Emmanuel Ukudolo l October 27, 2017
LAGOS, Nigeria – Former Director General of the Nigerian Security and Exchange Commission (SEC), Mr. Mournir Haliru Gwarzo will soon be a guest of the Economic and Financial Crimes Commission, (EFCC) based on revelation surrounding the money he collected as severance pay immediately he was appointed as DG by former President, Dr. Goodluck Ebele Jonathan in May 22, 2015.
However on assumption of office as DG of the Commission, Mr. Gwarzo immediately requested that the sum of N104,851,154.94 be paid to him as terminal benefit for the two years he served as Executive Commissioner in SEC.
He was in the first instance appointed Executive Commissioner in 2013 for a term of four years by then President Goodluck Jonathan before he was uplifted to DG before the expiration of his tenure.
But for spending barely two years as Executive Commissioner, he approved for himself and collected the sum of N104,851,154.94.
“The requested severance package in the sum of N104,851,154.94 (One Hundred and Four Million, Eight Hundred and Fifty-One Thousand, One Hundred and Fifty-Four Naira and Ninety-Four Kobo), was paid by the Commission into Mr. Gwarzo’s bank account, held with Guarantee Trust Bank PLC, with account number 0023868895”, it has been alleged in a petition to the Senate obtained by www.starconnectemedia.com
Mr. Gwarzo, we gathered received the money in total disregard of the opinion of Mr. Frana Chukwuogo, the Acting Head of the Commission’s Legal Department who clearly stated that in accordance with best practices, a severance payment can only be paid to an employee of the Commission who has concluded his or her service and has completely disengaged from the Commission and not to an employee who has been promoted within the Commission and has not severed his employment with the Commission.
The receipt of the sum of N104,851,154.94 as severance package by Mr. Gwarzo, we gathered clearly amounts to earning wealth illegally, which violates the laws of Nigeria, in particular the Economic and Financial Crimes Commission (Establishment etc.) Act CAP E1 2004 (the “EFCC Act”), the Criminal Code Act and the Code of Conduct for Public Officers as set out in Part 1 of the third Schedule to the 1999 Constitution CAP C23 LFN 2004 (the “Constitution”).
Please see details below
PETITION AGAINST MR. MOURNIR HALIRU GWARZO IN HIS CAPACITY AS THE DIRECTOR-GENERAL OF THE SECURITIES AND EXCHANGE COMMISSION
Introduction
1. This petition is written to report the perpetration of willful misconduct and criminal activity by Mr. Mounir Haliru Gwarzo (“Mr. Gwarzo”), the Director-General of the Securities and Exchange Commission, whose official address is SEC Towers, Plot 272 Samuel Adesujo Ademulegun Street, Central Business District, Garki, Abuja.
2. The alleged crimes against Mr. Mounir Haliru Gwarzo are stated hereunder.
Fraudulent Receipt of Severance Package
3. Mr. Mounir Haliru Gwarzo was appointed as an Executive Commissioner in the Securities and Exchange Commission (the “Commission”), for a four (4) year tenure by former president Goodluck Jonathan on January 2, 2013.
4. Prior to the end of his tenure as Executive Commissioner, President Goodluck Jonathan, appointed Mr. Gwarzo as the Director-General of the Commission (the “DG of the Commission”) on May 22, 2015. See Appendix A1 attached hereto.
5. On assumption of office as the DG of the Commission, Mr. Gwarzo immediately requested that the sum of N104,851,154.94 (One Hundred and Four Million, Eight Hundred and Fifty-One Thousand, One Hundred and Fifty-Four Naira and Ninety-Four Kobo), be paid to him as severance package for the cessation of his appointment as Executive Commissioner of the Commission.
See Appendix A2 attached hereto
6. The requested severance package in the sum of N104,851,154.94 (One Hundred and Four Million, Eight Hundred and Fifty-One Thousand, One Hundred and Fifty-Four Naira and Ninety-Four Kobo), was paid the Commission into Mr. Gwarzo’s bank account, held with Guarantee Trust Bank PLC, with account number 0023868895.
7. Mr. Gwarzo received the above stated payment of a severance package in total disregard of the opinion of Mr. Frana Chukwuogo, the Acting Head of the Commission’s Legal Department’s written opinion, which clearly stated in accordance with best practices, that a severance payment can only be paid to an employee of the Commission who has concluded his or her service and has completely disengaged from the Commission and not to an employee who has been promoted within the Commission and has not severed his employment with the Commission. See Appendixes A3- A8 attached hereto.
8. The receipt the sum of N104,851,154.94 (One Hundred and Four Million, Eight Hundred and Fifty-One Thousand, One Hundred and Fifty-Four Naira and Ninety-Four Kobo) as severance package by Mr. Gwarzo, clearly amounts to earning wealth illegally, which violates the laws of Nigeria, in particular the Economic and Financial Crimes Commission (Establishment etc.) Act CAP E1 2004 (the “EFCC Act”), the Criminal Code Act and the Code of Conduct for Public Officers as set out in Part 1 of the third Schedule to the 1999 Constitution CAP C23 LFN 2004 (the “Constitution”).
Illegally Creating Wealth from the Commission
9. Mr. Gwarzo, his family members and certain directors of the Commission are shareholders and directors in various companies that are used to carry out illegal transactions and provide certain services to the Commission. The said companies are listed below:
a. OUTBOUND INVESTMENT LTD, RC NO. 807317
Mr. Gwarzo and two of his relatives are Directors of Outbound Investment Ltd. (the Company). Since Mr. Gwarzo assumed office as DG of the Commission, the Company has been the sole supplier of diesel to the Commission. See Appendixes B2 attached hereto.
