A prosecution witness, Umar Babangida, has informed an Abuja court that Dr Olu Agunloye, did not exceed former President Olusegun Obasanjo’s directive in the award of the Mambilla Hydroelectric Power project.
Agunloye, a former Minister of Power and Steel, is currently being prosecuted by EFCC, on an amended seven-count charge bordering on disobeying presidential directive, conspiracy, forgery and receiving gratification on alleged $6 billion fraud.
He was alleged to have while serving as a minister conspired with Leno Adesayan of Sunrise Power and Transmission Company Limited (SPTCL) to forge a letter titled, “Construction of 3,960MW Mambilla Hydroelectric Power Station on a build, operate and transfer” basis.
He had earlier pleaded not guilty to the charges preferred against him.
Former President Obasanjo directed that no minister was permitted to approve contracts worth more than N25 million without express, written presidential consent, the witness said.
The witness, who was cross examined by counsel for Agunloye, Adeola Adedipe SAN, said that the directive was adhered to in recommending Sunrise Power and Transmission Company Limited (SPTCL) for the project.
He told the court that while SPTCL proposed 35 percent government participation in the project, Tafag Nigeria Limited proposed 25 percent.
He added that Obasanjo subsequently directed that both SPTCL and Tafag Nigeria Limited be given same parameters and the Federal Government’s participation should not be higher than 25 per cent.
Responding to a letter, dated November 20, 2002, written by Dr Olusegun Agagu, he quoted that the then President Olusegun Obasanjo wrote:
“Minister, approved. Please, give the two the same parameter, that is Federal Government’s participation not higher than 25 percent. The tariff not higher than prevailing tariff of thermal plant.”
Asked to confirm to confirm if Agunloye exceeded the presidential directive in his recommendation of SPTCL for the Mambilla project, the EFCC witness said, “No, my Lord.”
He acknowledged that when Agunloye took a memorandum on the Mambilla project to the Federal Executive Council (FEC) meeting, other members of Council supported it.
Babangida, also informed the court that he disagreed with the fact that the financial decision of both the Chinese Ministry of Foreign Trade and Economic Cooperation (MOFTEC) and the China Import and Export Bank in the Mambilla power project was binding on the Chinese government as :
He added:“There’s no record that showed that they are parties to the agreement (MoU between Nigeria and North China/Birth China Power Group) or have consented to it.”
