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EFCC and 9 States Clash Over N84.7bn Mismanaged from 13% Derivation Fund

A brewing clash is unfolding between the Economic and Financial Crimes Commission (EFCC) and nine governors of oil-producing states over the alleged mismanagement of N84.7 billion from the statutory 13 per cent derivation fund earmarked for these states.

Adding fuel to the fire, there’s a dispute over the release of N52 billion recovered from former Accountant General of the Federation, Ahmed Idris, and his associates, who are currently facing charges related to money laundering, diversion of public funds, abuse of office, and conspiracy, according to the EFCC.

The EFCC’s investigation reveals that the N84.7 billion was siphoned from the 13 per cent derivation meant for nine oil-producing states, namely Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers.

The alleged culprits behind this mismanagement are a consultancy firm, Olusegun Akindele Consultancy, and other accomplices engaged by the nine NDDC states. They were tasked with reviewing and reconciling payments due to the states from the Excess Crude Account (ECA) between 2004 and 2016.

Specifically, the Olusegun Akindele Consultancy firm reportedly received a staggering N84.7 billion, equivalent to 9.84 per cent of N861,135,887,749.10, as consultancy fees. This substantial sum was then divided among four groups, sparking further tensions in this ongoing dispute. Stay tuned for more developments on this unfolding situation.

Through diligent investigation, the EFCC was able to recover the total sum of N52 billion from fictitious consultancy contracts awarded to three out of the four groups.

The funds belong to the nine oil-producing states as approved by the Federal Executive Council (FEC) in their meeting on August 20, 2021.

Further investigation showed that several correspondences were made between the Akwa Ibom State Governor, Umo Eno, on behalf of the nine states, and the EFCC.

The Akwa Ibom State Governor, Eno, wrote the EFCC seeking the release of the N52 billion to the nine states to a consultant, Messrs Platinum Resources Limited.

Further reports gathered showed that the EFCC turned down the request, insisting that each of the states should send the account details of their government for the release of the money.
However, the EFCC’s directive was not complied with as Eno was said to have sent the account details of only four states – Akwa Ibom, Delta, Bayelsa, and Rivers to the EFCC, while the account details of the remaining five states were not sent.

Further investigation showed that the EFCC insisted that all the account details of the nine states should be provided.

Its was learnt that the EFCC Chairman, Ola Olukoyede, is planning to pay the money into the CBN derivation account of each of the states.

“This development is the basis of the fight of the governors of the nine states with the commission. The EFCC’s position is to allow for transparency and accountability concerning the use of the recovered funds,” a competent source familiar with the development, said.

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