Solomon Akachukwu (not real names), an origin of Anambra State retired from the Federal Civil Service in 2005 after a meritorious service to his fatherland for 25 years. After years of endless wait for his pension and gratuity, hope, for him, finally was in sight when he was invited by the Office of the Head of Service OHoS, Abuja to come for biometrics and image capturing to regularize and update his ‘papers.’ He pleaded for excuse on the ground of ill-health and old age but he was refused – ‘that was the procedure… and there were no exemptions,’ a letter from the OHoS notified him, insisting only his presence would suffice for the purpose. The eldest son also sent entreaties, all of which fell on deaf ears.
However, following repeated warnings and threats that his pension payment procedure would be suspended if Akachukwu failed to meet the deadline, he eventually caved in; and in the company of his eldest son, proceeded to heed the call.
Having travelled the long distance in his rickety old Peugeot 504, the only evidence of his ‘meritorious’ long service to the nation, complemented with an already deteriorated health, he still garnered the remaining strength to Bullet House office of the Head of Service in Abuja.
Regrettably, as the car inched towards the gate of Bullet House and while attending to the several overzealous security personnel scrutinizing his pile of papers, while subjecting him to another round of hurdles, he suddenly slumped and all efforts to revive him were fruitless.
Senior citizen Akackukwu thus passed on.
Akachukwu thus became another of the indices of several of our old citizens who have lost their lives in their bid to get their entitlements from the wolves in government corridors. For many of the deceased pensioners, their life savings had been plundered by their bosses who they highly revered. Through crooked strategies and carefully woven conspiracy which depict the failure of the state and its systems, their bosses, with the help of the banks, have diverted the pension funds to live large while using the loot from the ill-gotten wealth to cover their tracks and oppress their fellow Nigerians.
When luck, therefore began to run out on these pension looters and the bubble gradually began to burst, a Daniel, Abdulrasheed Maina that later scooped out of the largesse, was called to justice. Maina, the head of the Presidential Task Force team on pension to assist in the Verification/Biometric Enrollment exercise of the OHCSF pensioners met a weak system through which a few have robustly profited and become extremely rich.
In 2010, he was alarmed at the discovery of the height of audacity of administrators entrusted with pension matters to ruin and send their fellow civil servants to their early grave through diversion of pension funds into private accounts, thus, necessitating the invitation of the Economic and Financial Crime Commission (EFCC).
That was to mark the beginning of the unraveling of the scam that has drained the pension system of billions of Naira. The discovery of several ghost pensioners through which the system was drained, compelled the EFCC to constitute a special team in December 2010 to dig deeper.
The team, under the EG Federal then headed by Wakili Mohammed and supervised by the Director operations, had members that included Haliyu Habibu Adamu, Mustapha Sani Gadanya, Nya Bassey, Richard Ogberegha, Mohammed Goji, Nuruddeen Sulaiman,Sunday Eze, Mustapha Yusuf Abubakar, Salihu Kadiri, Muritala Ariyo, Ruqayya Ibrahim, Atteb Godwin, Simon Iorzua and Adeyemi Akinyemi.
Investigations began and the EFCC was dazed. Two payment mandates to 32 suspicious names was the beginning of the trouble for pension thieves. The mandates dated 31/8/2009 were for N45, 360,103.57 and N49, 111,592.20. The two were paid from the OHCSF account No. 210430000545801 with Fin Bank Plc, now FCMB Plc.
Letters were written to relevant banks for certified true copy of the statement of accounts, account opening mandates and other relevant information of suspicious pensioners. The banks heeded, and their responses confirmed the commission’s fears. The 32 persons that were paid N94, 471,695.77 were ghost pensioners.
The discovery prompted enquiries at Fin Bank Plc and more alarming discoveries came to the fore after an analysis of the Bank’s Statement of the OHCSF account, account opening documents, payment instructions/instruments, Accountant General of the Federation’s (AGF) approval and other relevant documents.
Several payments to several beneficiaries and to other accounts of the OHoS in different banks were discovered, prompting further enquiries at other banks.
In the civil service, approval of the AGF is mandatory to open an account by ministries, department and agencies (MDAs) as anything contrary to this is criminal. Findings however showed that only eight accounts in eight different banks were approved by the Accountant General of the Federation (AGF) for the OHCSF pension office out of the 66 bank accounts that the office maintained with different banks.
The remaining 54 were opened without the approval of the AGF and were the phony accounts from which millions of naira was siphoned out of the system, using frivolous excuses such as Pension arrears, Collective Allowances (payment to one person on behalf of several other beneficiaries), Contracts and Supplies, Re-imbursement to States, Biometric Enrollment and other sorts of payments. Enquiries, however from the OHCSF show a contradiction that the AGF approved 13 accounts.
