Alleged N48.42bn fraud: Heads to roll in Agric Ministry, FCDA as Perm Sec receives query

Alleged N48.42bn fraud: Heads to roll in Agric Ministry, FCDA as Perm Sec receives query

Dr Mohammed Umar Bello

The Permanent Secretary, Ministry of Science and Technology, Dr Mohammed Umar Bello, has been queried by the Federal Government for allegedly incurring a contractual liability of over N48 billion when he served as Perm Sec at the Ministry of Agriculture and Rural Development even when there was budgetary provision.

The Head of the Civil Service of the Federation, Dr Folasade Yemi-Esan, issued the query on the directive of President Muhammadu Buhari on May 11, 2020.

However, investigations showed that Bello did not act alone. At least two key directors in the ministry were said to be in tacit support of and collaboration with him. He was also said to have conspired with some officials of the Federal Capital Development Authority (FCDA) who egged him on.

A source at the Ministry of Agriculture said it was obvious that Bello was abusive of due process as he ignored all laid down civil service rules on public procurement.

“We saw this coming. I won’t be surprised if it was not a whistleblower from our ministry that blew open this scandal. The Perm Sec did not follow procedure. Issues of virement are taken very seriously as financial crime and we are talking about huge money in billions of naira. I really don’t know why he was in a hurry to do some of the things he did knowing that in the public service, nothing is secret,” the source told Political Economist.

The embattled Bello was also alleged to have bought a property which can be described as an “uncompleted building” for the Ministry of Agriculture and Rural Development for N7 billion without the approval of the Federal Capital Development Authority (FCDA).

In the query, it was alleged that: in spite of the budgetary release of the N98,405,763,678.68 in 2018 (which represents 99.44 of 2018 appropriation), Bello did not take necessary action to pay the eligible contractors which led to the ministry having an outstanding contractual liability in the sum of N48.429,543,895.722.

Bello was also accused of giving out seven deep drilling rigs for borehole procured at N1.3 billion to some unnamed individuals under “fraudulent arrangements.”

The query with ref. No. HCSF/PSO/AOD/P.030/5B has the title: “Allegations of acts of serious misconduct in your former post of permanent secretary in the Federal Ministry of Agriculture and Rural Development: Preliminary letter/query”.

Relying on the civil service rules, PSR 030401 and 030402, the Head of Service described the allegations against the permanent secretary as acts of serious misconduct which can lead to dismissal.

The query reads inter alia: “The attention of Mr President has been drawn to the acts of serious misconduct against you in your former post as the Permanent Secretary in the Federal Ministry of Agriculture and Rural Development on which he has given further directive.

“Specifically, it was alleged that: (a) in spite of the budgetary release of the N98,405,763,678.68 in 2018 (which represents 99.44 of 2018 appropriation), you did not take necessary action to pay the eligible contractors which led to the ministry having an outstanding contractual liability in the sum of N48.429,543,895.722.

“Under your leadership as the accounting officer, the ministry utilised the entire 2019 first quarter release of N7,737,208, 135.18 to pay for the 2018 contracts that were fully funded in 2018 which constitutes virement without authority:

“As accounting officer, you oversaw a transaction for the purchase of a building for the use of the ministry at the sum of N7,044,746,264.06 without the conduct of the mandatory statutory structural and mechanical integrity tests: and prior approval of the FCDA Public Building Department: the building was eventually found to be an uncompleted carcass requiring billions of naira to complete and make safe for occupation;

“Under your watch as the accounting officer, the ministry procured seven deep drilling rigs for borehole at an average cost of N300,000,000. 00 without recourse to the Federal Executive Council;

“(e) and in April, 2019, you gave out the seven rigs procured at over NI ..3 billion to some individuals under fraudulent arrangements, without the approval of the minister; and one of the rigs linked to you is yet to be returned despite several written reminders; and

“ You misapplied the intervention funds approved for the purchase of strategic grains and the establishment of the Rural Grazing Area Settlements in violation of extent Financial Regulations; two of such misapplications are:

“The use of N2.026,838,775.25 to pay contractors and execute programmes from the funds released for emergency procurement of strategic grains which is unrelated to the purpose of the funds.”

Bello was given a 72-hour ultimatum to respond to the allegations if he so desires.