The Value News

The Rot In NPA Under Hajia Usman, A Former Managing Director

By Stephen Ubanna

The removal of Hajia Hadiza Bala Usman, an activist, and Managing, Nigerian Ports Authority, NPA, by President Muhammadu Buhari,popular, PMB, a retired Army General, last Thursday has sent a signal to other Chief Executive Officers, CEOs, of  government owned agencies that anyone could be relieved of their appointment  at any time and therefore need to sit up and avoid being used by politicians and technocrats in the system to achieve their selfish ends. Hajia Usman may have played into the hands of the politicians and Technocrats in the Authority to  do their bidings which  may have exposed her weaknesses in financial management.

  The former  NPA, Managing Director may have come into light because of her association with Aisha Yesufu, and Oby Ezekwesili,a former minister of Education, during Olusegun Obasanjo presidency and Co-directors in  the ’’Bring Back Our Girls,’’BOG Campaign which involved the276 Chibok girls Kidnaped by the Islamic Fundamentalist, Group, BokoHaram insurgents in 2014.

As a close political ally of Nasir el-Rufai, a former minister of the Federal Capital Territory,  PDP, and now governor of Kaduna state  who may have  decided to  decide to be of  help her,  had secured her a job for at the Centre for Democratic Development and  Research in Zaria, Katsina state, where she was said to have spent one year as a Research Assistant. She had earlier worked at the Bureau for Public Enterprises, BPE,as  an enterprise officer  between 2000 and 2004, which may have brought her closer to el-Rufai, the then Director General of the agency.

Hajia Usman Political Mentor

He had made her his Special Assistant, Project Implementation , when he was appointed minister of the Federal Capital Territory, FCT,  by former President Olusegun Obasanjo, a position she occupied between 2004 and 2008. She was said to have been sponsored by the ministe  to contest election  as a Candidate  of the defunct Congress for Progressive  Change, CPC, a party floated by the Katsina state born Nigerian President in Musawa Matazu, Federal Constituency of the state but lost in 2011. This may have brought her close to the Nigerian Prsident  as she was said to have joined the Good Governance Group for Nigeria, a Non- Governmental Organisation, NGO, as Director of Strategy from  2011 to July 2015. 

She may have won the heart of the retired Army General, when the BOG group master-minded a protest in 2016, to create awareness to the plight of the Chibok Girls and the need for the government to expedite action to facilitate their release. Many see it as  a political strategy, which may have been  sold to  her by  El-Rufai, the god father in order to win the heart of Buhari as she was appointed as the Managing Director of the NPA, in Compensation in July 2016.

Given the powers behind her, she may have been running the  affairs of the agency without carrying Rotimi Amaechi, a former governor of Rivers state and minister of Transport along, particular, in the a reas of the  award of contracts and initiation of policies which requires ministerial approval.

Insiders told The Value News that she had on several occasions by-passed the minister to deal directly with the President   and regularly consult with her godfather who gives instructions on what to do at the Authority. The bubble may have burst about the rot in the agency when the audited report of the office of the Auditor General of the Federation which was a closely guided  secret which  very indicting filtered out. The report was said to have asked her  to refund the sum of N5.18 billion. She Audited report had accused her  of ‘’administrative arbitrariness, financial recklessness and a disdain for due process’’.

The report which was very damning was said to have also indicted her in’’ inflation of contracts and operational expenses  by  over N5.18 billion within two years’’. The alleged fraud was said to have been exposed   following the audit query  of the activities of the between 2016 and 2018.  

Adolphus: Auditor General Of The Federation, Exposed The Financial Mess In NPA

Adolphus Aghughu, the Auditor General of the Federation who was said to have signed the report and copied Lawan Ahmad , the Senate President, and Femi Gbajabiamila, Speaker of House of Representives and the Presidency including of the office of the Secretary General of the Federation.

The Senate President was said to have referred the Audited report to the Public Accounts Committee for discussion , a report which  , had accused the  former NPA boss of a ‘’gross betrayal of trust’’, as demonstrated by her ‘’flagrant abuse   for due process in the way and manner she runs the agency’’.

A copy  of  the Audited report cited by The Magazine, had cited her failure’’ to remit VAT deductions running into billions of naira and in foreign currency denominations to the Federal Inland Revenue Services, FIRS, Account’’ .The  Auditor General had said that the  VAT deductions to FIRS, alone, within the two yeas covered by the Audit included N3,667,750,470.00, $148,845,745.04,Euro4,891,449.50 and #252,682.14.

More damning in the report , was her massive increase  in’’ administrative expenses, extra budgetary expenditures on hotel accommodation and under disclosures on hotel expenses, Corporate social  Responsibility, CSR, diversion of funds through the Nigerian Port Today and Sponsorship of National Assembly Programmes amongst others’’.  

