Grass cutting scandal: How BVN was used to track Lawal’s ownership of 13 companies
The Senate on Wednesday told Nigerians how the Bank Verification Number (BVN) of suspended Secretary to the Government of the Federation (SGF), Mr. Babachir Lawal was used to track his ownership of 13 companies used to defraud the federal government in contracts awarded by the Presidential Initiative on North East (PINE).
It was also discovered that apart from the N270 million awarded for the grass cutting contract to Mr. Lawal’s firm, there was another N200 million spent to hire consultants on grass cutting.
Another damning find was a discovery that at least five companies separately paid about N450 million to the bank account of Rholavision Engineering Limited owned by Mr. Lawal as well as his private account at different times during the duration of the scam.
These information issued from the final report of the Senate adhoc committee on ‘Mounting Humanitarian Crisis in the North-east’ presented on Wednesday by its chairman, Sen. Shehu Sani (APC, Kaduna) and unanimously adopted by the Senate.
The committee reported that in view of the confirmation by Central Bank of Nigeria (CBN) that Babachir Lawal is the owner of all the contracting firms because he owns the Bank Verification Number accounts of all thirteen (13) other accounts, the suspended SGF should be prosecuted.
The Committee’s report revealed that after receiving payments from PINE, at least five companies separately paid about N450 million to the Eco Bank account (182001809) of Rholavision Engineering Limited owned by Mr. Lawal as admitted by the Corporate Affairs Affairs Commission (CAC) and his private account (0003004417) with Diamond Bank, as revealed in bank statements.
The committee said: “According to a CBN confirmation attached to the report, Mr. Lawal was still the signatory to the account of Rholavision until February 15, 2017 which shares the same Bank Verification Number with his personal account and 13 other accounts in commercial banks.”
The committee said that between March 29, 2016 and April 20, 2016, Josmon Technologies Limited transferred N317 million to Rholavision after receiving two “grass-cutting” contracts worth N530.6 million for the removal of invasive plant species in Yobe State.
“The transfers were made in tranches, mostly N10 million per transaction, and N47 million on the last day. For the “grass-cutting” contract, Mr. Lawal’s Rholavision was awarded the consultancy contract on March 8, 2016, while the owner was in the service of the government as federal cabinet secretary, in breach of Nigeria’s code of conduct for public officers and the Public Procurement Act.
“Apart from that contract which formed the basis of the call by the Senate that Mr. Lawal be removed and prosecuted by President Muhammadu Buhari last December, the suspended SGF was also into other fraudulent deals with companies using PINE as conduit pipe.
“For instance, on August 8, 2016, JMT Global Technologies Ltd transferred N30 million from its Zenith Bank account 114357188 to Rholavision. Then, JMT had just got eight contracts for “rehabilitations/renovations in Adamawa” State for the sum of N199.4 million.
The committee said that “Messrs Adamawa Boreholes and Drilling Companies Ltd transferred N18 million to Mr. Lawal’s company, after clinching N54.8 million contract to renovate seven classrooms at Yeskule Girls Secondary School, Michika Adamawa State.
Similarly, Barde Brothers Multi-Services Limited which was also awarded seven contracts to renovate classrooms in Adamawa State for N145 million returned N71 million to Mr. Lawal’s company account on October 10, 2016, and another N13 million between July 7, 2016 and September 9, 2016 to his private account.”
Based on these damning findings, the report recommended, among others, that “Lawal having contravened the provision of Part 1 of the Fifth Schedule of the 1999 Constitution (As amended); the Public Procurement Act 2007 and breach the Oaths of Office as Secretary to the Government of the Federation, should be prosecuted by the relevant authorities.”
It also recommended further investigation by relevant Agencies of Government on why contract benefitting companies paid over N500,000,000.00 to Rholavision Engineering Limited, a company in which Lawal has interest.
Other recommendations of the committee’s report include: “That the Bureau of Public Procurement (BPP) should undertake a revaluation of all such contracts to recover any proceeds from over-inflated contracts.”
The committee also recommended that relevant agencies should ensure that contracts partially executed but fully paid for must be completed by the concerned contractors, or be asked to refund the equivalent money of outstanding jobs to the government treasury.
The panel also demanded that all resources that have been misapplied or stolen by public officials should be retrieved and anybody found culpable of contravening any provision of the Public Procurement Act, 2007 and the Federal Government Financial Rules and Regulations pertaining to the award of these contracts should be duly prosecuted by the relevant authorities.
