Alleged N423 billion fraud: How we spent W'Bank loans

Former aides of former Kaduna State Governor, Nasir El-Rufai, have dismissed allegations of N423 billion fraud leveled against the administration of the outgoing governor by the State House of Assembly.

The former officials, in a statement issued on Friday in Abuja, explained that the El-Rufai administration used the various World Bank loans for various development and infrastructure projects in the state, including the urban renewal program and various World Bank initiatives.

The ad hoc committee set up by the Kaduna State House of Assembly to investigate all funding, loans and contracts given under the outgoing governor had indicted El-Rufai and some of his representatives for siphoning off N423 billion from public funds.

The assembly, while adopting the report of the 13-man panel, asked Governor Uba Sani to refer El-Rufai, his finance commissioner and other aides to relevant security agencies for investigation.

Following the publication of the report, the Economic and Financial Crimes Commission has reportedly set up a committee to investigate the alleged fraud.

But in a statement signed by former Environment Commissioner, Jafaru Sani; Hafsat Baba, former commissioner for social services and social development; the former commissioner of the Planning and Budget Commission, Umma Aboki; and former finance commissioner and former chief of staff, Bashir Saidu, the former officials criticized the state assembly for failing to release a certified copy of the report despite numerous requests.

They said their response to the allegations against them was based on a version of the document posted on social media after the June 5, 2024, House session.

Explaining how the loans were used, former Environment Commissioner Sani, who read the statement, said: “The government of Malam Nasir El-Rufai inherited external debts of $234 million in 2015. He followed due process to obtain his loans and the testimonials. by Aminu Shagali, who was the speaker between June 2015 and early 2020, confirms this.

“In order to improve the implementation of its progressive governance agenda for Kaduna State, the El-Rufai administration has approached the World Bank for credit.

“The World Bank Board of Directors approved the credit in June 2017 as a Performance-Outcome Credit of $350 million. The conditions for granting this credit were entirely linked to performance. Kaduna State is so far the only subnational state in Nigeria to have received this type of credit.

“Like other loans granted by the El-Rufai administration, the $350 million Performance-for-Result loan from the World Bank was put to good use to drive the development of Kaduna State.

“The documents submitted in support of the loan application have been subject to the scrutiny of the fiscal authorities of the Federal Government of Nigeria and the Board of Directors of the World Bank.”

The statement further revealed that after the P4R program, which ran from 2017 to 2021, the World Bank found its implementation satisfactory.

“Among the most visible fruits of this loan are the massive infrastructure projects under the urban renewal program,” he notes.

Former officials argued that most of the current administration's projects were initiated or financed by the El-Rufai administration, including important education and health projects.

They said all contracts during their tenure followed due process under the Kaduna State Public Procurement Authority Act, using the framework contract model to expedite the delivery of projects .

They also criticized the commission's use of findings from a Deloitte audit commissioned by the El-Rufai administration, which they said were invalidated and used without proper context.

The statement highlights potential conflicts of interest among committee members, noting that committee member Mahmud Ismaila is the governor's biological brother.

“We will provide detailed information on the various conflicts of interest between the committee members, but one of the most glaring is the fact that an active member of the ad hoc committee, lawyer Mahmud Ismaila, is also the biological brother of Governor Uba Sani,” they added.