Investigation by Kano State Public Complaints and Anti-Corruption Commission (Interim Report)

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Below is the Interim Report of investigation by the Kano State Public Complaints and Anti-Corruption Commission as obtained exclusively by NAN. Highlights of the 19 page document includes the indictment of individuals, amounts involved, obstruction of investigation by suspects and recommendations.

PRELIMINARY REPORT OF INVESTIGATION IN RESPECT OF PETITION OF FINANCIAL MISAPPROPRIATION AGAINST KANO STATE EMIRATE COUNCIL UNDER THE PRESENT EMIR MUHAMMADU SANUSI II

 

INTRODUCTION

The Commission is in receipt of a complaint filed by Concern Friends of Kano

Emirate dated 28th March, 2017 on allegation of Financial Misappropriation

by Kano Emirate Council under the Emir Muhammadu Sanusi II. The

petitioners raised some allegations bordering on spending the funds without

due regards to due process. They alleged that, the Emir (Muhammadu Sanusi

II) engaged in indiscriminate spending without regards to due process and

the rule of law.
In the exercise of its powers under the provisions of Section 9 of the Kano

State Public Complaints and Anti-Corruption Commission Law 2008 (as

amended) the Commission launched an investigation into the allegation and

in conformity with the provisions of Section 15(2) and (3) of the Commission’s

enabling law wish to forward the preliminary report of the investigation to

the Government. The opinion of the Commission is that disciplinary action

be taken before further legal action.

FACTS OF THE CASE

The case was initially filed before the Commission by Concern Friends of

Kano Emirate on allegation of Financial Misappropriation by Kano Emirate

Council under the Emir Muhammadu Sanusi II. In their petition they raised

some allegations bordering on spending the funds without regards to due

process. They alleged that, the Emir (Muhammadu Sanusi II) spent over

Three Hundred and Sixty Million (N360,000,000.00) only in the provision

of CCTV in the Emir’s Palace. This is in addition to expenditures on hotels,

chartered aircraft and many more which petitioners alleged to be well over

Four Billion Naira.

INVESTIGATION

The investigation commenced in 2017 through inviting the officers who are

directly connected with the maintenance of the Treasury of the Emirate for

information and interview and also requested for relevant documents

covering the said period of investigation which the Emirate Council complied.
In the same vein, the Commission received an information from Ministry of

Planning and Budget and Office of the Auditor General Local Government

Audit in respect of:-

(a) Approved budget for the Emirate Council from 2013 to 2017

(b) Audited Financial Account of the Emirate Council from 2013 to

2017.

The Commission also got statements from the Financial Controller of the

Emirate who is also the Walin Kano Alh. Mahe Bashir Wali, Sarki Waziri the

Deputy Secretary of the Emirate as well as Rufa’I Buhari who is the

Treasurer of the Emirate Council.

At the peak of our work during that period an investigation into the activities

of Emirate Council was also commenced by State House of Assembly. The

Commission then sent a letter to the speaker of Kano State House of

Assembly seeking for clarification as to avoid duplicated investigation as

enshrined under Section 16(1 )(a) of the Kano State Public Complaints and

Anti-Corruption Law 2008 (as amended). The letter was duly acknowledged

but never replied. (Copy attached). The Commission, as a mark of respect

to the House and in fairness to the parties under investigation halted and

suspended its investigation.

It was after the closure of the Assembly’s investigation that the Commission

then decided to re-open and continue with its investigation with a view to

ascertain the true position of things.
While the investigation process was going on, another complaint was lodged

by Cardinal Architecture Ltd. against the Emirate Council, specifically the

Chief of Staff who is the Danburam of Kano. The company alleged that it was

awarded a construction work at Baban Daki and the money was paid to Tri-

c Nigeria Ltd. but was never paid to them. The complaint bothered on Eighty

Four Million Nine Hundred Thousand and Twenty Three Naira Naira

(N84,900,023.00) only which was alleged to have been criminally diverted

for personal use. This prompted the Commission to merge the complaint

together and treat it as one.

In the cause of investigation an invitation letter was served on four personnel

of the Emirate Council for discussion and clarification on some expenditures

incurred and the Commission believed they are at the right position to clarify

but three persons refused to honour the invitation on the instructions of the

Emir. By way of substantiating the assertion, Munnir Sanusi (one of the

invitees) honoured the invitation of the Commission barely a week before

the subsequent matter on a separate case.

The Commission also got necessary information from the hotels, Airline

companies, travelling agencies and telecommunication companies. To

expedite action, the investigation officers also travelled to some of the

affected companies in Abuja and Lagos in order to receive more information

and clarification on some documents in furtherance of the investigation.

