A prosecution witness on Wednesday told a Federal High Court in Abuja that former President Olusegun Obasanjo allegedly directed the former Minister of Power and Steel, Olu Agunloye, to add ₦11 billion to the ₦6 billion already appropriated in the 2003 budget for the Mambilla Hydroelectric Power Project.
NAIJAONPOINT , Umar Babangida, an Assistant Commissioner of Police and investigator with the Economic and Financial Crimes Commission, made the disclosure during his continued cross-examination by counsel to the defendant, Adeola Adedipe (SAN).
Agunloye is standing trial before Justice Jude Onwuegbuzie at the Apo division of the Federal High Court, Abuja, on an amended seven-count charge bordering on disobedience to presidential directive, conspiracy, forgery and receipt of gratification.
The former minister, who is being prosecuted by the EFCC on behalf of the Federal Government, is accused of conspiring with Leno Adesayan of Sunrise Power and Transmission Company Limited to forge a letter titled “Construction of 3,960MW Mambilla Hydroelectric Power Station on a build, operate and transfer basis.” He has pleaded not guilty to all the charges.
Testifying as the third prosecution witness, Babangida said investigations revealed that Obasanjo was keen on kick-starting the Mambilla project, which had lingered for over two decades.
He told the court that feasibility studies for the project dated back to 1981 and that it took about 23 years before the project was eventually awarded in 2003, after seven companies that showed interest were screened.
According to NAIJAONPOINT , a private meeting was held between Obasanjo and Agunloye on the night of May 20, 2003, ahead of a Federal Executive Council meeting the following day.
“Yes, my Lord. The former president mentioned it at the Federal Executive Council meeting. However, the details of the discussion of the previous day were not fully given by the former president,” Babangida said.
He added that EFCC investigations showed that Obasanjo instructed Agunloye to add N11bn to the already appropriated N6bn in the 2003 budget to facilitate the take-off of the Mambilla project.
Babangida further told the court that the Federal Government could have paid $1.5bn as its 25 per cent equity participation in the $6bn project, which was to be executed on a build, operate and transfer basis.
He said that after the Federal Executive Council supported Agunloye’s memorandum on May 22, 2003, proposing 25 per cent government equity, the then Vice-President, Atiku Abubakar, alongside another minister, suggested that the level of government participation should be reviewed.
However, NAIJAONPOINT clarified that the directive to withdraw the memorandum was not solely based on that suggestion.
“Several observations were raised by the former president, the former vice-president and other members of the Executive Council, which led the Council to direct the former minister to withdraw the memorandum,” Babangida said.
He explained that the withdrawal was meant to allow further engagement with investors and to explore options that could reduce the Federal Government’s equity participation from the proposed 25 per cent.
Reading from the letter of award issued to Sunrise Power and Transmission Company Limited and dated May 22, 2003, NAIJAONPOINT said Agunloye stated that, “Eventual equity participation will vary from zero to not more than 10 percent.”
He noted that the letter effectively reduced the government’s equity stake from 25 per cent to a range of zero to 10 per cent.
Babangida, however, added that despite what was contained in the document, the outcome did not reflect that reduction, though he did not elaborate further on what transpired.
Justice Onwuegbuzie adjourned the matter until February 2 for the continuation of the cross-examination of the prosecution witness.