Source: Orderpaper
It was also discovered that apart from the N270 million awarded for the grass cutting contract to Mr. Lawal’s firm, there was another N200 million spent to hire consultants on grass cutting.
Another damning find was a discovery that at least five companies separately paid about N450 million to the bank account of Rholavision Engineering Limited owned by Mr. Lawal as well as his private account at different times during the duration of the scam.
These information issued from the final report of the Senate adhoc committee on ‘Mounting Humanitarian Crisis in the North-east’ presented on Wednesday by its chairman, Sen. Shehu Sani (APC, Kaduna) and unanimously adopted by the Senate.
The committee reported that in view of the confirmation by Central Bank of Nigeria (CBN) that Babachir Lawal is the owner of all the contracting firms because he owns the Bank Verification Number accounts of all thirteen (13) other accounts, the suspended SGF should be prosecuted.
The Committee’s report revealed that after receiving payments from PINE, at least five companies separately paid about N450 million to the Eco Bank account (182001809) of Rholavision Engineering Limited owned by Mr. Lawal as admitted by the Corporate Affairs Affairs Commission (CAC) and his private account (0003004417) with Diamond Bank, as revealed in bank statements.
The committee said: “According to a CBN confirmation attached to the report, Mr. Lawal was still the signatory to the account of Rholavision until February 15, 2017 which shares the same Bank Verification Number with his personal account and 13 other accounts in commercial banks.”
The committee said that between March 29, 2016 and April 20, 2016, Josmon Technologies Limited transferred N317 million to Rholavision after receiving two “grass-cutting” contracts worth N530.6 million for the removal of invasive plant species in Yobe State.
“The transfers were made in tranches, mostly N10 million per transaction, and N47 million on the last day. For the “grass-cutting” contract, Mr. Lawal’s Rholavision was awarded the consultancy contract on March 8, 2016, while the owner was in the service of the government as federal cabinet secretary, in breach of Nigeria’s code of conduct for public officers and the Public Procurement Act.
“Apart from that contract which formed the basis of the call by the Senate that Mr. Lawal be removed and prosecuted by President Muhammadu Buhari last December, the suspended SGF was also into other fraudulent deals with companies using PINE as conduit pipe.
“For instance, on August 8, 2016, JMT Global Technologies Ltd transferred N30 million from its Zenith Bank account 114357188 to Rholavision. Then, JMT had just got eight contracts for “rehabilitations/renovations in Adamawa” State for the sum of N199.4 million.
The committee said that “Messrs Adamawa Boreholes and Drilling Companies Ltd transferred N18 million to Mr. Lawal’s company, after clinching N54.8 million contract to renovate seven classrooms at Yeskule Girls Secondary School, Michika Adamawa State.
Similarly, Barde Brothers Multi-Services Limited which was also awarded seven contracts to renovate classrooms in Adamawa State for N145 million returned N71 million to Mr. Lawal’s company account on October 10, 2016, and another N13 million between July 7, 2016 and September 9, 2016 to his private account.”
Based on these damning findings, the report recommended, among others, that “Lawal having contravened the provision of Part 1 of the Fifth Schedule of the 1999 Constitution (As amended); the Public Procurement Act 2007 and breach the Oaths of Office as Secretary to the Government of the Federation, should be prosecuted by the relevant authorities.”
It also recommended further investigation by relevant Agencies of Government on why contract benefitting companies paid over N500,000,000.00 to Rholavision Engineering Limited, a company in which Lawal has interest.
Other recommendations of the committee’s report include: “That the Bureau of Public Procurement (BPP) should undertake a revaluation of all such contracts to recover any proceeds from over-inflated contracts.”
The committee also recommended that relevant agencies should ensure that contracts partially executed but fully paid for must be completed by the concerned contractors, or be asked to refund the equivalent money of outstanding jobs to the government treasury.
The panel also demanded that all resources that have been misapplied or stolen by public officials should be retrieved and anybody found culpable of contravening any provision of the Public Procurement Act, 2007 and the Federal Government Financial Rules and Regulations pertaining to the award of these contracts should be duly prosecuted by the relevant authorities.
Source: Orderpaper
No comments
Lets have your comment on this post here.
Thanks