The Advert hoc Committee on Emergency and Catastrophe Preparedness has accused Nationwide Emergency Administration Company (NEMA) board, chaired by Vice-President Yemi Osinbajo of illegal approval of N5.eight billion north-east intervention fund.
Full report under:
REPORT OF INVESTIGATIVE HEARING ON THE VIOLATION OF PUBLIC TRUST IN THE NATIONAL EMERGENCY MANAGEMENT AGENCY (NEMA) SUBMITTED BY THE HOUSE COMMITTEE ON EMERGENCY AND DISASTER PREPAREDNESS. HR 52/2018
1.zeroVice President Yemi Osinbajo
The House of Representatives in Plenary on Thursday, 15th February, 2018, mandated the Committee on Emergency and Catastrophe Preparedness to research the alleged “Violation of Public Trust in National Emergency Management Agency (NEMA)” and report again to it for additional legislative consideration.
In furtherance to the above Decision contained within the Votes and Proceedings of the House, dated 15th February, 2018, the Committee adopted the next phrases of reference to find out the propriety or in any other case of the transactions undertaken and expenditures incurred within the following areas of concern by administration of NEMA.
(i) The discharge of N5,865,671,389.26 and N3,153,000,000.00 as emergency intervention of Meals Safety to help the inhabitants affected by insurgency within the North-East in June 2017 and different releases for the North-East intervention;
(ii) The 6,779 metric tons of rice donated by Chinese language authorities to the internally displaced individuals within the North-East;
(iii) Cost of about N800 Million Demurrage on the donated Rice by the Chinese language authorities;
(iv) Over 10 Billion Naira being statutory 20% Ecological Funds launched between January 2017 to February 2018 to NEMA;
(v) The Federal Authorities of Nigeria Flood Intervention within the sum of N1,600,000,000.00 to 16 States in July 2017;
(vi) The over N1.6 Billion launched to NEMA for Evacuation of Nigerians stranded in Libya in 2017; and
(vii) Different ancillary points.
The Committee took the next legislative measures within the course of discharging this task:-
(i) The Committee held quantity of conferences to find out its modus operandi;
(ii) Letters have been written to important stakeholders to elicit their views on the difficulty underneath investigation;
(iii) Committee positioned adverts in each Print and Digital Media requesting memorandum and sensitizing the Public and stakeholders to the Public Listening to to make sure general success of the investigation;
(iv) All submissions/paperwork acquired on the listening to have been objectively scrutinized and analysed for knowledgeable findings and proposals to the House for adoption.
INVESTIGATIVE PUBLIC HEARING
The Committee carried out investigative listening to on the matter. The well-attended listening to was formally declared open on Wednesday, 21st March, 2018, by His Excellency, the Honourable Speaker of the House of Representatives, Rt. Hon. Yakubu Dogara who was represented by the House Chief, Rt. Hon. Femi Gbajabiamila. The Committee carried out the investigation over a interval of three months in 11 Public Sitting with numerous stakeholders.
Invited stakeholders who made shows on the listening to have been from:
(i) The Nationwide Emergency Administration Company (NEMA)
(ii) Workplace of the Accountant Common of the Federation
(iii) Federal Ministry of Finance
(iv) Central Financial institution of Nigeria
(v) Federal Ministry of Price range and Nationwide Planning
(vi) Federal Ministry of Agriculture
(vii) Financial and Monetary Crimes Fee
(viii) Governing Council of NEMA
(ix) Contractors: –
– Dangote Rice Ltd
– Golden Agric Enter Ltd.
– Olam Nig. Ltd.
– three Brothers Nig. Ltd.
(x) Workplace of Head of Service of the Federation
(xi) The Nigeria Customs Service
(xii) Nigeria Port Authority
(xiii) MAESK Line Clearing and Forwarding Brokers & Transporters
(xiv) APMT & Maresk Line Clearing Brokers & Transporter
(xv) SEMA (16 states affected by the flood and 5 out of the 6 states of the North East).
ANALYSIS OF THE SUBMISSIONS
A. DONATION OF 6,779 METRIC TONS OF RICE BY CHINESE GOVERNMENT FOR IDP’S IN THE NORTH EAST.
Committee appraised the submissions made by stakeholders concerned within the matter and noticed as follows:
– That the Chinese language authorities donated and shipped a complete of 6,779 metric tons of rice, that’s 271 vans and roughly 162,696 luggage of rice into the nation’s seaport in June 2017 meant for distribution to IDPs within the North-East as meals help.
