Local Government officials reveal allegations of Council Chairman’s N1.9 billion misappropriation
The Federal Allocation Account Committee (FAAC) has increased allocations to the Federal, State, and Local Government administrations since the removal of the fuel subsidy by the Federal Government of Nigeria under President Bola Ahmed Tinubu’s administration. Logically, this increase should lead to enhanced sustainable development across the three tiers of government, particularly at the local level closest to the populace.
However, contrary to expectations, most State Governors and Council Chairmen have alternative priorities for these funds, intended for the welfare of the people, thereby shifting public criticism to the Federal Government, which is often unfairly blamed by citizens who tend to focus solely on the President.
In a fact-finding interview with Lagos Panorama, two councillors from the Eti-Osa East Legislative Council, Hon. (Mrs.) Tawakalitu Agbaje and Hon. Odedina Nurudeen, elaborated on the findings of their report, which implicated Council Chairman, Hon. John Ogundare, in the diversion of funds meant for critical sectors.
The report highlighted Ogundare’s failure to adhere to established procedures in contract allocation and execution during 2023. Upon discovering a 1.9 billion naira deficit in the 2023 budget, the councillors submitted their findings to the Lagos State House of Assembly for further investigation.
Following unsuccessful attempts to reach Chairman Ogundare, Vice Chairman Hon. Azeez Ismail and Supervisors Hon. Sarunmi Ajibade and Hon. Yisa-Lukman Olanrewaju provided insight into the executive’s stance on the allegations…
The incisive interviews were thought provoking as the interviewees confirmed the allegations contained in the Councillors investigative report and also revealed how the Council Chairman set aside the due process to issue and execute contracts through his cronies without approval of the tenders’ board constitutionally superintended by the Vice Chairman.
Concerned Residents Protest
An investigative interview has been prompted by a peaceful protest of over 500 Concerned Residents of Eti-Osa East LCDA at the Lagos State House of Assembly on April 4, 2024.
Led by Mr. Segun Williams, the protesters demanded Chairman John Campos Ogundare’s suspension due to allegations of embezzling N1.9 billion, as stated in the Councillors’ report since December 2023. The protesters carried placards calling for Ogundare’s suspension.
Mr. Williams urged the State House Assembly to act promptly, referencing an investigative report that implicated Ogundare in diverting funds earmarked for health and education.
The report cited Ogundare’s failure to pay departmental running costs, neglecting balance payments to past office holders, and unauthorized contract awards.
Additionally, Ogundare allegedly disregarded legislative requests for financial records and exceeded his approval limit.
Hon. Adebola Shabi who received the protesters assured them that the assembly would address the allegations and ensure justice, confirming ongoing investigations.
Counter-Protest
Supporters of Hon. John Ogundare, Council Chairman, held a counter-protest at the State Assembly on Monday, 8th April 2024, to affirm his innocence.
The protest, comprising APC stakeholders, market traders, and community groups from Eti-Osa East LCDA, featured placards and solidarity songs. They unanimously expressed confidence in the council chairman, dismissing allegations of financial misconduct made by Concerned Residents of Eti-Osa East.
APC Chairman Adekunle Odunuga labeled the latter group faceless and sponsored. Kazeem Oladapo, youth representative, condemned the political machinations, while Apostle Olusoji Fabuda JP stressed the importance of substantiated claims. Alhaja Mutiat Awere urged detractors to cease hindering progress. Hon. Desmond Olusola Elliot assured protesters of a fair investigation.
The Chief Press Secretary, Mr. Ola Mohammed, defended the chairman, referencing that the council’s budget for 2023 1.4 billion naira, questioning the rationale of misappropriation of 1.9 billion from a lesser amount.
Lagos Panorama conducted an in-depth interview with Hon. (Mrs.) Tawakalitu Agbaje, Majority Leader, and Hon. Odedina Nurudeen, Secretary of the Appropriation Committee, Eti Osa East Legislative Council.
When asked about signing the report that implicated Council Chairman, Mr. John Ogundare, in the misappropriation of 1.9 billion naira, Mrs. Agbaje confirmed, “I signed the report as part of our oversight function, revealing a 1.9 billion budget deficit. The report was subsequently submitted to the Lagos State House of Assembly for further investigation.”
Hon. Odedina Nurudeen clarified the 2023 budget figures, stating, “The estimated budget was 3.696 billion naira, with actual expenditure totaling 2.7 billion naira.”
He added, “In 2022, the re-audited budget was 2.299 billion naira, with actual spending at 2.089 billion naira. Can the Chairman genuinely claim the total estimated budget was 1.4 billion?” he asked rhetorically.
Odedina emphasized that, consistent with the Majority Leader’s earlier statement, the Councilors noticed a 1.9 billion deficit during oversight and requested the Executive Chairman to provide explanations.
However, the Chairman failed to comply and instead misrepresented the situation, claiming Councilors were attempting to impede him.
