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N12.3bn fraud uncovered in Imo oil commission

  • Uzodimma vows to implement audit report

A forensic audit report set up by Imo Government has revealed that N12.3 billion was misappropriated between 2007 and 2020 by the state Oil Producing Areas Development Commission (ISOPADEC).

Out of the sum, N10 billion, claimed to have been used for execution of projects by the commission during the years in review, was discovered to be false as the acclaimed projects were non-existing according to the report.

The interim forensic audit report was carried out by Corporate Development and Assets Management Ltd. (CADAM-ANE), duly commissioned by the state government.

A breakdown of the report shows that N3.5 billion was an inexplicable online transfers of ISOPADEC to sundry payees from 2007 to January 2020.

Most worrisome of the report was a N3 billion spent between June 2019 and January 2020, while N647 million was spent between 2007 and May 2019.

Further shocking details are that while only 44 transactions under the sub-head of unexplained expenditure and online transfers were carried out in 12 years (2007 to 2018) 88 of such illegal transactions were carried out in less than eight months (June 2019 to January 2020)

The report also showed that the overall expenditure profile of ISOPADEC within the period under review witnessed an unprecedented high in seven months than in any single year in 12 years.

In 2008, the commission spent N3.1 billion, N1.7 billion in 2009, N1.4 billion in both 2012 and 2013 and N1 billion in 2017. But from 2007 to 2018 were less than a billion naira. Between June 2019 and January 2020 alone, less than eight months, the commission spent N3.3 billion.

The report also revealed that huge sums of money were paid to contractors without following due process in direct violation of extant laws, huge online transfers were also made to either unknown or unidentified recipients.

It recommended that the state  government should take steps for the immediate recovery of the N12.272 billion.

Reacting, Commissioner for Information and Strategy, Declan Emelumba,  said the government will leave no stone unturned in its efforts to recover the money, while asserting that all those behind the unexecuted contracts will be dealt with according to the law.

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