General Manager of the Edo State Water Board, Engineer Monday Umane and four other top staff have been arrested by the Edo State police command over a missing N2.4 billion including an $18 million Paris Club facility to boost water supply to various parts of the state.

It was gathered that the officials have been answering questions at the State Criminal Investigation Department (SCID) since last week on how the funds were used. The state police spokesman, Peter Ogboi (ASP) confirmed this on phone yesterday but said he was not with the details.

The arrest was as a result of a letter from the office of the chief of staff to the governor, Mr Osarodion Ogie to the state police command to investigate cases of fraud and misappropriation of public funds. Confirming this yesterday, the governor's Special Adviser on Public Affairs and Strategy, Eric Osagie said the report of the Assets Verification Committee set up shortly after Comrade Adams Oshiomhole assumed office revealed that a total of 56 contracts were awarded by the government of Professor Oserheiemen Osunbor between May 2007 and November 11 2008 totaling over N2.4 billion to revamp water supply in the state.

He said the report showed that due process was not followed in the award and execution of the contracts just as the report revealed that huge sums were physically moved around and that some of the top officials being quizzed revealed to the committee that Umane only directed "how and where the money should be diverted". Some of the documents obtained indicate that the General Manager proposed and got instant approvals on water projects from the then state governor; Professor Osereheimen Osunbor with dispatch even before the statutory due process of advertisement, tenders and opening of bids. The governor is empowered to award contracts of less than N100 million without recourse to the executive council.

Documents showed that contracts of such magnitude were treated with dispatch while those that were comparatively lower took longer times to get the approval of the governor.

As testified to by the former commissioner for Energy and water Resources, Barrister Samson Ekhabafe when he appeared before the committee last week, the contracts were a straight deal between the General Manager of the board and the former governor, and even the permanent secretary, it was discovered was not also carried along.

Ekhabafe distanced himself from the over N2 billion alleged to have been spent on various water rehabilitation projects in the state.

He said when he appeared before the Oseni Elamah led committee; "Nobody should act under the misconception that the commissioner was involved in the mismanagement of the Paris Club money because in the first place, I was never aware of anything called the Paris Club money. I was not told and I was not aware that water board was so buoyant that money was available for works".

He also alleged that protocol was not followed in the award of contracts just as he said that he had stumbled on some vouchers for certain contracts at the office of the Deputy Accountant General's Office, which he said were awarded without his knowledge. He said the contracts ranged between N98million and N95million and another N94million for some projects in the state.

He said that these discoveries of fraud led to him instructing the permanent secretary in the ministry to write the General Manager of the state Water Board to provide details of contracts awarded and monies released. According to him, these discoveries led to his resignation from the government in June 2007.