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At least 1.86 billion naira was looted by officials of the Abia State government in 2023, according to an audit report released by the state auditor-general in May 2024.
The 88-page report, titled “Report of the Auditor-General for the State on the Financial Statements and Accounts of the Abia State Government of Nigeria for the year ended 31st December 2023,” covered the period from January to December 2023.
The report alleged diversion of funds and looting by officials, breaching various provisions of the state’s financial regulations and civil service rules, PREMIUM TIMES stated.
Two governors served within the period
Okezie Ikpeazu of the Peoples Democratic Party served as governor from May 29, 2015 to May 29, 2023. Alex Otti of the Labour Party took over on May 29, 2023 after winning the March governorship election, according to PREMIUM TIMES.
“This means that Mr Ikpeazu served as governor in the state for five months within the period, while his successor, Mr Otti, governed for seven months within the same year,” PREMIUM TIMES stated.
Types of alleged fraud
According to PREMIUM TIMES, which cited the audit report, the alleged fraud included award of contracts without due process, payments that circumvented due process, purchases not delivered, and funds insufficiently accounted for or unaccounted for.
Others included tax evasion, non-execution of awarded contracts, unvouched payments, unrecorded expenditures, payments made without evidence, and unremitted tax deductions.
Breakdown of funds
PREMIUM TIMES tallied the figures for “suspicious expenditures” and “unaccounted funds” from the affected ministries, departments, and agencies to arrive at the total amount.
Of the 1.86 billion naira, a total of 1.78 billion naira was either unaccounted for outright or paid without following due processes, the report stated.
A total of 79.46 million naira was allegedly diverted into private accounts owned and operated by individuals working for the Abia State Government, PREMIUM TIMES reported.
The diversion of public funds into private accounts occurred at the Abia State Ministry of Finance and the state’s Ministry of Petroleum, according to the report.
Specific transactions cited
PREMIUM TIMES reported that the audit found 32.12 million naira was transferred from the government treasury into the account of the then-permanent secretary of the finance ministry, identified only as Kelechi.
Similarly, 5.72 million naira was transferred into the account of the current director of finance at the ministry, Obinna Nwaokoma.
The report also said 41.62 million naira was “found to have been lodged into” the account of Philemon Asonye Ogbonna, the state commissioner for environment.
The report said the public fund lodged into the commissioner’s private account was “purported to be for the Abia Industrial and Innovative Park at Owaza, Ukwa West Local Government Area,” PREMIUM TIMES reported.
“This practice is against Financial Regulation 809,” the report stated.
Officials respond
When contacted on April 11, Nwaokoma denied receiving 5.7 million naira belonging to the government in his private bank account.
“There is no such thing,” he told PREMIUM TIMES.
He said he had been invited by the Abia State House of Assembly and the state’s audit unit, where he was cleared of the allegation.
Similarly, Asonye admitted that the 41.6 million naira had indeed been paid into his private account in 2024, explaining that the funds were for the construction of the Abia Industrial and Innovative Park.
“The value you saw in the audit report were used for the project, not that I used the money for my private projects,” he told PREMIUM TIMES.
When reminded that payment of government funds into his private account violated Financial Regulation 809, Asonye responded: “Reach the auditor-general. She will give you a response to that.”
