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Massive Corruption in NIGCOMSAT, CEO Abimbola Alale Fingered in Alleged Multi-Billion Naira Fraud

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NIGCOMSAT CEO Abimbola Alale

By Aduragbemi Omiyale

The motive behind the extension of service for Mrs Abimbola Alale in 2019 as the Managing Director and Chief Executive Officer of Nigerian Communication Satellite Limited (NIGCOMSAT) for another 4-year term may be gradually unfolding.

As it is now obvious that though she is the only African on the board of Space Generation Advisory Council when it comes to the financial affairs of NIGCOMSAT; a satellite communications service provider wholly owned by the Federal Government of Nigeria and incorporated on April 4, 2006, she does not fly solo.

Disregard for due process at NIGCOMSAT

Investigations revealed that between September and December 2011, Mrs Alale in connivance with the immediate-past managing director of NIGCOMSAT, Engr. Ahmed Rufai, and one Alma Okpalefe Udoyen without a Certificate of No Objection from the Bureau of Public Procurement (BPP) and no approval from the Federal Executive Council (FEC) since the service was a non-consultant service contract, allegedly paid the sum of N5,893,920,000 as an insurance premium for the launch of NigComSat-1R satellite to Fasaha Intercontinental Insurance Brokers Ltd, with an office at Block C3 Amsalco Plaza, No 100 Zoo Road Kano.

Tax payers’ funds siphoned

As the project director for NIGCOMSAT 1R we learned, Mrs Alale also allegedly facilitated payment up to the tune of N3,082,742,400 for non-existent and fictitious insurance policies, amongst which was a N1,475,680,000 payment as premium for an Early Launch Orbit insurance with no certificate issued. China Great Wall Industries Corp. (CGWIC), the satellite manufacturers, however, did not indicate Early Launch Orbit Insurance as part of the insurance cover for the satellite.

Despite the contract document of NIGCOMSAT 1R satellite between Nigerian Communications Satellite Limited (NIGCOMSAT) and China Great Wall Industries Corp. (CGWIC) stating that the transit insurance of the NIGCOMSAT-1R satellite from the factory in Beijing to the launch site at Xichang was the responsibility of CGWIC, another payment of N1,607,062,400 was allegedly made with no insurance policy or certificate to authenticate the transaction.

Obviously running the agency with an open check, the sum of N1,475, 680,000  was subsequently paid for NIGCOMSAT 1R Launch Insurance while the sum of N1,335,497,600 was paid for NIGCOMSAT 1R In-Orbit Insurance valid for two years from 2011 to 2013.

However, on December 21, 2012, while the subsisting in-orbit insurance was still valid, they allegedly paid the sum of N421,885,364.63 to Fasaha Intercontinental Insurance Brokers Ltd for the renewal of the in-orbit insurance policy for December 19, 2012, to December 19, 2013.

Just like other fictitious deals, we gathered that the payment was approved by the in-house tender management board fully aware that the said in-orbit insurance is not renewable as it is traditionally a one-time payment.

While the copy of the insurance policy did not state the premium, no FEC approval or BPP Certificate of No-Objection was obtained for the procurement which remarkably, was not signed by either party, with no insurance certificate from the local and foreign insurers.

Further diggings showed that not only was the act fraudulent, but the amount approved for the project was also above the threshold of the company’s tenders board as set out by BPP in the approved revised threshold for the award of contracts, thus contravenes section 16 (I) (2) of the Public Procurement Act, 2007.

On November 4, 2010, Mr Rufai and Mrs Alale awarded a contract for the supply of phones towards the implementation of the National Public Security Communications System Project (NPSCS). The contract, which was a supply of goods contract, was above the threshold of the in-house management tender board meeting as stated in the BPP guidelines.

The approving authority for this contract should be the FEC while the BPP will issue ‘No Objection Certificate’. But this was not followed.

Action not taken despite recommendations

It was also gathered that a former executive director, Finance and Administration (F&A), Mohammed Lema Tambuwal, had raised several concerns about Mrs Alale’s alleged breach of government financial regulations.

One of such was the total disregard of due process in auctioning the company’s assets including new vehicles in the company’s fleet to herself and her allies.

The executive director recommended that these vehicles be returned to the company and these persons be refunded the paltry sums paid to acquire the new vehicles, but this was never implemented. Instead, this newspaper gathered that the Executive Director was asked to relinquish the finance portfolio.

Other allegations against the NIGCOMSAT boss is that against the federal government’s guidelines, most lucrative contracts were offered exclusively to Content Oasis Ltd owned by the former chairman of the NIGCOMSAT, Turner Isoun’s son, Diseye Isoun and most of the projects were not executed.

Investigations further revealed that nepotism and tribalism are the order of business at NIGCOMSAT. It was gathered that appointments to managerial positions as well as promotions are usually arbitrary and based on Mrs Alale’s interest.

