By Olusola Fabiyi, Abuja
Published: Saturday, 7 Jun 2008
More facts have emerged about how the former Inspector General, Mr. Sunday Ehindero, and the suspended Commissioner of Police in charge of Budget, Force Headquarters, Abuja, Mr. John Obaniyi, forced the two banks with which the controversial N500m arms and ammunition money was lodged to pay the interest that accrued from the lodgment in cash.
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Our Correspondent
Former Inspector-General of Po
According to documents obtained by our correspondent, Obaniyi, who claimed to be writing from the IGP office, Budget section, asked the two banks (names withheld) in separate letters to pay the interest accrued from what he called “investment,” in cash.
The demand, the banks however noted, was against the “normal practice.”
In placing the money in one of the banks, Obaniyi in a letter with a reference No C.V 1929/PB/FHQ/ABJ/VOL.6/417 dated July 10, 2006 wrote, “The Inspector –General of Police has approved the placement of the sum of two hundred million naira (N200,000, 00.00) only being Nigeria Police funds in your bank for 90 days at 10 % interest.
“The First Bank of Nig. Plc cheque No. 01111788 dated 10 July, 2006 for the sum of two hundred million naira (N200,000,000.00) only is attached for your necessary action.
“You are requested to acknowledge receipt, please.”
On October 13, Obaniyi wrote back to the bank to remind it that the investment had matured a day earlier.
“It will be appreciated if the 10 per cent interest on the investment can be made available in cash for operational expenses urgently, please.”
This demand, which the bank saw to be irregular, was however honoured via a cash cheque dated October 19, 2006 and written in the name of Obaniyi, who was said to be the sole signatory to the account. Two officials of the bank, via a letter dated October 19, 2006 with a title “Approval for cash payment” wrote to their superior and said, ‘The Nigeria Police IGP’s account, our customer, has requested that we pay cash for the interest accrued on their fixed deposit of N20m which matured on the 9th October, 2006.
“Though we have the request of the customer to pay cash, we require the management’s approval to consent since the normal practice is that the interest accrued on the deposit should be issued to the Nigeria Police using our Manager’s cheque since the account with us is a fixed deposit account and not operations account.
“We hereby seek your approval to pay cash of N4, 986,301.37 being interest on N200m at 10per cent for 91 days.”
The request was however granted by the superior officer but with a caveat “kindly ensure that the CP Budget acknowledge the payment,” written the approval officer.
And on November 8, 2006, Obaniyi wrote back to the bank, terminating the investment, saying that he was directed to do so.
He wrote, “I have been directed to terminate the investment of two hundred million naira (N200, 000,000.00) due to the fact that the fund is required for immediate use.”
The tone of the second letter to the second bank (name withheld), was not different.
Obaniyi, in the letter directed to the managing director of the bank, dated July 4, 2006 titled “Investment”, wrote “The Inspector –General of Police has approved the placement of the sum of three hundred million naira (N300,000,00.00) only being Nigeria Police funds in your bank for 90 days.
“I attach herewith The First Bank of Nig. Plc cheque No. 01111782 dated 4 Jul, 2006 for the sum of three hundred million naira (N300, 000,000.00) only for investment at 10 per cent interest rate.”
This bank, in its acknowledgment of the fund, sent a letter a letter to the IGP, attention CP. Obaniyi spelt out details of the investment.
The break down went thus: Principal – N300, 000,000.00
Interest Rate – 10% per Annum
Tenor – 90 days
Effective Date – 10 July, 2006
Maturity Date – 7th October, 2006
Payment Date – 8th October, 2006.
Six days after the maturity date, Obaniyi, while reminding the management that the investment had matured, demanded in his letter that “it will be appreciated if the 10% interest on the investment can be made available in cash for operational expenses urgently, please.”
The bank, via a letter to the IGP, and attention Obaniyi and dated October 17, 2006 sent the interest.
The bank said, “We reefer to your letter dated 13 October, 2006.
“Kindly acknowledge the receipt of N7, 377.260.27 (Seven Million three hundred and seventy thousand two hundred and sixty naira seven kobo) being the accrued interest on the above placement for ninety 990) days.”
The bank claimed that “the interest paid on the said deposit was treated in line with the instructions received from the Commissioner of Police – Budget requesting that interest should be paid in cash to meet the operational expenses and as such the payment of interest was paid in cash which was acknowledged/collected by the commissioner of police, Budget CP J.O.J Obaniyi.”
Sources at the Independent Corrupt Practices and other related offences Commission which is investigating the scam said that though Ehindero actually returned the N557m, which was donated by the former Governor of Bayelsa State, now Vice President Goodluck Jonathan, he did not return the interest, claiming that it was used on operational expenses.
He was said to have remained silent when was asked to bring out documents to support his claim.
This posture, according to the reliable source, was wrong as he ought to have also declared the interest the money had yielded when he was retuning the cheque to the then Ministry of Police Affairs, which was directed by former President to handle the procurement of the arms and ammunition instead of the former police chief.
The directive led Ehindero to ask Obaniyi to terminate the lodgment of the funds in the two banks.
Sources said that this could be the reason why the anti-graft commission had said that the former IGP and Obaniyi would have to explain how the money was expended and were therefore recommended for prosecution.
They were accused of violating several section of the ICPC act like sections 16, 19, 19 and 12 among others.
The source said, “This is public money. It is wrong for someone to just say that he asked that the money be given for this and that without proper documentation. That is not done in a civilised world.”
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