Abia Forensic Audit: How we spent N10bn Airport fund -Dr Ikpeazu | #NwokeukwuMascot

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The Immediate past Governor of Abia State, Dr. Okezie Ikpeazu, has warned his successor, Dr. Alex Otti, to focus on governance and stop deceiving the people with lies and fiction.


Ikpeazu, who spoke against the background of a report that his government awarded a N10 billion contract for the construction of an airport in Abia without doing same, insisted that Otti was on clout chasing and deceiving gulliable people with the alleged forensic report he conducted on Abia Finances.


Rather, Ikpeazu said that Otti was diverting attention from the  quarterly reports of Abia State, which showed that his government has been reckless with funds.


Ikpeazu said: “Accounting for the N10billion, no dime was diverted. Otti is diverting attention from his own Quaterly report which captured him spending N3billion on research and nonexistent projects. Why is it that he is using the same Ferrotex contractor, who he accused of receiving N10billion from us for major contracts today? What stopped him or his auditors from asking Ferrotex for explanations? We have decided to respond to him with evidence of jobs done. The time of truth has come.” 


Providing an insight into the spending of the money, a former Commissioner for Information under Ikpeazu, Chief John Okiyi Kalu, asked Otti to stop playing to the gallery and tell Abians the truth with documents at his disposal.. 


Okiyi-Kalu said that the alleged N10billion originally budgeted for the airport project was rechanneled into other projects, following the approval of the Executive council, after traditional rulers in the state told Ikpeazu to forget an airport project but focus on repairing major roads in the state. The traditional rulers had told Ikpeazu that the airports in Owerri and Uyo made an Abia airport project unviable.


Okiyi-Kalu, who later served as a Commissioner for Trade and Investment, said that it was shocking that after a demand was made for the publication of the much talked about audit, Otti and his media handlers rushed to a blogger to help them publish an indicting report against his former principal instead of the forensic audit report. 


Okiyi-Kalu said that since Otti became the Governor of Abia State, Ferotex Construction Company has been awarded the Umuimo Road, Shalom Road and Umuode Road all in Aba. 


“Currently, Ferotex Construction Company is equally handling 22.5 kilometres Isuikwuato-Abariba section of the 67.6 kilometres Umuahia-Uzuakoli-Abiriba-Ohafia Road, which is Otti's biggest road project in Abia State.” 


Okiyi-Kalu explained that the airport project issue first came to the Abia State Executive Council at a meeting on  September 24, 2020. 


He said that based on the presentation made to the Exco, they approved the project and also approved the borrowing of N10billion “from UBA Plc as an initial investment by the state with repayment charged to our FAAC account with the bank. 


"You may wish to recall that during the period, the country was still struggling to emerge from the COVID-19 pandemic with very low FAAC and IGR inflows across the states," he said.


Okiyi-Kalu said the current Secretary to State Government, who is an appointee of Otti, Prof Kenneth Kalu, can review and confirm his claim from Exco records in his custody.  


"Shortly after we announced Exco's approval of the airport project, Governor Okezie Ikpeazu received in audience executives of Abia State Traditional Rulers Council then led by HRM Eze Joseph Nwabekee.


"On the 13th of November 2020, Governor Okezie Ikpeazu informed members of the State Executive Council about the details of his meeting with representatives of the traditional rulers in Abia State, who requested that we suspend the airport project and commit the funds earmarked for it to do more roads in the state, as we are surrounded by airports already but need to urgently improve internal roads that would give a further boost to the socio-economic activities of the state. Exco thereafter voted to approve the suspension and request to use the earmarked funds for road projects in the state."


He further said that on November 17, 2020, Governor Ikpeazu took to his official X (formerly Twitter) handle to inform Abia Citizens that the airport project had been suspended.


Okiyi-Kalu said that Ikpeazu must have informed the then Commissioner for Works, Elder Bob Ogu, of his intention to suspend the Airport project in anticipation of  Exco approval, hence the State Ministry of Works selected road projects in Abia 2020 budget for funding with the N10 billion and allocated resources to the contractors.


Okiyi-Kalu gave a detailed account of the roads and contractors that received the N10billion initially marked out for construction of an airport and listed about 18 projects that were done, in place of the airport.


According to his list: "China Zonghghao for Osisioma flyover Aba & ABSUTH Road Aba got N800,000,000. Trackcare Construction Company for Aba-Owerri road Aba (Brass to Osisioma junction segment, Ururuka road Aba,  Afor Ibeji/ Ubakala Umuahia, Stella Marris Catholic Church, etc got N1,035,000,000.


