Oshiomhole: How Igbinedion stole $31m from Edo state

Oshiomhole: How Igbinedion stole $31m from Edo state

Wednesday, November 4, 2015 8:16 pm

Lucky Igbinedion

ex-governor Lucky Igbinedion

Edo State Government has begun moves to recover the sum of $31 million fraudulently taken from the Government coffers during the administration of Mr Lucky Igbinedion as Governor.

This was part of the decision reached at the end of the State Executive Council meeting held in the state, Wednesday.

Briefing the press at the end of the meeting, the State Commissioner for Information, Mr Louis Odion  said: “there is the issue of a fraud that was discovered while turning our books. We found that the sum of $31 million was fraudulently taken from state coffers under the administration of Chief Lucky Ogbinedion. The Comrade Governor has directed the Attorney-General to commence legal action in that direction.

“So in the coming days, the state government will take legal action to ensure that what was stolen from Edo State Government is recovered. When you convert $31 million to naira, it fetches you a whooping N7 billion. You can imagine what N7 billion will do in improving the human condition in Edo State.”

Throwing light on the $31m fraud, the State Commissioner for Commerce and Industry,  Abdul Oroh said, “The $31 million which was stolen from the people of Edo State for the transaction which was designed clearly for criminal purposes. This project was called Avrant Cement Company situated at Ekpe, near Ikpeshi in Akoko Edo Local Government.

“The company was supposed to produce cement to take advantage of the large scale deposit of limestone in that part of the state. The company was registered as Abat Cement Company Ltd and this company had three shareholders. The Abat Cement Company had 75% shares, Edo State Government had 15% shares and 10% shares were reserved for ‘other Nigerians’.

“Although Edo State Government was given only 15% share, 100% of the revenue invested in the company, $31 million was taken from the account of Edo State Government. This money was withdrawn from the account of Edo State Government under Afribank. As the money was withdrawn, construction of the company started and all the major structures were in place, 90% completed, machines were installed but there was no other contribution from any other source for the construction and procurement of these equipments. So everything invested in that company came from Edo State Government

“It is on record according to the shareholders agreement, those who claim to be first share holders, Abat Holdings were given 75million shares representing 75%, the second share holders were given 10 % and the third share holder, the Edo State Government was given 15million shares representing 15%. The agreement was signed by Fashanu and Governor Igbinedion who signed on behalf of the shareholders.

“The fruit juice processing company in Ehor was established in 2001 by the Lucky Igbinedion’s administration. The cost of establishing that company was N368,458,195 (Three hundred and Sixty Eight million, four hundred and fifty eight thousand, one hundred and Ninety Five naira) was invested in this company by the Edo State Government. The company was owned 100% by the Edo State Government. The materials for the company were imported from England from a company at a sum of £310,000.

“The company was now sold including the land and the three hectares pineapple farm which was also developed by the Ministry of Agriculture for N283.8 million. The company was completed and there was a test run. There was no reason to privatise it and it was sold out at a give-away price which only could have been influenced by criminal intentions.

“There were other criminal transactions. If you look at the fertilizer company in Auchi, most of the equipment installed at the point of commissioning were all fraudulent because they were outdated and not useful and fertilizers were procured from somewhere and released as being products of the company.

“At Okpella Cement Company, they manipulated the transactions to the detriment of the people of Edo State and to the adversity of the state economy. When the Comrade Governor came in, in 2009, The Governor had to re negotiate the whole process of the Okpella Cement. As we speak, the company that is running the Cement Company now has invested about $500 million and very soon, they will be producing cement in the new plant and in the old plant that has been re activated.

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