Failed Railway Project: Reps Probe N1billion Payment to Firm
The House of Representatives Monday began probe into the payment of $7.7 million (about N1billion) by the Ministry of Finance directly to Technics Engineering Architecture Marketing (TEAM), an Italian based company without the knowledge of its sister company based in Nigeria. The payment was the part payment for the consultants' contract of $240 million for the construction of Ajaokuta- Itakpe-Warri rail project, entered into by former President Olusegun Obasanjo, that was later cancelled.

Honourable Bernard Udoh, chairman House Committee on Land Transport, currently looking into the problems associated with the completion of the project, led his colleagues to the company on a fact-finding mission. Udoh pointedly queried the payment of the money to an Italian based company not registered to carry out business in Nigeria, just as he observed that it was not guaranteed by bank bond as required by the law. He also queried the non-remittance of withholding tax and Value Added Tax (VAT) to the authorities on the money paid.

The committee also queried the decision of the company to have ferried away government properties, including furniture and 21 project vehicles in lieu of debt owed it from the rail village when the contract was cancelled. Udoh equally pointed out that the company sacked all Nigerian engineers in the company opting to employ expatriates in their place. The committee in the course of the investigation also discovered that the only Nigerian engineer in the employ of the company, Mr. Chinedu Nwazoje, has ceased to be one having defaulted in the payment of Council for the Regulation of Engineering in Nigeria (COREN) dues in the last three years.

It was also discovered that the company never registered with COREN, a pre-requisite for practice of engineering profession and consultancy in Nigeria. Udoh asked the external auditor to the company, Messrs Olukayode Akindele & Co., represented by Mr. Tony Okubanjo, whether he was aware of the payment of $7.7million made to the company in 2007 and whether such was captured in its audit reports for the year. Okubanjo, however, disclosed that the payment was not captured even as he said, "We are not auditing TEAM Italy but the TEAM registered to do business in Nigeria."

On the failure of the company to remit withholding tax and VAT, Okubanjo stated that the normal practice is for the government to deduct the tax from source before paying the balance to the company. The committee, however, disagreed with the auditor's submission, insisting that the nation would have been shortchanged in the payment. Committee members were also suspicious of the motive for the payment made directly to the Italian company without reference to its local counterpart. The committee submitted that it was either somebody was trying to evade tax or trying to launder funds using the company as a decoy.

Mr. Dott Menegath, the vice chairman of TEAM Nigeria, nevertheless, argued that the suspicion of the committee was not particularly true. Although he agreed that the money was paid directly to its parent company in Italy, he claimed that such was neither to launder funds nor to evade tax. According to the vice chairman, "The money was paid directly to our parent company in Italy because it was to carry out procurement and supply expertise."

He explained that the amount required to be paid by the government was $24 million representing 10 per cent of $240 million contract. He insisted that the $7.7 million was paid on account and that the tax must have been posted. He explained that he evacuated the project vehicles and furniture from the site to avoid pilfering and damages just as he disclosed that efforts to meet with the transport minister in the last two years to discuss the matter have not been successful.



N2.3b Car scam: Ogunnewe Calls for Thorough Investigation
The House of R e p r e s e n t a t i ve s Committee chairman on Co-operation and Integration, Hon. Independence Ogunnewe, who until last week was identified as the leader of anti- Bankole group, has called for a full scale investigation into the alleged fraud in the purchase of the 380 cars for standing committees, just as the EFCC lawyer, Festus Keyamo, has expressed doubt in the ongoing investigation by the Ethics and Privileges Committee. "I have maintained that there must be a full and unfettered investigation and full disclosure into the car purchase and other sundry procurements," warning that there should not be any attempt to cover up or play down the entire fraud.

He stated that his position has always been the same in all cases of corruption as he was among members who voted Hon. Patricia Ette out of office, saying it would be wrong for members whose duty it is to exercise over-sight function not to be open to public scrutiny. "My stand on issues of corruption and transparency, probity and good governance has been one thing no one can afford to convince me on, because if at the level of parliament we refuse to tell the truth, then we are not sincere to the Nigerian people. Ogunnewe disclosed that during Ette’s scam he took a central position in spite of the enduring relationship between the former speaker and some of the members who were fortunate to secure chairmanship positions.

Meanwhile, Festus Keyamo the petitioner of the car scam has expressed doubt in the investigation being conducted by the House committee on ethics and privileges, saying how can a committee appointed by the speaker possibly indict him even when the speaker is guilty? According to him, the committee has derailed from its responsibilities and gone into other issues that would not in any way unveil the truth of the matter, especially in the perceived manner of false evidences given against other members. "The country should promote probity, accountability and transparency if the government must make desired progress in taking the country to the next level under high anxiety by the people to know the way government is run."

He disclosed that when he first wrote to the House of Representatives, its response was to invite him for a private discussion where they promised to present the documents of the transactions for his scrutiny, but he objected to the invitation for reasons of feeling that such discussions amount to blackmail where he could be offered money to keep quiet. The Lagos-based lawyer emphasized that the documents he presented before the ethics committee are original documents of the entire negotiation in the contract award, contrary to the alleged statements of manufacturing documents and being sponsored by some prominent politicians.


Greg Okey Nwadike

Police Nab Two Robbers, Trail Two
Youths of Egbo- Urhie community, Ughelli South area of Delta Tuesday displayed uncommon bravery when they combated four armed men on a robbery mission in the community, disarming two. They have been handed to men of the Jeremi Police Division, leaving two on the run. The incident, which is not the first in the security conscious Egbo-Urhie community, occurred late in the night after the four robbery suspects reportedly robbed some victims at the outskirts of the town, including a bike rider who was dispossessed of his commercial motorbike.

Giving first hand account of the situation, Chairman of Egbo-Urhie community, Mr. Lewis Saghu, said the community was alerted by victims of the robbery gang who ran to the heart of the community to seek security intervention against the hoodlums. The community leader disclosed that he immediately mobilized the willing youths of the community who tracked the robbers to the Federal Rail line cutting through the community in a relentless chase that ended in the capture of two of the robbers after they had exhausted gun fire against the chasing mob.

The two nabbed robbers handed over to the police hours later were identified as Peter Boloje and Joseph Kalakumu, both of who claimed to hail from Okerenkoko in Bomadi Local Government area and had come on the robbery mission on the invitation of two indigenes of Egbo-Uhurie indigenes, including one identified as Scorpion, who are now at large. Police at the Jeremi Divisional office confirmed receiving the suspects and needed time to do thorough investigations with the possibility of apprehending the two running members of the gang. One of the captured suspects, Peter Boloje denied being in possession of a gun but attested to having bullets in their possession.

Egufe Yafugborhi, Jeremi
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