– That the federal government Businesses specifically – Ministry of Price range and Nationwide Planning, Ministry of Agriculture, Ministry of Finance and NEMA have been charged with totally different duties of receiving, clearing, storage, transportation and distribution of the consignments to the IDP’s within the North East.
– That multiple yr after the products have been donated, there isn’t any proof that the 6 States of the North East, who’re the beneficiaries have acquired the gadgets.
– Analysis of the correspondences by the Chinese language authorities on the free donation of the gadgets and responses by the Federal authorities Businesses confirmed that there was enough info on the donation, as an Memorandum of Understanding (MOU) was entered into by all of the events indicating the position to be performed by every Company. However the rice couldn’t be evacuated over lengthy interval of time on the seaport regardless of written letters by Chinese language Authorities to Ministry of Price range and Nationwide Planning after an import waiver had been obtained from Ministry of Finance, informing the Nigerian authorities of the results of the delay in clearing the gadgets.
– The Federal Authorities paid about N800 Million as demurrage to APM terminal and Maersk Line for the consignment on account of delay arising from incapability and negligence on half of NEMA, Ministry of Agriculture, Ministry of Finance and Ministry of Price range and Nationwide Planning to safe the gadgets as at when due.
– APM Terminal offered invoices on the demurrage displaying cost by Ministry of Agriculture however NEMA testified it made the cost. NEMA couldn’t nevertheless, present earlier than the Committee proof of cost to APM terminal however the cost mirrored of their account guide.
– Ministry of Price range and Nationwide Planning was to offer the funding for the clearing, transportation of the rice, dealing with and logistic expenses as agreed within the Memorandum of Understanding signed by the Authorities Businesses.
– Ministry of Agriculture was answerable for offering silos for the storage of the rice.
– The Ministry of Agriculture confirmed to the Committee that no single bag of the consignments was delivered and acquired from NEMA as on the time of this report.
– International View Logistics Ltd and Baltic Air and Maritime Providers Ltd engaged to clear the rice weren’t registered contractors with NEMA, the Corporations have been equally not registered with ITF, NSITF, and PENCOM, as required by present regulation, follow and Laws.
– Nationwide Emergency Administration Company (NEMA) was saddled with the duty of delivering the consignments to totally different designated silos and to distribute all of the 6779 metric tons of the Chinese language rice to the IDPs inside the 6 States within the North-East within the following proportion:
Proportion and Tons Equivalence in Vans
35% = 2,372.7 M/Tons 79.09 Vans
20% = 1355.eight M/Tons 45.1 Vans
15% = 1016.85 M/Tons 33.89 Vans
10% = 677.9 M/Tons 22.5 Vans
5% = 339 M/Tons 11.three Vans
5% = 399 M/Tons 11.three Vans
7 Kwali FCT
10% = 677.9 M/Tons 22.5 Vans
Ministry of Finance offered Certificates for Import tax waiver with tax deduction on the consignments donated to Nigeria by Chinese language authorities
The 5 State governments within the North-East besides Borno State who didn’t seem earlier than Committee, denied receiving any single bag of rice from the consignment presupposed to have been delivered and distributed to the IDPs by NEMA.
– Because of the testimony of the Director of Finance and Accounts (DFA) and a few employees of NEMA on cost of demurrage which the administration was not snug with, NEMA administration hurriedly convened a Governing Council assembly of NEMA for the primary time in three years the place it took a choice to droop the Director of Finance and 5 different employees of the Company with out due course of and in flagrant violation of the precept of truthful listening to as assured beneath Part 36 of the 1999 Structure as amended.
– The suspension passed off on 2nd April, 2018 which was the date of the inauguration of the Council Members by the Vice President. This was executed inside the interval of investigation by the Committee, and meant to jeopardise and impede the work of the Committee.
B. RECEIPT AND UTILIZATION OF N1.6 BILLION FOR FLOOD VICTIMS IN 16 STATES
– NEMA confirmed receiving the sum of N1.6 Billion launched to it by the Federal Authorities as Intervention Fund to buy meals gadgets and different aid supplies for distribution to all of the 16 States which was affected by the flood catastrophe in June 2017. The States are: Lagos, Oyo, Edo, Kwara, Ebonyi, Niger, Ekiti, Kebbi, Akwa Ibom, Plateau, Sokoto, Bayelsa, Enugu, Ondo, Abia State and FCT
– The ratio of distribution of the fund for every State is N100,000,000.00.