Odedina confirmed that the budget, signed by the Chairman, Leader of the House, Clerk, and lawyer, is available, and they are willing to present their copy if needed.
Both lawmakers have been invited to the State Assembly twice, with the Chairman asked to provide necessary documents. The Majority Leader noted that the Vice Chairman, Hon Azeez Ismail, denied signing contract approvals beyond the 35 million naira limit.
Hon Odedina corroborated this, citing unapproved projects, including a 196 million naira road construction in his ward. He emphasized that the Chairman executed projects without approval in 2023.
He noted “During oversight, the Vice Chairman who is the Chairman of the Tenders Board, stated he hadn’t signed any contracts, despite ongoing projects. The guidelines governing Local Government administration outline the roles of Councillors, Chairmen, and Supervisors”.
Unapproved projects include drainage construction and road projects, which remain incomplete and most not done at all.
Hon Odedina expressed gratitude to President Bola Ahmed Tinubu, noting that “since his inception, Federal Allocations have increased substantially, from 70 million to 80 million, now 190 million, 200 million, and occasionally exceeding 200 million, which should facilitate notable development projects in our communities, but unfortunately, this funding surge has not yielded commensurate development in Eti-Osa LCDA.”
Interview with Executive Members
Following unsuccessful attempts to reach the Chairman, I managed to secure a meeting with Vice Chairman Hon. Azeez Ismail.
In an exclusive interview with Lagos Panorama on Sunday, Hon. Ismail emphasized the All Progressive Congress (APC) commitment to welfare, equity, and accountability. He acknowledged residents’ right to fair hearing, citing the inclusive nature of the government. While declining to comment extensively on allegations due to unfamiliarity with the protesters, he recognized their entitlement to be heard as citizens and taxpayers.
Ismail said he participated in the counter protest, affirming APC’s stance against corruption and misappropriation. He clarified budget discrepancies, stating the 2023 budget was N3.7 billion with N2.7 billion actualized, contradicting the Chairman’s Chief Press Secretary’s claim of N1.4 billion.
Ismail who is also the Supervisor for Budget of the Council outlined the rigorous budget process involving stakeholder engagement and review.
Honorable Sarunmi Ajibade, Supervisor for Chieftaincy Affairs and Executive member of Eti Osa East LCDA, responded to allegations of misappropriating 1.9 billion naira by the Council Chairman.
Ajibade attributed the claims to Councillors’ oversight function in December 2023. He emphasized the Executive arm advised the Chairman to adhere to the Lagos State Local Government Administrative Guideline, ensuring transparency and accountability through established responsibilities.
Notably, the Fund Management Committee, comprising the Chairman, Vice Chairman, Supervisors, Council Treasurer, and Council Manager, has not convened since the second quarter of 2022, hindering accountability and performance despite substantial federal allocations and internally generated revenue.
During an interview, Mr. Yisa Olanrewaju, Supervisor for the Environment and an Executive member of the Council, revealed that Mr. Agbalaya, a former Senior Special Assistant to the Chairman on the Environment, resigned amidst allegations of remitting council levies into the Chairman’s personal account, rather than the government’s account.
Mr. Olanrewaju stated, “Agbalaya collected levies from market tolls and paid them into the Chairman’s personal account, citing concerns over the Chairman’s disregard for due process.”
He also mentioned that Mrs. Obanikoro, Senior Special Assistant on Market, previously paid market levies into the Chairman’s Jamaklint account in 2022.
Furthermore, Mr. Olanrewaju expressed concerns over the lack of FMC meetings and the Chairman’s unilateral approval of contracts. He cited an example of an uncompleted drainage project in Ado, for which funds had been collected, and criticized the proposed construction of a recreational center in front of a school, deeming it inappropriate.
He stated that the Chairman received payment for road construction projects in Ajah, Monastery, and Ado roads, however, no construction work was undertaken, despite the funds having been disbursed.
During a subsequent interview, Mr. Segun Williams, who spearheaded the Concerned Residents of Eti-Osa East Protest, informed Lagos Panorama via phone call that he plans to take his protest to the next level by filing a petition with the Economic and Financial Crimes Commission should the State Assembly neglect to conduct a thorough investigation and ensure justice regarding the persistent allegations of 1.9 billion naira misappropriation by Eti-Osa East Council Chairman, Hon. John Ogundare, dating back to December 2023.
Subsequent to multiple attempts to obtain an update from the Lagos State House of Assembly on the alleged 1.9 billion naira misappropriation by Eti Osa East LCDA’s Chairman, Hon. Okanlawon Ganiyu, Chairman of the House Committee on Local Government, responded via WhatsApp, ‘It hasn’t been slated for laying and presentation.’ He concluded, ‘Until then, I am unable to provide information, please,’ the State Lawmaker asserted shortly before this report’s publication.
