The acting chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ibrahim Lamorde was recently invited to probe the alleged inappropriate financial dealings in the oil sector, especially as it concerns the payment of fuel subsidy. Iyobosa Uwugiaren takes a look at the risky assignment and the challenges the anti –graft agency boss might encounter.
The acting chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ibrahim Lamorde, has a date with history. And from all indications there are two options before him: he may either choose to occupy a popular chapter or choose to be remembered as a man who lacked credibility. Largely, the recent tough assignment given to him – to probe the stinking claptrap in the oil sector, especially in the Nigeria National Petroleum Corporation (NNPC) and the Petroleum Products Pricing Agency (PPPRA) – will determine his fate.
Lamorde’s current mission is a product of the nationwide strike action called for by organised labour and its allies in civil society groups, which recently put suffocating pressure on President Goodluck Jonathan to investigate the visible and stinking financial mess in the oil sector, especially as it concerns the N1.3 trillion subsidy fund paid to oil marketers who imported petroleum to the country last year.
Jonathan was apparently concerned about the growing alarm of many stakeholders in the oil sector when in his national broadcast last week on the fuel subsidy removal controversy, he ordered the investigation of all payments made by the federal government on petroleum products, with intent to prosecute persons involved in any incidents of fraud and inappropriate financial dealings. As a follow-up to the president’s directive, the petroleum minister, Mrs. Diezani Alison-Madueke, had in a letter to the EFCC acting chairman, invited the commission to start action immediately.
Assuring the commission of her full cooperation in the planned investigation, the minister said that she had directed all officials of the PPRA and related agencies in the Ministry of Petroleum Resources, to make themselves available in the event of any interrogation. And swiftly, less than 24 hours after President Jonathan’s directive and the minister’s invitation, operatives of the anti-graft agency raided the headquarters of the NNPC and the PPPRA and carted away useful documents for the investigation.
The Controversy Over Payment of Fuel subsidy
Lamorde’s major assignment revolves around the payment – about N1.3 trillion made by the federal government on excess imported petrol in 2011. Although there are different figures given by the federal government agencies concerned, the executive secretary of the PPPRA, Reginald Stanley told the House of Representatives on the third day of the public hearing on subsidy regime at the National Assembly complex on Wednesday, that only N649 billion was paid to oil importers in 2011. But the eye-opener contradicted figures given by the petroleum minister, who said that the average daily consumption of petrol in Nigeria was 35 million litres.
The public hearing became a show of shame when the PPPRA boss insisted that records available to him showed that the total daily import of petroleum was 59 million litres, thereby leaving a huge variation of 24 million litres. The new figures bring the annual over-importation of petrol to 8.76 billion litres, amounting to about N649.3 billion as subsidies on excess petroleum.
Many stakeholders who have been watching the ongoing public hearing aired daily on network television are irritated by the stinking twaddle coming out from senior government officials’ mouths. “You told us that subsidies were paid based on 59 million litres daily consumption, while the actual daily consumption, is 35 million litres, leaving a gap of 24 million litres, which is paid for as subsidy but not utilised by Nigerians. This is part of the sharp practices through which ordinary Nigerians are being short-changed,” a ranking member of the House, Honourable Faruk Lawan said emotionally.
“This is the system that encourages smuggling and diversion by the importers, because it cannot be consumed and you admitted that we don’t have the storage facilities.”
But the thoroughly rattled PPPRA boss was sure that his agency did not authorise any payment of subsidies to neither the NNPC nor major oil marketers. He said it only processed the invoices, while the finance ministry made the payment of subsidies.
“We are only involved in the process of verification,” Stanley stated.
On her part and expectedly so, the finance minister, Dr. Ngozi Okonjo-Iweala denied ever authorising subsidy payments, saying the petroleum ministry did that.
The embattled group managing director of the NNPC, Austen Oniwon, also denied deducting subsidy funds at source from the Federation Account dishonestly. He said that the NNPC Establishment Act allows the corporation to deduct subsidy funds in the same manner as deductions on Joint Venture Cash Calls, as sanctioned by the Appropriation Act.
Experts in the oil sector and civil society groups said that these seemingly unexplainable contradicting statements by the relevant federal government agencies are what Lamorde would have to face in carrying out his risky and Herculean task.?
Judges In Their own Cases
The contradicting statements by the NNPC, PPPRA and finance ministry are already sending the signal to many stakeholders, that it might be very difficult for the EFCC to get to the starting point of the matter unless certain steps are taken immediately.
