NDDC Has 13,000 Doubtful Projects Despite Receiving N6 Trillion Allocation in 19 Years - Malami

The Attorney-General of the Federation, Abubakar Malami, said on Thursday that the Niger Delta Development Commission (NDDC) has over 13,000 poorly executed and unverified projects despite N6 trillion allocation it received from 2001 to 2019.

"The federal government is particularly concerned with the colossal loss occasioned by uncompleted and unverified development projects in the Niger Delta region, in spite of the huge resources made available to uplift the living standard of the citizens," Mr Malami said.

Mr Malami spoke as President Muhammadu Buhari's representative at the presentation of the report on forensic audit of the NDDC.

The President had in August 2019 ordered the forensic audit of the agency, in response to what the AGF described as "the yearnings of the people the Niger Delta region to reposition it for effective service delivery".

Mr Malami . who commended the auditors and assured that all aspects of their report would be "strategically" implemented "without hesitation", noted that the President had directed his ministry to conduct a legal review of the report to ensure "justice is done".

He indicated that criminal investigations, prosecution, and recovery of diverted funds would be initiated against suspected looters of the agency's funds.

Mr Buhari administration, which has not constituted a governing board for the agency as statutorily provided since 2015, superintended over the last four years of the 19 years period in the life of the NDDC reviewed by the auditors.

NDDC funds and projects

NDDC is an interventionist agency set up in 2000 to see to the development of the oil-rich Niger Delta region and tackle the ecological problems arising from oil production activities in the mandate states.

The agency has generally fallen short of meeting the expectations of the people of the nine mandate states - Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers.

In its 2020 years of existence, the agency has been at the centre of many mind-boggling unresolved corruption allegations undercutting its capacity to deliver on its mandate to the people of the Niger Delta region.

"It is evident that considerable resources have been channeled by the Federal Government to the development of the Niger Delta from 2001 to 2019," Mr Malami said.

According to him, within 19 years, from 2001 and 2019, the federal government approved over N3.3 trillion to the agency as budgetary allocation, and N2.4trillion as "income from statutory and non-statutory sources".

This, according to him, "brings the total figure to the sum of approximately six trillion Naira given to the Niger Delta Development Commission".

The minister said despite this, "We have on record over 13,777 projects, the execution of which is substantially compromised".

Apart from poorly executed or non-execution of contracts, Mr Malami pointed out to the issue of the agency running 362 bank accounts resulting in lack of proper reconciliation of accounts.

"The federal government is also concerned with the multitudes of Niger Delta Development Commission's bank accounts amounting to 362 and lack of proper reconciliation of accounts," Mr Malami said.

Action to be taken

Mr Malami said the President had directed that the audit report be forwarded to the Federal Ministry of Justice "for a legal review and relevant Ministries, Departments and Agencies of government will be engaged in doing justice to the findings accordingly".

Although he did not give timeline, Mr Malami said criminal investigations, prosecution, and recovery of improperly used funds would be initiated.

"The federal government will in consequence apply the law to remedy the deficiencies outlined in the audit report as appropriate.

"This will include but not limited to initiation of criminal investigations, prosecution, recovery of funds not properly utilized for the public purposes for which they were meant for review of the laws to reposition and restructure the NDDC for the efficiency of better service delivery amongst others.

"In all these instances of actions, legal due processes will strictly be complied with," he said.

Mr Malami said it is important for "the public to be properly informed of what has been spent and how that has been spent" by the NDDC.

He said the essence of the forensic audit carried out on the NDDC "is to ensure probity and accountability in the use of public funds".

"It is against this background that the Federal Government will without hesitation strategically implement all aspects of the audit exercise that will promote probity and greater prosperity for the Niger Delta Region and Nigeria as whole," he said.

According to Mr Malami, the auditors comprised the Lead Forensic Auditors and the 16 Field Audit Firms with a Security Committee for securing the lives and properties of the Audit Firms throughout the duration of the forensic audit exercise.

Suffering golden goose that lays the golden egg

The level of poverty and general deprivation suffered by the people of Niger Delta is at odds with their profile as the region that produces the oil which serves as the mainstay of the Nigeria's economy.

Niger-Delta people's long-suffering condition is largely attributable to official corruption at various levels.

Since 2007, two former governors of states in the region - the late Diepreye Alamieyesegha of Bayelsa State and James Ibori of Delta State - have been convicted of money laundering involving funds they stole from their people.

Some other former governors from the region are under criminal investigations.

Cases of funds diversion and poorly executed contracts are also rife in the NDDC, which is supposed to apply funds directly allocated to it by the federal government to develop the region.

But officials have only become rich at the expense of the long-suffering and poverty-stricken people of the Niger Delta, resulting in myriads of environmental hazards that deprive them of potable water and means of livelihood, mainly fishing and farming.