 The Audit report  had shown that the Authority spent N286,412,628,.00 on CSR, in 2016 while in 2017,  the figure rose to N2,496,248,775.00  and N5 billion in 2018.  The report noted that the needs of  the benefiaries were not properly assessed or identified before the implementation of  the CSR ,projects/programmes.

Indeed, one of the areas , in  which the former NPA, Managing  Director was said to have soiled her hands was in the award of Contracts. Take for instance, the contract ,with ref, HQ/GM/ROC/CON/C.11/PBT/16/322 dated 16/10/17,  which was said to have been awarded to Messrs Ecomaxx Engineering Projects Ltd for the supply of   items to the  old people’s home in Yaba, Lagos, the nation’s Commercial nerve centre  was awarded to the Company to he tune of #19,760,460.00 which was said to have been paid  vide invoice no. HQ/CS/0711, DATED  01/06/17. The report revealed that ‘’there was no documentary evidence to show that the items were  delivered  to the home.

Even the contract for supply of items to Yaba Children Orphanage home was said to have followed the same pattern. But the Contract  awarded to Tran-secure Ltd, to the tune of was #19,467,000.00 , was said to have been inflated  as the actual market price at the time the Contract was awarded to the Company  was #6,520,500.00.

The major  worry of the Auditor General of the Federation  was that  the total  expenditure by the agency  had increased astronomically by 128 from #87.47 billion  in 2016  to #198.98billion in 2017, without any justifiable explanation. Perhaps, what may have further provoked the anger of the Auditor  General of the Federation was the administrative expenses  which increased   by 72% from #26.126 billion  in 2016 to #44.93 billion in 2017.

More damning was how the Authority under the close watch of Hajia Usman, the suspended NPA, boss was  how she  claimed to have  spent N22.16 million in revenue monitoring  in 2016, which was said to  have increased  to N1.06 billion in 2017, an increase of over 689%. Training  budget  alone,  was said to have also  been inflated.  Whereas, the agency  under the close watch of Hajia Usman, was said  to have spent N20.48million in traing in 2016, , it was said to increased  to N470  million in 2017.

.The rot in the Authority became  more pronounced  with the alleged N15.31million claimed to have been spent on vessels/Crafts in 2016, which rose to N117.4 million, an increase of 666% in 2017.

The excessive expenditure of the agency  on Pollution control may have also attracted the Federal auditors who were said to have refused to be Compromised when information filtered  out that the report may very indicting.    Aghughu,the Auditor General of the Federation had wanet the former NPA Managing Director to tell Nigerians,  ‘’how N4.2 billion  was spent in 2017 as against N29million  in 2016, an increase of 310%.

Other alleged  over bloated  increase in expenditure include  local and foreign  medical expenses, legal fees , Corporate Souvenirs and expenditure on other government agencies which rose  from N59 million in 2016, to N338.59 million in 2017, a 573% increase. The report was said to have queried  the various expenditure by the Authority  on behalf of Rotimi Amaechi,  a former governor of Rivers state and now minister of Transport , ‘’for which a whopping $604,598.95 was  paid  without supporting documents’’. This may have informed why the Auditor General of the Federation had insisted that Hajia Usman must refund the sum of N5.18 billion  into the government treasury.

This may have given the Senators who had  seen the report of the office of the Auditor General of the Federation, on the NPA  Management under the close watch of Hajia Usman , which was very indicting to  finally nail her.

 The Senate  public Account,  which hadscrutinised the  Audited report,  were said to have   forced Amaechi , the Transport minister, to  further probe NPA, preparatory to probing other  agencies within the ministry , particular,  the National Maritime Administration and Safety Agency, NIMASA, described as another heavy spenders.

 The audited report on NPA, may have filtered to the hearing of Buhari  but had waited to see the action that may be taken by the overseeing minister before taking a decision on her. 

This may have informed why the minister set up an Administrative Panel of inquiry to investigate the suspended NPA boss which was said to have been approved by the Nigerian President. The minister may have provided the ammunition for the Daura Politician who had promised to fight Corruption in all its facets on assumption of office in 2015 and which he had repeated in 2019 to sack his political ally, as recommended by the minister  to avoid interference in the investigation. 

The Magazine learnt that there were several attempts by some power brokers to suppress the report but got it. This is because had filtered out how the  former NPA, Managing  plundered the agency.  She was said to have ran to her el-rufai, her godfather to save her from the mess she had  entangled herself but there was no much he could  as the matter had gone beyond him as the retired Army would  want  use her to set example of his anti-Corruption.

The sack of Hajia Usman, the NPA, boss had made her the second top government  official to be sacked in less than from office in less than one year. The first to be suspended from office was Ibrahim Magu, a Commissioner of Police and  former acting Chairman of Economic and Financial Crimes Commission, EFCC, over alleged Corruption.     

Stephen Ubanna

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