EFCC’s witness, Umar Babangida, said that former Minister of Power and Steel, Dr Olu Agunloye, informed former President Olusegun Obasanjo why Sunrise Power and Transmission Company Limited (SPTCL) was recommended for the construction of the Mambilla Hydroelectric Power project.
Babangida, who was the 3rd prosecution witness (PW-3), was testifying before Justice Jude Onwuegbuzie, of a FCT High Court in the ongoing trial of the ex-minister.
The witness said Agunloye intimated the former president upon his appointment as minister.
Agunloye is being prosecuted by EFCC.on an amended seven-count charge bordering on disobeying presidential directive, conspiracy, forgery and receiving gratification before Justice Onwuegbuzie sitting at Apo, Abuja.
He was, among others, alleged to have while serving as a minister conspired with Leno Adesayan of Sunrise Power and Transmission Company Limited (SPTCL) to forge a letter titled, “Construction of 3,960MW Mambilla Hydroelectric Power Station on a build, operate and transfer” basis.
He, however, pleaded not guilty to the charges preferred against him.
At Thursday’s proceedings, Babangida, an Assistant Commissioner of Police (ACP), while being crossed examined by counsel for Agunloye, Adeola Adedipe, SAN, said that Obasanjo approved that SPTCL and Tafag Nigeria Limited be invited for negotiation.
According to him, by the time negotiation was concluded by the Federal Ministry of Power and Steel, the then Minister of Power, Dr Olusegin Agagu, was no longer the minister, adding that Agunloye took over from Agagu.
He told the court that upon the conclusion of the negotiation, SPTCL emerged successful.
He said one of the reasons for this was its proposed built, operate and transfer regime for execution of the Mambilla project as against the built, owned and operate regime as suggested by Agagu in his letter to the former President.
The PW-3 further told the court that upon assumption of office as the new minister of Power, Agunloye wrote a letter, dated July 7, 2003, titled, “Construction of Mambilla Hydroelectric Power project.”
According to the prosecution witness, the defendant in his letter to Chief Obasanjo gave four basis for the recommendation of SPTCL for the Mambilla project.
When asked to read the four basis as contained in the Agunloye’s letter, the witness listed them to include:
“Sunrise Power Transmission Company Limited parades experienced manpower from People’s Republic of China and Nigeria.
“A Memorandum of Understanding (MoU) was already signed between Nigeria and China on the project during the visit of the Vice-President to China.
“The involvement of the government of China provides security for the contractor company.
“The acceptance of government’s participation of no more than 25 percent.”
Asked by Adedipe which of the basis was not true, the witness said: “These are information obtained in the course of investigation which were presented to Federal Executive Council meeting of 21st May, 2003 by the minister (Aguloye), which may be true.”
Asked further which of the basis came after the defendant became Minister of Power, the witness said the third and fourth basis.
According to him, there was no involvement of the Chinese government in the project, saying that, “I cannot recollect where basis number 3 was deliberated before he (Agunloye) became a minister.”
When asked to read the fourth paragraph of the MoU between North China Group and the Federal Ministry of Power and Steel, Babangida said, “It was agreed by parties therein that the Chinese Ministry of Foreign Trade and Economic Cooperation (MOFTEC) shall supervise the contract financing by North China/North China Power Group.”
He, however, said, “That is not true. This is talking about contract financing by North China/North China Power Group based on terms and conditions acceptable to the Chinese Ministry of Foreign Trade and Economic Cooperation and the China Import and Export Bank.
“The import is that when MOFTEC and China Import and Export Bank have accepted the contract financing that the Nigerian government would be involved with the contract.”
The witness then agreed that both the Chinese Ministry of Foreign Trade and Economic Cooperation and the China Import and Export Bank were financial agents of the Chines government.
Justice Onwuegbuzie adjourned the case until Dec. 18 for continuation of cross examination of the PW-3.
