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MARCH 12, 2007 VOL. 20. NO 22

PTDF: A Desecrated Presidency

**Atiku Abubakar**

The indictment by the Senate ad-hoc committee on the Petroleum Technology Development Fund (PTDF) of the Vice President may have set the stage for embattled Vice President Atiku Abubakar to withdraw from the presidential race
By George Umunnakwe
Vice President Atiku Abubakar is a troubled man. He is on the verge of bidding farewell to a political career which began when he retired from the services of the Nigerian Customs Service (NCS) as an Assistant Comptroller.
As his battle with President Olusegun Obasanjo assumes new twists Atiku, has found the report of the Senate ad-hoc committee on Petroleum Technology Development Fund (PTDF), a much bitter pill to swallow. On Tuesday, February 27, 2007 the Vice President was indicted by the 13- man Senate committee led by Senator Victor Ndoma-Egba. This however, is not the only committee that has found the embattled presidential flagbearer of the Action Congress party AC guilty of misappropriation of the PTDF fund, as an administrative panel of inquiry set up by President Olusegun Obasanjo had, in the last quarter of 2006, indicted him for misappropriating PTDF fund and official corruptor. The panel was led by the Attorney-General of the Federation and Minister of Justice, Bayo Ojo.
As the series of allegations of corruption against Atiku unfold, the chairman of the Independent National Electoral Commission, (INEC), Maurice Iwu, a Professor, categorically stated that the Vice President may not be allowed to contest the April 2007 elections. Iwu had, in a letter, cited the indictment of Atiku, and explained to the AC that its candidate may not be allowed to contest the elections. Iwu went ahead to advice the opposition party to replace its presidential candidate.
This warning was however ignored, as the party said INEC had no constitutional power to disqualify a candidate.
Instructively, while receiving officials of the United States, Department of State in his office in Abuja, the INEC chairman, also said section 137 of the constitution re-affirmed the disqualification of the embattled Vice-President.
Even as the nation’s polical water becomes more murky following the PDP issue, the report of the ad-hoc committee on PTDF may have finally sealed the fate of Atiku, just as it also opened a can of worms in the presidency. The report formally presented by its chairman to the Senate also found President Obasanjo and the Federal Executive Council (FEC) guilty of allegedly using the PTDF money for projects not covered within the law establishing the fund. The committee faulted the President on acting outside the Act establishing the PTDF.
The committee discovered that “Obasanjo gave approval and subsequently obtained the ratification of FEC. Laudable as these may seem, they were outside the mandate of the PTDF as provided for in section two of the enabling Act.”
The committee also stated that the President and the FEC acted in disregard of the law establishing the PTDF. “Though the ratification by the FEC may mitigate this breach of the law, it however, does not absolve the President and the FEC,” it observed.
The report further stated that in respect of progress report on Obasanjo Administration and photographs for state house library, the N4.5 million approved for the project by the the Executive Secretary of PTDF, Adamu Maina Waziri, was within his approval limit. But the committee however, asked the executive secretary of PTDF sto refund the said sum to the PTDF. It reasoned that the project was outside the contemplation of section two of the PTDF Act.
The Committee noted that fund were diverted for other uses, outside what it was supposed to be used for, explained that huge sums loaned to Netlink Digital Television, (NDTV),Mofas Shipping and Transvari, through Trans- International Bank (TIB), should be considered lost.
Giving a break-down of the loan, the report said, the N400million loaned to NDTV, N420million to Mofas Shipping, N730million again to NDTV, and N300million to Transvari Services by TIB remained unrecovered. This, however, is contrary to a statement by the embattled Vice President that the monies are intact in the TIB. Atiku made this statement when he went to testify before the ad-hoc committee.
the Atiku claim was torn apart by the Senate ad-hoc committee, investigating the PTDF sleaze. In its report, the committee observed that the loan remained unrecovered.
According to the report, the loans have since been restructured with the acquisition of TIB by Spring Bank. “It can however not be recovered outside the restructured framework without endangering the Financial health of the bank,” it observed.
The committee had earlier in the report indicted Abubakar for allegedly aiding and abetting the placement of $145million belonging to the PTDF in some banks.