FINDINGS

The fund in question is regulated by the provisions of Kano State Emirate

Council Special Fund Law 2004. The law provides under Section 4 that:

4.(1) “Every Local Government Council in the State shall in respect of

each calendar month contribute three percent (3%) of the amount of

its monthly statutory allocation into the fund

(2) The State Government shall in respect of each calendar month

contribute an amount equal to ten percent (10%) of the total

contribution of the Local Government Councils in the State made

pursuant to sub-section (1) into the Fund

Section 8 Kano State Emirate Council Special Fund Law 2004 which deals with

the utilization of the funds provides that:

8. The Fund shall be utilized:-

(a) For the payment of salaries, remuneration, allowances and other

fringe benefits of the persons described in the schedule,·

(b) To defray all expenses of working and managing the affairs of

the Council and its properties;

(c) To defray the cost of such works of a capital nature as the

Council may deem necessary from time to time,·

(d) To grant loans and make advances to the persons on such terms

and conditions as the council may approve,· and
(e) To defray operational expenses that may be incurred in the

course of the general administration of the funds.

The schedule to which the above section relates provides interal is that

1. Emirate Councils and their staff;

2. Other employees of the Emirate Council”

3. Royal Guard (Dogara!),-

4. Palace Staff (Yaran sark!),·

5. Persons employed for the administration of the Fund

The Law also mandates the preparation of the budget by the Emirate Council

which is required to be transmitted to the Governor for necessary action

apparently in conformity with Section 11 of the Kano State Emirate Council

Special Fund Law 2004.

Investigation revealed that the Emirate Council failed to forward their

estimate to the appropriate authorities as required by Law establishing the

fund for consideration.

❖ From 2013 to 2017 Fifteen Million Naira (N 15,000,000.00) only was

approved as budget for the Emirate annually based on the submission

of the Ministry of Planning and Budget vide communication No.

MPB/PLN/S/309/V.l/62 dated 26th April, 2017. (Copy attached).

This suggest that, in the first place there was no budgetary provision

to authorize all the alleged expenditures.
❖ The Commission also got a statement from Financial Controller who

confirmed that the Emirate Council approves its budget which

indicated a gross violation of Section 120 of the Constitution of the

Federal Republic of Nigeria 1999 (as amended), Section 11 of the Kano

State Emirate Council Special Fund Law 2004 as well as Section 26 of

the Kano State Public Complaints and Anti-Corruption Law 2008 (as

amended).

❖ In the cause of the Commission’s investigation some expenditures that

were incurred without following due process or appears to be

suspicious were uncovered. Huge sums of money were transferred to

some banks accounts which were claimed to be companies’ accounts.

However, the companies appears to be either unregistered with the

Corporate Affairs Commission or dormant that cannot appear in the

publ ic search of the companies register. Investigations also shows that

those unregistered companies are linked to some of the identified

suspects in the emirate council. Investigation will later reveal the

beneficial owners of those entities.

The suspicious transactions are as follows:-

1. MASPHAL ASSOCIATE:

The company was paid the sum of W100,000,000.00 in 2014 and

W39,565,475.00 in 2015.

2. PROJECT PLANNER AND DEVELOPER COMP. LTD

The company was paid the total sum of W24, 163,776.17 in 2014.

3. MODERN SOCIETY CONST. COMPANY

The company received the sum of WB,749,107.00 in 2014 as payment

for work.

4. WAVES STUDIO:

The sum of W9,484,500.00 was paid to the company in 2014, the sum

of N 1,977,900.00 in 2015, the sum of N4,678,500.00 in 2016 and the

sum of W616, 730.00 in 2017.

5. CHOSEN ONE GLOBAL TECHNOLOGIES LIMITED:

The sum of N4,666,950.00 was paid to Chosen One Global

Technologies Limited in 2015

6. FLOORS ARCHO CONSULTANTS:

The sum of W22,691,280.00 was paid to the company in 2014,

N32,586,333.00 in 2015 and the sum of W1,343,903.00 in 2017.

7. ICX SOLUTION LTD:

The company was paid the sum of W 10,445,820.00 in 2015 and another

N6,298,680.00 in 2016

8. HIKIMA VENTURES/S. HIKIMA & SON:

The sum of N4,041, 165.76 was paid to this unregistered company in

2014, W27,947,201 .90 was also paid in 2015, W19,162,163.50 in 2016

and lastly W5,759,825.75 was paid in 2017.

9. ABUSAIBA INVESTMENT:

The sum ofN24,184,151.75 was paid to the company in 2014 despite

been not registered with the Corporate Affairs Commission.

10. PHILKO LIMITED

In 2014 the sum of WS0,000,000.00 was paid to the PHILKO Limited.

11. CEM NIG. LTD.

The sum of W3,880,000.00 was paid to the company in 2014 and

W372, 141 .00 in 2015 was paid to the company.

12. MOFHAN ENTERPRISES LTD

The sum of W1,312,500.00 was paid to MOFHAN Enterprises Ltd. in

2014 by the Kano Emirate Council.

