Umar Hussain Babangida, third prosecution witness (PW3) in the ongoing trial against former Minister of Power and Steel, Dr. Olu Agunloye, informed the Federal Capital Territory High Court (FCT) that upon his appointment as minister, Agunloye intimated former President Olusegun Obasanjo on the basis of the recommendation of Sunrise Power and Transmission Company Limited (SPTCL) for the construction of the Mambilla Hydroelectric Power Project.
Agunloye is being prosecuted by the EFCC, on behalf of the Federal Government, on an amended seven-count charge bordering on disobeying presidential directive, conspiracy, forgery and receiving gratification before Justice Jude Onwuegbuzie, sitting in Apo, Abuja.
Among others, it is alleged that, while serving as minister, he conspired with Leno Adesayan of Sunrise Power and Transmission Company Limited (SPTCL) to forge a letter titled “Construction of 3,960 MW Mambilla Hydroelectric Power Plant on Build, Operate and Transfer Basis.”
However, he pleaded not guilty to the charges against him.
At today’s sitting of the case, Babangida, the Deputy Commissioner of Police (ACP), told the court under cross-examination by Agunloye’s lawyer, Adeola Adedipe SAN, that Obasanjo approved SPTCL and Tafag Nigeria Limited being invited to negotiate.
According to him, when negotiations concluded with the Federal Ministry of Power and Steel, the then Minister of Energy, Dr. Olusegun Agagu, was no longer a minister, adding that Agunloye replaced him.
He told the court that upon the conclusion of the negotiation, SPTCL was successful, adding that one of the reasons for this was its proposed build, operate and transfer regime for the execution of the Mambilla project as opposed to the build, own and operate regime suggested by Agagu in his letter to the former president.
PW3 further told the court that upon assuming office as the new Minister of Energy, Agunloye wrote a letter dated July 7, 2003, titled “Construction of Mambilla Hydroelectric Power Project.”
The accused, according to the prosecution witness, in his letter to Obasanjo gave four grounds for SPTCL’s recommendation for the Mambilla project.
“The accused intimated to Chief Olusegun Obasanjo the rationale behind the recommendation of Sunrise Power Transmission Company Limited,” Babangida told the court.
When asked to read the four rationales contained in Agunloye’s letter, the witness listed them to include:
“Sunrise Power Transmission Company Limited features experienced workforce from the People’s Republic of China and Nigeria.
“A Memorandum of Understanding (MoU) between Nigeria and China on the project has already been signed during the Vice President’s visit to China.
“The involvement of the Chinese government provides security to the contracting company.
“The acceptance of a government participation of no more than 25 percent.”
When Adedipe asked him which of the grounds was not true, the witness told the court that they could be true, saying that “This is information obtained in the course of investigation which was presented to the Federal Executive Council meeting of May 21, 2003 by the minister (Agunloye), which may be true.”
When further asked which of the grounds came after the accused became the Minister of Energy, the witness mentioned the third and fourth grounds.
According to him, there was no involvement of the Chinese government in the project, saying “I don’t remember where base number 3 was deliberated before he (Agunloye) became minister.”
When asked to read the fourth paragraph of the MoU between the North China Group and the Federal Ministry of Energy and Steel, Babangida said: “The parties agreed that the Ministry of Foreign Trade and Economic Cooperation of China (MOFTEC) will supervise the financing of the contract by the North China Energy Group/North China.”
However, he said, “that is not true. This is contract financing by North China/North China Power Group based on terms and conditions acceptable to the Ministry of Foreign Trade and Economic Cooperation of China and the Export-Import Bank of China.”
“The importance is that when MOFTEC and China Import and Export Bank have accepted the financing of the contract, the Nigerian government will participate in the contract.”
The witness then agreed that both the Chinese Ministry of Foreign Trade and Economic Cooperation and the Export-Import Bank of China are financial agents of the Chinese government.
Meanwhile, Justice Onwuegbuzie adjourned the case to December 18 for further cross-examination of PW3.
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