BPE Reveals Jonathan’s Role In N1.45bn Legal Fee Scandal

Nigeria’s immediate past president, Goodluck Jonathan, is reportedly behind the approval of N1.45billion legal and consultancy fees for the Bureau of Public Enterprises (BPE), the body has opened up.

This revelation is coming up following an alleged N1.45 billion legal and consultancy fees scandal at the BPE.

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According to a report by The Nation, the BPE maintained that the contract was valid because it was approved by Jonathan based on a memo from ex-vice president Namadi Sambo, who was the chairman of the National Council on Privatisation (NCP).

The report stated further that Sections II (J) and 55 of the Public Enterprises (Privatisation and Commercialisation) Act Cap. P.38, LFN 2004 exempt the National Council on Privatisation (NCP) from complying with the processes of the Bureau of Public Procurement (BPP).

The BPP had in a letter to the Economic and Financial Crimes Commission (EFCC), in June, requested the anti-graft agency to investigate the payment scandal, where one of the lawyers of the Peoples Democratic Party (PDP) was reportedly paid N950 million for the liquidation of the Power Holding Company when the company had ceased to exist and N500 million was paid as consultancy fees to the Office of the Accountant-General of the Federation.

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The fees were said to have been paid contrary to the advice of the immediate past Attorney-General of the Federation, Mr. Mohammed Bello Adoke (SAN) and the BPP and the EFCC had since started probing the payment.

However, in a fresh report, the BPE is insisting that the contract was legal and approved by ex-president Jonathan.

One of the documents, obtained by The Nation correspondent, reads in part: “The Bureau of Public Procurement reviewed the procurement process and issued Certificates of ‘No Objection’ dated February 26, 2013 (attached as Annex U4) to the BPE to appoint Messrs J.K. Gadzama & Partners as the Consultant, Legal Advisory Services for the winding up of PHCN in the sum of N929, 613,188.94 inclusive of 5 per cent VAT. A letter of award /engagement was issued to J.K. Gadzama &Partners on 6th March, 2013.

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“The National Council on Privatisation at its  3rd meeting for 2013 held on Thursday, May 9, 2013 approved the engagement of Messrs. J.K. Gadzama & Partners as the Consultant, Legal Advisory Services for the winding up of PHCN in the sum of N929,613,188.94. Excerpts of NCP minutes attached.

“Thereafter, copies of the draft contract agreements were forwarded to the Vice President and Chairman, NCP (for approval), who subsequently directed that the draft contract agreements be forwarded to the Honourable Attorney-General of the Federation (AGF) for review before execution.

“By a memo  referenced SH/VP/BPE/C2/XVII, dated August 30, 2013, a copy of a memo from the AGF to the Vice President and Chairman of NCP dated August 27, 2013 was forwarded to the BPE by the Office of the Vice President and Chairman of NCP for necessary action.

“In the said memo, the AGF raised objection to the appointment of J.K. Gadzama as Liquidator of PHCN Plc, stating that such is within the purview of PHCN Board of Directors only.

“Following the intervention of the Chairman of the Board of NELMCO, the AGF in his letter to the DG of BPP dated 11th, September 2014 (which was copied to the DG BPE) withdrew his earlier query on the ‘No Objection’ earlier granted by BPP to procure J.K. Gadzama and Partners for legal advisory services for the winding up of PHCN Plc.

“BPE, in reliance on the letter above referred requested BPP to revalidate its earlier “No Objection” granted. The BPP declined to withdraw its “No Objection” without adducing any reason for doing so.”

The document further reveals: “The NCP noted that since the AGF had withdrawn his query on the procurement and there was no other tenable reason to withhold it, approved that BPE should immediately proceed to execute the contract with Messrs. J.K. Gadzama & Partners as the consultant, legal advisory services for the winding up of PHCN in the sum of N929,613,188.94 based on the ‘No Objection’ earlier granted by BPP.”

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The BPE also gave the details of how ex-President Jonathan approved  the contract during the transition period, stating: “In a briefing memo to His Excellency, the former President on the decisions of NCP, the former Vice President and Chairman of NCP, among other things, highlighted its approval directing BPE to immediately execute contract with J.K. Gadzama for the winding up of PHCN Plc in the sum of N929,613,188.94 based on the ‘No Objection’ earlier granted by BPP since all contested  issues had been resolved.

“The former President  noted the said decision without any objection(memo attached as Annex U9). It is based on the two approvals of the NCP and Mr. President that BPE executed the contract with J.K.Gadzama & Partners who have since commenced execution of the contract.”

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The BPE said it does not  need any approval from the BPP to execute any procurement dealing with disposal of public property once it is carrying out NCP directive and cannot be probed by the EFCC.

Reports had also surfaced the EFCC is likely to probe the former president and some of his aides following a commencement of investigations into their financial transactions.

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