After weeks of investigation, six staff in the pension unit and another in administration were discovered to be behind the scam that fleeced the pension system, and drained it of its funds. The brains behind the loots are: Sani Shaibu Teidi, a former Director, Pensions and Accounts and who at a time, stood in for the Permanent Secretary, Establishment and Pension at the OHCSF. Shaibu, who is a signatory to the pension accounts, connived with Phina Ukamaka Chidi, also a former Deputy Director Pensions and Accounts who is also a signatory.
Others are: Abdul Mohammed, then Assistant Cash Pay Office, Pension Department at the OHCSF; Garba Abdullahi Tahir, Cash Officer at the Pension unit who was also a signatory; Emmanuel A. Olanipekun, Head Final Accounts at the OHCSF and also a signatory and Mohammed Katun Ahmed, former Assistant Director in-charge of Variation at the OHCSF, who was also a signatory to the accounts.
The only person outside the unit was Aliyu Bello, a former Special Assistant to Director of Administration (Mamman A. Abdullah) at the OHCSF.
In spite of weighty evidences against them, it is rather depressing and frustrating that these people are still free, walking the streets of the country, intimidating investigators and prosecutors with their ill-gotten wealth and subverting the justice system. This wanton unwholesome criminal derring-do, having gone unchecked and unpunished over the years has resulted in the practice and mantra of “the more you steal, the higher you live above the law.’’
HOW THE SCAM WAS PERFECTED.
From the inception of the pension office, the method for payment to beneficiaries was by issuance of cheque that the beneficiaries are expected to cash across the counter or pay into their accounts for clearance. Equally, the unit from inception had no idea of the definite number of pensioners were in the country and beneficiaries. This, obvious lapse was what Shaibu and his cohorts exploited to fleece the system.
Each of them, investigations revealed, merely recruited ghost workers, who live in different locations and parts of the country. Their names were thus smuggled into the pensioners list for payment. Cheques were issued in their names, and after deducting the agreed commission for their fraudulent service, they returned the bulk to the seven for sharing.
According to the proof of evidence submitted by the EFCC to the Federal High Court, Abuja in the suit FG v Sani Teidi Shaibu and 29 others, charge number FHC/ABJ/CR/28/2011 and which was sighted by Inside Business, ghost workers recruited by the seven were: Haruna Maigida (who is also Danjuma Bako Wasa), Abdulahi Omeize (who opened 12 fraudulent accounts) and Kabiru Labbo.
Others were: Sani Salihu, Grace Francis, Luke Eloanyi, Abdul Mohammed, Onah Sani Daniel, Chinwe Eze, a youth corper who was also collecting pension and gratuity and some other 53 fictitious persons.
The ghost workers were exclusive of others used as conduit pipes through which billions of pension funds was siphoned out of the system.
ALIYU BELLO
One of the fraudulent disciples and ghost workers recruited by Aliyu A. Bello was Haruna Maigida also known as Danjuma Bako Wasa to some people. He opened multiple bank accounts through which he ran fraudulent errands for Aliyu Bello. He ran a Unity Bank account Number 258116492311010, and another account Number 4019308212 with Zenith Bank Plc in the name of Danjuma Bako Wasa, yet another with the now defunct Intercontinental Bank under account no.1008506805 in the name Haruna Maigida.
Upon enquiries from the three banks – Unity Bank Plc, Zenith Bank and the then Intercontinental Bank Plc, now Access Bank, and the analysis of the Account Opening Package and Bank Statement (relevant documents), Haruna Maigida was one and same person who had been operating the three (3) accounts where he was fraudulently paid N17,452,910.87, N7, 783,891.68 and N17,293,888.44 respectively from OHCSF for Pension Arrears and Gratuity totaling (N42,530,690.99).
Maigida who lives in Sokoto, later confessed to the EFCC that he was introduced to the deal by Aliyu Mohammed whom he gave N25,236,802.55 out of the total amount. Maigida, according to EFCC sources benefited only five percent of the loot.
For Abdullahi Omeiza, who the court revealed was another associate of Aliyu Bello and who is a school Teacher at Sokoto State, he was another ghost worker who was fraudulently paid N23,415,131.42 for pension arrears and gratuity through his UBA account No. 022-502500-02-6-73 from OHCSF. He was also discovered to have used additional 12 accounts, using different fictitious names to collect additional fraudulent payments from OHCSF for pension arrears and gratuity. Findings from the banks showed that N191,794,312.51 was fraudulently paid to him.
