ISOPADEC missing N12.3b: Uzodinma’s audit clears Okorocha, indicts Ihedioha

A forensic audit of the Imo State Oil Producing Areas Commission (ISOPADEC), carried out by Corporate Development & Assets Management Ltd. (CADAM-ANE), an Independent forensic auditing firm, discovered in its preliminary report that N12.3 billion was missing in the Commission.

The audit was commissioned by the state governor, Senator Hope Uzodinma to review activities of the commission from 2007 to May 31, 2020.

The report showed that overall expenditure profile of ISOPADEC skyrocketed in later part of 2019 than in any other year in its 12 years of existence.

It revealed that nearly N12.3 billion accruing to the ISOPADEC between May 2019 and December 2019 could not be accounted for.

In 2008, the Commission spent N3.1 billion; N1.7 billion in 2009; N1.4 billion in 2012 and 2013 and N1 billion in 2017. 2007 to 2018 were less than a billion naira expenditure.

However, between June 2019 and January 2020, less than 8 months, the commission spent N3.3 billion.

The report gave a breakdown of the unaccounted N12.272 billion as comprising of N9.611 billion from statutory allocations; miscellaneous inflows of N2.203 billion; N410.721 million deductions and N48.1 million gifts to staff.

It further shows payments to contractors were made without guaranteed APG or certificates earned.

Also, there was no project history, tender records or evidence of approvals from the board as well as lack of adherence to existing protocols on award of contract above N1 million.

Also, projects such as hospitals, schools, roads in oil producing areas of Ohaji/Egbema and Oguta were found to be either abandoned or non-existent.

Yet, the said projects appeared in papers as completed and fully paid.

ISOPADEC final audit report clears Okorocha, indicts Ihedioha

The ISOPADEC final reports, therefore, cleared the Okorocha administration of any misdeed in the mismanagement of the Commission’s funds.

It could be recalled that Okorocha was the Imo State Governor from 2011 to 2019, while Ihedioha’s short 7-month stint lasted from June 2019 and January 2020.

The report showed that the overall expenditure profile of ISOPADEC within the period under review shot high within Ihedioha’s tenure.

This was contained in the interim audit report published by the auditing firm retained by the Imo State Government.

The forensic audit covered financial transactions in the Commission from 2007 to 2020.

The audit revealed that out of “a total sum of N3.5 billion of unexplained expenditure or online transfers of ISOPADEC funds to sundry PAYEES from its inception in 2007 to January 2020, N647 million was spent between 2007 and May 2019, while the balance of almost N3 billion was spent between June 2019 and January 2020”.

Also, the audit discovered that “while only 44 transactions under the subhead of unexplained expenditure and online transfers were carried out between 2007 and 2019, 88 of such transactions were detected to have been carried out between June 2019 to January 2020, while Ihedioha was in office”.

The report noted that a top ranking official was a single signatory to the 13% oil derivation joint account at the bank.

It said the action is an aberration and urged the State to take steps for the immediate recovery of the missing N12.272 billion.

Recall that Okorocha had alleged that the panels set up by the then Ihedioha administration were witch-hunt panels.

He said Ihedioha was focused on scoring cheap political points than genuine and unbiased investigation of the activities of his administration.

Reacting to the report, the State Commissioner for Information and Strategy, Declan Emelumba, assured that the government will leave no stone unturned until all the missing monies are recovered.

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