Allegations of N96bn Fraud: Edo Panel’s Findings

Obaseki and LG Chairmen Indicted in Edo Fraud Investigation

A recent report by an Edo State government panel has implicated former Governor Godwin Obaseki, several impeached local government chairmen, and leaders of the People’s Democratic Party (PDP) in the alleged mismanagement and diversion of approximately ₦96 billion in local government funds. The panel, chaired by Solomon Imohiosen, was established on December 18, 2024, to investigate the financial activities of the 18 local government councils from September 4, 2023, to November 2024.

Key Findings:

• Mismanagement of Funds: The panel discovered that the councils received ₦95,080,676,687.86 from the Joint Allocation Account Committee (JAAC) during the review period. However, these funds were not judiciously utilized, with no significant projects to justify the expenditures.
• Diversion to Political Figures: Over ₦10 billion was allegedly siphoned off under the pretense of “Security, Environment, and Training,” with funds diverted to political godfathers in the state.
• Specific Individuals Indicted: Notable figures implicated include the former chairman of the Association of Local Government of Nigeria (ALGON) in Edo State, Newman Ugiagbe, who allegedly used his hotel, Demarriots Hotels Limited, in collaboration with others to embezzle local government funds.

Government’s Response:

Governor Monday Okpebholo expressed dismay at the findings and vowed to take decisive action. He announced plans to petition the Economic and Financial Crimes Commission (EFCC) to prosecute those implicated in the report. The governor emphasized the need for accountability and transparency in public office, stating that the era of financial recklessness in the state is over.

Reactions from the Accused:

In response to the allegations, former Governor Godwin Obaseki, through his media adviser, Crusoe Osagie, dismissed the claims as a desperate attempt by Governor Okpebholo to justify unconstitutional actions against elected local government officials. Obaseki argued that the governor lacks the authority to investigate officials who were elected into office, just as he was.