Emperor Tenebe displaying a document purporting the allegations of fraud against Gov Obaseki
* Shows documentary evidence
* Calls for EFCC’s investigation
* Allegations are tissues of lies say Edo State Govt
By Kingsley Abavo in Benin
Allegedly, Governor Godwin Obaseki and allies in the eight years of uninterrupted administration have looted dry, the coffer of the State.
Continuing the looting spree; with the backing of the State Executive Council, Obaseki has begun the process of transferring ownership of the supposedly Edo State owned Radisson Hotel, to a private company just as he did to the Edo State Modular Refinery.
The opposition political party; All Progressives Congress (APC) Edo State Chapter, made the allegations while questioning the true ownership of the Hotel, and other financial transactions of the Obaseki’s administration.
The APC on Sunday, 7 July, 2024 addressed the media barely a week after it first raised the alarm of suspected multiple fraud by the Governor and his allies; calling on the Economic and Financial Crime Commission (EFCC) to quickly launch investigation into all financial dealings of the State under the Obaseki’s administration.
The initial contract cost of reconstructing the Radisson Hotel has increased from the sum of N19.4bn to over N23bn in 12 months, the APC alleged.
Speaking through its State Chairman, Emperor Jarrett Tenebe, the APC called on all Edo people and relevant security agencies particularly the Economic and Financial Crime Commission (EFCC) to be alert to what it termed; “yet another financial round tripping Obaseki has set in motion.”
It also tasked the media to investigate ownership of the ‘India Retail Development Ltd’ disclosing that “it was this company that hired the services of Obaseki’s ‘Afrinvest’ in March 2023 to carry out the ‘Project Financial Summary’ for the construction of Radisson Hotel.
“Gentlemen, we have invited you here to continue our series of how Godwin Obaseki has underdeveloped Edo State with corruption.
“Three years ago, Obaseki brought down the only State owned library along Sapele road and told the world of his plans to construct ‘ShopRite Shopping Mall’ in the same location.
“While the initial contract sum was put at N5.4bn, it has since escalated to N12bn as at the last time we checked.
“The contract which was initially awarded to ‘A&K Construction Ltd’, was later subdivided to Shapoorji Palloji Nig. Ltd under mysterious circumstances.
“Edo State Government listed ShopRite as anchor tennat for this purpose and entered into partnership with Persianas Nigeria Ltd who owns the right to ShopRite branch in Nigeria.
“Edo State Government according to documents available to us by concerned public civil servants, held 85 percent equity share in the project for the land and the cost of construction while Persianas was to provide the overall technical input (including all relevant architectural and technical design drawings, and coordination, expertise and the required tenancy/takeoff to make the mall viable; and the management of the mall for its 15 percent equity stake.
“Following this arrangement, Obaseki awarded the construction contract to A&K construction company Ltd at a contract sum of N5,4,655,544.82k on the 3rd of November 2023.
“A&K was mobilized with 70 percent of the contract sum and the construction was expected to last for 52 weeks with a completion date of January, 2023.
“Five months later A&K submitted a request for approval of variation on the 1st April, 2022 which they listed as related ‘MEP additional works’ which they claim were not part of the contractual BOQ amounting to the sum of N1.3bn.
“In what became a bazaar of sort, Engr Austin Osaretin Osakwe managing director of Edo State Public Building and Maintenance Agency followed the trend of variation and virement when he wrote and got the sum of N331m for what he referred to as A&K Construction Ltd’ demand for viament/variation with respect to the ongoing Benin Mall project.
“According to Osakwe, the main reason amongst others for the variation request was for the redesign of the frame structure creating circular columns; additional columns to hold new concrete structures and creating inner space for rent in common areas and others.
“Mr. Bernard Aigbe had also informed the Governor in a memo that the ShopRite brand had declined their involvement in the Benin-City Mall project as result of over pricing.
“In this memo dated June 14, 2023 the permanent secretary, Bernard Aigbe wrote that Persianas (ShopRite) has requested for N4bn for the construction including all fittings.
“But curiously, the contract was awarded to ‘A & K for the sum of N5.4bn and two months later, it was jerked up to N6, 149, 398, 870.44k which now stands at over N12bn.
“Aigbe explained that Persianas (ShopRite) indifferent and failure to perform their obligation as agreed in the MOU has significantly impacted the project and has resulted in the loss of time and additional cost.
“He went ahead to propose a reduction of their 15 percent equity in the project to reflect ShopRite actual contribution to the project.
“Despite ShopRite protest, the contract has been reviewed over six times; sometimes twice in a month in fact the Benin-City Mall has been turned to a conduit pipe to siphon government resources into private hands. It is now the cesspool of corruption for high officers in Obaseki’s administration.
“For instance in a single day, on the 14th of June, 2023, Obaseki approved N148, 617, 869.68k, N59,561,876.81k and N690,000,000.00 as variation.
