How NCDMB Allegedly Paid $35m to a Company worth 10 million – House Committee on Local Content

How NCDMB Allegedly Paid $35m to a Company worth 10 million - House Committee on Local Content

How NCDMB Allegedly Paid $35m to a Company worth 10 million – House Committee on Local Content

Boma Goodhead, chairman House Committee on Local Content, in Nigerian House of representative has exposed the alleged fraud at the Nigerian Content and Development Monitoring Board, NCDMB.

The committee indicted the former management team of the board, headed by erstwhile Executive Secretary, Simbi Wabote, of awarding a contract of $35 million, with 40 percent equity, to a company with registration value of 10 million naira.

Hon. Boma Goodhead, while addressing the representative of the board, during the investigative hearing into management of resources accrued into NCDMB, she accused the board of investing 14 billion naira for shares to a company one year after it was registered in 2020 with no track record.

“A company registered in 2020, not up to one year after it’s incorporation, you gave them a contract worth $35 million. The company was registered as a family company, and has one naira per share capital of 10 million naira”

How can the board pay 14 billion naira, by 40 percent to such company? That simply means the company have just cash out on us. Tax payers are used anyhow, if it were to be your owe money will you go into such investments? How will you retrieve such money without equity.

Monies were just disbursed without due diligence, if you are claiming those funds are backed by CBN guarantee why haven’t you recovered them after contract had expired.

“The tenure for loan domiciled with Bank Of Industries is 5 years, with the first set at 2018/2019. We have a document of 160 million out of 320 million dollar, which means 50 percent disbursement by the board, and you mentioned that you were proud of the business between the board and the bank, when recovery after expiry tenure is just 45 million dollar, resulting to a 30 percent bad business loan”

Responding, Former Director of Finance & Personnel, who also doubles as Chairman, Investment review committee, Mr. Isaac Iyalla, noted that all contracts were approved and monies disbursed by council, adding that all the processes required for disbursement were followed.

On the issue of awarding a contract worth $35 million to a company valued at 10 million naira, and yet the project is abandoned, Iyalla said the project is delayed due to the challenges encountered by post COVID era which has changed the dynamics of the projects and affected a lot of things.

He appealed to the committee that all necessary documents to back their transactions will be provided, adding that some contracts tenure were also extended due to COVID.