"Ferrotex Construction Company for Aba-Owerri road (Railway junction-Brass junction segment) Aba, Obohia Road Aba, Opobo Junction-Ukpakiri Ogbor-Hill Aba, Uratta Ugwuati, Itungwa, Rehabilitation of failed Ururuka got N1,500,000,000.


"⁠Shannah Jardon Construction Company for  Okigwe Road Aba, Milverton Road Aba, Cemetery-Eziukwu Road Aba got N450,000,000. Ecklean: Osusu road Aba-N 200 000,000, Cosmos Construction Company for Immaculate Avenue Umungasi Aba got N150,000,000 while Setraco/Hartland for Port Harcourt road got N1,000,000,000."


Further details go thus, "⁠Rockwaters for Ohanku Road Aba, Okpu Umuobo Aba got N650,000,000, MOW for Ebenma Street Aba and Ovom street Aba got N1, 130,000,000. Zubbalco for MBUBO Umuakwu got N200,000,000."


Other details show that Tunnel End Construction Company got N780,000,000 for the construction of Umuene-Obikabia, Umuojima-umuokiri- Ekeakpara, umuakatawom-Eziama-Ohanze while Paceo Carretera company got -N312,000,000 for the construction of Agalaba Ring road in Obingwa. 


From the same details, it shows that ⁠Delhope Construction Company got N557,000,000 for the construction of Umuobiakwa-Owo road Obingwa, Federal Medical Centre internal road, Aba Road Umuahia (GG-shoprite).


It was also gathered that MOW construction got N325,000,000 for the construction of Umuobiakwa internal roads, umuobiakwa (Gov) roads, Mbawsi internal roads and desilting of Aba big gutter while ⁠⁠BOK construction got -N100,000,000 for the construction of Agbama Ring road Umuahia.


"Crystalkleen Construction for York/Jubilee/Nicholas street Aba got N30,000,000, Pumeco Construction for Aba road (Uchenna/ShopRite) Umuahia, Zero portholes in Umuahia roads got N353, 000,000, while Yodel construction for Afrata road, Umuahia got N100,000,000.


"⁠E&P for Trinity College Road Umuahia got N60,000,000 and Obitex Development Company Ltd for construction of Ohuhu road from Isiokata, diversion from the gully erosion at isiokata to Umuawa Ohuhu to Nkwoegwu got N125,000,000."


More details provided show that Smutedge Company got N200,000,000 for the rehabilitation of failed portions of Umuikaa-umuenne, Pacon Company got N12,000,000.00 for completion of drains at Ozuomba/Ohazu road.


"MOW company for Zero pot holes(Aba) got N 100,000,000, Charbel Company for Government house got 400,000,00 and the State Ministry of Public Utilities got N100,000,000 for Streetlights."

He, however, explained that the list  containing the tranche payments was not exhaustive as those were the only ones in his personal Exco note that he kept during meetings. 

He said that it is also true that other tranche payments were made from other sources, stressing that the Ministry of Works led by Elder Bob Ogu and the Ministry of Finance led by Dr Aham Uko back then, should be able to supply a more comprehensive list to what he was saying. 

Okiyi-Kalu further revealed that Ferotex Construction Company, as one of the reputable indigenous construction companies with anti-graft agencies' clearance was selected by the Ikpeazu administration as lead company in the “contractor financier” arrangements with UBA.

He said that the above-mentioned arrangement, the “contractor financier” arrangement was not alien within the public sector, alleging that a similar arrangement was entered into by the Otti's government with Craneburg Construction Company for N50bn facility earmarked for “various roads”. 

He explained that such lead companies are more or less consultants that would receive the bulk amount and pay other road contractors as banks would not likely agree to enter into multiple agreements with all the contractors.


He said that Otti's claim that he got the top three audit firms in the world to do the forensic audit was untrue, as his top three audit firms have failed to follow the money as expected of any audit firm, even the least ones, adding that a serious audit investigation would simply seek to establish if the allocated funds got to the companies and also if the contractors did the work.


According to Kalu, "Those who claim that there was need for “virement” may be speaking out of ignorance in this case. The road projects were already in our approved 2020 budget, hence no need for further house approval.


"All state revenues are expected to be used to fund state budget and from the time we had approval to spend on the roads instead of Airport there is, no further need for legislative approval."


"For the further education of those who verbalize terms they do not understand, "virement" is the process of transferring items from one financial account to another. In this case, the airport project and the road projects must both be in the 2020 budget before you can execute virement.

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