Recommending that the Vice President be penalised, the report reads in part: “That His Excellency, Alhaji Atiku Abubakar, Vice President of the Federal Republic of Nigeria from 1999 to 2007, abused his office by aiding and abetting the diversion of public funds in the sum of $125million and $20million respectively, approved for specific projects to deposit in banks, some of which were fraudulently converted to loans to NDTV, Mofas Shipping Company Limited and Transvari Services Limited.”
“The report further said that Contrary to the argument by Abubakar that PTDF funds were not lost in the various placements, N1.130billion loaned in two installment to the NDTV; N420million to Mofas Shipping Company Limited; and N300million to Transvari Services Limited by TIB were yet to be recovered.”
As a punitive measure, the Senate ad-hoc committee on PTDF recommended that the Vice President be penalised for the offences. It noted that the Marine Float Limited accounts, which had generated a lot of public interest, had no PTDF funds traced to it. They committee however observed that the company was at best, a second line beneficiary of the PTDF funds.
Recommending further, it directed that Oyewole Fasawe, be prosecuted and made to refund the sum of N1.55billion, being the loan advanced the committee to NDTV and Mofas Shipping Company. It however, observed that the EFCC had so far recovered the sum N100million from him.
Also recommended for prosecution Ahmed Vandarpuye, a businessman. He was asked to refund N300million being loan granted to Transvari Services from the TIB. Two former executive secretaries of the PTDF, were not left off the hook, as they were requested to make refunds to the PTDF coffers.
For Hussein Jalo, PTDF executive secretary for five months - July-November 2005, the Ndoma-Egba-led committee stated that “having abused his office through criminal acts and for which N49 million and six vehicles have so far been recovered from him by the EFCC, he should be prosecuted for any offences disclosed.”
The report also indicted Jalo for shoddy supervision of the PTDF and for allowing information gap between the PTDF and the accountant general of the federation. This, according to the committee, is in regard to the “inflows and outflows” from the PTDF reserve account, which were unknown to the fund.
Regarding Hamisu Abubakar, Executive secretary of PTDF from September 2000 to July 2005, the committee said he should be prosecuted because he abused his office by diverting public funds in the sums of $125million and $20million approved for specific projects, which the deposited in banks, some of which were fraudulently converted to loans to the indicted companies. It, however pointed out that the EFCC had recovered N200million from Hamisu Abubakar.
Also the ad-hoc committee on PTDF recommended that Senate committees on petroleum (Upstream) and Public Accounts should exercise their over- sight responsibilities by evaluating all PTDF projects approved in the last four years. They reasoned that if monies could be diverted for projects it was not made for, some projects would have been abandoned not minding that their costs have been paid for.
Notably, since thge report became public, controversies have begun trailing it. Leading this group are six of the 13- member committee, who refused to append their signatures on the report. The Source gathered that some members of the committee were already biased before the final report was presented, leading other members, including Titus Olupitan, crying foul on the modus -oparandi of the committee He says that by visiting President Obasanjo at Aso Rock, the committee members have been compromised. Olupitan argued that part of the recommendations by the leadership of the Senate is that all parties concerned must visit the committee at their venue of sitting. Olupitan an Alliance for Democracy (AD) senator and another senator from the All Nigerian Peoples Party (ANPP) had earlier alleged that monies have exchanged hands. Both senators therefore vowed to present a minority report of the ad-hoc committee findings to the Senate leadership
Instructively, narrating why the signatures of some members were not on the report, Ndoma-Egba explained that they were not around to append their signatures when the report was ready. He categorically stated that Olupitan refused to sign because of his minority report, which is being expected in the senate.
Meanwhile, the embattled Vice- President has described the report as a partisan political hatchet job that would not stand the test of public scrutiny. He, therefore called on the Senate to reject the report in the spirit of justice, fairness and equity.
In a statement signed by the Atiku campaign organisation, the Vice President observed that the conditions of the committee were inconsistent with the abundant evidence put at their disposal by himself and several witnesses who appeared before it. He wondered if the pre-dominantly pro-third term members of the committee had yielded to pressures.
Atiku: “the three critical issues are: (i) was the approval of the FEC needed for the placement of PTDF funds? (ii) Was any money lost in the investment of PTDF money in ETB and TIB? (iii) Was there any material link established between the Vice President an the PTDF funds?