The same pattern was observed in the contract with both Maigida and Omeize. The two benefitted only five percent of all the amount routed through them while the remaining went to Aliyu Bello.
For instance, analysis of outflows from Abdullahi Omeiza’s account with UBA No.022-502500-02-6-73, revealed that N500,000.00 and another N1,600,000.00 were discovered to have been paid to Aliyu Bello’s personal account with UBA No. 01273942101152 on March 25, 2008 and February 18, 2009 respectively.
Another cash deposit of N500,000.00 was also traced and found to have been deposited into another account of Aliyu Bello with Zenith Bank Plc No. 6223500219 by Abdullahi Omeiza.
Kabiru Labbo is another associate of Aliyu Bello, who was handy for the heinous crime. Documents submitted to the court by the EFCC showed that enquiries at UBA about Kabiru and another at Fidelity Bank, on account No. 6051198818 showed that Kabiru Labbo who was also a ghost pensioner was discovered to have been paid the total sum of N9,757,801.86 through his UBA account No. 022-500200-08-9-24 and N2, 950,000.00 into Fidelity Bank for fictitious pension arrears and gratuities.
Kabiru, like Maigida and Omeiza was also arrested in Sokoto and also claimed to have remitted alongside other ghost pensioners to Aliyu Bello through Fafama Estate Developers’ account 6213502032 and Fafama Oil and Gas Account 6213502576 both with Zenith Bank (and both companies owned by Aliyu Bello).
The deposits, according to EFCC, were sometimes in fictitious corporate names and individuals.
Sani Salihu, according to EFCC is a businessman and a contractor who had never been employed by any government agency, yet he was paid N9,380,552.91 pension through his Zenith Bank Plc account No.4016107132 from OHCSF.
Findings at Unity Bank also revealed that Sani Salihu operated another account with Number 314/1159640/11010 with the bank, using the name, Alhaji Mohammed Sani where he was also paid N12,508,495.48 as pension and gratuity from OHCSF.
EFCC’s court documents however revealed that N5, 000,000.00 out of the money was remitted to Fafama Estate Developer’s account maintained by Zenith Bank.
While he confessed that most of the funds were remitted back to Aliyu Bello, he claimed that some were used for the Construction of an Estate located at a By-pass Road, Tamaje Area in Sokoto State for Aliyu Bello.
Enquiries at Zenith Bank Plc to verify bank account documents of Fafama Estate Developers Account Number 6213502032, and Fafama Oil and Gas accounts No. 6213502576, and Intercontinental Bank, now Access Bank concerning Aliyu Bello’s acct. No. 1502919963 revealed that N46,820,000.00 was transferred from Fafama Estate Developers’ account to Sani Salihu either through his personal or company’s account called AMS Marketing & Sons Ltd.
Further analysis of Fafama Estate Developers’ bank statement by the commission revealed that, N10,000,000.00, N43,300,000.00 and N5,100,000.00 were transferred to Fafama Estate Developers’ account from Salimpa Ventures Account No. 2086303730612 with Afribank Plc, now Mainstreet Bank, Omaumali Ventures Account Number 6213502098 with Zenith Bank Plc and Sa’azab Global Nig. Ltd. account Number 1731030000749 with Union Bank Plc respectively.
The above companies belonged to Abdul Mohammed who was also an accused person in the case.
Inside Business investigations showed that N100.82 million was transferred from Fafama Estate Developers to Riba-ile Petroleum Ltd’ account with Zenith Bank Plc, a company belonging to Shaibu Sani Teidi. Fafama Estate Developers’ account was discovered to have had a turnover of over #297.8 million, with a balance of #60 million still in account.
Enquiries regarding Grace Francis’ accounts No. 670001012991 at Oceanic Bank Plc (now Ecobank), Diamond Bank acct. No. 0611050059330 and Unity Bank Plc showed that she was fraudulently paid N12, 180,927.52 via her Oceanic Bank; #6,445,036.00 in Diamond Bank for fictitious Collective Allowances and #4,557,400 in Unity Bank.
Grace Francis, EFCC sources claimed, also confessed to have remitted the fraudulent payments to Aliyu Bello.
Enquiries at Zenith Bank regarding Luke O. Eloanyi Acct no. 4213502204 and also at Bank PHB (now Keystone) acct. No. 1490492492 showed that N7,025,452.05 was fraudulently paid into his Keystone account and N13,544,205.12 into his Zenith Bank for fictitious Collective Allowances. He also confessed to the EFCC to have handed the money over to Aliyu Bello.
