Leadership (Abuja)
Prince Charles Dickson
16 April 2008
Abuja — 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.
Our source at the meeting said the reason given for the change of heart by the MD are the "lamest suggestions ever and one that reeks of vested and corrupt interests."
The substitute machine produced by a company called Bobst has not been subjected to any form of evaluation by the technical teams within the company, nor is it known to come anywhere near the Gietz product chosen and approved by the board in performance.
For example, whereas the Gietz machine is based on the rotary principle, the Bobst machine is a "converted die cutter" which is about 30-50% slower in productivity.
They called the MD a greedy man, in what was a heated exchange, asking him why he refused to ignore the order of its board because the approved supplier refused to accede to demands for bribes by the senior management led by Okoyomon.
While the management may have not made a final decision, our source said that the new excuse the management have come up with is that because the current printers of the N1,000 note, De La Rue of the UK, use the Bobst machine, then it should be procured. Intelligent sources within the security printing industry have suggested that this is the "lamest and most implausible rationale for management decision making ever."
Firstly, the intended use of the machine is not limited to producing holograms for the N1,000 note only but to meet with the Mint's strategic vision of being the hub for security printing in sub-saharan Africa.
Secondly, the configuration that has been carried out on the Bobst machine at De La Rue has been extensive involved substantial expenditure on the basic machine which is being presented as the solution.
Thirdly, Bobst is not even second place in the hologram applications world which is a niche dominated by Gietz. Fourthly, the machine is not any less expensive than the Gietz machine, in fact the configuration and additional accessories required to enable the Bobst machine perform close to a Gietz machine nearly doubles the price. Fifthly, specialist machines of this nature need to be adapted to take into consideration local conditions and circumstances.
Gietz interacted extensively with the Mint to come up with a solution for its purposes whereas the Bobst machine is completely unknown to the operatives who will use and maintain the machine.
In the centre of the supply of the hologram machine is Corbe Nigeria Limited, a wholly owned Nigerian company whose efforts the board, LEADERSHIP gathered, has continued to frustrate, in its petition letter obtained through the ICPC, dated 20 March 2007.
It had lodged a compliant against the state-owned enterprise top shots Ehi Okoyomon, Olusegun Oshatola and Ibrahim Babayo and an accomplice and purported lawyer named Femi Kuku and business partner of the aforementioned.
As a result of Corbe's refusal to play ball and meet the bribe demands, the three persons have colluded to make it impossible for the machine to be delivered. this is against the backdrop of three failed deadlines, the last being December 2007.
In what is unarguably evidence of the last resort, LEADERSHIP investigations was able to get a transcript of telephone conversation between a Rowland Ataguba, the managing director of Corbe in which he led on, the middleman Femi Kuku and Mr Oshatola.
Interestingly, Gietz complained to the Mint about the interference of Kuku when he first made contact with them in August 2006. The Mint did not respond to the complaints but instead became quite hostile towards the company. Further complaints to the chairman of the Mint, the CBN governor, did not elicit a response either.
In confirming his approach to Gietz, in August 2006 Kuku can be heard on the tape saying to Gietz, "I know you don't know me from Adam and I am just out of the woodwork but what I am saying is this ... let them come with their own eyes ... not that they are going to be sitting in their office and I am going to be saying I will do this or that… Come! Sit down with these people! The people...afterall they know who is who. They know the people I said they were coming tomorrow..."
The people who were coming (to Switzerland) were Okoyomon and Babayo, and this was after the board had directed that a hologram machine be procured from Gietz.
In another taped conversation, Oshatola can be heard telling Gietz, "The only problem that we are having is the delivery time."
Pursuant to which Gietz amended the delivery time to suit but still the manoeuvrings continued as the Mint's management continued to ignore its board's order and further expended N60 billion on the importation of currency, which it could have easily avoided.
Oshatola could also be heard enquiring, "Is it … have you... so that, you haven't really given any thought to what it is that you might be doing for me if eventually when the order is filled?"
He was alleged to later suggest that he expected 15% of the contract sum.
The same Oshatola was to falsely claim along with Babayo without substantiation that they had heard that Gietz products were unreliable. Presumably they would not have heard anything if their demands had been accommodated.
It would seem that this is typical of the experiences of many first class international companies when they try to engage with the Nigerian bureaucracy.
Meanwhile, the three senior managers continue to swirl in a pool of corrupt practice, even as LEADERSHIP had reported recently the sell of Mint properties among themselves by deception.
The three managers are facing serious questions regarding their roles in their role over the right-to-buy scam of the properties, as the MD allocated a property of the Mint to his brother who resides abroad, and then attempted to but another for himself.
In this particular case the FCT Police Command is already involved.
Earlier, there have been complaints about the award of contracts which led to the suspension of Okoyomon in the past following an enquiry into a N3 billion scam, which involved the award of a contract to Shiremoor International Limited for the refurbishment of Mint machines without due process.
Also there have been questions around the expenditure on power supply where it is alleged that "tokunbo" generators were passed off as new by the management.
Okoyomon claims he has no knowledge of the demands for bribes made on his behalf by his senior managers and a front.
He has a tough job on his hands given that resolutions of the board were impeded as a result and it is impossible for such to happen without his knowledge unless he is not in charge of his ship.
Okoyomon is caught between the proverbial rock and a hard place because if he is to claim that he had no fore knowledge of the bribery allegations, then he could not claim to be unaware of the board's resolution of August 10, 2006. Neither could he claim to be unaware of the complaint of Gietz of 28 August 2006.
He could also not claim to be unaware that the CBN governor had enquired as to why the board's resolution had not been complied with in January 2007. More than a year later and with N60 billion down the drain in importation of currency.
Okoyomon's actions or inactions would suggest that he is either incompetent in the management of the affairs of the Mint or is neck deep in the corruption that is plaguing this critical government agency. Either way, he has a lot of explaining to do.
There are questions the management and board of the Mint need to answer, the over N30 billion frittered away on importation of bank notes, why has the board sat idly and its decisions are ignored and almost reversed.
LEADERSHIP's attempts to speak with Rowland Ataguba, who acts for Gietz SA of Gossau, Switzerland, were rebuffed as he stated on phone that he does not speak about company matters on the pages of newspapers.
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I am shocked at what I just read about this leaders of a people!!! Too short to even make a serious comment on them! I know some of them too well, I used to see this people as examples of best practise, that means all they did was to booboo people when they got there! Na wah o! I am very much interested in the outcome of the investigation, if the "Nigeria factor" will ever let it happen.