Ex-Kaduna Commissioners Refute Allegations Of ₦1.37bn Misappropriation Under El-Rufai

Ex-Kaduna Commissioners Refute Allegations Of ₦1.37bn Misappropriation Under El-Rufai

Former commissioners who served under the administration of former Governor Nasir El-Rufai in Kaduna State from 2015 to 2023 have responded to the recent order issued by the Federal High Court sitting in the state.

On February 28, Justice H. Buhari of the Federal High Court ordered the interim forfeiture of ₦1.37 billion, which was allegedly diverted into a private account. This ruling followed an ex parte application filed by the Independent Corrupt Practices and Other Related Offences Commission (ICPC). The ₦1.37 billion was said to have been paid into the account of an unregistered company related to the Kaduna Light Rail Project.

In their response, the former cabinet members rejected the court’s order, insisting there was no justification for any forfeiture proceedings. They described the ruling as an act of oppression and an abuse of power, intended to confiscate private assets and deter foreign direct investment in the state.

The commissioners emphasized that the Kaduna Light Rail Project was conceived as a landmark initiative by the State Executive Council in October 2015. The project was to be funded in part by a World Bank Performance for Results loan of about $350 million.

The former officials explained that, given the scale of the project, estimated to cost between $600 million and $700 million, foreign collaboration and funding were essential. This led to the publication of advertisements in reputable local and international media, including The Economist, to invite interest. An Indian company, Skipper, was eventually awarded the contract after a competitive tender process. Skipper was tasked with securing approximately 85% of the project cost from the Indian Export-Import Bank, while Kaduna State was to contribute 15% as equity.

The statement also acknowledged that the former government had paid ₦890 million to Skipper and GTA for the feasibility study of the light rail project. However, the project could not proceed due to the Federal Government’s refusal to approve a Sovereign Guarantee.

The former officials revealed that while the project stalled, they had increased their down payment to ₦12 billion, representing the state’s 15% equity share. When it became clear that the Sovereign Guarantee would not be granted, the funds were recalled from Sterling Bank. The bank refunded the full amount, except for the ₦890 million paid for the feasibility study, which remains the property of Kaduna State.

The statement clarified that the feasibility study report and other incurred costs—such as geo-mapping, land acquisition, domestic and international travel, and relevant expenses—remain valuable for any future attempts to resume the project.

As part of their commitment to transparency, the former government engaged a forensic audit firm to verify that the refunds were properly received by the state.

The statement further referenced a previous incident where senior officials from the former Kaduna State Executive Council were arrested by the ICPC. At the time, the allegation was that ₦13 billion allocated for the light rail project was missing. However, when evidence of the refund and the forensic audit report were presented to the ICPC, the narrative changed. The ICPC allegedly became hostile and targeted Sterling Bank, compelling the bank to deposit ₦1.3 billion into an Escrow Account with the Central Bank of Nigeria (CBN), pending litigation to determine whether fraud or criminal activity had occurred.

The former commissioners clarified that the ₦1.3 billion in the Escrow Account consists of the ₦890 million cost of the feasibility study and about ₦400 million in interest accrued on the deposit in the joint venture account.