13. MODI INVESTMENT LTD.

The sum of W38,953,552.00 was paid to the company by the Emirate

Council in 2014.

14. DABO GATE IDEAL RESOURCES:

The payment of W 175,175,560.00 was effected to Dabo Gate Ideal

Resources in 2014.

15. LUGO SUPPLIERS:

The sum of W14,854,500.00 was paid to the Company in 2014 by the

Emirate Council.

16. JUBAILI BROS ENGE. NIG. LTD:

The payment of W3,230,829.00 was made to Jubaili Bros Eng. Nig. Ltd.

in 2016.

17. CARDINAL ARCHITECTURE:

In 2015 the sum W30,000,000.00 were paid by Emirate Council to the

company.

18. SHUNT ENGINEERING CO.

The sum of W-48,057,747.50 was paid to Shunt Engineering Co. in 2014

and also the sum of W22,478,491 .27 was paid in 2015 and another

W29,261 ,949.93 was paid in 2016.

19. OCHOR MECHPLANT ENGR. LTD:

The sum of W 1,570,000.00 was paid to the company in 2014 by the

Emirate Council.

20. CONTINENTAL OFFSHOW LTD.:

The sum of W38,750,000.00 was paid by Emirate Council to the

company in 2014.

21. MAWUD Nig. Ltd.:

The sum of W583,000.00 was paid to MAWUD Nig. Ltd. in 2014 by the

Emirate Council.

❖ All the purported companies listed above allegedly carried out

contracts with the Emirate Council. These companies are not in

existence, as search for their corporate status came out negative and

virtually all the purposes for the expenditures, the amount involved and

the legal status of the companies revealed prima facie case of fraud in

the management of the Emirate Council funds as there were no

budgetary provisions to justify the expenditure.

❖ In 2014 the sum of Fourty Three Million, Two Hundred and Sixty Eighty

Thousand Five Hundred Naira (W43,268,500.00) were expended in the

fueling of Generator. Thirty Nine Million Six Hundred and Ninety
Thousand (N39,690,000.00) only were expended on fueling in 2015,

Twenty Two Million Three Hundred and Seventeen Thousand One

Hundred and Seventy Four Naira (N22,317, 174.00) only in 2016 and

Twelve Million Four Hundred and Ninety Six Thousand Eight Hundred

Naira (N12,496,800.00) only were expended in 2017 all in fueling. To

sum it all One hundred and Seventeen Million Seven Hundred and

Seventy Two Thousand Four Hundred and Seventy Four Naira

(N117,772,474.00) only were expended on fueling from 2014- 2017 by

the Emirate Council, the disparity in the amount so involved, the ratio

at which the fuel was consumed from 43 to 22 Million called for

suspicion and indicated acts of misappropriation and fraud.

❖ Also in the cause of investigation an observation was made on a

transfer of One Hundred and Five Million, Five Hundred and Ninety Five

Thousand Seven Hundred and Fifty Five Thousand (N105,595,755.00)

from the Emirate Council’s account to an individual account bearing

the name of one Engr. Sunusi Ti]ani who happened to be the Technical

Officer to the Emirate Council at United Bank for Africa (UBA) during

the period of 2014-2017 at different occasions. The largest which is

Twenty Two Million Seven Hundred and Seventy Eight Thousand Two

Hundred and Thirty Three Naira Ninety Two Kobo (N22,778,233.92)

only was transferred on 22nd September, 2015 . It was observed going

by the record of expenditures from the said account that virtually all

the money were withdrawn personally (self-withdrawal). This is a red
flag for corruption and there is no way an individual not a corporate

entity will attract such payments from Government at different interval

in a legitimate transaction. This is also another trace of alleged corrupt

practices and final investigation will reveal all the facts of the case.

❖ The sum of Fifty Four Million One Hundred and Eleven Thousand Fifty

Five Naira (N54, 111,055.00) were expended by the Emirate Council

from 2014 to 2017 on payment of airtime/data to Airtel Network Ltd.

mostly on personal phone numbers. In his statement, Isah Bayero

denied using his line to incur expenditure worth 25.6 Million while the

remaining 29M was incurred by the Emir, his wives and Mannir Sanusi.

Failure of the appearance of the invited suspects made it impossible

for the Commission to conclude on this matter.

❖ Another area of concern which revealed a prima facie case of criminal

bre~ch of trust by servant is where the sum of One Hundred and Fourty

Four Million Three Hundred and Sixty Two Thousand Three Hundred

and Eighty One Naira (N144,362,381 .00) only was spent on Hotel

Accommodation, payment of chartered Aircraft and payment of Air

ticket by the Kano State Emirate Council from 2014 – 2017. Out of this

sum Thirty Million Seven Hundred and Sixty Two Thousand Naira

(N30, 762,000.00) only was spent on Chartered flights while the sum of

One Hundred and Thirteen Million Six Hundred Thousand Three

Hundred and Eighty One Naira (N113,600,381 .00) only was spent for

hotel accommodation and air ticket for the Emir’s travels. Investigation
revealed that the purpose of the expenditure which was never

budgeted for is unknown and all efforts by the Commission in

requesting the Council to provide evidence to justify the travels as

being official proved abortive.