– The Committee additional confirmed that 11 of the States acquired aid gadgets value lower than N50,000,000.00 every whereas 5 States acquired gadgets value N70,000,000.00 every from NEMA and solely acquired the gadgets in March 2018 when the investigative listening to commenced.
– The aid supplies launched was an afterthought and never meant to salvage the state of affairs because the disbursement occurred 9 months after the flood catastrophe. Thereby defeating the emergency function for which it was meant.
– NEMA might solely account for the disbursement of N900 Million to the Sixteen States. The stability of N700 Million couldn’t be accounted for.
C. FUNDS RELEASED FOR EMERGENCY INTERVENTION OF FOOD SECURITY IN THE NORTH-EAST
– On the emergency intervention of meals safety to the North-East to help the inhabitants ravaged by insurgency, a sum of N5,865,671,939.26 was permitted and launched in June 2017 vide a memo raised from the Workplace of the Appearing President, directing the Hon. Minister of Finance and the Accountant Basic of the Federation to so act. The small print additional specified a directive to the Governor of CBN from the Ministry of Finance to pay the sum from the Consolidated Income Fund Account which the AGF is to boost a mandate for. That is in contravention of approval of NASS on the issuance of Euro Bond from which the Hon. Minister approved the cost. The Euro Bond is for specified infrastructural tasks and never for discretionary intervention. Moreover, there isn’t a particular appropriation by the Nationwide Meeting.
This contravenes Part 80 (four) of the 1999 structure as amended: which states:
“No money shall be withdrawn from the Consolidated Revenue Fund or any other public fund of the Federation, except in the manner prescribed by the National Assembly”.
The cash was paid to the next corporations for provide of meals gadgets to the North East:-
1. Dangote Rice Ltd.
2. Golden Agric Enter Ltd.
three. BUA Rice Ltd.
four. WACOT Ltd.
5. WACOT Ltd
– Committee famous the issues and infractions on the authorization granted and removing of such big sum of cash from the Consolidated Income Fund Account of the Federation in violation of part 80(2) of the Structure, Part 16(2) of the Procurement Act and provisions of the Appropriation Act as approval of the Legislature was not sought nor obtained for such expenditure.
– Due course of was not adopted as taxes and curiosity accruable to authorities weren’t deducted and remitted to the FIRS on the sums launched and paid into the accounts of the totally different company entities proven above, this created colossal loss of income to the Federal Authorities.
No assembly of the Federal Government Council was held approving the contracts to the named corporations and the discharge and crediting of the funds instantly into the person corporations and NEMA checking account in blatant violation of approval restrict allowed by regulation.
– It was revealed within the Public Listening to testimonies that Dangote Rice Ltd, WACOT Ltd, BUA Rice Ltd and Golden Agric Enter Ltd had earlier acquired N2billion every from CBN as mortgage to mop up grains throughout the nation.
– All of the 6 States of the North East denied ever receiving this emergency intervention for meals safety within the North East for which about N5.8b was expended by the Federal Authorities.
– Out of about N5.8Billion. NEMA received N829,zero26,456 for logistics and it claimed it spent it as follows, with out passable proof:
(i) Common Logistic N369.5 million
(ii) Branding and packaging N189.00 million
(iii) Others (Advertising, Safety, monitoring and media) N248.6 million
(iv) Contingency N21.9 million
D. RELEASE OF N3,153,000,000.00 TO NEMA FOR FOOD INTERVENTION TO THE NORTH-EAST
– The Committee famous that NEMA launched 2.four Billion Naira to Olam Nigeria Restricted to provide eight,000 metric tons of rice, gave three Brother Rice Mill Restricted the contract to provide 2,000 metric tons of rice at N600,000,000 and N153,160,000 for logistics and transportation of the gadgets, all totaling N3,153,000,000.00.
– Committee noticed that Olam Nigeria Restricted and three Brother Rice Mill Restricted have been contacted verbally by Ministry of Agriculture to go to NEMA for the roles with out due course of.
– The contract award letters issued to Olam Nigeria Restricted and three Brothers Rice Ltd have been all signed by the Ag. Director of Aid and Rehabilitation and never by Director of Procurement in contravention of Public Procurement Act.
