A prosecution witness has told an Abuja High Court that former President Olusegun Obasanjo instructed a 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 and investigator with the Economic and Financial Crimes Commission (EFCC), disclosed this during his continued cross-examination by defence counsel, Adeola Adedipe (SAN), before Justice Jude Onwuegbuzie at the Apo Division of the Federal Capital Territory High Court.
Agunloye is facing an amended seven-count charge filed by the EFCC on behalf of the Federal Government, bordering on disobedience to presidential directive, conspiracy, forgery and receiving gratification. He is accused of conspiring with Leno Adesayan of Sunrise Power and Transmission Company Limited (SPTCL) to forge a letter titled “Construction of 3,960MW Mambilla Hydroelectric Power Station on a build, operate and transfer basis.” He has pleaded not guilty to the charges.
Babangida told the court that the Mambilla project spanned over two decades, from initial feasibility studies in 1981 to its eventual award in 2003, and that seven companies were screened for the project. He said Obasanjo was keen on ensuring the project took off and held a private meeting with Agunloye on the night of May 20, 2003, a day before a Federal Executive Council (FEC) meeting.
According to the witness, EFCC investigations revealed that during the meeting, Obasanjo directed Agunloye to add N11 billion to the already approved N6 billion allocation for the project’s take-off. He added that the former president mentioned the issue during the subsequent FEC meeting, though details of the prior discussion were not fully disclosed.
The witness also stated that the Federal Government was expected to provide $1.5 billion, representing 25 per cent equity participation in the $6 billion project. However, after the memorandum presented by Agunloye was discussed at the FEC meeting, then Vice-President Atiku Abubakar and other council members suggested a review of the government’s equity stake.
Babangida said the council eventually directed Agunloye to withdraw his memorandum to allow for further engagement with investors and to explore options that could reduce government participation to between zero and 25 per cent.
Reading from the letter of award dated May 22, 2003, issued by Agunloye to SPTCL, the witness noted that the document stated government equity participation would range from zero to not more than 10 per cent. While this appeared to secure a reduction from the initial 25 per cent stake, Babangida added that the arrangement did not eventually play out as stated, without elaborating further.
Justice Onwuegbuzie adjourned the matter until February 2 for the continuation of cross-examination.