- Secret deal stifles agency
- EFCC intensifies watch as sleaze allegations increase
By Ishaya Ibrahim
Acting News Editor
A slew of sleaze allegations has put Nigeria’s seat of power under pressure to sack Jim Obazee, the executive secretary of Financial Reporting Council (FRC), according to a reliable source in the Villa.
He is also alleged to be at the centre of controversies involving the office of the Minister of Industry, Trade and Investment, OkechukwuEnelama, for which he was reportedly given a query.
Obazee, a confidant of former President Goodluck Jonathan, now rides on the wings of a popular Pentecostal pastor, a political ally of President MuhammaduBuhari, to shield himself from anyhammer allegedly dangling over his head.
Hitherto, Obazee’s alliance was with a key member of Buhari’s cabinet, who is also a pastor in a Pentecostal church, before they allegedly fell out.
Indications emerged last week that his response to the query he was allegedly issued is prelude to his being relieved of his of his job, which tenure runs till 2018.
Petitions against Obazee
There has been a record increase in corruption allegations, abuse of office, and mismanagement of funds accruing to the FRC.
The Economic and Financial Crimes Commission (EFCC) is on the trail of Obazee after seeing the stink in the FRC from several petitions against him.
“He is on our latest watch list”, a source at the anti-graft agency confirmed.
A petition at the EFCC alleges that Obazee used proxies such as consultants to siphon the funds of the FRC, and the petitioners also sought investigation of N1billion for the International Financial Reporting Standards (IFRS) Academy.
They asked the EFCC to investigate over N225million Obazeeallegedly used for printing FRC registration certificates that will last 24 years – meaning they will be used by next threeFRC chief executives, each serving for eight years.
There is also an allegation of a house Obazee allegedly used Nigerian taxpayers’ money to buy in Houston, Texas, the United States.
According to Harris County Appraisal District “Real Property Account Information” the property, at 15918 Mission Village DR Houston Texas 77083, sits on land area 7,875 SF.
When the media trailed this asset in 2014, Obazee allegedly changed the owner’s name to Omosigho Victor, his alleged relative. But other details of the property remain the same.
The A1 real, residential, single family house was valued at $104,812 (about N47 million) as of January 1, 2015.
Violation of CCBT Act
Section 15 of the Code of Conduct Bureau and Tribunal (CCBT) Act says: “Any property or assets acquired by a public officer after any declaration required by subsection (1) of this section and which is not fairly attributed to income, gift or loan approved by this Act, shall be deemed to have been acquired in breach of this Act unless the contrary is proved.”
Obazee’s annual salary in 2014 was N28million, according to the consolidated salary structure of the FRC at the National Salaries, Incomes and Wages Commission.
N36m spent on local travel
The EFCC is also awaiting Buhari’s approval to probe the books of the FRC to unravel how Obazee allegedly spent over N36 million in 60 days in 2014 for travel to Abuja to examine the books of the Central Bank of Nigeria (CBN).
He allegedly approved on several occasions millions of naira for oneOsawe in the FRC for “data sourcing, collation, and analysis” while investigating the CBN, because “we are hardly allowed inside the bank to collect relevant information.”
The EFCC has on record that Obazee in July 2014 wrote to an assistant director in the finance department in the FRC to pay him N736,250 for a trip to Abuja.
The memo reads: “Please arrange to reimburse me for my trip to Abuja to meet and brief the permanent secretary on the activities of the FRC.
“I travelled on Monday, July 14, 2014 and returned back to Lagos on Tuesday, July 15, 2014.
“Details are as follows: Return ticket (Lagos-Abuja-Lagos) N150,000; Hotel Expenses (N86,250); Incidental Expenses (N500,000), amount due to me, (N736,250).”
N1b meant for IFRS Academy
The FRC raised N1 billion for the building of the IFRS Academy which has become a distraction since 2011.
The EFCC was asked to investigate why the FRC left such funds in a current account for years without earning income despite a question raised about it by one board member.
Informed sources disclosed that the N1 billion has depleted to N650million.
EtofolamOsuji, a former member of the audit committee of the FRC,raised “red flags” in the FRC annual report of 2014.
He questioned why the FRC did not have a fixed deposit account or purchase Treasury Bills (T-Bills) to earn income, noting that the balance in its current account then was high enough to warrant such.
