NIGCOMSAT CEO, Abimbola Alale Enmeshed In Alleged Multi-billion Naira Fraud

MICHAEL AKINOLA

More than a year after Ms. Abimbola Alale bagged an extension of service for another 4-year term as the Managing Director and Chief Executive Officer of Nigerian Communication Satellite Limited (NIGCOMSAT), motives for this may be gradually unfolding.

It was gathered that while Alale is the only African on the board of Space Generation Advisory Council, when it comes to the financial affairs of NIGCOMSAT; a satellite communications service provider wholly owned by the Federal Government of Nigeria and incorporated on April 4, 2006, she seems not to fly solo.

Sources are alleging that between September and December 2011, Alale in connivance with the immediate past managing director of NIGCOMSAT, Engr. Ahmed Rufai and one Alma Okpalefe Udoyen without a Certificate of No Objection from the Bureau of Public Procurement and no approval from the Federal Executive Council (since the service was a non-consultant service contract) paid the sum of N5,893,920,000 as an insurance premium for the launch of NigComSat-1R satellite to Fasaha Intercontinental Insurance Brokers Ltd, with an office at Block C3 Amsalco Plaza, No 100 Zoo Road Kano.

It was further alleged that as the project director for NIGCOMSAT 1R, Alale also allegedly facilitated payment up to the tune of N3,082,742,400 for non-existent and fictitious insurance policies, amongst which was a N1,475,680,000 payment as premium for an Early Launch Orbit insurance with no certificate issued.

China Great Wall Industries Corp. (CGWIC), the satellite manufacturers, was also allegedly didn’t indicate Early Launch Orbit Insurance as part of the insurance cover for the satellite.

Despite the contract document of NIGCOMSAT 1R satellite between NIGCOMSAT and China Great Wall Industries Corp. (CGWIC) stating that the transit insurance of the NIGCOMSAT-1R satellite from the factory in Beijing to the launch site at Xichang was the responsibility of CGWIC, another payment of N1,607,062,400 was also allegedly made with no insurance policy or certificate to authenticate the transaction.

The source alleged: “Obviously running the agency with an open check, the sum of N1,475, 680,000 was subsequently paid for NIGCOMSAT 1R Launch Insurance while the sum of N1,335,497,600 was paid for NIGCOMSAT 1R In-Orbit Insurance valid for two years from 2011 to 2013.

“However, on 21st December 2012, while the subsisting in-orbit insurance was still valid, the astronomical thieves having developed a conduit pipe through which they siphon taxpayer’s money again paid the sum of N421,885,364.63 to Fasaha Intercontinental Insurance Brokers Ltd for the renewal of the in-orbit insurance policy for 19 December 2012 to 19 December 2013.”

Just like other previous deals, it was alleged that the payment was approved by the in-house tender management board fully aware that the said in-orbit insurance is not renewable as it is traditionally a one-time payment.

“While the copy of the insurance policy did not state the premium, no FEC approval or BPP Certificate of No-Objection was obtained for the procurement which remarkably, was not signed by either party, with no insurance certificate from the local and foreign insurers,” the source disclosed.

He continued: “Further diggings showed that not only was the act fraudulent, but the amount approved for the project was also above the threshold of the company’s tenders board as set out by BPP in the approved revised threshold for the award of contracts, thus contravenes section 16 (I) (2) of the Public Procurement Act, 2007.

“On November 4, 2010, Mr. Rufai and Mrs. Alale, awarded a contract for the supply of phones towards the implementation of the National Public Security Communications System Project (NPSCS). The contract which was a supply of goods contract was above the threshold of the in-house management tender board meeting as stated in the BPP guidelines.

“The approving authority for this contract should be the Federal Executive Council while the BPP will issue ‘No Objection Certificate’. But this was not followed.
It was also gathered that a former executive director, Finance and Administration (F&A), Mohammed Lema Tambuwal had raised several concerns about Mrs. Alale’s alleged breach of government financial regulations. One of such was the total disregard of due process in auctioning the company’s assets including new vehicles in the company’s fleet to herself and her cronies.

“The executive director recommended that these vehicles be returned to the company and these persons be refunded the paltry sums paid to acquire the new vehicles, but this was never implemented.

Instead, it was alleged the Executive Director was asked to relinquish the finance portfolio.

Other allegations against the NIGCOMSAT boss is that against the federal government’s guidelines, most lucrative contracts were offered exclusively to Content Oasis Ltd, a company owned by one Diseye Isoun, the son of the NIGCOMSAT former Chairman, Turner Isoun and most of the projects were not executed.

There were also allegations that nepotism and tribalism are the order of business at NIGCOMSAT.

It was claimed that appointments to managerial positions as well as promotions are usually arbitrary and based on Alale’s interest.