Dasuki billions not illicit – Obanikoro

A former Minister of State for defence Senator Musiliu Obanikoro
on Tuesday told the Federal High Court in Lagos that the
N4.6billion sent to him from the Office of the National Security
(ONSA) in 2014 was not illicit fund.

He said he was worried the huge sums he received from former
National Security Adviser (NSA) Col. Sambo Dasuki (rtd) “for
security purposes” were described as illicit.

Obanikoro, the fifth prosecution witness, spoke at the
continuation of his cross-examination in the trial of former Ekiti
State Governor Ayo Fayose for money laundering.

He said: “The NSA has the responsibility for coordination of
security in the country.

“He coordinates all the security agencies. Some of their
operations are clandestine and are usually not documented.

“It borders me as a person that clandestine operations of the
NSA are described as illicit. It should worry every Nigerian. I am
surprised that the current NSA can characterise the funds as
illicit.

“The local Joint Task Force on Boko Haram is still being funded
by the NSA and the operation started under our watch,” Obanikoro,
who served under the Goodluck Jonathan administration, said.

The former minister was cross-examined by Mr Olalekan Ojo (SAN),
counsel for Fayose’s company and co-accused, Spotless Limited.

The lawyer said: “I suggest to you that the funds from ONSA were
not illicitly obtained.”

Obanikoro responded: “To the best of my knowledge.”

The former minister said he had been reporting at the Economic
and Financial Crimes Commission (EFCC) once a month since 2016.

Asked why there was a two-year gap between two of his statements
tendered in court, Obanikoro said: “They gave me administrative
bail. One of the conditions is to report at the office once a
month.

“It was during one of such visitations on October 8 last year
that I made the last statement after I made the one of October 19,
2016.

“EFCC is investigating me based on a petition by the NSA that
N4.6billion was sent to an account operated by me without proper
documentation.

“I’ve been reporting at EFCC monthly since 2016 and I have not
been discharged from the administrative bail.

“It is correct that I am being investigated for having been
privy to illicit transfer of funds. The allegation has not been
withdrawn.”

Obanikoro said there was no contract between NSA and Taiwo
Kareem who he said owned Sylvan Mcnamara Limited through which NSA
transferred the funds.

The former minister said he dealt with Diamond Bank, where the
firm’s account was domiciled, on NSA’s behalf.

“I gave instructions to Alex Otti (former Diamond Bank Managing
Director) for the payment of N1.2billion.

“The NSA never interacted with the bank. I gave verbal
instructions to Diamond Bank.

“I didn’t reduce it to writing because of the nature of the
transactions. There was no written instruction for the release of
N1.2billion.”

Obanikoro said there was no written resolution by the board of
Sylvan Mcnamara that he should operate the account.

“The moment Sylvan Mcnamara decided to work with NSA for
security purposes, it was agreed that I would supervise the account
because of government funds in it. A verbal agreement was reached
to that effect.

“No, Fayose does not have any relationship with Sylvan
Mcnamara,” he said in response to a question.

Ojo then asked Obanikoro: “Are you aware that two of your
children – Gbolahan Obanikoro and Babajide Obanikoro – were
signatories to Sylvan Mcnamara’s account?”

Obanikoro said: “Yes, they were signatories to the account prior
to the operation in 2014. My children have relationships with the
company. I also have a relationship with the company.”

Ojo asked: “You had known Sylvan Mcnamara long before you
recommended it to NSA?”

Obanikoro replied: “Of course.”

Ojo asked: “You recommended Sylvan Mcnamara because of your
interest in the company?”

Obanikoro replied: “That’s preposterous. I was in charge of
security when I was Commissioner for Home Affairs in Lagos. I knew
the owner of the company then as a skillful security operative.

“When the opportunity came, I didn’t hesitate to recommend him
to the NSA. The company account went through three phases of
ownership.”

Asked why there were no documentations for most of the
transactions on the account, he said: “As a corporate citizen, the
bank had a responsibility to support the activities of security
operations by government institutions.

“If you work in security operations, you will see worst things.
And it’s all over the world, not only in Nigeria.”

The former minister admitted that one of the directors of Sylvan
Mcnamara, Ikenna Ezekwe, lived with him in his Parkview Estate,
Ikoyi home for several years before he left.

On how much was paid to the account in total, the witness said:
“About 4.7billion was paid to Sylvan Mcnamara’s account from
ONSA.”

Fayose is on trial for allegedly receiving and keeping
N1.2billion and $5million allegedly stolen from ONSA contrary to
the Money Laundering Act.

He had pleaded not guilty when he was arraigned on an 11-count
charge last October 22.

EFCC said Fayose and Biodun Agbele, who is facing a different
charge, allegedly took possession of N1,219,000, 000 on June 17,
2014 to fund the former governor’s 2014 gubernatorial campaign.