Analysis of Aliyu Bello’s accounts at Zenith Bank Plc Acct. No. 6223500219, Afribank Plc Acct. No. 2086303543518, Unity Bank Plc Acct. No. 2271704290110, UBA Plc Acct. No. 01273942101152 and Bank PHB (Keystone Bank) Acct. No. 1490430276 showed that he was at various times fraudulently paid N6,820,000.00 (Afribank), N9,277,377.03 (Zenith Bank), N13,505,700.00 (Unity Bank), N7,925,047.46 (UBA Plc), N24,650,600.00 (Intercontinental Bank) and N3,550,000.00 (PHB) respectively for fictitious Collective Allowances from OHCSF to which he could not account for during interrogation by the EFCC.
Some of the mandates/payment instructions used in making the above fraudulent payments were discovered to have been signed by Shaibu S. Teidi, M.K. Ahmed, Hassan Aboh and Etu A.D
In the case of Abdul Mohammed who was the Assistant Cash Pay Officer, Pension Department at the OHCSF, and the owner of Salimpa Ventures, Omaumali Ventures and Sa’azab Global Ltd. Mohammed, was the paymaster through whom these payments were transferred to the fictitious companies, ghost pensioners and others.
Upon a search of his house on 36, Kano Street, Zone 1, Wuse, Abuja by the EFCC, several incriminating documents were found. For instance, there were four separate lists of 53 fictitious pensioners with their account details and a flash drive containing fictitious payment mandates/instructions that were used for fraudulent payments, including those to his companies, Salimpa Ventures and Sa’azab Global Ltd.
In Mohammed’s GTB Account Number 381364075110 was discovered N28, 821,000.00 paid as Collective Allowance from the OHCSF.
EFCC’s analysis of the Afribank’s (now Mainstreet Bank) account of Salimpa Ventures no. 02086303730612 and Union Bank Plc account of Sa’azab Global Ltd No. 1731030000749 also revealed that Salimpa Ventures and Sa’azab Global Ltd were fraudulently paid N31, 340,322.05 and N27, 500,322.05 respectively for fictitious contracts and supplies from the OHCSF.
Abdul Mohammed was also discovered to have been paid N9, 865,000.00 for Pension Arrears from OHCSF while he was still in service. Aside that, he had $26,000 in Zenith Bank Acct No. 9213500312 which he could not account for.
Further investigations revealed that Salimpa Ventures had a turnover of over N422 million which EFCC documents accessed by Inside Business claimed that Abdul Mohammed confessed was generated through payments made by some of the fictitious pensioners that he recruited and which they delivered to him at his residence, in Dekina LGA, Kogi State.
Meanwhile, Onah Sani Daniel, was a recruit of Abdul Mohammed but paraded himself as a pensioner. Findings show that Daniel was paid N4,476,493.00 from the OHCSF through his Fidelity Bank Plc account of which he confessed to have remitted five percent of the amount to Abdul Mohammed. This fact, according to EFCC documents submitted to the court, was confirmed by Abdul Mohammed.
Abdul Mohammed, according to the EFCC documents, also confessed to have collected the funds from all the ghost pensioners and remitted same to Aliyu Bello personally or through Fafama Estate Developers for onward transmission to Dr. Shaibu Sani.
He acknowledged to the EFCC investigators that this pattern of remittance was instructed by Dr. Shaibu Sani.
Analysis of Fafama’s bank statement confirmed some of remittances that included N10,000,000.00, N43,300,000.00 and N5,100,000.00 transferred to Fafama Estate Developer’s account from Salimpa Ventures Account No. 2086303730612 with Afribank Plc (Mainstreet Bank), Omaumali Ventures Account No.6213502098 with Zenith Bank Plc and Sa’azab Global Nig Ltd No. 1731030000749 with Union Bank Plc respectively.
Abdul Mohammed in addition, also confessed to have remitted the N19 million to Riba-ile Petroleum Account with Zenith Bank from Omaumali Ventures on January 25, 2010 and made another N19 million on April 2, 2010 in addition to the N19 million of April 4, 2010 to Smart Investment’s UBA account No. 10116770857.
These strings of revelations prompted EFCC to obtain a search warrant on Abdul Mohammed’s house where part of the documents recovered showed analysis of stocks which he confessed to have purchased with the proceeds of the crime. This was buttressed by several payments discovered to have been made from Salimpa Ventures account to Dominion Trust Ltd, a stock broking firm.
Enquiries at the Central Security Clearing System Ltd. (CSCS) by the EFCC also revealed that Abdul Mohammed has a portfolio of shares valued at N30 million.
To be continued …
Author: InsideBUSINESS
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