The Economic and Financial Crimes Commission (EFCC) has explained why top politicians and civil servants allegedly involved in the alleged laundering of N35 billion meant for arms procurement in the last administration have not been arrested.
A source in the anti-graft agency exclusively informed The Guardian yesterday that the commission had deployed some of its best investigators to wrap up the interrogation of the suspects before taking them in for arraignment in court.
The source, who declined to be named, revealed that a chief of staff to former President Goodluck Jonathan, Mike Aiyegbeni Oghiadomhe, and a former Minister of Defence, Alhaji Musa Kwakwanso, are among other top government officials who have been indicted in the case of conspiracy and diversion of public funds.
The suspects, who are already being questioned, were indicted in a case against Donald Peterson and his company, Richfield Technologies Limited, during investigations into the recommendations of the CADEP report by the EFCC.
It was also revealed that some of the contracts were non-performing as the contractors could not deliver within the stipulated time assigned which ranged from three to six months.
Some of the contractors were accused of supplying substandard materials which were accepted by the ministry, but could not be utilized till date, while other contracts were terminated after full contract sums were paid to the contractors without any refund to the Ministry of Defence.
According to the report, Richfield Technologies Limited was awarded four contracts for the supply of equipment for peace-keeping operation amounting to about N1.4 billion.
The EFCC, upon receipt of the report, sent a letter to the Ministry of Defence for details of all peace-keeping contracts awarded from 2009 to 2015. Response was received and thoroughly analyzed. The contracts were identified and payments traced to the company’s account.
Letters of investigation activities were also written and dispatched to Guaranty Trust Bank and Zenith Bank where the company’s accounts are domiciled. Response were also received from the banks and the statements of accounts were analysed to ascertain how the suspect utilised the funds received from the ministry.
A follow-up letter was also sent requesting for instruments used in carrying out relevant transfers. The instruments were received and additional letters were sent to banks for statements of accounts of all beneficiaries as well as the account opening documents.
More letters of investigation activities were written and dispatched to the Abuja Geographic Information System to establish the owner of properties with links to the suspects. Another set of letters of investigation activities were written and dispatched to the Development Control Department for additional information on the properties.
According to the report, the suspect was invited and his confessional statement taken under caution. The summary of statements recorded from Donald Peterson reads: “He is a contractor and Managing Director of Richfleld Technologies Limited, VTB Export & Import Ltd, Freerose Limited and African Integrated Services Limited.”
Peterson stated under caution that he had executed many contracts for the Ministry of Defence which include supply of Terrex crane as well as truck recovery and communication equipment. He added that he completed the contracts and supplied two mosile cranes, two units of truck recovery, training simulator and communication equipment.
Peterson informed EFCC investigators that the supply of communication equipment was awarded to him at the sum of N1, 020,287, 357 on the 9th December 2010, while the equipment was purchased and supplied by Daltron World Communication USA and freighted to the Nigerian Army and was received at the Nigerian Army ordinance store in Lagos and completion certificate was issued with complete payment.
He added that the supply of truck recovery vehicle (10 tons) was awarded to him at the sum of N50,000,000.00, shipped from China and delivered to the Nigerian Army depot in Lagos with completion certificate issued to him and complete payment received.
He stated further that the supply of Tenex was awarded at the sum of N269,000,000.00, it was shipped from USA to the Nigerian Navy, Lagos with the completion certificate issued and complete payment made while the supply of trainer simulator was awarded at the cost of N433, 317, 213. 00 and the simulator was shipped from India, supplied and installed at the Naval base Apapa.
Peterson disclosed that 80 percent payment was made to him, while the final payment via a cheque that represents 20 percent was returned unpaid in December 2008. The contract for the supply of five units of fuel trailers was awarded at the cost of N85, 000, 000.00 and was shipped from China and supplied to the Nigerian Army depot, Lagos with completion certificate and complete payment made.
The suspect informed his interrogators that the contract for the supply of machine refueler was awarded to him at the cost of N320, 000, 000.00. He disclosed that the refueler was purchased and he called the Ministry of Defence for inspection in the USA. lnspectlon was done but waiver certificate was not given despite several letters he wrote. He said the trucks were attracting demurrage and the manufacturer sold them to offset the cost of demurrage after about two years.
He, however, said the officials later went for inspection without him and said they were no longer interested in buying the refueller through him as they would be dealing directly with the manufacturer.
Peterson said contracts for the supply of arms and ammunition were awarded to his company, VTB Export at N533,000,000.00 and N778,000,000.00.
He revealed that he procured the arms and ammunition and invited the Ministry of Defence for inspection. He said he also reminded the ministry to make advance payment for the contracts but it did not. He claimed to have written them several letters before they opened a letter of credit for two of the contracts. “Ministry of Defence only made advance payment for one.”
The contractor told the investigators that he reminded the Ministry of Defence severally and wrote numerous letters on the demurrage on the goods and till date, he said, there has not been any response from the ministry.
Peterson explained that the two letters of credit were not utilized and he was not aware that the contracts had been terminated as no letter was sent to him or his company in that regard. He maintained that he was only given about N106,000,000.00 as advance payment for one of the contracts.
He said the supply of restitution impact maker by the ministry was awarded to his company and that he was to supply 450 units but the manufacturer wrote that they could only supply in sets of 1,200 units, and a supplementing agreement was entered with the Ministry of Defence with a promise to make the advance payment and open a letter of credit for the same.