The commission said Fayose “reasonably ought to have known” that
the money “formed part of the proceeds of an unlawful act, to wit:
criminal breach of trust/stealing.”

EFCC said Fayose, on the same day, received cash payment of
$5million from Obanikoro, without going through a financial
institution, the sum having exceeded the amount authorised by
law.

EFCC listed Obanikoro as one of 22 witnesses that will testify
in the trial, which continues today.

Finally, Gov Ambode Present N852bn Budget Weeks to
Elections

Lagos State Governor, Mr Akinwunmi Ambode on Tuesday presented
the year 2019 budget proposal of N852.316billion to the House of
Assembly, with a pledge that it had been carefully prepared to be
all-encompassing and dedicated to complete major ongoing projects
in the State.

The Governor said N462.757billion representing 54 percent of the
total budget size had been earmarked for capital expenditure, while
N389.560billion representing 46 percent had been dedicated to
recurrent expenditure, saying that key projects such as the
Oshodi-Murtala Mohammed International Airport Road and Oshodi
Interchange Terminal, among others would be completed.

He said from inception of his administration, nine key areas
were given priority after careful assessment of the needs of the
citizens, adding that such had informed the massive investment in
the said sectors which he listed to include security, transport /
traffic management, economy -including tourism and agriculture,
housing, education, health, infrastructure – social and physical,
water, wealth creation – skill acquisition/microfinance,
e-Governance and enhanced capacity building, sustainable
environment and smart city projects.

Giving details of what informed the budget size, Governor Ambode
said the performance of Y2018 budget of N1.046trn as at November
2018 stood at 60 percent owing to reduction in revenue projections,
while the total revenue stood at N530.192billion.

According to him, “In the outgoing year, however, we experienced
a reduction in our revenue projections, which affected our
projected performance and our desired implementation of the Y2018
Budget. The overall Budget performance as at November 2018 stood at
60 per cent/N574,206billion with actual cumulative total revenue of
N530,192billion/64 per cent, Capital Expenditure closed at
N311,930billion/49 per cent and Recurrent Expenditure performed at
N262,276billion/82 per cent.

“In preparing the Year 2019 Budget, therefore, we were very
mindful of the out-going year performance, the yearnings of our
people and the fact that we are going into an election year.
Consequently, we are today presenting a Budget that will be
all-encompassing, reflect the level of resources that will be
available and with special consideration to the completion of major
on-going projects in the State.”

While outlining the key components of the Y2019 budget and the
sectoral allocations, the Governor said with priority given to
completion of major infrastructure projects and smooth transition
to the next administration, the government was proposing a total
budget size of ‘N852,316,936,483,’ including a deficit financing of
N77.086billion which is expected to be sourced from internal loans
and other sources.

He added: “The projected total revenue for Year 2019 is
₦775.231billion, of which ₦606.291billion is expected to be
generated internally, ₦168.940billion is expected from Federal
Transfers while a total of ₦77.086billion will be sourced through
deficit financing within our medium term expenditure framework.

“In 2019, as was with our previous budgets, Economic Affairs
still dominates the sectoral allocation of the proposed budget.
This is due to our continued focus on the completion of major
on-going projects such as: Oshodi-Murtala Mohammed International
Airport Road; Agege Pen Cinema Flyover; Phase II of Aradagun-Iworo
-Epeme Road, Oshodi Interchange Terminal; completion of JK Randle
Complex, Onikan Stadium; Imota Rice Mill; Renovation/Furnishing of
Lagos Revenue House, amongst others in order to meet their
specified deliverable outcomes without any bias or prejudice to
others.”

Expressing optimism that the revenues of the State would improve
in 2019, Governor Ambode said the government had begun
consolidating on the already established public financial
management and technology-driven revenue reforms through data
integration and use of multi-payment channels, just as he said that
every strata of the society would benefit from the budget.

“The Year 2019 Budget has been carefully planned to accommodate
all and sundry; women, youth and physically challenged, young and
old. We will continue to spread development to all part of our
state even as we embark on effective transition knowing fully well
that the implementation, failure or success of the Budget depend on
all of us,” he said.

Besides, Governor Ambode commended the Speaker and members of
the Assembly for the support accorded his administration in the
last three and half years, while also acknowledging the role of
Royal Fathers, Religious leaders, members of the Business
Community, Professional Bodies, Development Partners,
Non-Governmental Organisations, public servants and all residents
as well as members of the fourth estate of the realm for their
various support and contribution during the lifespan of his
administration.

In his remarks, Speaker of the House, Rt. Hon Mudashiru Obasa
expressed optimism that the budget would be of great benefit to the
people of the State, just as he assured that the House would work
with the executive to pass the budget.

SIGNED
HABIB ARUNA
CHIEF PRESS SECRETARY