Umar Babangida, an Assistant Commissioner of Police (ACP) and investigator with the Economic and Financial Crimes Commission (EFCC), has alleged that former President Olusegun Obasanjo asked former Minister of Power and Steel, Dr Olu Agunloye, to add N11 billion to the N6 billion already appropriated in the 2003 budget for the Mambilla Hydroelectric Power project.
He disclosed this to an Abuja court during his continued cross examination by counsel for the former minister, Adeola Adedipe, SAN.
Agunloye is being prosecuted by EFCC, on behalf of the Federal Government, on an amended seven-count charge bordering on disobeying presidential directive, conspiracy, forgery and receiving gratification before Justice Jude Onwuegbuzie, sitting at Apo, Abuja.
According to the witness, it took about 23 years from the feasibility studies for the project in 1981 to 2003 when it was eventually awarded.
He said that seven companies which indicated interest in the construction of the power project were screened for the purpose.
He said that as president, Obasanjo’s utmost desire was to kick-start the Mambilla project.
He added that the former president held a private meeting with Agunloye on the night of May 20, 2003.
The EFCC investigation revealed that there was a private meeting, was held a night before the Federal Executive Council (FEC) meeting of May 21, 2003.
He noted that the former president directed that Agunloye should add N11billion to the already appropriated N6billion in the 2003 budget for the take off of the Mambilla project.
“Yes, my Lord. The former president mentioned it at the Federal Executive Council meeting.
” However, the details of the discussion of the previous day was not fully given by the former president,” Babangida told the court.
He added that the Federal Government could have paid the sum of $1.5 billion as its 25 per cent equity participation in the $6 billion power project on the basis of build, operate and transfer basis.
He further told the court that after FEC members supported the memorandum presented by Agunloye on May 22, 2003 on the 25 per cent equity participation, the then Vice-President, Alhaji Atiku Abubakar and a sitting minister opined that a review government participation from 25 per cent should be considered.
He, however, asserted that it was not entirely true that it was on that basis that Agunloye was asked by the FEC meeting to withdraw his memorandum on the Mambilla project.
He said several observations were raised by the former president, the former vice-president and other members of the Executive Council which led the Council to directing the former minister (Agunloye) to withdraw the memorandum.”
He further told the court that Agunloye was directed to withdraw his memorandum with a view to engaging investors on constructive negotiation and exploit various investment options, to get a reduction in the 25 per cent equity participation.
He said that the various options mentioned by the Council included a zero per cent to not more than 25 per cent equity participation by the Federal Government.
Asked to read from the letter of award to Sunrise Power and Transmission Company Limited (SPTCL) written by the defendant and dated May 22, 2003, the prosecution witness said the former minister stated in the letter that, “Eventual equity participation will vary from zero to not more than 10 percent.”
The award is seen to have secured a reduction between zero per cent to 10 per cent of government participation, instead of the initial 25 per cent participation.
The witness, however, added that though the offer by the defendant to SPTCL on document was to reduced government’s equity participation from 25 per cent to a variation between zero per cent to not more than 10 per cent but that was not what transpired.(NAN)