…Watch out for the second series of alleged massive fraud at NIGCOMSAT.

Aduragbemi Omiyale is a journalist with Business Post Nigeria, who has passion for news writing. In her leisure time, she loves to read.

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NNPC Insists Port Harcourt Refinery Processing PMS, Others

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Port Harcourt Refinery Processing PMS

By Aduragbemi Omiyale

The Nigerian National Petroleum Company (NNPC) Limited has rubbished claims by a resident of the community hosting the newly revamped Port Harcourt Refinery in Rivers State, Mr Timothy Mgbere, that the facility was not processing crude oil as publicised by the NNPC.

On Tuesday, the NNPC announced to the world that the oil facility, repaired with about $1.5 billion approved in 2021, was processing crude oil at 60 per cent capacity.

The refinery was built many years ago to refine about 150,000 barrels of crude oil per day but had been left fallow until the immediate past President of Nigeria, Mr Muhammadu Buhari, approved funds for its rehabilitation.

After missing several completion deadlines, the state-owned energy company announced on Tuesday that it was now processing crude oil, with trucks seen offloading premium motor spirit (PMS), also known as petrol.

However, some hours later, Mr Mgbere informed Arise TV that the oil refinery was not working as claimed by the NNPC.

Reacting to this in a statement signed by its spokesman, Mr Olufemi Soneye, on Friday, the NNPC asked members of the public to ignore Mr Mgbere because his assertions were a “crass display of ignorance.”

It noted that Mr Mgbere lacked the “knowledge about the workings of the Port Harcourt Refinery.”

“1. He claimed that the Old Port Harcourt Refinery was only operating skeletally and was not processing PMS. His proof was that the PMS truck-out was done at the gantry of the New Port Harcourt Refinery as against the gantry of the Old Port Harcourt Refinery. This betrays his scant knowledge of the operations of the refinery. The Old and New Port Harcourt Refineries have since been integrated with one single terminal for product load-out. They share common utilities like power and storage tanks. This means that storage tanks and loading gantry which he claimed belong to the New Port-Harcourt Refinery can also receive products from the Old Port Harcourt Refinery.

“2. The same person who claimed that the Old Port Harcourt Refinery has its own separate loading gantry from that of the New Port Harcourt Refinery further went on to contradict himself by saying that the PMS that was loaded out from the supposed loading gantry of the New Port Harcourt Refinery was “old stock” from the Old Port Harcourt Refinery. So, how did the purported “old stock” move from the Old Port Harcourt Refinery to the loading gantry of the New Port Harcourt Refinery?

“3. Going by the flawed argument of the so-called ‘community person’, “old PMS stock” from the Old Port Harcourt Refinery can be moved to the loading gantry of the New Port-Harcourt Refinery for the show, but newly produced PMS from the Old Port-Harcourt Refinery can only be loaded at its own dedicated gantry. This is nothing but ignorance on full display!

“4. There are a number of other wild claims made by the man, one of which was that the refinery was producing 1.4 million barrels per day. The nameplate capacity of the refinery is 60,000 barrels of oil per day. It is currently producing at 90 per cent throughput which translates to Straight-Run Gasoline (Naphtha) blended into 1.4 million litres of PMS, aside from other products like diesel and kerosene.

“5. We call on the general public to disregard the claims of the self-acclaimed ‘community person’ which are obviously borne out of sheer mischief and blatant display of ignorance,” the statement said.

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PETROAN Says Port Harcourt Refinery Operational Amid Counter Claims

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PETROAN

By Adedapo Adesanya

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) claims that the rejuvenated Port Harcourt Refinery is currently operating at 70 per cent of its installed capacity, with plans to ramp up to 90 per cent.

The association made this known to tackle the widespread narratives that the revamped oil facility is a mere blending plant and unproductive as touted.

Recall that the Nigerian National Petroleum Company (NNPC) Limited on Tuesday announced that the Port Harcourt refinery has commenced crude oil refining and has started distributing petroleum products.

In a statement titled Halt the rumours: Port Harcourt old refinery is up and running, producing by-products of crude oil, and signed by its spokesperson on Thursday, Mr Joseph Obele, PETROAN noted that as part of its oversight function, it has direct access to the plant on the authorization of management.

It encouraged whoever is doubting the functional status of the plant to contact NNPC management for a facility tour rather than spreading misleading information

The statement further read, “It is more important to state here that the functional plant at operation is the old refinery with the capacity of 60,000 barrels per day, while the new port Harcourt refinery with the capacity of 200,000 barrels per day is still under rehabilitation which is due to commence production soon as announced by the management of NNPCL. Both Refineries are within the same complex at Alesa Eleme in Rivers State.

“The old Port Harcourt refinery which was built in the year 1965 stopped production over 21 years ago, while the new Port Harcourt refinery stopped production in the year 2019.

