wada via a letter reference number HCSF/CMO/AOD/DO2/S.1/T3/126 dated 6 June 2011. The appointment of Adeyemi also took effect on 6 June 2011. Effectively, Adeyemi became substantive Director of PPO three (3) days before the commencement of the mandate of Maina and the Task Team to restructure and oversee the entire operations and process of PPO, and to hand over to him (Adeyemi) after three (3) months.
We require from Afolabi and Adeyemi how Maina allegedly exceeded his mandate. They gave the following examples:
• Opening and operation of bank accounts in the name of PPO without the prior approval of AGF
• For ministries departments and agencies of government Financial Regulation 701(i) stipulates that no official bank account shall be opened unless authorised by the Accountant-General
However, our review of available documentation shows that the Task Team opened bank account number 201785907, with First Bank Maitama in June 2011 without the AGF approval.
In addition, the Task Team under Maina’s leadership opened bank accounts number 50330024748 and 101556733 with Fidelity Bank and UBA, respectively, prior to obtaining the AFGs approval issued on 9 August 2011.
Our detailed findings with respect to the irregular opening and maintenance of bank account by Maina and the Task Team are contained in Section 2.3.2 of this report.
Furthermore, Maina may have exceeded his mandate by authorising estacode and BTA payments (i.e overhead/running costs) from PPO’s bank account number 233183485601000300 with Unity Bank. In his handover notes dated and signed 8 June 2011, Wada stated that the funds in above mentioned account with Unity Bank were set aside for the payment of pension arrears.
Our detailed findings with respect to the irregular payment of estacode from PPO’s bank accounts by Maina are contained in Section 3.2 this report.
2.3.2 Allegation of irregular opening of bank accounts by Maina
The Task Team opened bank account number 201785907, with First Bank Maitama in June 2011. Subsequently, by a letter dated 14 July 2011 with reference number PPO/CWB/VOL1/12 and signed by Maina, Umaru and Yusuf, the manager of First Bank Ikeja was instructed to close the two PPO accounts maintained by the branch account numbers 1882030003674 and 18820300011264. First Bank was instructed to transfer the balances on the above mentioned accounts to PPO’s bank account number 606204000231 at First Bank Maitama branch. In his email of 19 October 2011 Nwajueboe confirmed that 606204000231 was the old account number for the NUBAN 201785907.
During our consultation with Maina he stated that they did not need to obtain a separate approval from the AGF to open the First Bank account in Maitama because the approval obtained for the opening of the initial accounts at First Bank Ikeja, covered all other subsequent accounts opened with First Bank.
However, during our consultation with the AGF on 10 October 2011 he stated that he issues approvals for the opening of bank accounts on a case by basis. The AGF added that each approval is granted based on a request received from PPO, for approval to open a specific bank account. In addition, Financial Regulation 701(i) stipulates that no official bank account shall be opened unless authorised by the Accountant-General.
Furthermore, in a brief dated 19 September 2011, on the alleged withdrawal of fund from First Bank, which was prepared by Adeyemi, he alleged that the Task Team opened two bank account with Fidelity Bank and UBA, respectively, prior to obtaining the approval of the a AGF.
We noted that the account opening process for the Fidelity Bank and UBA accounts in question commenced on 16 June 2011 and 21 June 2011, respectively, but the approval by the AGF to open an account each with Fidelity Bank and UBA was granted on 9 August 2011. Thus, although request had been made for approval for opening of these accounts, the accounts were opened before the approval was received from the AGF.
Our analysis reveal that PPO operated a total number of 24 bank accounts (closed, dormant and active) with a total balance of =N=35,527,547,108.92 as at 30 September 2011. Refer to Annexure II and Annexure III for details 2.4 Allegation of irregular payment of estacode and DTA from PPO account by Maina.
During the period of July 2011 to August 2011, the Task Team embarked on a nationwide biometric data capturing of retired police personnel within and outside Nigeria. The exercise was undertaken in each state of the Federation, the FCT and selected cities outside Nigeria namely, Accra, Atlanta (US), Johannesburg, London, and New York. We did not perform further work in respect of DTA paid for the exercise within Nigeria because we did not receive adequate information and records about the payments.
In respect of the exercise outside Nigeria, Maina approved at least =N=140,238,081 to be paid as estacode to 70 persons for the purpose of monitoring the data capturing exercise outside Nigeria. This amount was more than the budgetary/statutory allocation of =N=80 million to PPO as pension running costs for 2011. Each memo seeking approval of payment of the estacode was prepared by Yusuf and approved by Maina. The estacode was paid out of PPO account with Unity Bank. With the exception of one tranche of payment was already debited to PPO account with Unity Bank (on 14 or 15 July 2011) prior to the date of the date of the memo (8 August 2011) by Yusuf to Maina seeking approval of the payment.
Similarly, with the exception of one, each tranche of payment was already debited to PPO account with Unity Bank (on 14 or 15 July 2011) prior to the date of the approval of the payment by Maina (on 9 August 2011). There were discrepancies between the schedules of the 70 supposed beneficiaries of the estacode, which were attached to the various memos prepared by Yusuf and approved by Maina, and the schedules of the 70 beneficiaries of the payments that were attached to the various e-Payment Schedules sent to Unity Bank for the payment of the estacode. We also identified six (6) instances where more than one (1) payment of estacode was made to the same into one (1) bank account.
