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No budgetary provision was made for $6bn Mambila power project, says EFCC witness

Robert Imoh by Robert Imoh
May 28, 2025
in News
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The third Prosecution Witness (PW3) in the trial of a former Minister of Power and Steel, Olu Agunloye, told an Abuja high Court that no budgetary allocation was made for the six billion dollars Mambilla Hydropower Station in Taraba

The Economic and Financial Crimes Commission (EFCC) charged Aguloye with infractions in the award of contract for the Mambilla Hydropower Station

He is standing trial before Justice Jude Onwuegbuzie, sitting at Apo.

In the charge, marked FCT/HC/CR/617/2023, the EFCC alleged that Agunloye awarded contract for the Mambilla project in May 22, 2003 to Sunrise Power and Transmission Company Limited (SPTCL) without any budgetary provision, approval and cash backing.

The commission also alleged that the former minister received N5.212million from SPTCL and Leno Adesanya, through Jide Sotirin and deposited it into Agunloye’s Guaranty Trust Bank account, to get the Federal Government’s approval for the construction of the project in favour of SPTCL.

The former minister, however, pleaded not guilty to the charge.

The PW3, Umar Babangida, an Assistant Commissioner of Police on secondment to the EFCC , told the court that the commission discovered from the ministry that a letter, was signed by Agunloye to SPTCL conveying approval for the construction of the project.

He informed the court that the company sent a b acceptance letter on May 26, 2003.

Babangida, led in evidence by the prosecution counsel, Abba Mohammed SAN, told the court that the approval letter sent to the company was issued 24 hours after the then minister was directed to withdraw his memo .

The memo was for the award of the contract at the Federal Executive Council held on May 21, 2003 presided by the the President, Chief Olusegun Obasanjo.

He added that investigators also discovered from the ministry’s response to another letter, dated Sept. 3, 2003, from Sen. Liyel Imoke, who was then the Minister of Power and Steel, that no approval was given for the project.

“The letter informed the company that the Federal Government at the Federal Executive Council meeting did not approve the award of the contract to Sunrise Power as recommended by Agunloye.

“The letter further advised Sunrise Power to participate in the bid process along with other investors when it is advertised,” the PW3 told the court.

After listening to the testimony, Justice Onwugbuezie, subsequently adjourned until June 16 for continuation of hearing.

 

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