Obazee report exposes how UBA diverted N3.9bn NSEI funds
Maureen Aguta
Among other revelations made by Jim Obazee, the CBN Special Investigator, in his report on the activities of the Central Bank of Nigeria [CBN] under its former governor, Godwin Emefiele; was how the Tony Elumelu’s United Bank for Africa (UBA) fraudulently diverted the sum of N3.9 billion NSEI funds.
The Obazee Report indicted the Managing Directors of UBA from 2015 till date of alleged diversion of N3.9 billion meant for participation in the Nigerian Electricity Market Stabilisation Facility.
The report submitted to President Bola Ahmed Tinubu, specifically indicted the Managing Directors of the UBA, and therefore recommended that they should refund N3.9 billion that they allegedly diverted.
In 2015, the apex bank under former Governor Godwin Emefiele, without any policy directive or approval by former President Goodluck Jonathan, incorporated a Special Purpose Vehicle called NESI Stabilisation Strategy Limited.
Checks indicated that the former President Jonathan initially approved a stabilization fund which was expected to be limited by guarantee for NESI specifically to address the problems in the electricity sector to operate for 10 years, during which the fund would have been expected to be repaid.
However, for the noble idea to come to fruition, some of the commercial banks were selected. But the report said that the Elumelu-led UBA quietly left with the funds without complying with the provisions of the NESI.
The Obazee’s report stated that UBA quietly walked away with N3.9 billion without carrying out anything in accordance with proposal.
The UBA thus became the bank that bolted with the highest figure, which the Obazee’s report to the President described as fraudulent.
The report pointedly accused UBA of engaging in manipulation by unlawfully arranging and collecting part of the 1.9535 per cent meant for participation in the Nigerian Electricity Market Stabilisation Facility.
This was equally contained in the External Auditor’s report, which was part of the Financial Statements of NESI Stabilisation Strategy Limited, which clearly stated that the fees were paid to UBA in proportion to its contribution to the NEMSF disbursement.