Another complaint was filed before the Commission by Cardinal Architecture

Ltd. against the Emirate Council. Specifically against the Chief of Staff who is

the Danburam of Kano on alleged nonpayment of construction work at

Babban Daki.

The complainant alleged the diversion of the payment to a company called

Tri-c Nigeria Limited. The complaint involved the sum of Eighty Four Million

Nine Hundred Thousand and Twenty Three Naira Naira

(N84,900,023.00) only alleged to have been diverted for personal use. In

order to avoid duplication in the investigation, the Commission decided to

merge the complaints together and treat them as one.

It was discovered that, initially the contract was awarded to Tri-c for the

renovation of Babban Daki, Kofar Kudu and Gidan Sarki at Dorayi which the

company sub-contracted the contract to another company (Cardinal

Architecture Limited) for the Babban Daki. A payment was made in respect

of the renovation of Babban Daki but Tri-c Nig. Ltd. failed to settle the sub-

contractor (Cardinal Architecture Limited).

SUMMARY

It is the opinion of this Commission that Kano Emirate Council under the

Chairmanship of the Emir Muhammadu Sanusi II has expended the sum of

One Billion Four Hundred and Fifty Million Six Hundred and Fourty One

Thousand Fourty Eight Naira Fifty Three Kobo (N1,450,641,048.53) only

in various expenditures that is believed to be fraudulent and unappropriated.

In addition to One Billion Nine Hundred and Eighty One Million Four

Hundred Fourty Nine Thousand Seven Hundred and Fourty Nine Naira

Fourty One Kobo (N1,981,449,749.41) unappropriated but seemingly

personal expenditures, making the total sum of questionable expenditures

uncovered by this investigation to the tune of Three Billion Four Hundred

and Thirty Two Million Ninety Thousand Seven Hundred and Ninety

Seven Naira Ninety Four Kobo (N3,432,090,797.94) only between 2014

to 2017. This expenditures contravene the provisions of Section 120 of the

Constitution of the Federal Republic of Nigeria 1999 (as amended), Section

8 of the Kano State Emirate Council Special Fund Law 2004, Section 314 of

Penal Code as well as provisions of Section 26 of the Kano State Public

Complaints and Anti-Corruption Commission Law 2008 (as amended).

It is also the opinion of this Commission, based on the available evidence

that Emir Muhammadu Sanusi II continued to undermine the investigation

through various means which include giving instruction to all officers invited

for clarification to shun the Commission’s invitation. An act which is seriously

affecting the process of our statutory responsibility and offends the

provisions of Section 25 of the Commission’s enabling Law 2008 (as

amended).

RECOMMENDATIONS

Based on the aforementioned findings and pursuant to the provisions of

Section 18 (4) of the Kano State Public Complaints and Anti-Corruption Law

2008 (as amended), the Commission hereby recommends as follows:-

(a) In view of the prima facie cases of criminal breach of trust by servant,

official corruption and other related offences contrary to the Penal

Code Law, Public Complaints and Anti-Corruption Commission Law

2008 (as amended) and other existing Laws, the Commission

recommends that the principal suspect in the person of Muhammad

Sunusi II (the Emir of Kano) and all other suspects connected to this

case or serving in the Kano State Emirate Council should be

suspended pending the final outcome of the investigations. This is

a necessary administrative disciplinary action aimed at preventing

the suspects from further interfering with the Commission’s

investigations.

(b) The Commission further recommends that the contract awarded to

Tri-C Nigeria Limited for the renovation of Babban Daki, Kofar Kudu

and Gidan Sarki Dorayi should be revoked as the company belongs

to one of the suspects in person of Alh. Mannir Sanusi (The Chief of

Staff in the Emirate). The company failed to settle the sub-contractor

(Cardinal Architecture Limited) after been duly paid. Cardinal

Architecture Limited should be paid for the work carried out in the

contract.

(c) The appropriate authority should be put in place to oversee the

affairs of the Kano Emirate Council in line with established statutes

and policies pending the final outcome of the Commission’s

investigations.

(d) The Commission’s further recommends for further legal action to be

taken against all the suspects as soon as the final outcome of

investigations is concluded and a legal advice accordingly issued out.

CONCLUSION

In conclusion, the above recommendations are hereby forwarded to your esteem office for further necessary action, please.

Signed.

MUHUYI MAGAJI RIMINGADO

EXECUTIVE CHAIRMAN