The presidential candidate of the AC whose ambition to rule Nigeria hangs on the balance noted that the evidence before the committee confirmed his position. “As at December 2006, over N19 billion of PTDF money was invested in banks and there was no single evidence that the FEC approval was secured for it. This is a confirmation that the investment in UBA and ETB did not require a FEC approval,” Atiku said. Speaking further, Atiku argued that the transactions passed through the Auditor General's office as required by law. The conclusion of the committee therefore is inconsistent with the fact at its disposal, he pointed out.
Atiku re-instated that no money was lost in the transition, in spite of what he called the false claims by both EFCC and the Senate committee.
Re-affirming the stance of the six members of the ad- hoc committee, the Vice President, observed that “the conclusion of the committee regarding president Olusegun Obasanjo is however the greatest evidence that the committee merely recommended that the president should be advised to follow due process.
“It is intriguing that inspite of at least 10 cases of a debase of office by the President, the committee feels it was merely a due process matter.
“It is equally strange that while PTDF officials confirm the position of the Vice President, that N20 billion PTDF money approved by the President in the heat of the obnoxious third term scheme could not be traced, the committee did not deem it appropriate to sanction the President or investigate the allegations that the money was used for the agenda”, he said.
According to him, it is equally curious that the committee did not see anything wrong in the President approving the payment of a whopping N250 million for the mere act of registering a company, where actual cost was not more than N23 million? What further evidence did the committee need to realise that it was the President, his friends and cronies, who had looted the PTDF?”
Atiku called on the Senate to look closely at the committee's report and identify it illogicalities, bias and inconsistencies. “Reject it in the interest of fairness, equity and justice,” he charged the senators.
While the Vice President and indeed his camp is fuming over the report, the Presidency, Tuesday, February 27, 2007 praised the report saying, "it is a vindication of president Olusegun Obasanjo.”
Speaking through the Senior Special Assistant (media) to the President, Oluremi Oyo, the Presidency said the panel’s comment on the President did not amount to his indictment for abuse of office. “A wider interpretation was given to the law by the President. It is not an abuse of office. You have been told that the projects are laudable. Nobody has said that any money was embezzled by the President,” Oyo noted.
Oyo: “The Presidency has noted the Senate committee’s report and expressed its commendation for exercising its oversight functions. It particularly notes the committee’s acknowledgement of laudable projects, approved by the president and the Federal Executive council (FEC) for the overall development of the nation.
“The presidency, however, wishes to clarify that the projects are restated to the devepment in the oil and gas sector, which falls within the ambit of the PTDF.” As the two camps engaged in war of words, leaving Nigerians bemused, calls for the impeachment of the President and his vice, reverbrated across the country. Nigerians say the two highest ranking officers in the land have not served them well by their conduct and activities, as revealed by the PTDF. Although they reason that the April elections are near, the Senate President Ken Nnamani, could take over as President, to avoid creating a vacuum.
According to the National chairman of the Democratic People ,Alliance (DPA), Olu Falae, “we cannot because of the timing allow corruption. They are both guilty and should both go away and allow the constitution to follow its due course; let the Senate President take over from them and oversee the elections. We cannot say because the time is close to election, and close our eyes o the stealing of public funds.”
Also Ayo Adebanjo, a member of the Afenifere a pan-Yoruba group, described the president and his vice as corrupt individuals. He said that they be removed from office. He, however, warned that the election is around the corner and that carefulness is therefore needed. “We should look at the implication on the elections that is just under two months. Removing them might lead to the postponement of the election and that is what we have all been trying to avoid,” he observed.
But to Gabrial Giwa-Amu, a constitutional lawyer, the embattled Vice President should just throw-in the towel and decline from contesting the coming elections. He reasoned that it is because of his interest in becoming the president that he is been fired from all fronts.
According to him, “ I highly salute the ad-hoc committee for their work, it shows that the National Assembly is upright in its dealings. It is an indictment on Atiku. They have decided to show their independence. I salute their courage." But Lai Mohammed, spokesperson for AC berated the committee saying it was baised against Atiku. He accused President Obasanjo of sleaze and compromise of his exalted office.
Meanwhile as the report is being debated at the Senate, only time will tell where the pendulum will swing.