“Further confirmation for the authenticity of production at the Port Harcourt refinery was verified by the Senate Committee on Petroleum Resources under the able leadership of Distinguished Sen. S A Kawu Sumaila, OFR Ph.D in conjunction with stakeholders and members of the host community. The Senate Committee was on fact-finding/investigation on Thursday 28th November 2024 at the Port Harcourt refinery and depot at Alesa Eleme to see things themselves.

“The senate committee saw the plant functional and Petroleum trucks loading at the Port Harcourt refinery depot. It is worth noting that PETROAN National leadership led by the National President Dr Billy Hary were in attendance at the senate committee visitation at the Port Harcourt refinery to welcome the committee and express PETROAN’S willingness to commence loading at the Port Harcourt refinery.

“PETROAN opined that the appropriate thing at the moment is to commend the team of NNPCL management led by Engr Mele Kyari that was able to revive a plant that has been moribund, deplorable and dormant for over 21 years.PETROAN hereby appraise the scorecard of Engr Mele Kyari as Excellent performance for reviving a refinery plant which was abandoned for 21 years when he wasn’t the NNPC boss

“PETROAN is optimistic that the Nigeria vision is achievable and hereby calls on Nigerians to be patriotic by believing in the renewed hope agenda of Mr President. Nigeria will work again.

“Regarding the price, NNPC Retail Ltd has officially announced the PMS price at the Port Harcourt refinery as #1,030 per litre. It was also communicated to PETROAN that the product request portal was open for booking /request.

“Meanwhile PETROAN’s strategic pricing team are currently analysing the most favourable price for her members as we are open to patronising all the refineries in Nigeria. PETROAN also implies that NNPC Retail Ltd should further reduce the price in view of giving Nigerians a blissful Yuletide celebration.

“Finally, PETROAN supports the proposed planned Privatisation of the nation-owned refineries in a no instance time in such a manner that is credible and transparent after which the plant should be handled over to a reputable private firm with the financial capability and technical knowledge.

“Most worrisome as a threat to lives and properties is the ugly condition of the Eleme East-west road. The road poses a serious threat to Petroleum trucks that will be conveying flammable products from the refinery depots.

“PETROAN encourages the Federal Ministry of Works under which the project was awarded to RCC to facilitate the ongoing repairs of the road.”

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Aig-Imoukhuede Foundation Champions Transformational Leadership

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AIG-Imoukhuede Foundation

By Adedapo Adesanya

As part of its mission to elevate the effectiveness of public service across Africa, the Aig-Imoukhuede Foundation has launched the fourth cohort of the AIG Public Leaders Programme (PLP).

Delivered in partnership with the Blavatnik School of Government, University of Oxford, this initiative has successfully empowered 169 public sector leaders since 2021, advancing the Foundation’s mission to train 3,000 public sector leaders by 2030, equipping them with the essential skills to drive impactful reforms and strengthen service delivery in their Ministries, Departments, and Agencies (MDAs).

The AIG PLP is an executive training programme that builds the capabilities of African public sector leaders, positioning them to deliver measurable results and foster cultures of integrity, excellence, and innovation.

The Foundation’s vision is to cultivate a new generation of leaders who can address complex challenges, implementing sustainable reforms that resonate across communities.

The programme has already showcased remarkable results as its alumni have implemented transformative reform projects in their various organisations, a core element of the curriculum, creating a ripple effect of positive change across sectors.

One such change project was implemented by Dr Ibiwunmi Olokun, Medical Officer of Health and Primary Health Care Coordinator at the Lagos State Primary Healthcare Board and a member of Cohort 3 of the programme.

Dr Olokun led a project at her Primary Healthcare Centre that reduced patient waiting times from 70 minutes to 30 minutes. This successful model is now being adopted in other units and facilities within her health district in Lagos State.

Additionally, Mr Mohammed Ahmed, Director and Chief of Staff to the CEO of the Nigerian Financial Intelligence Unit and a Cohort 1 AIG PLP alumnus, has made strides in combating financial crimes in Nigeria.

His reform project focused on fostering partnerships between the government and the private sector to enhance financial intelligence aimed at tackling financial crimes.

Today, his efforts are reshaping financial crime prevention strategies in Nigeria through strategic public-private collaborations that empower the nation to address complex financial crimes more effectively.

The current cohort, which includes participants from Ghana and Kenya, has commenced virtual classes and is gearing up for an intensive, one-week residential programme in Abuja from November 18 to November 22.

During this time, participants will engage with the faculty from the Blavatnik School, Oxford, gaining strategic insights and practical tools to excel in their roles and to instil change within their MDAs.

With the launch of this new class, the Aig-Imoukhuede Foundation continues on its quest to reshape public sector leadership in Africa.

By empowering leaders with the tools to champion reform and advance efficient service delivery, the Foundation remains at the forefront of impactful public service transformation.

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