The All Progressives Congress (APC) has expressed shock over what it calls embarrassing financial scandal involving Governor Udom Emmanuel administration in Akwa Ibom State.
The Akwa Ibom Chapter of the party said media reported that Globus Bank Limited, one of the bankers to Akwa Ibom State Government, has agreed to withhold N3,500,000,000 held in the state’s account, pending the conclusion of garnishee proceedings initiated against the state over a N4.2 billion judgment debt.
According to the party, ’’The garnishee proceedings were initiated by a financial management consultancy company, Bond Investments and Holdings Limited, in whose favour the High Court of the Federal Capital Territory (FCT) gave the N4.2 billion judgment on June 11, 2020.
A press release signed by its publicity secretary in the state, Nkereuwem Enyongekere, on Saturday, August 21, noted ”APC has received a damaging report on the financial transaction involving a company known as Bond Investment and Holdings Limited, Akwa Ibom State government and Globus Bank, a bank in which Governor Udom Emmanuel is said to have huge and controlling shareholding interests.
The release entitled: Udom’s Government, Globus Bank and a Question of Integrity, said ”Bond Investment had sued Akwa Ibom State government, accusing the state of failing to meet its obligations concerning a contract agreement between them.
”In the suit, Bond stated that the state had engaged it to offer financial consultancy services to reconcile and recover excess deductions/charges on all the state’s foreign loan debt. It stated that parties signed a consultancy agreement dated June 30, 2010, regarding the reconciliation and recovery of excess deductions/charges on all Akwa Ibom State’s foreign loan debt.
”Bond added that one of the terms of the consultancy agreement was that it (Bond) would be entitled to be paid 15 per cent of any sum refunded to Akwa Ibom State based on its (Bond’s) reconciliation and recovery efforts.’’
It further stated that during the lifespan of the agreement, it reconciled and recovered $61,277,096.07 for the state from the Federal Government of Nigeria on the London Club debt.
Bond stated that despite several demands, the Akwa Ibom State Government refused to pay it 15 per cent of the recovered sum as agreed by parties in the consultancy agreement. In the June 11, 2020 judgment, Justice Olukayode Adeniyi agreed with the plaintiff’s lawyer, Kehinde Ogunwumiju (SAN).
The ruling party at the national level noted, ”This is yet another very embarrassing financial scandal involving the Udom Emmanuel administration, and Akwa Ibom State Chapter of APC is appalled that the governor has kept Akwa Ibom people in the dark over this matter for this long.’’
”We recall that the EFCC had three years ago indicted our governor and some of his officials of money laundering. As we understand from the EFCC, he will be standing trial after he leaves office. It is the first time ever a sitting governor is ever indicted of such a heinous crime.’’
”It is important for Governor Udom Emmanuel to come clean with Akwa Ibom people on his stakes in this bank and the relationship between the government and Bond Holdings and Investment Limited.
”The governor should also explain to Akwa Ibom people why the State has been mired in this scandal prone act with Bond Investment.’’
It remarked that there are three elements in this case, asking the government explain such to Akwa Ibom people.
These, it queried, include, ”What did the governor do with the $61,277,096.07 (equivalent of over N30 billion) which Bond Investment recovered for the state government? Why has the governor been so silent on such an extra ordinary inflow into the government’s treasury?
”Why is the government unwilling to pay Bond Investment its agreed professional fees for this recovery? As a banker, does the governor not know the implications of refusal to fulfill contractual obligations?
”What is the truth behind the ownership of Globus Bank? Is it true that the governor is a major investor in this new bank which is just three years old in the market? How could such a young Bank become the main banker to Akwa Ibom State government? How much did the governor invest in the Bank and what is the source of this investment?’’
The release observed ”Now with Globus Bank withholding our N3.5 billion due to the garnishee order and a judgment debt of N4.2 billion hanging over the peoples’ necks arising from this case, it is not difficult to see why our credit rating is falling and the reputation of our State has been dragged into the mud. Mr Udom Emmanuel should take responsibility for this badge of shame. Only he can do it!
”Akwa Ibom people are once again embarrassed by this financial scandal which reminds the general public, of the opacity with which this administration has been managing the state public finances.
”The refusal of the government to disclose the $61.277 million recovered for the State by Bond Investment tantamount to financial dishonesty and lack of transparency. This is a new low for a government which is notorious for its poor performance in the last six years plus.
”APC as a party of change in the state, has a Constitutional right to speak for Akwa Ibom people and defend their rights. We shall not flinch.’’
