A prosecution witness told an Abuja court that former President Olusegun Obasanjo asked former Minister of Power and Steel, Dr Olu Agunloye, to add N11 billion to the N6 billion already appropriated in the 2003 budget for the Mambilla Hydroelectric Power project.
The witness, Umar Babangida, an Assistant Commissioner of Police (ACP) and investigator with the Economic and Financial Crimes Commission (EFCC), said this during his continued cross-examination by counsel for the former minister, Adeola Adedipe SAN.
Agunloye is being prosecuted by the EFCC, on behalf of the Federal Government, on an amended seven-count charge bordering on disobeying a presidential directive, conspiracy, forgery, and receiving gratification, before Justice Jude Onwuegbuzie, sitting at Apo, Abuja.
He was alleged to have, while serving as a minister, conspired with Leno Adesayan of SPTCL to forge a letter titled, “Construction of 3,960MW Mambilla Hydroelectric Power Station on a build, operate and transfer” basis.
He, however, pleaded not guilty to the charge.
The witness told the court that it took about 23 years from the feasibility studies for the project in 1981 to 2003 when it was eventually awarded.
He added that seven companies that had indicated interest in the construction of the power project were screened for this purpose.
Babangida said that as president, Obasanjo’s utmost desire was to kick-start the Mambilla project.
He added that the former president held a private meeting with Agunloye on the night of May 20, 2003.
According to the witness, EFCC’s investigation revealed that a private meeting was held the night before the Federal Executive Council (FEC) meeting of May 21, 2003.
He noted that the former president directed that Agunloye add N11 billion to the already appropriated N6 billion in the 2003 budget for the take-off of the Mambilla project.
“Yes, my Lord. The former president mentioned it at the Federal Executive Council meeting.
” However, the details of the discussion of the previous day were not fully given by the former president,” Babangida told the court.
He added that the Federal Government could have paid $1.5 billion as its 25 per cent equity participation in the $6 billion power project on a build, operate and transfer basis.
Babangida further told the court that after FEC members supported the memorandum presented by Agunloye on May 22, 2003, on the 25 per cent equity participation, the then Vice-President, Alhaji Atiku Abubakar and a sitting minister opined that a review of government participation from 25 per cent should be considered.
He, however, asserted that it was not entirely true that it was on that basis that Agunloye was asked by the FEC meeting to withdraw his memorandum on the Mambilla project.
He said several observations were raised by the former president, the former vice-president and other members of the Executive Council, which led the Council to direct the former minister (Agunloye) to withdraw the memorandum.”
The PW3 further told the court that Agunloye was directed to withdraw his memorandum with a view to engaging investors in constructive negotiations and exploring various investment options to secure a reduction in the 25 per cent equity participation.
He said that the various options mentioned by the Council included equity participation by the Federal Government, ranging from zero per cent to not more than 25 per cent.
When asked to read from the letter of award to Sunrise Power and Transmission Company Limited (SPTCL) written by the defendant and dated May 22, 2003, the prosecution witness stated that the former minister wrote, “Eventual equity participation will vary from zero to not more than 10 percent.”
The award is seen to have secured a reduction in government participation from 25 per cent to between 0 per cent and 10 per cent.
The witness, however, added that, though the defendant’s offer to SPTCL in the document was to reduce the government’s equity participation from 25 per cent to a range of zero per cent to not more than 10 per cent, that was not what transpired.
He, however, did not discuss what else transpired.
Justice Onwuegbuzie adjourned the case until Feb. 2 for further cross-examination of PW3.
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