These were as follows:
In respect of the two (2) estacode of =N=2,738,000 each paid into his bank account, Christian Madubuike (a Grade Level 6 officer at PPO) stated that the two (2) estacode payments totally =N=5,467,000 were collected by him and handed over to Yusuf at the Latter’s instance. Madubuike confirmed that he (Madubuike) did not travel to Atlanta for any exercise. The e-Payment Schedule sent to Unity Bank for the payment of the two (2) estacode was approved by Yusuf himself and Magaji, and endorsed by Maina.
Abullahi Umar claimed that he handed over the sum of =N=2,386,000 to the Secretary of Maina at the request of Maina, while the second sum of =N=2,386,000 was handed over to one Mrs. Papka of the OAGF as her estacode. We could not confirm the authenticity of these claims.
Polycarp Iber of EFCC voluntarily returned the sum of =N=2,680,00 paid to him as estacode and related allowances because he did not monitor the exercise. He also voluntarily returned =N=4,854,000, which was mistakenly paid into his bank account, the estacode was meant for another beneficiary.
We were unable to confirm the following:
• The basis for selecting the various individuals who were invited to monitor the biometric data capturing exercise at locations outside of Nigeria;
• That all the persons who received estacode and related allowances indeed monitored the biometric data capturing exercise at the locations assigned to them. Our limited enquiries revealed that some of the recipients of the estacode might not have travelled to the locations assigned to them for the exercise; and
• That all the persons who received estacode and related allowances but did not monitor the biometric data capturing exercise at the locations assigned to them refunded the estacode paid to them even though they did not monitor the exercise at the location assigned to them for the exercise.
3. Detailed findings
3.1 Allegations by Maina
3.1.1 Allegation of ulterior motive in appointment of Adeyemi as Director of PPO
Maina had alleged that Afolabi appointed his cousin (Adeyemi) as Director of PPO in order for the latter (Adeyemi) to assist him (Afolabi) in diverting funds from the Police Pension Accounts. The government had therefore requested KPMG to assist it ascertain the veracity or otherwise of this allegation.
Our approach
• We held consultation with Afolabi, Maina, Adeyemi and Wada.
• We obtained from Adeyemi and reviewed a copy of his curriculum vitae and the letter deploying him to PPO as Director
• We obtained from Maina and reviewed a copy of the letter authorising him to oversee and restructure PPO to understand his terms of reference.
• We obtained and reviewed the Police and Other Agencies Pensions Offices (Establishing etc) Act. No 75 of 1993, which was represented to us by PPO staff as one of the enabling laws for PPO.
• We followed up with Maina for any records and information that he might have in connection with the allegation
• We received from Maina and analysed his written submission in respect of the allegation.
• We documented our findings.
Findings
During our consultations with Adeyemi, he explained that he is Afolabi’s uncle and not his cousin. Adeyemi stated that he is the son of the Late Oba Lawal Adeyemi (the Akirun of Ikirun in Osun State). The mother of Afolabi, Princess Gbemisola Afolabi (nee Adeyemi), is a half sister to Adeyemi and the eldest surviving daughter of the Late Oba Lawal Adeyemi. Adeyemi also stated that Afolabi is from Ibadan in Oyo state.
We sought to ascertain the circumstances of the appointment of Adeyemi as the Director of PPO. During our consultation with Afolabi, he stated that, sometime in May 2011, while Wada was still the Director of PPO, Maina informed him (Afolabi) that there were malpractices going on at PPO. Afolabi requested for proof of the alleged malpractices from Maina, but the latter informed Afolabi that he (Maina) did not have the evidence but would need to move into PPO to be able to gather the relevant evidence. Afolabi added that Maina requested for three (3) months to enable him to verify the nature of and to obtain evidence of the alleged malpractices.
Subsequently, Wada was recalled as Director of PPO and redeployed to the National Sport Commission as Director of Grassroots Sport Development. Afolabi also stated that due to the allegations of malpractices at PPO, he as the HOSF needed a reliable person for appointment as the new Director of PPO.
Afolabi further stated that, in the last week of May 2011. Yayale Ahmed, former SGF, recommended, albeit informally, Adeyemi for appointment as Director of PPO. Afolabi further stated that though Adeyemi is related to him, yet he was appointed as Director of PPO on the basis of his work experience and record; according to him, Adeyemi had worked in various capacities which included working, without blemish, under seven (7) former SGFs, namely Yayale Ahmed, Ufot Ekaette, Olu Falae, Gidado Idris, Babagana Kingibe, Aliyu Mohammed, and Aminu Saleh.
Adeyemi stated that he had been a Director since 2009. We have outlined in the table below the work experience of Adeyemi as contained in his curriculum vitae, which he provided to us. By a letter dated 6 June 2011 reference number HCSF/CMO/AOD/002/S 1/T31262, Adeyemi was redeployed to the Ministry of Police Affairs as Director of PPO with effect from the date of the letter. This letter with the subject “Deployment to the Ministry of Police Affairs as Director Police Pension” was signed by Nwaobi on behalf of the HOSF.
Subsequent to the appointment of Adeyemi as Director of PPO on 6 June 2011, Afolabi appointed Maina to oversee and restructure the operations of PPO for three (3) months with effect from 9 June 2011, and thereafter hand over to the Director of PPO. His appointment was through a memo reference number HCSF/062/S.1/II/21 dated 8 June 2011. Thus, the appointment of Maina to PPO took effect three (3) days after Afolabi had deployed Adeyemi to PPO as the Director of PPO. The three (3) month tenure of Maina at PPO was supposed to end on 8 September 2011.
It had been argued that if (Afolabi) would not have authorised Maina at the latter’s request, to move to PPO, three (3) days after redeploying Adeyemi to PPO as Director, since the mandate of Maina at PPO was to oversee and restructure of PPO even while…
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