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The Abia State government’s decision to submit the KPMG report to the Economic and Financial Crimes Commission has set in motion a wheels-of-justice moment, as the anti-graft agency prepares to dig into the report’s findings and unravel the truth behind the allegations against former Governor Okezie Ikpeazu.
With the submission of a comprehensive forensic audit report by KPMG Nigeria, the EFCC is now ready to launch a full-scale investigation into the financial fraud allegations plaguing former Abia State governor Okezie Ikpeazu’s tenure.
Under Governor Alex Otti’s watch, a detailed audit has been conducted to scrutinize the state’s financial dealings from May 2015 to May 2023, paving the way for greater transparency and accountability in the management of public funds.
The “Process Review Services” report, a dense 359-page document, uncovers a staggering N1.9 trillion hole in the state’s treasury, allegedly created during Okezie Ikpeazu’s tenure, raising serious questions about fiscal responsibility and transparency.
A closer examination reveals that the Abia State government’s financial transactions were scattered across 78 accounts in 14 banks, amounting to a substantial N3.5 billion, inviting questions about the state’s fiscal discipline and transparency.
The report lifts the lid on a web of financial deceit, featuring funds misallocated to ghost projects, loans granted without clear objectives, and credit facilities obtained but not utilized. Additionally, internally generated revenue was withheld, and illegal deductions further drained the state’s resources.
The alleged N1.9 trillion misallocation is just the tip of the iceberg, as the report also uncovered widespread illegal transfers of state-owned assets, including land, to private individuals, casting a darker shadow over the financial dealings in question.
According to the report, the state government’s contracting spree between 2015 and 2023 saw 231 contractors secure 560 deals worth a staggering N294.8 billion. However, the report highlights an information gap regarding 40 contracts, fueling curiosity and potential scrutiny.
It further revealed that N10 billion of the funds were paid to Ferotex on September 25, 2020, for the “Construction of Abia State Airport,” which never materialised.
Before the release of the audit report, Governor Otti and Ikpeazu were engaged in a war of words over the governor’s allegation that his predecessor diverted the N10 billion, which was earmarked for the construction of the airport in the state.
Read also: Ikpeazu Left ₦3.49bn For Abia – Ex-Commissioner Counters Otti
It all began on April 19, 2024, when Otti visited the Johns Hopkins School of Advanced International Studies in the United States, where he delivered a lecture on ‘State of Governance and Economic Transition: Meeting the Challenges.’ In his lecture, Otti accused Ikpeazu of allocating N10 billion to a non-existent airport project in the state, citing the forensic audit carried out by KPMG Nigeria.
Almost simultaneously, a video clip, which showed the governor making the speech went viral on various social media platforms where he said: “Talking about corruption, I had set up a forensic audit as soon as I took over office in Abia, last year (2023). So that there won’t be any argument; I called in one of the top three audit firms in the world, and not too long ago, they turned in their report, and some of the things in their report are frightening,” Otti said.
“So, some N9.3 billion was paid to seven contractors for contracts that were not executed at all up till today. Another N15.9 billion was paid to 63 contractors with no supporting documents anywhere in the state. Another N12 billion was paid to two contractors for contracts that do not exist. Out of this figure N10 billion was on September 25, 2020, paid to some contractors for the construction of the Abia State Airport.
“We have spent time trying to locate the airport and up till now have not been able to locate it. So, as we continue to look for our airport, we have also involved the security agencies to help us search,” the governor stated.
Although Ikpeazu’s name was not mentioned in Governor Otti’s video statement, the timing of the alleged financial malfeasance suggests a strong link to Ikpeazu’s administration, which was in power at the time.
Ikpeazu’s initial response, conveyed through his former information commissioner John Kalu, vehemently denied the allegations, clarifying that the N10 billion earmarked for the airport project was reallocated to alternative initiatives with the explicit approval of the State Executive Council.
Ikpeazu, in a video message, provided further context, revealing that the funds were deliberately channeled into critical road infrastructure projects in Abia, after the airport project was put on hold due to circumstances beyond his administration’s control.