“Two months later, on August 22nd, 2023 the Commissioner for budget and economic planning, Mrs. Adaze Aguele Kalu received the approval of Governor Obaseki to commence the procurement process for the set up, automation and fitting of the digital library in the Mall through direct contracting method of procurement for undisclosed amount.
“These discoveries negates Obaseki’s trumpeted due diligence in Edo State procurement process.
“Before this time, exactly on the 17 March, 2023 the permanent secretary had asked the Governor to approve the sum of N2,10,772,866.15k for execution of yet another additional work.
“The management of the controversial Mall which was conceptualised as ShopRite and was to be managed by ShopRite as it is practiced everywhere was awarded to ‘Broll Property Services Ltd owned by Bolaji Edun of 47 Marina road, Lagos Island, Lagos at a quarterly fee of N2m and 3.5 percent commission of gross rent collections.
“The contract was approved by Godwin Obaseki on March 14, 2023.
The questions we are asking the EFCC to investigate are:
1. What is the role and stake of Redwire marketing company located on the 5th floor Mulliner Towers, 39 Alfred Rewane road, Ikoyi Lagos listed as promoter in the Benin-City Mall built with Edo State money. Redwire is owned by Obaseki’s long time friend and the company is responsible for his image management.
2. What is the shareholding of Edo State Government in the Benin-City Mall
3. What is the stake of ShopRite in the Benin-City Mall
4. Why did Obaseki give the management of the Benin-City Mall to Broll Property; a company based in Lagos instead of ShopRite
5. What is the actual contract sum of Benin-City Mall
6. Why is the Chief of Staff to Governor Obaseki, Osaigbovo Iyoha managing the Benin-City Mall
7. And how much rent did Obaseki’s Chief of Staff paid for the night club at the basement of the Mall which gulp over N600m
8. Why is Bamwo & Ighodalo; the Law firm owned by the PDP Governorship candidate responsible for all transactions relating to the Benin-City Mall
9. What is Edo State Government shares and investment in Okomu Oil, Bua Cement whose stock is currently under Banwo & Ighodalo
10. Who valued Garrick Memorial land that the State Government spent N20bn to buy from which a whopping sum of N1.5bn has been approved for consultancy to be laundered through two Lagos based business entertainers: a musician and a DStv presenter and who now owns Garrick Memorial school land?
11. How much has Obaseki wasted on the failed Gelegele port? Several millions have been sunk into the scam through the Benin port project office headed by Obaseki’s long time business associate
12. Obaseki should tell Edo people how he has spent over N1bn on the demolition of private houses in the different parts of Benin City through the Ministry of Physical Planning
13. Despite the trillions of Naira that have come into the coffers of Edo State through FAAC, IGR, 13 percent derivation for Oil producing areas and grants e.t.c in the last eight years, Edo State is still one of the most indebted States with over N600bn. Obaseki is already processing a fresh foreign loan
14. A World Bank consultant mentioned to a concerned stakeholder that Obaseki is processing a fresh seven million dollars loan at a time other States are running from foreign denominated loans. Obaseki told the World Bank that he intends to use the loan to upgrade primary health care centres in wards and local Government areas. Where are the Primary health centres?
15. While the Federal Government is doing everything to alleviate the suffering of Edo people and has allocated N10bn per State, our own dear State Government is already making plans to divert this money to non existent projects
16. We are aware that land use charge notices are being shared all over the place even poor homes all in a bid to raise money for Asue Ighodalo’s election. We call on the masses to resist this insensitivity of the PDP administration that has finally succeeded in destroying our dear State
Finally, the APC in Edo State is calling on the EFCC like we did in the case of Radisson Hotel to invite the following individuals:
1. Osarodion Ogie, SSG
2. Mrs. Adaze Aguele Kalu, commissioner for budget and economic planning
3. Mr. Bernard Aigbe, Permanent Secretary, Ministry of budget and economic planning
4. Engr. Austin Osakwe of Edo State public building and maintenance
5. Osaigbovo Iyoha, Chief of Staff to Godwin Obaseki
6.The Accountant – general of Edo State to recover all the State resources that are in their custody.
The APC described the Obaseki’s administration as a gang of capitalists who are hell bent on privatising the resources of the State to themselves and cronies.
Displaying various documents to back their allegations, the Party claimed that it has documents of all the fraud that have been allegedly committed under the Obaseki’s administration.
However in reaction, the Governor through the State Commissioner for Information and Orientation Chris Enehikhare has denied all the allegations saying; they are cooked up by the APC to get undue advantage in the September 21 Governorship election holding in the State.
According to Obaseki, the allegations are “lies and propaganda hoping to hoodwink our people and dampen their desire to break free from the stranglehold by which the APC has shackled them for the past nine years.”
As he described the alleged documentary evidence displayed by the APC as “worthless pieces of papers for none existent fraud allegations against a State Government that has enthroned transparency and accountability in the cause of the administration of State’s resources.”
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