– The identical Ag. Director of Aid and Rehabilitation who was saddled with the obligations of receiving the gadgets and distributing them, signed the award letters with out the information of the Procurement Division. That is tantamount to breach of the Procurement Act.
– Proof earlier than the Committee confirmed that the World Meals Programme (WFP) sought to import and provide 5000 metric tons of rice to the North East, on the price of N11,500 per bag which is cheaper than the N15,000 per bag provided by native Nigerian millers. Nevertheless, the Committees findings point out that the involved Federal Authorities businesses specifically Federal Ministry of Agriculture and NEMA provided to subsidise the acquisition regionally, on the similar price of N11,500 to World Meals Programme to discourage importation and encourage native manufacturing.
– NEMA now claimed to have donated the 5000 metric tons of rice to WFP as an alternative of permitting WFP to buy similar and distribute to the North East. There isn’t a proof that the WFP acquired the 5000 metric tons as donation from NEMA, because the approval of N3.1billion was for NEMA to buy the rice and distribute similar to the victims of insurgency within the North East, as WFP didn’t present the Committee with such proof after repeated requests.
– Each corporations, Olam Nigeria Ltd and three Brothers Rice Mill Ltd, have been illegally contracted to hold out the provides as their profiles confirmed that that they had no PENCOM, FIRS, ITF and NSITF Clearance Certificates in compliance to Part 16 of the Public Procurement Act.
– The info of three Brothers Rice Ltd sighted by the Committee didn’t tally with registration identify “Three Brothers Rice Mill Ltd” permitted by Company Affairs Fee which suggests NEMA gave contract to a non-existent entity.
Subsequently the contract awarded to each Olam and three Brothers have been in violation of the Procurement Act.
E. EVACUATION OF NIGERIANS FROM LIBYA
– Committee confirmed that the sum of N1.6Billion was launched to NEMA for the evacuation of Nigerians stranded in Libya in yr 2017.
– The Committee additionally found that contract awarded underneath this train have been inflated.
– Within the course of the investigations, the Director-Common of NEMA, Eng. Mustapha Yunusa Maihaja, provides account of expenditure because the N1.6Billion to incorporate evacuations, safety personnel logistics and native transport.
F. UNACCOUNTED N17,889,050,401 RELEASED FROM ECOLOGICAL FUND TO NEMA
– The Committee established that 20% of the Statutory Ecological funds are launched to the Nationwide Emergency Administration Company on month-to-month foundation. That is in compliance with Part 13(2B) of the NEMA Act.
– It was found that from January 2017 to Might 2018 the full quantity launched and or acquired by NEMA is to the tune of N17Billion.
– Moreover, NEMA incurs expenditure from the fund with out going by means of statutory appropriation approval from the Legislative Arm of Authorities.
– The Committee famous that the failure of the Governing Council of NEMA to ahead the small print of the quantity launched to it to the Nationwide Meeting for Appropriation, consideration by the Legislature and passage is a gross violation of the provisions of the Structure.
– Due course of was additionally not adopted by NEMA on the contract sums because the Director Common exceeded his approval threshold for each capital and recurrent expenditure. Withholding and Worth Added Taxes accruable to authorities for contracts executed weren’t remitted to FIRS; thus, ensuing to loss of income by Authorities in violation of Part 16 (1&2) of Nationwide Emergency Administration Act CAP N34 LFN 2004.
1. On the difficulty of donation of 6,779 metric tons of rice by Chinese language Authorities for IDP’s within the North East, the Committee recommends as follows:
(i.) that the House condemns in robust phrases the negligence and inefficiency of the Ministry of Finances and Nationwide Planning and Nationwide Emergency Administration Company (NEMA) for the lengthy delay in assortment of the donated rice from the Port Terminal.
that NEMA and the Federal Ministry of Agriculture, Ministry of Finances and Nationwide Planning ought to account for the 6,779 Metric tons of Rice donated to Nigeria Authorities for the profit of IDP’s within the 6 States of the North East by the Chinese language Authorities however was by no means acquired by the beneficiaries. The ICPC, EFCC and Nigeria Police Pressure (Police) ought to conduct additional investigation and prosecute the place essential.
that the ICPC, EFCC and Police ought to guarantee restoration of the cost of about N800m demurrage from the involved officers of the Ministry of Finances and Nationwide Planning, Ministry of Agriculture and NEMA. They need to additional examine the conflicting testimonies of the above businesses and decide whether or not there was a number of cost transaction for the demurrage.
that the suspension of six employees of NEMA by its administration is an abuse of energy, towards the extant public service guidelines and a gross violation of Part 36 of the 1999 Structure as amended. It’s also a privileged communication underneath the Legislative Homes (Powers and Privileges) Act, any person who obstructs a witness earlier than a legislative House can also be responsible of contempt of parliament.
