Agunloye reduced FG’s stake in Mambilla project by $900m without approval, says Witness

An investigator with the Economic and Financial Crimes Commission (EFCC) has told the Federal Capital Territory (FCT) high court sitting in Apo that Olu Agunloye, former minister of power, reduced the federal government’s equity contribution to the Mambilla hydropower project by $900 million without presidential approval.

The investigator, Umar Hussein Babangida, testified on Monday as the third prosecution witness in the ongoing prosecution of Agunloye before Jude Onwuegbuzie, the presiding judge.

Agunloye is facing a seven-count charge filed by the EFCC over allegations involving disobeying a presidential directive, conspiracy, forgery and receiving gratification in relation to the Mambilla hydropower project contract.

The anti-graft agency alleged that Agunloye unlawfully awarded the contract for the construction of the 3,960MW Mambilla hydroelectric power station to Sunrise Power and Transmission Company Limited.

The commission also accused him of receiving N5.212 million in 2019 through his Guaranty Trust Bank account.

The payment was allegedly sent by Jide Abiodun Sotirin on the instruction of Leno Adesanya, promoter of Sunrise Power.

However, Agunloye has pleaded not guilty to the charges.

At Monday’s hearing, Babangida, an assistant commissioner of police attached to the EFCC, testified under cross-examination by Adeola Adedipe, counsel to Agunloye.

He told the court that earlier recommendations proposed that the federal government should hold a 25 percent equity stake in the project, which, according to him, was estimated at about $1.5 billion.

However, Babangida said the contract eventually awarded by Agunloye in 2003 provided for federal government participation of between zero and 10 percent.

The defence counsel then asked the witness to confirm that the reduction from the initial 25 percent stake to not more than 10 percent meant a difference of about $900 million.

Babangida first agreed with the calculation but rejected the suggestion that the reduction meant Agunloye saved the government that amount.

“It is not correct because it was unilaterally reduced by the defendant,” he said.

“Based on calculation, the difference stood at $900 million but the defendant (Agunloye) reduced it to 10 percent from 25 percent without the approval of the president.”

He also said Agunloye had advised investigators to obtain clarification from individuals who attended the federal executive council (FEC) meeting held on May 21, 2003, where issues relating to the project were discussed.

Babangida said former President Olusegun Obasanjo later provided information through a questionnaire sent by lawyers representing the federal government.

The document had earlier been admitted as evidence during the trial.

However, Babangida acknowledged during cross-examination that the questionnaire did not contain the names of the lawyers who prepared it and was neither signed nor dated.

The witness further confirmed that the EFCC investigation found that Agunloye received N5.2 million about 16 years after leaving office as minister.

He said the money was transferred to Agunloye by Sotirin on the instruction of his employer, Adesanya.

The witness said Sotirin explained that the payment was meant to assist Agunloye with medical expenses.

“Sotirin informed EFCC investigative team that the money was for medical surgery,” Babangida said.

He added that Agunloye also told investigators the money was for a medical emergency.

“The defendant informed the investigating team that the money was for medical emergency but review of the defendant’s statement of account said otherwise,” he said.

Babangida told the court that Agunloye claimed the funds were needed for a surgery involving his son.

However, the EFCC did not invite the son for questioning.

According to the witness, the decision was based on Agunloye’s statement that the son lives abroad.

“The defendant stated that the son stays abroad, specifically in America,” he said.

Babangida admitted under questioning that investigators could not confirm whether the surgery was actually carried out.

He also told the court that Agunloye transferred portions of the funds to several individuals.

The witness said he could not recall whether he had earlier stated that those recipients were not medical personnel.

He also confirmed that the EFCC did not invite the recipients of the money to explain the purpose of the transfers.

When asked whether Sotirin described the N5.2 million payment as gratification, Babangida said he did not.

“He (Sotirin) told the investigating team that he was acting on the instructions of his boss, Leno Adesanya. He didn’t say so (that the money was for gratification), but I am not surprised,” he said.

Babangida also told the court that he could not remember whether the Bureau of Public Procurement (PBB) had been established at the time the contract was awarded in 2003.

The witness said he was unsure whether the agency was created in 2007, four years after the contract was issued. (The cable)