Read Mr Malami's speech in full:

REMARKS BY ABUBAKAR MALAMU, SAN, HONOURABLE ATTORNEY GENERAL OF THE FEDERATION AND MINISTER JUSTICE AND REPRESENTATIVE OF PRESIDENT AND COMMANDER IN CHIEF OF THE FEDERAL REPUBLIC OF NIGERIA, MUHAMMADU BUHARI ON THE PRESENTATION OF THE REPORT ON THE FORENSIC AUDIT OF THE NIGER DELTA DEVELOPMENT COMMISSION (NDDC)

PROTOCOL

I welcome you all to the presentation of the Report on the forensic audit of the Niger Delta Commission (NDDC), which report I am to receive on behalf of the President of the Federal Republic of Nigeria, President Muhammadu Buhari, GCFR.

2. You will recall the President had ordered for a holistic forensic audit of the activities of the Commission from inception to August 2019 in response to the yearnings of the people the Niger Delta Region to reposition it for effective service delivery. It is imperative to state that, the call for the audit by the people of the Niger Delta Region arose from the huge gaps between resources invested in the region vis a vis the huge gap in infrastructural, human and economic development.

3. It is on record that between 2001 and 2019, the Federal Government has approved N3, 375, 735,776,794.93 Three Trillion, Three Hundred and Seventy Five Billion, Seven Hundred and Seventy Six Thousand, Seven Hundred and Ninety Four Naira, Ninety Three Kobo as budgetary allocation and N2,420,948,894,191.00 Two Trillion, Four Hundred and Twenty Billion, Nine Hundred and Forty Million, and, Eight Hundred and Ninety Four Thousand, One Hundred and Ninety One Naira as Income from Statutory and Non Statutory Sources, which brings the total figure to the sum of approximately Six Trillion Naira given to the Niger Delta Development Commission.

4. Consequently, the Federal Executive Council (FEC) approved the engagement of a Lead Forensic Auditor, as well as 16 reputable Audit Firms to conduct the audit exercise.

5. The President is delighted that the auditors have now completed this exercise and the Report is today being presented.

6. Furthermore, the President is not oblivious of the interest generated by Stakeholders towards the forensic audit exercise and the agitation for the constitution of the Board of the NDDC. However, this Administration is determined to address challenges militating against the delivery of the mandate of the NDDC to the people of the Niger Delta Region.

7. It is in the broader context of the foregoing developments that the President recently signed into Law the Petroleum Industry Act (PIA) which has been a contentious issue over the years for successive Governments, to bring about the prudence and accountability in the Petroleum Sector and to give a sense of participation and ownership to the Host communities.

8. The Report on the forensic audit of the NNDC and your recommendations will therefore be critically analysed for necessary action and implementation. We owe it a duty to the people of the Niger Delta Region to improve their standard of living through the provision of adequate infrastructural and socio-economic development.

9. The welfare and socio- economic inclusion of the Niger Delta Region is paramount to the development and security of the Region and by extension the Country. Funds spent on development activities should as a consequence promote political and socio-economic stability in the Region. Citizens affected by these development projects should also exhibit the ability to contribute to the continuous progress of their immediate and wider communities by engaging in constructive activities that will sustain and supports these development projects.

10. It is evident that considerable resources have been channeled by the Federal Government to the development of the Niger Delta from 2001 to 2019. It is therefore important for the Federal Government and the public to be properly informed of what has been spent and how that has been spent. The essence of the forensic audit is to ensure probity and accountability in the use of public funds. It is against this background that the Federal Government will without hesitation strategically implement all aspects of the audit exercise that will promote probity and greater prosperity for the Niger Delta Region and Nigeria as whole.

11. The Federal Government is particularly concerned with the colossal loss occasioned by uncompleted and unverified development projects in the Niger Delta Region, in spite of the huge resources made available to uplift the living standard of the citizens. We have on record over 13,777 projects, the execution of which is substantially compromised. The Federal Government is also concerned with the multitudes of Niger Delta Development Commission's bank accounts amounting to 362 and lack of proper reconciliation of accounts.

12. The Federal Government will in consequence apply the law to remedy the deficiencies outlined in the audit report as appropriate. This will include but not limited to initiation of criminal investigations, prosecution, recovery of funds not properly utilized for the public purposes for which they were meant for review of the laws to reposition and restructure the NDDC for the efficiency of better service delivery amongst others. In all these instances of actions, legal due processes will strictly be complied with.

13. The President has directed that the forensic audit report be forwarded to the Federal Ministry of Justice for a legal review and relevant Ministries, Departments and Agencies of Government will be engaged in doing justice to the findings accordingly.

14. I appreciate the Honourable Minister, Ministry of Niger Delta Affairs, Sen. (Dr.) Godswill Akpabio, his colleague Sen. Omotayo Alasoadura, the Interim Administrator, Management and Staff of the NNDC for their support towards the completion of the audit exercise.

15. My appreciation also goes to the Lead Forensic Auditors and the 16 Field Audit Firms for completing this exercise, as well as the Security Committee for securing the lives and properties of the Audit Firms throughout the duration of the forensic audit exercise.

16. Thank you and God bless Nigeria.

This article originally appeared on Premium Times

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