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N1.2 Billion Fraud: Nigeria’s Electrification Agency Confirms Premium Times Story, Says Reforms Ongoing


Nigeria’s Rural Electrification Agency (REA) has reacted to PREMIUM TIMES’ exclusive story that detailed some of the challenges facing the organisation including a monumental fraud among top officials of its finance department. In a statement shared with this newspaper, the agency’s acting director of Promotion, Information and Outreach, Muntari Ibrahim, said the organisation is currently undergoing reforms resulting from several challenges.

“We acknowledge the recent surge of publications discussing various petitions, investigations, and allegations of corruption within the Rural Electrification Agency (REA). Notably, a recent report by Premium Times highlights significant changes within the Agency, prompted by media coverage, shedding light on longstanding issues plaguing the organization,” the spokesperson wrote.

“The Agency can confirm that recent publications accurately reflect that some members of staff have been redeployed, suspended, or are under investigation due to process deficiencies and a prevalent lack of accountability.”

The N1.2 billion alleged fraud

It had reported how anti-graft agencies found at least N1.2 billion in the personal accounts of six staff of the agency’s finance and account department, without justification. Two anti-graft agencies, the EFCC and ICPC, the Public Accounts Committee of the House of Representatives and a disciplinary committee at the REA are still investigating the alleged fraud. At least five of the officials have been suspended pending the outcome of the investigations.

The man reported to be behind the alleged fraud is the agency’s Director of Finance and Accounts, Abubakar Sambo. During interrogations by the investigating bodies, the officials involved mentioned Mr Sambo as the mastermind. Mr Sambo allegedly colluded with other officials at the Office of the Account General of the Federation to successfully perpetrate the fraud.

Mr Samboo redeployed – REA

However, the agency’s spokesperson, Mr Ibrahim, said the embattled DFA Mr Sambo, has been redeployed from the REA. He explained that Mr Sambo was a seconded officer deployed to the REA from the Office of the Accountant General. He added that the allegations levelled against him (Mr Sambo) and other core staff of the REA are still under investigation by the anti-graft authorities.

“To keep it concise, the most significant change is the redeployment of the Director of the Funds and Accounts Department – a seconded officer from the Office of the Accountant General…This marks a significant step forward, as it demonstrates the Agency’s commitment to accountability,” he stated.

He added that the agency has collaborated with anti-graft agencies and its mother ministry of power to investigate the matter. He said: “While the Agency may have maintained silence, it was not due to a lack of information but rather a deliberate effort to focus on the right processes, personnel, and a culture that prioritises doing what is right.

“Over the past few months, we have collaborated closely with the Ministry, National Assembly, anti-corruption agencies, and process organisations to initiate further reforms within REA, despite numerous obstacles. The Honourable Minister of Power, Chief Adebayo Adelabu directed a thorough committee review of the relevant issues that have influenced the Agency’s response to the alleged situation.”

Reforms

Mr Ibrahim also said the agency has in recent times made strides to reform its activities and realign its vision to meet the actual need it was created to tackle.

“For context, since its establishment in 2006, REA faced numerous challenges, including a lack of strategic direction during its initial ten years,” he said.

But a new board and management appointed in 2017 initiated a cultural shift within the agency, he said. However, due to institutional and sectoral challenges, the goals of the agency remain unmet. He stated that the agency’s Managing Director, Ahmad Salihijo, has since his appointment in 2020, attempted to align electrification projects with the goal of improving the lives of rural communities in a sustainable manner.

He said Mr Salihijo also solved some unresolved staff issues within the agency by restructuring the organisation’s processes structure, and staff welfare, with the aim of fostering a conducive work environment for optimal performance. This includes an approval for a robust organisational structure from the Office of the Head of the Civil Service of the Federation in September 2022, he said.

“His first step was to initiate a comprehensive institutional assessment and appraisal of the Agency, carried out by a globally renowned organizational re-engineering firm. This assessment rigorously evaluated the Agency’s project delivery, institutional structure, and processes to determine its capacity to meet its mandate. The recommendations from the assessment were meticulously reviewed and approved by the Agency’s Board and the Minister before being put into action, resulting in significant accomplishments,” he added.

According to him, the efforts resulted in various electrification programmes such as the Nigeria Electrification Project (NEP), Energizing Education Programme (EEP), Rural Electrification Fund (REF), and Energizing Economies Initiative (EEI), a programmatic budgeting program for capital projects and others, with a particular focus on supporting the energy transition policy.

“In addition to electrification, the Executive Management have worked to reform the Agency and improve the delivery of public goods and services, addressing issues like underinvestment, outdated processes, and limited technology adoption, which have hindered the Agency’s functions,” he added.

Mr Ibrahim said other reforms of the agency including its vision, mission, and mandate were aligned with current policy statements.

He said: “Standard Operating Procedures (SOPs) were introduced into the daily activities of the Agency for each department, ensuring consistent and efficient practices. The deployment of a robust monitoring and evaluation framework including the implementation of harmonized technical standards for improved project delivery. Engineer Ahmad ensured the clearance of the backlog of overdue staff promotions and ensured that all eligible staff received their well-deserved promotions. As of today, no staff within the Agency lags behind in their career progression.

“Engineer Ahmad successfully redefined departmental job descriptions and specifications, ensuring that staff roles were clearly defined.”

Source: Premium Times

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