“If President Goodluck Jonathan is very serious in Lamorde doing a thorough job, he must ask the head of the PPPRA and NNPC to go on compulsory leave pending the investigation of the matter,” Mr. John Nwajukwu, an Abuja-based lawyer told LEADERSHIP.
The Conference of Nigeria Political Parties (CNPP) also shares a similar viewssaying the move would be in line with international best practices in dealing with corruption cases.
How Far Can Lamorde Go?
Although there are genuine fears by some stakeholders over the commission’s assignment, the anti-graft agency is not ready to be drawn into what it described as “subjective questioning” on whether the EFCC and its boss could confront the apparent hurdle facing them.
“I am not very comfortable reacting to subjective questions; I think we should give him (Lamorde) the benefit of doubt and see whether he will do a thorough job or not,” the acting head, media and publicity of the EFCC, Mr. Wilson Uwujiaren told LEADERSHIP.
However, for those who know Lamorde, he would prefer to “write his name in gold than rubbish it”. Anti-crime experts say that as far as “the Economic and Financial Crimes Commission and the war against economic crime and corruption in Nigeria are concerned, Mr. Ibrahim Lamorde remains an iconic figure.”
“At every turn in the short history of the agency, his name crops up. In the formative years of the commission, he was the valiant heart of the commission and the rallying point in the partnership between the EFCC and its strategic allies,” one of his former colleagues at the EFCC stated.
Perhaps so. Records show that Lamorde is the only one to have twice served as director of operations and acting chairman of the agency. A pioneer staff member of the commission, he was drafted from the Nigeria Police to midwife the EFCC in 2003 under the leadership of Mallam Nuhu Ribadu. He is known as “a thoroughbred professional with vast experience in fraud investigation” that spans more than 20 years.
Described by his friends and colleagues as “an epitome of discipline and, hard work”, the assistant commissioner of police was born on December 20, 1962 in Mubi, Adamawa State of Nigeria. Mr. Lamorde obtained an honours degree from the prestigious Ahmadu Bello University in 1984 and did his mandatory National Youth Service between 1984 and 1985. He enlisted into the Nigeria Police Force as a cadet officer in 1986 and passed out as an assistant superintendent of police in 1987. After a one-year probation period, he was confirmed as a substantive assistant superintendent of police.
In the police force, Lamorde served as a divisional crime officer and later as a police public relations officer from 1989 to 1993.? When the Special Fraud Unit (SFU) of the Nigeria Police Force was created in 1993, he was drafted as one of the pioneer officers and served at the SFU between 1993 and 2002.
From that unit, he was drafted in 2000 to serve with the United Nations Civilian Police in East Timor and served as the chief investigation officer. He was transferred to Oyo State in 2002, where he served as divisional police officer until 2003.? When the EFCC was created in 2003, Lamorde was seconded to serve as the director of operations till 2007 when he was appointed the acting chairman. In 2008, he was recalled to the Nigeria Police and posted to the Area Command in Ningi, Bauchi State as the area commander.
He was later redeployed to the Bauchi State Police Command, Criminal Investigation Department (CID) as the officer-in-charge. He was brought back to the EFCC in December 2010 as director of operations. He held that position until his recent appointment as the acting chairman. Just last week, the president forwarded his name to the Senate for confirmation as chairman of the commission. Mr. Lamorde has worked intimately with other government law enforcement agencies including the Federal Bureau of Investigation (FBI), Metropolitan Police, United States Postal Inspection Service (USPIS), United States Secret Service, Internet Crime Complaints Centre (IC3), Dutch Police, German Police, South African Police and others.
He is familiar with the terrain. Between 2003 and 2008, he supervised the prosecution of 522 Advance Fee Fraud related cases at various high courts across the nation.
The soft-spoken police officer has attended several courses, seminars and workshops on corruption and other economic and financial crimes in the UK, USA, Germany, France, South Africa and Singapore, among other countries. In 2005, he attended a course on law enforcement at Harvard University. Mr. Lamorde holds a Bachelor’s degree in Sociology and a Masters degree in Law Enforcement and Criminal Justice from the Ahmadu Bello University, Nigeria. He also holds membership of the Nigerian Institute of Public Relations and the Nigerian Institute of Management.
But the question remains: In a very complex political environment in a country characterised by high level of political intrigue by a powerful cabal, how far can Lamorde go in his current assignment?