JJ, NDC In $3.5M Slush Fund Affair

An angry chorus of ‘stupid nonsense ‘ and other expletives greeted this Chronicle reporter when the spokesman for ex-President Rawlings last night was reached to comment on Nigerian media reports that had connected his master to slush funds totaling $3.5 million to assist in the campaign of the National Democratic Congress.

The General Secretary Mr. Asiedu Nkestiah simply said it was illegal when the same question was put to him, but Mr. Adams while admitting that they had visited Rivers state Governor last year could not help linking the story to an imaginary NPP propaganda and said they had attended a probono conference on the development of Rivers state and did not benefit in anyway. Infact, Mr. Adams added after he had recovered from his angry spell, that ex-President Rawlings had been awarded with a development chieftaincy title.

But over in Nigeria, pointblanknews reported that there are are growing calls on the Governor of Rivers State, South-South Nigeria, Mr. Rotimi Amaechi to account for how his administration spent appropriated funds totaling over Five Hundred Billion Naira about $3.6billion in the last two years. The online newspaper speculated that there are reasons to believe that Nigeria’s neighboring countries are benefitting from the funds disappearing from Rivers State. Quoting what they call ‘credible sources’ they showed a hint of jealousy when they reported that part of the money that Amaechi is struggling to reconcile in the books may have actually gone into providing funds for the ruling party in Ghana, ‘an alleged contribution to the election of incumbent Ghanaian President, John Atta Mills. A whopping Four Hundred Million, about $3.5 million was allegedly transferred to facilitate the process in Ghana.’ For effect they add ‘While the world celebrates Ghana as a beacon of free and fair democracy in Africa, there is no mention of the country, Nigeria that provides the money that produces the miracle of Ghana.’

Then they dropped the allegation that riled Kofi Adams – ‘Former Ghanaian dictator, Flight Lt. Jerry John Rawlings (Retired) has been identified as the alleged conduit through which the huge sums were transferred to the ruling party in Ghana. Rawlings has been a regular visitor to River State’. But what makes sections of the story credible is the story of a man who is currently facing the Nigerian courts, the Kwadwo Mpianim of the Governor Chief Nyesom Wike who independently has been established as a bag man for Governor Amaechi. In the last one year, Amaechi is said to have stashed away over N1 Billion to selected companies in Ghana, in a manner designed to beat the watchful eyes of Economic and Financial Crimes Commission (EFCC) who are still investigating the State for money laundering.

Chronicle also established while scouring the Nigerian landscape Mr. Nyesom Wike, the Chief of Staff of the Rivers State Governor is currently on trial for stashing away 4.5 billion naira and his legal action to quash the Economic and Financial Crimes Commission charge of emblezzlement and money laundering has failed. Nigerian Justice Folashade Ojo, the presiding judge in her ruling last moth dismissed Wike’s application for quashing of his charge on the ground that the proof of evidence attached in the charge by the anti graft agency contains sufficient prima facie evidence against the embattled Chief of Staff.

According to the judge, “The bank details attached to the charges against the accused by the Economic and Financial Crimes Commission contains prima facie evidence to sustain the charges as contained in the charge sheet. The application seeking to quash the charges on the grounds of insufficient prima facie evidence is here by struck out” The judge thereafter directed the anti graft agency to assemble and produce their witnesses in court for the commencement of the trial. Chief Wike had earlier on the last hearing through his counsel; Mr. Damian Dodo (SAN) moved an application challenging the competency of the charges proffered against him by the anti financial crimes agency.

In the motion brought pursuant to section 36 and 6 (6) of the Constitution of the Federal Republic of Nigeria 1999, Wike sought for an order of the court quashing the charge proffered on him in charge number CR/11/04 for non disclosure of prima facie case and for being an abuse of court process. He also sought for the quashing of the charge on the ground that the charge was incompetent. Wike had contended that the Rivers state government which he serves had not lodged any complaint to the Economic and Financial Crimes Commission that her money is missing and that no material evidence was placed before the court to show that he committed any crime.

