The Civil Society Network Against Corruption (CSNAC) has petitioned the Economic and Financial Crimes Commission (EFCC) over the fraudulent diversion and mismanagement of national funds meant for natural resource development and ecological matters.

CSNAC in a petition to EFCC Chairman Ibrahim Lamorde demanded an investigation into the scam blown open in a recent report by the Nigeria Extractive Industries Transparency Initiative (NEITI).

CSNAC in the petition dated December 29, 2014 and signed by its Chairman, Olanrewaju Suraju, noted that the NEIT report detailed how nine resource-rich states in Nigeria endowed with oil and gas and other mineral resources have deployed monies realised from the resources to improve the wellbeing of their citizens. “The report also covered the remittances and management of special development funds from Nigeria’s Excess Crude Account (ECA), Niger Delta Development Commission (NDDC), Natural Resources Development Fund, Ecological Fund, Petroleum Technology Development Fund (PTDF), Tertiary Education Trust Fund (TETfund) and Stablisation Fund,” the CSNAC further noted.

The group said in the petition: “On the judicious utilisation of the funds meant for the Natural Resources Development Fund, one of the most underdeveloped states in Nigeria, Nasarawa, which despite its rich solid mineral resources, still remains largely underdeveloped, recorded a mismanagement of funds meant for the procurement of a 20 megawatts Farin-Ruwa hydro-electric power project, in the year 2008. The fund for the project was disbursed, but the only visibly related structure to the project, are the signpost and a block of building which is meant for security personnel constructed on the site.

“The NEITI audit report of the natural resources development fund, further showed that the Natural Resource Development Fund meant for development of alternative sources of revenue from natural resources, between 2007 and 2011 were diverted to other non-related purposes, as N275 billion was used to service budget deficits, N94 billion was used to procure fertilizers, N106 billion was released to the Ministry of Agriculture as loan, and N350m was disbursed to PenCom for the purchase of a new office building. Hence, this has resulted in leaving the Natural Resource Development Fund in debit of N339 billion ($1.9 billion).

“On the mismanagement and the fraudulent conversion of ecological funds which is the responsibility of the Office of the Secretary to the Government of the Federation (SGF), a total of N217.456 billion which was allocated for this purpose was also utilised for totally different purposes. About N6.7 billion of this fund was released to the Federal Capital Development Authority (FCDA) for the procurement of engineering infrastructures in Kubwa and Karshi, while the National Emergency Management Authority (NEMA), which statutorily is entitled to 20% of the ecological fund to aid quick response to natural disaster, got only N23 billion of the set fund, leaving an outstanding N19 billion. Others that directly benefitted from this fund include ministries (N10.4 billion), departments and agencies of federal government (N93 billion), state governments and the Nigerian military (N10 billion).

“The NEITI audit also showed that, legally, the ecological office which is set up at the Office of the SGF is not allowed to initiate or implement projects, but it awarded 139 projects worth over N40 billion; disbursed over N24 billion to project contractors, only completed 36 of these projects, and still owes over N16 billion. In addition, the office of the presidency also granted funds directly to the state government for state-specific ecological problems, instead of going through the ecological fund office, which is the due process.

“NEITI, in its audit report, generally recommended that all affected states apart from Rivers and Akwa Ibom, should re-evaluate their recurrent expenditure profile, especially in relation to overhead costs and fee up resources for sustainable development, as states like Bayelsa spent 140% and 125% of their total expenditure in 2009 and 2010 on recurrent expenditure, while Imo used only 2.3% of total revenue on education and health and 72% on recurrent expenditure covering government running costs wages and overheads, hence, leaving these states (Bayelsa specifically) in debts and resorting to borrowing money for salaries and expenditure on capital projects.”

CSNAC in its petition requested EFCC to launch “an immediate and thorough investigation into this fraudulent diversion and mismanagement of funds, to ensure that all those bodies and or persons guilty are brought to book.” The commission, it said, “must ensure the retrieval of misappropriated funds from various ministries and or individuals involved for appropriate utilisation as originally allocated. This is necessary to foster the country’s development of untapped resources and reduce her over dependence on oil and ensure accountability and transparency in governance.”

•Photo shows EFCC Chairman Lamorde.

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