EFCC begins probe of Ikpeazu over N10bn airport contract, N118bn fraud

EFCC begins probe of Ikpeazu over N10bn airport contract, N118bn fraud

The Economic and Financial Crimes Commission has commenced investigations into the massive fraud
reportedly discovered by forensic auditors in the eight-year administration of the ex-Governor of Abia State, Dr Okezie Ikpeazu.
The auditors were engaged by the incumbent governor of the state, Dr Alex Otti.
The probe by the commission would cover the alleged diversion of the N10bn paid to Ferotex Construction Company for the execution of “non-existent” airport project, according to a report by an online newspaper, The Whistler.
Allegations of misappropriation of funds amounting to N118bn and violation of the public procurement laws of Abia State were part of the probe.
Already, the commission was said to have received copies of the forensic audit report prepared by KPMG Advisory Services indicting the ex-governor of financial recklessness during his time in office.
The EFCC commended the governor for submitting the report to the commission, noting that it was the first of its kind in the country.
The commission said the forensic audit report would make its assignment easy.

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Ikpeazu was governor of Abia from 2015 to 2023 on the platform of the Peoples Democratic Party (PDP).

Otti was elected under the Labour Party.

But the former governor had in response through his then Commissioner for Information, Chief John Kalu, claimed that the airport funds were utilised for road projects.

THE Whistler last week exclusively reported how the government paid the sum of N10bn to Ferotex Construction Company for the execution of the controversial ‘non-existent’ Abia Airport Project.

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The report had put the ex-governor and his officials on the spotlight as many Nigerians started calling on the EFCC to arrest and prosecute them for corruption.

Findings revealed that the N10bn appropriated by the state Assembly cannot be used to finance any project other than the airport project without a virement which must be duly approved by the lawmakers.

Budget Virement means the process of transferring budgeted funds from one line item to another, with the approval of the Assembly.

The report said there was no request to the state Assembly from the ex-governor for the virement of the N10bn airport fund for any road project.