The Economic and Financial Crimes Commission (EFCC) has uncovered allegations of money laundering worth N37,170,855,753.44 in the Ministry of Humanitarian Affairs under the leadership of former minister, Sadiya Umar-Farouk. The anti-graft agency is currently investigating the case, which reveals that the money was transferred from the Federal Government’s accounts to 38 different bank accounts domiciled in five legacy commercial banks linked to a contractor, James Okwete.
After receiving the funds, Okwete allegedly transferred N6,746,034,000.00 to Bureau De Change operators, withdrew NN540,000,000.00 in cash, spent NN288,348,600.00 to purchase luxury cars and bought luxury houses in Abuja and Enugu State with N2,195,115,000.00. The investigation also revealed that 53 companies were traced to Okwete, and he used 47 of those companies to lift Federal Government contracts amounting to N27,423,824,339.86.
It is worth noting that Okwete is associated with 143 bank accounts in 12 commercial banks, of which 134 accounts are corporate accounts linked to different companies. Corporate Affairs Commission (CAC) revealed that Okwete is a director in only 11 of the 53 companies, while the remaining 42 companies’ accounts are only linked to his Bank Verification Number as a signatory to the accounts.
The Ministry of Humanitarian Affairs currently serves as the parent ministry to eight agencies, including the National Social Investment Office, the Office of the Senior Special Assistant to the President on Sustainable Development Goals, and the National Commission for Refugees, Migrants, and Internationally Displaced Persons. Sadiya Umar-Farouq was the pioneer Minister of Humanitarian Affairs, Disaster Management and Social Development, appointed by former President Muhammadu Buhari in July 2019 as the youngest cabinet member.
According to the EFCC document, “Between 2018 and 2023, the subject (Okwete) received the sum of N37,170,855,753.44 from the coffers of the Federal Government linked to the Ministry of Humanitarian Affairs, Disaster Management and Social Development.”
It’s not the first time such allegations have surfaced. In 2020, the Independent Corrupt Practices and Other Related Offences Commission uncovered N2.67bn meant for the ministry’s school feeding program in private bank accounts. The former ICPC Chairman, Bolaji Owasanoye, disclosed that the commission unravelled N2.67bn in personal accounts, being payment made to some federal colleges for school feeding during the COVID-19 lockdown in 2020.
Other discoveries by the ICPC include 18 buildings, 12 business premises and 25 plots of land. Owasanoye said that under the Open Treasury Portal review carried out between January and August 15, 2020, of the 268 Ministries, Departments and Agencies, 72 had cumulative infractions of N90m. Despite requests by the Socio-Economic Rights and Accountability Project to Umar-Farouq to publish details and names of the suspects, the former minister failed to reveal their names.
Reacting to this, SERAP wrote on its official Facebook page, “Following the disclosure by the ICPC that N2.67bn meant for school feeding during the COVID-19 lockdown ended up in private bank accounts, we’re calling on the Minister of Humanitarian Affairs, Disaster Management and Social Development of Nigeria, Sadiya Umar-Farouq, to immediately publish details of those suspected to be responsible, or face legal action. If the names are not immediately published, we’ll issue a freedom of information request to ensure that those involved are named and shamed.
We’ll also pursue appropriate legal actions to hold suspected perpetrators accountable, in the public interest. Diverting funds meant to feed school children (who are already disproportionately affected by corruption), especially during COVID-19, is a blatant violation of the rights to education, health, and dignity, as well as the government’s own COVID-19 transparency frameworks. Corruption in school feeding increases distrust in the government. The Federal Government must ensure that transparency and accountability measures are fundamental to all school feeding and other initiatives in the context of COVID-19, to ensure the children receive the support they need.”