European Investigators boldly declare that the $356 million failed railway contract is Nigeria’s largest money laundering case.
By Abayomi Odunowo.
The revelation that a dormant European company secured a $356 million contract for the rehabilitation of Lot 3 of the Nigerian Railway Corporation’s Eastern line raises serious questions about the transparency and accountability of government contracts in Nigeria. The fact that this contract was awarded during the tenure of former President Goodluck Jonathan further casts doubt on the integrity of the process.
According to official documents, the contract was awarded to Lingo Nigeria, in partnership with Strasky Husty and Partners, for the rehabilitation of the Kuru to Maiduguri section of the railway project. The contract had a completion period of 10 months, but it is now the subject of a probe by European investigators who suspect it may be linked to money laundering and theft of public funds.
This case highlights the need for greater oversight and regulation of government contracts in Nigeria to ensure that they are awarded fairly and transparently. It also underscores the importance of holding those responsible for corruption and fraud to account to prevent such incidents from reoccurring in the future.
After the initial mobilization to the site of the railway project from Kuru to Maiduguri, there was a significant amount of progress made by the contractor, Lingo Nigeria Limited. However, this progress was short-lived as the project was reportedly abandoned after the equivalent of the contract sum, a substantial $356 million, was paid in full.
The Minister of Transport at the time, Idris Umar, expressed disappointment and concern during an inspection tour of the project area, particularly the Bauchi-Gombe-Bajoga section. He noted the slow pace of work and emphasized that the quality of work done was not acceptable.
The Project Manager of Lingo Nigeria Limited, Architect Jerry Nweke, attributed the delays in the project to security challenges, which led to the withdrawal of some expatriate staff, as well as the late arrival of key components for the project. He assured the Minister that the project would be 60% completed by the end of May and stated that the government had fulfilled its financial obligations.
Despite the promises made by the contractor, the project was ultimately abandoned, leaving behind a significant amount of taxpayer money wasted. This unfortunate situation highlights the importance of proper oversight and monitoring of government projects to ensure accountability and prevent such instances of mismanagement in the future.
The revelation that the contract sum had been fully paid to a seemingly dormant company such as Strasky Husty and Partners raises serious questions about the transparency and legitimacy of the transaction. The fact that the company is registered in Europe, specifically in London, adds another layer of complexity to the situation.
The nature of business listed for the company, which includes construction of roads and motorways, construction of bridges and tunnels, as well as being classified as a dormant company, only adds to the suspicion surrounding the contract awarded to them in Nigeria. The fact that the company has an authorized share capital fully paid up further adds to the mystery.
The triggering of a European probe into the matter, stemming from concerns over false tax filings, money laundering, and potential ties to criminal activity, highlights the seriousness of the situation. It raises questions about the due diligence processes involved in awarding such a lucrative contract to a company with little public presence or activity.
Overall, the implications of this situation are troubling and require thorough investigation to uncover the truth behind the contract payment and the nature of the company involved.
The ongoing investigations into the alleged fraudulent activities surrounding the Kuru-Maiduguri railway contract involving Lingo Nigeria and Strasky Husty have revealed startling information. Despite claims made by these companies, it has been confirmed that neither of them has any prior experience in road or railway construction. This raises serious concerns about their capability to successfully execute such a project.
Further scrutiny into the Nigerian end of the deal has uncovered a web of connections to former First Lady Patience Jonathan. Companies associated with her, including AM PM Global Network Limited, Pansy Oil and Gas Ltd, Flinchey Top Homes, Aribawa Aruera Foundation, and Pagmat Oil and Gas Ltd, have all been linked to businessman Ukachukwu, who is the owner of Lingo Nigeria. These companies have also been subjected to a freeze on their accounts due to suspicious financial activities.
It is becoming increasingly evident that there may have been corrupt practices involved in awarding these contracts, with companies linked to Ukachukwu allegedly benefiting from multiple lucrative deals during the Jonathan administration. The European investigators are meticulously examining these connections and transactions in order to uncover the full extent of the corruption.
On December 6, 2012, a comprehensive district development agreement was signed between the Federal Capital Development Administration and AM-PM Global Network Limited, reportedly under the discredited landswap scheme. This agreement granted approximately 2,895,100 sq m of land in Burum West “B” district within phase IV of Abuja to AM-PM Global.
The signatory of this agreement, Ukachukwu, is also known to be associated with multiple accounts, including two current accounts at Diamond Bank belonging to AM-PM Global Network Limited. He has also signed and received the Right of Occupancy of Finchley Top Homes from AGIS, and manages the accounts of Aribawa Aruera Foundation with Ecobank, which had a significant closing balance of N479,893,431.01.
Investigations have uncovered money trails leading to Onyx Hotel Garki, Lingo Estate Abuja, Nzube Estate Abuja, and the multi-billion Naira Eagle Aluminium Company in Awka and Abuja. These properties are now under scrutiny for potentially being proceeds of money linked to alleged criminal activities.
Overall, the details provided shed light on the complex web of financial transactions and property acquisitions that are currently under investigation. The medium essay serves as a call to action, urging authorities to further scrutinize these suspicious activities and uncover any potential criminal wrongdoing.
Lingo Nigeria Ltd, a General Merchant company, was registered with the Corporate Affairs Commission in June 1992 with an initial capital of N100,000.00. However, recent reports suggest that the Nigerian partner involved in the company, as well as his properties, may be receiving protection from key Nigerian authorities.
European investigators are currently making headway in their investigation of Strasky, a partner of Lingo Nigeria Ltd. Despite this progress, it appears that the Economic and Financial Crimes Commission (EFCC) and the Department of State Services (DSS) in Nigeria have not taken decisive action in connection to the ongoing scam.
Reports indicate that no arrests have been made in Nigeria in relation to the fraud that has caused outrage among European investigators. This lack of action has raised concerns about the level of commitment from Nigerian authorities in addressing financial crimes and cooperating with international investigations.
It is essential for Nigerian authorities to prioritize tackling financial crimes and ensuring that perpetrators are held accountable, regardless of their connections or status. Failure to do so could undermine trust in Nigeria’s commitment to combating corruption and protecting the integrity of its business environment.
Otunba Abdulfalil Abayomi Odunowo
NationL Chairman AATSG
Tel: 09053535322.