allAfrica.com: Nigeria: ICPC Probes N72bn Scam At the Mint (Page 1 of 3)

The Independent Corrupt Practices Commission has commenced investigation into suspected corrupt practices at the Nigerian Security Printing and Minting Company, which has sent the tremors throughout the management of the company, LEADERSHIP found out last night.

The investigation concerns complaints of demands for bribes by senior management of the company after the board approved purchases from specific suppliers.

In a particular instance, the managing director, Mr. Ehi Okoyomon, his brother-in-law, Mr. Segun Oshatola, who is the general manager of the Mint's Lagos factory, and Alhaji Ibrahim Babayo, GM finance, all are alleged to have demanded bribes totalling N60 million in order to process the order of the board to purchase a hologram machine from Gietz AG of Switzerland.

Gietz are the world leaders in the manufacture and provision of hologram machines to several government and commercial presses and were selected following a careful evaluation by the Mint's technical and marketing teams.

The purpose of the acquisition was to enable the company produce the N1,000 note internally and also meet its aspirations to produce holograms for security documents such as cheque books, bank cards, vouchers, drafts, postage stamps, postal orders, certificates, international passport, ECOWAS passport, examination papers, vehicle licences, customs and immigration documents, tickets, vouchers and diplomatic papers .

As a result of the failure to carry out the order of its board and in breach of several promises to the former President and Nigerians, the Mint has continued to expend N30 billion a year printing bank notes overseas. So far, N60 billion has been expended on the printing of bank notes overseas since the board gave its order on August 10, 2006.

It would be recalled that N12 billion was spent on upgrading the facilities of the Mint for local printing of bank notes, so it is a matter of grave concern that the company continues to import currency at great cost.

The Presidency and the National Assembly are understood to be very interested in the enquiries by the anti-graft agency and may swing into action soon.

A source at the National Assembly said that already there were plans on ground to commence a full investigation, especially given the weight of evidence on the matter.

The source lamented the Mint's ineptitude, given the amount of money allocated to the company, thus painting another picture of wastage during the Obasanjo era.

Meanwhile, sources at the Mint told LEADERSHIP that the management of the company is not in any way interested in stopping the importation of bank notes because it is too lucrative.

This is the only reason why after almost two years after the board of the company had approved the purchase of a hologram machine that would enable Nigeria print the N1,000 bank note, the purchase has been subject of one controversy after another as top management have, through agents, sought bribes and frustrated the project.

Another strange happening in the Mint was the refusal by powers that be to dissolve the board as directed the office of the secretary to the government of the federation on October 23, 2007.

The statement also advised, "The dissolution does not affect the bureau, commissions and councils listed in the Third Schedule, Part 1, established by Section 153 of the 1999 Constitution of the Federal Republic."

According to Section 153 of the 1999 Constitution, the bodies that are not affected by the dissolution are the Code of Conduct Bureau, Council of State, Federal Character Commission, Federal Civil Service Commission, Federal Judicial Service Commission, Independent National Electoral Commission and the National Defence Council.

Others are the National Economic Council, National Population Commission, National Security Council, Nigeria Police Council, Police Service Commission and the Revenue Mobilisation, Allocation and Fiscal Commission. The Central Bank and its subsidiary the NSPM plc (The Mint) are not covered by Section 153.

So, after succeeding in remaining in office, the board met recently. Sources at the meeting revealed that although an agreement was not reached, the issue top of the agenda was the proposals by the management to substitute the approved supplier for a hologram machine that would enable the company produce the N1,000 note in-house for an inferior machine.

An intense argument, LEADERSHIP investigation revealed, occurred as the managing director claimed he had the backing of the CBN governor to get another company, but another claimed it was a lie and called the CBN governor, the meeting ended in a deadlock even as other members vowed to expose the managing director.

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