Abuja — Operatives of the Economic and Financial Crimes Commission (EFCC) yesterday in Abuja arrested the immediate past governor of Ondo State, Dr. Olusegun Agagu, over allegations of corruption, abuse of office and theft of public funds.

THISDAY learnt that Agagu was picked up by the commission as he was putting finishing touches to his plan to leave the country.

Agagu was removed two weeks ago as governor of the state by the Court of Appeal sitting in Benin City which voided his election and declared that the Labour Party (LP) candidate, Dr. Olusegun Mimiko, should take over immediately.

EFCC sources said the former governor was arrested following a tip-off that he had perfected plans through a former aide to escape from the long arms of the law by fleeing the country.

"We were informed that he was planning to escape to Australia through London. He was booked to fly out tomorrow (Thursday) i.e today on a British Airways flight to London from where he was to fly to Australia," said one of the sources.

EFCC Spokesman Femi Babafemi confirmed Agagu's arrest last night, saying the former governor was arrested in connection with the alleged misappropriation of the N25 billion belonging to the Ondo State Oil Producing Areas Development Commission (OSOPADEC).

"I can confirm to you that he is in our custody. He is answering questions from our investigators," Babafemi told THISDAY.

Agagu is also being wanted to give account of his six years leadership in Ondo State, which ended two weeks ago.

But there had been insinuations in some quarters that the ex-governor who served as Minister of Power and Steel during the first term of former President Olusegun Obasanjo might be arrested in connection with the massive fraud in the power projects unearthed during the power sector probe by the House of Representatives.

The EFCC was reported last week as saying it was on the trail of the former governor over his alleged role in the frittering away of $16 billion spent on the power sector.

The commission had in the twilight of Agagu's tenure stopped the cashing of about N14 billion cheques issued in respect of some contracts allegedly awarded hurriedly.

Although the House is yet to debate and adopt the report submitted by the Ndudi Elumelu-chaired power committee, THISDAY checks revealed that Agagu would be required to provide answers to a litany of allegations levelled against him during the House power probe.

A final report of the probe submitted to the House allegedly indicted him over the handling of the power projects fund.

An EFCC source said: "Yes, we are going to ask him some questions. This is the right time for him to get himself to clear his name that he was not one of those that messed up our power industry. Before, as a governor, there was nothing we could do. But now that his immunity has expired, he would need to clear himself once and for all.

"It is not that we have found him guilty, but the former governor must come and explain the role he played while he was a minister."

The former governor will be expected to clarify some of the contracts he hurriedly awarded while the case concerning his removal from office was pending at the appellate court.

The EFCC had on Wednesday January 14, 2009 raised an alarm over the plan of the Agagu administration to spend about N8 billion from the state's treasury through the award of contracts.

In the course of the commission's investigation, it arrested the General Manager of SCC Nigeria Limited, one of the companies allegedly involved in some contracts in the state. The commission had claimed that Agagu's efforts to spend N8 billion began shortly after the state election petitions tribunal nullified his election.

The government was also alleged to have awarded a contract to SCC Nigeria Limited for Owena Water Transmission Project for about N14.4 billion.

Of the total amount, the Ondo State Ministry of Works paid N3.8 billion as mobilisation fees to the contractor.

The EFFC, however, stopped the issuance of the cheque, which was supposed to be paid by Zenith Bank Plc.

The EFCC also invited the contractor handling the completion of the Owena Multipurpose Dam project in the state.

An Israeli, Mr. Y. Levi, who is the General Manager of the SCC Construction Company handling the N14.4 billion contract, was also invited to the Abuja office of the EFCC.

The project, initiated in 1971 by the Western Region, is said to be a joint project between the Federal Government and the Ondo State Government.

The project was inaugurated by Obasanjo in April 2007, but the state government said that it would spend N14.4 billion on the project.

The Elumelu committee had focused on the spendings in the power sector between 1997 and 2007.

It had recommended that the EFCC and the Independent Corrupt Practices and other Related Offences Commission (ICPC) should further probe and if need be, prosecute all those indicted.

When Agagu appeared before the House panel, he said the $16 billion that the House claimed was spent was no big deal.

The EFCC, which had earlier interrogated Agagu while he was still governor, was not satisfied with his testimony, as he was said to have answered only the questions that he liked and parried others.

Meanwhile, the Conference of Nigeria Political Parties (CNPP) has commended EFCC over Agagu's arrest.

In a statement signed by CNPP's National Publicity Secretary Osita Okechukwu, the organisation said: "Ex-Gov Olusegun Agagu's arrest did not come to CNPP as a surprise; the only problem we have with the current leadership of EFCC chaired by Mrs. Farida Waziri is whether Agagu's arrest will not end up in the bow-and-go fashion that has become the metaphor for the new EFCC."

The statement expressed concern that EFCC had done enough to bring corrupt government officials to book but stated it was sceptical of the new EFCC that "blows hot and cold at the same time. Farida Waziri has failed to chase and jail big time crooks."

The organisation said it was aware that the House Committee on Power Probe indicted the former governor for alleged corruption over the power projects.