“Why is the decision of the board regarding buying treasury bills with the N853million of the IFRS Academy not complied with?
“Why is the amount kept in a current account with Access Bank and later transferred to Zenith Bank still under current account?
“Who bears the loss of income for over two years now”, Osujiqueried.
He also questioned the rationale for the FRC spending N59.682 million for publicity and public relations in 2014 and paying N35.615 million for legal retainership.
“Printing, N78.996million. This figure is scandalous as it was stated to be for certificates.
“Adequate explanations should be supplied since the old stock has not been utilised up to 10 percent before this additional expenditure. The figure is material and should not be expensed as it cannot be exhausted in five years.
“Travelling local, N124.891million is double the figure of last year (that is 2013). Full breakdown should be received as this is a big jump. Documentary as against verbal explanation should be received,” Osuji demanded.
Luxury cars
Obazeeis also under EFCC watch foran alleged collection of luxury cars worth over N150million – including Porsche, Cayenne, GL 450 Mercedes, GMC, Wrangler, and armoured vehicles.
Section 12 of the CCBT Act says: “No person shall offer a public officer any property, gift or benefits of any kind as an inducement or bribe for the granting of any favour or the discharge in his favour of the public officer’s duties.”
Another recent allegation is the rationale for awarding a N29.2million contract for the 2015 Financial Reporting Summit.
Why probe only Stanbic IBTC?
The FRC is investigating Stanbic IBTC over alleged account manipulation and corporate governance.
But a source close to the petition at the EFCC said: “We have evidence that some other companies committed almost the same fraud.
“The case of other companies, especially a Telco [telecommunication company],has been left out because of the pressure by his kinsman, a former senior civil servant,who is facing corruption charges in court.”
In fact, Obazee plans to host Nigerian large and small scale corporates as well as non profitorganisationsthis week at a public hearing on the code of corporate governance of the FRC.
EFCC mandate
EFCC Chairman, Ibrahim Magu, has reiteratedthat the agency is mandated to investigate and prosecute fraudulent government officials, including ministers, irrespective of political party affiliation.
He explained that the mandate is part of measures adopted by Buhari to win the war against corruption.
“Every government official is under investigation without them knowing it,”Magu said in Kaduna.
But his aides declined comment on the FRC matter when TheNiche contacted them.
Response from Obazee
Obazee’s media consultant, Mark Ogbamosa, said apart from the issue around the IFRS Academy, the other allegations are strange.
“I don’t know what you are talking about that he [Obazee] had a house in Houston. And when you said he spent N736,250 for a trip to Abuja, I don’t know anything about that too.
“I don’t know about the printing of FRC registration certificate. The only thing I can discuss with you is the IFRS Academy,” Ogbamosasaid.
On the IFRS Academy, he explained: “You know when you have a current account, it doesn’t yield interest and there will be depletion because banks will be taking their charges.
“What I can tell you is that the IFRS Academy was not established because some of the supposed stakeholders did not approve it.
“To establish an academy of that nature, you need the consent of the established professional bodies, ICAN and ANAN. If you don’t have that, those who are trustees, you cannot go ahead and spend that kind of money.
“And if you put it in a savings account, from my own perspective it means you are making money from it and that will be against the law. Because if you put it in savings account, who approved it?”
Ogbamosa said the N1 billion for the academy was later put into treasury bills and transferred to the Treasury Single Account (TSA).
Response from EFCC
Both EFCC headquarters spokesman in Abuja, WilsonUwajaren; and EFCC Lagos Zone spokesman, SaminAmiddin; said their attention was yet to be drawn to the petition when TheNiche sought their comment.
Feelers from Enelama’s office
TheNiche was informed by sources in the Industry, Trade and Investment Ministry that there is a frosty relationship between Enelama and Obazee.
A source recounted that immediately Enelama assumed officeObazee began to show he was headed for a collision course with him over matters that are even deemed statutory.
“He has proven to be uncontrollable, exhibiting high level insubordination that is not only brazen but shocking to everyone,” a key officer in the ministry disclosed.
Because they have not been working in harmony, sources said, industry watchers have ugedBuhari to intervene, as Enelama vows not to join issues with Obazee
