Obasanjo Asked Ex-minister Agunloye To Add N11bn To Money Appropriated For Mambilla Project – Witness
An Assistant Commissioner of Police, ACP, with the Economic and Financial Crimes Commission, EFCC, Umar Bsbangida, has said that former President Olusrgun Obasanjo, told the ex- minister of former Minister of Power and Steel, Dr Olu Agunloye, to add N11 billion to the N6 billion originally appropriated in the 2003 budget for the Mambilla Hydroelectric Power project.
An Assistant Commissioner of Police, ACP, with the Economic and Financial Crimes Commission, EFCC, Umar Bsbangida, has said that former President Olusrgun Obasanjo, told the ex- minister of former Minister of Power and Steel, Dr Olu Agunloye, to add N11 billion to the N6 billion originally appropriated in the 2003 budget for the Mambilla Hydroelectric Power project.
Bsbangida, who is an investigator with EFCC, spoke during his continued cross examination as a prosecution witness, in the case against Agunloye at an Abuja High Court, on Wednesday.
The witness, was being cross examined by counsel for the former minister, Adeola Adedipe SAN.
Agunloye is being prosecuted by 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 at Apo, Abuja.
He was alleged to have while serving as a minister conspired with Leno Adesayan of SPTCL to forge a letter titled, “Construction of 3,960MW Mambilla Hydroelectric Power Station on a build, operate and transfer” basis but defendant pleaded not guilty to the charge.
However, Agunloye informed the court that it took about 23 years from the feasibility studies for the project in 1981 to 2003 when it was eventually awarded, pointing out that seven companies which indicated interest in the construction of the power project were screened for the purpose.
Babangida further said that as president, Obasanjo’s utmost desire was to kick-start the Mambilla project, noting further that the former president held a private meeting with Agunloye on the night of May 20, 2003.
According to the witness, EFCC investigation revealed that there was a private meeting, between Obasanjo and Agunloye on the night before the Federal Executive Council, FEC, meeting of May 21, 2003.
Bsbangida stressed that Obasanjo had at the meeting directed that Agunloye should add N11 billion to the already appropriated N6billion in the 2003 budget for the take off of the Mambilla project.
His words, “Yes, my Lord, the former president mentioned it at the Federal Executive Council meeting.
”However, the details of the discussion of the previous day was not fully given by the former president.”
He also, noted that the Federal Government could have paid the sum of $1.5 billion as its 25 per cent equity participation in the $6 billion power project on the basis of build, operate and transfer basis, pointing out that after FEC members supported the memorandum presented by Agunloye on May 22, 2003 on the 25 per cent equity participation, the then Vice-President, Alhaji Atiku Abubakar and a sitting minister suggested that a review government participation from 25 per cent should be considered.
Bsbangida, however, further noted that it was not entirely true that it was on that basis that Agunloye was asked by the FEC meeting to withdraw his memorandum on the Mambilla project, as several observations were raised by the former president, the former vice-president and other members of the Executive Council which led the Council to direct Agunloye to withdraw the memorandum.”
Agunloye is being prosecuted by 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 at Apo, Abuja.
He was alleged to have while serving as a minister conspired with Leno Adesayan of SPTCL to forge a letter titled, “Construction of 3,960MW Mambilla Hydroelectric Power Station on a build, operate and transfer” basis but defendant pleaded not guilty to the charge.
However, Agunloye informed the court that it took about 23 years from the feasibility studies for the project in 1981 to 2003 when it was eventually awarded, pointing out that seven companies which indicated interest in the construction of the power project were screened for the purpose.
Babangida further said that as president, Obasanjo’s utmost desire was to kick-start the Mambilla project, noting further that the former president held a private meeting with Agunloye on the night of May 20, 2003.
According to the witness, EFCC investigation revealed that there was a private meeting, between Obasanjo and Agunloye on the night before the Federal Executive Council, FEC, meeting of May 21, 2003.
Bsbangida stressed that Obasanjo had at the meeting directed that Agunloye should add N11 billion to the already appropriated N6billion in the 2003 budget for the take off of the Mambilla project.
His words, “Yes, my Lord, the former president mentioned it at the Federal Executive Council meeting.
”However, the details of the discussion of the previous day was not fully given by the former president.”
He also, noted that the Federal Government could have paid the sum of $1.5 billion as its 25 per cent equity participation in the $6 billion power project on the basis of build, operate and transfer basis, pointing out that after FEC members supported the memorandum presented by Agunloye on May 22, 2003 on the 25 per cent equity participation, the then Vice-President, Alhaji Atiku Abubakar and a sitting minister suggested that a review government participation from 25 per cent should be considered.
Bsbangida, however, further noted that it was not entirely true that it was on that basis that Agunloye was asked by the FEC meeting to withdraw his memorandum on the Mambilla project, as several observations were raised by the former president, the former vice-president and other members of the Executive Council which led the Council to direct Agunloye to withdraw the memorandum.”
Furthermore, the PW3 told the court that Agunloye was directed to withdraw his memorandum with a view to engaging investors on constructive negotiation and exploit various investment options, to get a reduction in the 25 per cent equity participation, adding that the various options mentioned by the Council included a zero per cent to not more than 25 per cent equity participation by the Federal Government.
When asked to read from the letter of award to Sunrise Power and Transmission Company Limited, SPTCL, written by the defendant and dated May 22, 2003, the prosecution witness said the former minister stated in the letter that, “Eventual equity participation will vary from zero to not more than 10 percent.”
The award was seen to have secured a reduction of between zero per cent to 10 per cent of government participation, instead of the initial 25 per cent participation, even as that was not what eventually transpired.
He did not discuss what eventually happened and Justice Onwuegbuzie adjourned the case until February 2, 2026, for further cross examination of PW3.
When asked to read from the letter of award to Sunrise Power and Transmission Company Limited, SPTCL, written by the defendant and dated May 22, 2003, the prosecution witness said the former minister stated in the letter that, “Eventual equity participation will vary from zero to not more than 10 percent.”
The award was seen to have secured a reduction of between zero per cent to 10 per cent of government participation, instead of the initial 25 per cent participation, even as that was not what eventually transpired.
He did not discuss what eventually happened and Justice Onwuegbuzie adjourned the case until February 2, 2026, for further cross examination of PW3.
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