Investigation has uncovered massive financial mismanagement within the Edo State chapter of the Association of Local Governments of Nigeria (ALGON), implicating several individuals, including the impeached chairman of Orhionmwon Local Government Council and former ALGON Edo chairman, Newman Ugiagbe.
A statement of account (financial statement), covering transactions from September 2023 to September 2024, reveals several transactions involving large, unexplained cash transfers to various entities, including a hotel linked to the former ALGON chairman.
One of the most striking transactions listed on the first page of the statement is a N40 million transfer on March 20, 2024, to one Imasogie Dickson Notiemwenmwan, a Peoples Democratic Party (PDP) chieftain via Skye Bank (now Polaris Bank). The purpose of this transaction remains unclear.
Additionally, a series of payments totaling millions of naira were made to Demarriot Hotel Limited, a hospitality business linked to Newman Ugiagbe. The repeated transactions to this establishment raise concerns about possible money laundering or misappropriation of public funds.
Other large disbursements include:
- N9 million to the National Council for Women Society (March 18, 2024)
- N6 million to an individual named Abadonis Enghonmwanyeke (March 15, 2024)
- N5 million to Imasetoba Johnbull and Company (March 20, 2024)
- N30 million to Nosama Pharmacy and Stores Ltd (March 21, 2024)
- N60 million to Demarriot Hotel Limited (March 22, 2024)
These transactions, coupled with excessive NIBSS Instant Payment (NIP) charges and Value Added Tax (VAT) deductions, suggest a systematic siphoning of public funds by ALGON under Newman Ugiagbe.
Following the suspension and subsequent impeachment of the 18 local government council chairpersons in Edo state, investigators have intensified scrutiny into their tenure. Sources suggest that some of the funds may have been laundered through shell companies. A shell company is an inactive company used as a vehicle for various financial manoeuvres.
Only yesterday, the Edo State Governor, Senator Monday Okpebholo, revealed that the Economic and Financial Crimes Commission (EFCC) will prosecute some of the impeached council chairmen indicted for looting the Local Government treasuries, running into over N96 billions.
Governor Okpebholo made this revelation when he received the report of the Administrative Panel of Enquiry set up on the 18th of December, 2024 to investigate the financial dealings of the impeached 18 Local Government Chairmen in Edo State from 4th September, 2023 to November, 2024.
Besides the impeached Local Government Chairmen who were indicted by the report, former governor Godwin Obaseki, leaders of the factional Peoples Democratic Party (PDP), among others, were also fingered, according to a statement by Chief Press Secretary to the Governor, Mr. Fred Itua.
Expressing satisfaction with the committee for the professionalism with which it carried out its duty, Governor Okpebholo said, the days of financial recklessness and lack of transparency in public office were long over, as “Nigerians need to start demanding accountability from elected public office holders”, stressing that “it was the only way to fight corruption and ensure development.”
Governor Okpebholo, while expressing dismay at the findings of the report that implicated the impeached 18 Local Government Chairmen, vowed to petition the EFCC on the findings of the report for immediate prosecution.
Chairman of the panel, Barr. Solomon Imohiosen, while submitting its report and recommendations to Governor Okpebholo, noted that findings and forensic investigations uncovered that huge sums amounting to N96 billion was either mismanaged and/or diverted to private accounts.
The panel observed that N95 billion (N95,080,676,687.86) was received from the Joint Allocation Account Committee (JAAC) by the 18 Local Government Area Chairmen for the period investigated. It, however, reported that the funds were not judiciously utilized as no meaningful projects were on the ground to justify the amount received.
Confirming fraudulent diversion of Local Government funds to political godfathers in the State, the panel reported that over N10 (10,433 658,452.00) was fraudulently siphoned, using the psudo name, “Security, Environment and Training”, saying that the 18 Local Government Area Chairmen contributed to the account, using it as a conduit pipe to drain government resources, as money were transferred from there to various individuals and companies.