It was learnt on Wednesday that the Economic and Financial Crimes Commission is allegedly holding Jalal Arabi, the executive chairman of the National Hajj Commission of Nigeria, and Abdullahi Kontagora, the secretary of the commission, in custody due to allegations of mismanagement of the N90 billion 2024 Hajj subsidy.
In a document sighted on Wednesday, the anti-graft agency said, “A total of SR314,098 was recovered,” from the NAHCON chairman and other ranking officials.
According to the EFCC, its investigation showed that Arabi had fraudulently overpaid himself and others the required operating costs out of the N90 billion Hajj subsidy.
Also, according to the document, the approved 2024 Hajj operational cost for the Chairman/CEO, Commissioners, Secretary and Directors/Chief of Staff in the 2024 budget are stipulated as $4,250, $12,750, $3,825 and $15,300, respectively.
The EFCC, however, alleged that: “The chairman fraudulently overpaid himself, the commissioners, secretary and directors for the 2024 hajj operational cost.
“The chairman was entitled to SR15,929 but he got SR50,000; three commissioners who were meant to get SR 15,929 each received SR 40,000 each. The secretary got SR 30,000 instead of SR14,336. Directors/Chief of Staff received SR 30,000 instead of the SR2,550 they were entitled to. The total of SR314,098 were recovered from all of them.”
Arabi was first interrogated by the anti-graft agency for hours on July 29 before being released on bail.
Additionally, last week Wednesday, the Independent Corrupt Practices and Other Related Offences Commission arrested some top officials of the Hajj commission over allegedly mismanaging or diverting the N90 billion subsidy.
The NAHCON Chairman was again taken in for interrogation on Wednesday and was arrested, an EFCC source made this known.
“The Secretary and Chairman of the commission are in our custody and are facing serious interrogations on the N90bn subsidy, among other allegations,” the source said on condition of anonymity because they could not speak officially.
According to a document that was viewed exclusively, NAHCON has not yet provided an explanation for the SR 8,614,175.27 cash withdrawal from the N90 billion that the Federal Government released to the commission.
The document partly read, “The sum of N90bn was released by the Federal Government of Nigeria to the National Hajj Commission to subsidise the 2024 Hajj Operations by the Federal Government of Nigeria.
“The total sum of N1, 764,705,937.62 was deducted by the Central Bank of Nigeria as bank charges.
“The sum of N88, 235,294,063.72 was subsequently converted into United States dollars at the rate of N1,416.13, which amounted to USD 62,307,164.48 and thereafter transferred into NAHCON British SAAB Account in Saudi Arabia.
“The sum of USD 62,307,164.48 was converted to Saudi Riyal at the rate of N3,748, which amounted to the sum of SR 233,527,252.47.
“That the opening balance of the IBAN-E track for 2024 Hajj activities was SR 19,813,810.89 and has an inflow of SR 485,000,000.00 from NAHCON with a closing balance of SR 78,985,266.03.
“That the closing balance is inclusive of the SR20,637,908.23 refunded from the Ministry of Hajj and Umrah Saudi Arabia.
“That the total sum of SR 22, 815,367.74 was withdrawn cash from the British SAAB account by one Abubakar Muhammed Lamin in Saudi Arabia during the 2024 Hajj operation.
“The expected cash payment for services and allowances to staff and stakeholders is SR 14,905,910.47.
“That the total sum of SR 8,614,175.27 cash withdrawal is yet to be accounted for by NAHCON.”
Shuraka’a al-Khair Group Ltd. received payments for services that were never provided, and estacodes paid to staff members who did not go on study tours were retrieved as a consequence of an investigation into the commission’s operations since 2022.
The document stated, “While investigation commenced on the criminal aspect which has led to the recovery of Estacodes paid to staff, who did not travel to Indonesia for study tour, also recoveries were made for services not rendered of the sum of SR 1,026,000.00 and SR 1,780,019.99, being purported 7.5% of consultancy paid to Shuraka’a al-Khair Group Ltd for debt recover of the sum SR20, 637,908.23 from the Ministry of Hajj and Umrah Saudi Arabia.”
The document stated that all supporting documents for payment of the consultancy services, including the Executive Chairman’s approval, were fraudulently backdated to January 23, 2024, to enable the payment of the sum of SAR 780, 019, 59 to Shuraka’a al-Khair Group Ltd on April 14, 2024.
“The first suspect, Jalal Arabi, confessed that the consultant did not render any services.
“A meeting of the Expanded Transitional Exco was held on 25th January 2024 with seven members and 18 staff in attendance but the payment of the consultancy services to Shuraka’a al-Khair Group Ltd was not discussed.
“The commission’s secretary slotted the approval for the payment of the 7.5% consultancy to Shuraka’a al-Khair Group Ltd in the minutes of the Expanded Transitional Exco meeting as item 10 under AOB to enable the perfection of the documentation to steal the funds.
“That the said sum of SR1,026,000.00, equivalent to about N430,920,000 million, was also recovered from one Eastern Gulf Company Kingdom of Saudi Arabia.”