The embattled Chief of Staff was arrested and arraigned by the anti graft agency on a 7 count charge bordering on allegations of misappropriation and diversion of public funds. He has consistently maintained that the Zenith Bank account which is at the center of this brouhaha was opened and maintained by him since 2004 before the emergence of the Rotimi Administration in Rivers state. This account, according to Chief Wike is different from that of the state government. With the ruling this morning, the path is cleared for the trial of Nyesom Wike who has been described as the financial conduit pipe to the Rivers state Governor Chibuike Rotimi Amechi. Amaechi is said to have also invested several millions in Blue chip companies in Ghana. He and other Governors in Nigeria are said to have devised a new strategy of investing stolen loots from Nigeria to neighboring countries and Ghana with its seemingly stable economy has become a favored destination Recently, a group known as Niger Delta Watchdog asked the Governor to account for over N500 Billion that accrued to the state in the last two years, he could not do so convincingly.

But sources said that most of the money may have been taken to Ghana where the Governor has sizeable amount of investment. Amaechi is said to be using Wike who operates an account with Zenith Bank with Number 602-500-949 in Port Harcourt as one of the cronies who launder money on his behalf. Wike, before his present ordeal with the EFCC, is said to have ran errands for Amaechi mostly in Ghana and other countries the Governor has interest in. "How is it possible for a one kilometer road to be constructed at N4.3 billion and a five-kilometer road at N7.3 billion? We want to know what kind of roads will cost this much?" The watchdog also doubts the sincerity in the proposed building of 105 cottage hospitals spread across the 23 local government areas (LGAs) in Rivers state. The group hinged its argument on the ground that four cottage hospitals per LGA is a waste when most of the Local Government Areas of the state have standard General Hospitals that need refurbishing. They want the government to rather refurbish the existing hospitals.

Quoting Alhaji Asari Dokubo, "Contract regime and looting are correlated", the group accused the government of going on contract spree such as the N48 billion (more than $400, 000, 000.00) for the refurbishing of Trans Amadi/Omoku Gas turbine. With N11 billion already paid out. According to them, the Federal Government anti-graft bodies should investigate all contracts approved in the last one year. Already, the EFCC is investigating the Chief of Staff to the Governor, Mr. Nyeson Wike and the Secretary to the State Government, Mr. Magnus Abe over illegal transfer of over N100 million, while invitation has been extended to the Commissioner for Finance and the Accountant- General over the same allegation. Governor Amaechi is not new to controversies concerning looting and embezzlement of State Finances. He was grossly carpeted by the EFCC for allegedly presiding over a corrupt House of Assembly during the Governorship of Mr. Peter Odili.

On September 6, 2006, the Rivers State House of Assembly put N100 million in a call account at Zenith Bank, Port Harcourt. The instruction was that at maturity, the money and the accrued interest would be rolled over. However, on September 11, 2006 the assembly wrote to terminate the call account and asked for the release of N60 million “for a conference holding in Port Harcourt”. On September 12, 2006, being the next day, it further asked for the release of N5 million again “for a conference holding in Port Harcourt”. Later the same day, the House wrote again for the bank to release N10 million, still “for a conference holding in Port Harcourt”. Finally, on September 14, 2006, the balance of N25 million was collected for the same purpose.

Alex Kalagbor, the cashier in the House, collected all the money. The EFCC was interested in knowing what kind of conference could have cost N100 million. Officials of the commission say that some of the money has been traced to Amaechi. But a top PDP Chieftain in the state said last week that Amaechi is a victim of the power play between the Odili camp and the Governor’s opponents. He said, “They are doing this to stop what they believe is a growing Odili political dynasty”. According to him, those powerful interests petitioned against Amaechi to get at Odili. But by the time the party saw the findings of the EFCC, it had no choice but to drop the Speaker. Notwithstanding the motive of the petitioners, the commission has said that it would neither succumb to blackmail. The then EFCC Chairman, Mr. Nuhu Ribadu, unsuccessfully tried to bar Amaechi from the Governorship race that has culminated in his present position.