It’s subsequently hereby advisable that the affected employees under be instantly re-instated by NEMA and the suitable authorities and all their arrears of entitlements paid. They’re:
1. Mr. Akinbola Hakeem – Director, Finance and Accounts
2. Alhassan Nuhu – Director Catastrophe & Danger Discount
three. Mr. Emenike Umesi –
Ag. Director, Particular Duties
four. Mohammed Kanar – Deputy Director Welfare
5. Mr. Mamman Ibrahim – DD Captain of the Air Ambulance
6. Yunusa Deji Ganiyu – Asst. Chief Administrative Officer
2. On the difficulty of receipt and utilization of N1.6 billion for flood victims in 16 states, the Committee recommends;
(i.) that the House condemns in its entirety the show of insensitivity to the plight of flood victims confirmed by NEMA administration within the dealing with of the aid supplies.
(ii) that the ICPC and EFCC ought to additional examine the matter and recuperate the sum of N700m from the Director-Basic of NEMA, Engr. Mustapha Yunusa Maihaja, who’s the Accounting Officer of the Company.
three. On the difficulty of funds launched for emergency intervention of meals safety within the north-east, the Committee recommends;
that each one the federal government officers concerned within the approval, processing, launch and diversion of the sum of N5.8billion for the emergency intervention of meals safety within the North East, which contravened the provisions of S.80(2) and 80(four) of the Structure, infraction of due course of for procurement and loss of authorities income, flouting of the phrases of the Eurobond mortgage are hereby indicted and the related Safety Businesses ought to take steps to recuperate the cash from them.
that the Central Financial institution of Nigeria (CBN) being a banker to the Federal Authorities shouldn’t be concerned in giving loans to non-public corporations. Consequently, the N2billion stated to be given to 4 named corporations is a elementary infraction and ought to be additional investigated.
four. On the difficulty of launch of N3,153,000,000.00 to NEMA for meals intervention to the North-East, the Committee recommends,
that ICPC and EFCC ought to get well N1,150,000,000.00 being subsidised value of 5000 metric tons of rice from the current Director Basic of NEMA, Eng. Mustapha Yunusa Maihaja, who claimed to have donated similar to World Meals Programme (WFP) once they have been able to pay for it or import similar.
(ii.) that in view of the truth that there’s proof that the stability of 5,000 metric tons claimed to have been provided by Olam Nig. Ltd and three Brothers Nig. Ltd on the value of about N1.5billion to NEMA was not acquired by the States of the North-East, the cash ought to subsequently be recovered from the Director-Common, NEMA.
5. On the matter regarding evacuation of Nigerians from Libya, the Committee recommends as follows:
that Federal Authorities ought to make obtainable satisfactory funds to the related businesses of authorities for the rehabilitation of these Nigerians evacuated from overseas, as a way to forestall them from going again.
that the method, process, technique and price of evacuation of Nigerians stranded overseas is opaque and must be made extra clear as a way to guarantee higher accountability.
6. On the query of unaccounted N17,889,050,401 launched from Ecological Fund to NEMA, the Committee recommends
(i.) that NEMA ought to submit via the suitable authority all of the Ecological funds accruing to it yearly to the Nationwide Meeting for Appropriation in an effort to meet the Constitutional necessities.
(ii.) that a complete investigation into the receipt and utilization of 20% Ecological Fund to NEMA through the years be carried out by the House.
7. From the investigation carried out by this Committee it has been established that the Federal Authorities of Nigeria misplaced a complete sum of over N33 Billion Naira in consequence of mismanagement or outright embezzlement of funds occasioned by the actions or inactions of the Managing Director of NEMA, Engr. Mustapha Yunusa Maihaja . It’s hereby consequently advisable that the Director Common of NEMA, Engr. Mustapha Yunusa Maihaja, be relieved of his duties by Mr President, Commander in Chief, Federal Republic of Nigeria and handed over to related authorities for prosecution.
The Committee expresses its appreciation to the Management and Members of the House for the chance given to us to serve, as we pledge our unflinching help to the House management.
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