The Company has also supplied air conditioners to the Lagos Zonal office of the Commission, as well as supplied fridge to the Commission. See Appendix BI attached hereto. 3
Payments made by the Commission to the Company for contracts executed can be verified from the Company’s bank account held with United Bank for Africa Plc, with account number 1016723428. In addition, the Company has executed more contracts for the Commission which are not listed in Appendix B1, however these contracts can be verified from the Commission’s accounting records.
b. MEDUSA INVESTMENTS LIMITED, RC NO. 326829
Mr. Gwarzo, the DG of the Commission is a Director of Medusa Investments Limited (the Company). The only other Director of the Company is Khadija Mustapher, who is also the wife of the DG of the Commission. See Appendix B3 attached hereto.
The Company has actively been used by Mr. Gwarzo, as a shell to carry out illegal transactions as is verifiable from the frequent transactions carried out through the Company’s bank account held with Guaranty Trust Bank Plc, with Account Number 0023953920. Mr. Gwarzo is a signatory to the said Company account. See Appendix B1 attached hereto.
c. NORTHWIND ENVIRONMENTAL SERVICES, REG. NO. BN2389176
Mr. Haris Haliru Gwarzo, the younger brother of the DG of the Commission, is the Sole proprietor of Northwind Environmental Services (the Company). The Company has been engaged by the Commission to clean the Commission’s Kano Zonal Office, since the inception of Mr. Gwarzo’s tenure as the DG of SEC. See Appendixes B1 and B4 attached hereto.
Payments made by the Commission to the Company for contracts executed, can be verified from the Company’s bank account with Diamond Bank Plc, with Account Number 0095179297.
In addition, the Company has executed more contracts for the Commission which are not listed in Appendix B1, however these contracts can be verified from the Commission’s accounting records. 4
10. Mr. Gwarzo has also established a system of gratification for certain select members of staff of the Commission, who are “permitted” to have companies that act as contractors to the Commission. The said companies are listed below:
a. MICRO-TECHNOLOGIES NIG. LTD., RC NO. 173805
Mrs. Anastasia Omozele Braimoh, the Head of the Legal Department of the Commission is a Director of Micro-Technologies Nig. Ltd. (the Company). The other Director of the Company is Mr. Samuel Onimisi Braimoh, who is the husband of the Head of the Legal Department of the Commission. See Appendix B5 attached hereto.
The Company has since the assumption of Mr. Gwarzo as the DG of the Commission, executed several contracts for the Commission, which include the supply of projectors and training courses, among others. See Appendix B1 attached hereto.
In addition, the Company has executed more contracts for the Commission which are not listed in Appendix B1, however these contracts can be verified from the Commission’s accounting records.
b. TIDA INTERNATIONAL LTD., RC NO. 26414
Mr. Abdulsalam Naif H., the Head of the Media Department of the SEC is a Director of Tida International Ltd. (the Company). The other Directors of the Company are Mr. Abdulsalam Naif’s siblings and family members.
The Company has been engaged by the Commission, from the inception of Mr. Gwarzo’s tenure as DG of the Commission, to execute several contracts for the Commission. See Appendix B1 attached hereto. In addition, the Company has executed more contracts for the Commission which are not listed in Appendix B1, however these contracts can be verified from the Commission’s accounting records.
11. Finally, Mr. Gwarzo has also established a system of patronage by which, companies owned by his friends provide services to the Commission and from which he gets paid from the remuneration received from these contracts, from these companies or their directors into the bank account of Medusa Investments Limited, held with Guaranty Trust Bank Plc, with Account Number 0023953920. It should be noted as stated in paragraph 12 (b) below, that Mr. Gwarzo is a director in Medusa Investments Limited. The said companies are listed below: a. OUTLOOK COMMUNICATION
The Directors of Outlook Communication (the Company) are Ahmed Mohammad Jamila, Ahmad Aisha and Yahaya Karami Haulatu.
The Company has since the assumption of Mr. Gwarzo as the DG of the Commission, executed several contracts for the Commission, which include the supply of publications and media (See Table V), among others. See Appendix B1 attached hereto.
Payments made by the Commission to the Company for contracts executed, can be verified from the Company’s bank account with Jaiz Bank, with Account Number 0000642716.
b. ACROMAC NIG. LTD., RC. NO. 10687864
The Directors of Acromac Nig. Ltd. (the Company) are Abdulahi Dahiru, Mahmud Dahiru Barkindo and Nura Ali Rano.
The Company has since the assumption of Mr. Gwarzo as the DG of the Commission, executed several contracts for the Commission. Some of these contracts include the supply of photocopier, office furniture and other office items for the Commission controlled NCMI, among others. See Appendix B1 attached hereto.
In addition, the Company has executed more contracts for the Commission which are not listed in Appendix B1, however these contracts can be verified from the Commission’s accounting records. Payments made by the Commission to the Company for contracts executed can be verified from the Company’s bank account with Zenith Bank Plc, with Account Number 1013495360.
c. BALFORT INTERNATIONAL INVESTMENT LTD., RC. NO. 109153
The Directors of Balfort International Invstment Ltd. (the Company) are Dahiru Abdullahi, Ali Nura Rano and Dahiru Halima Bello. 6
The Company has since the assumption of Mr. Gwarzo as the DG of the Commission, executed several contracts for the Commission, some of which include the supply of office furniture and other office items for the Commission controlled NCMI and the Commission itself), among others. See Appendix B1 attached hereto.
In addition, the Company has executed more contracts for the Commission which are not listed in Appendix B1, however these contracts can be verified from the Commission’s accounting records.
Payments made by the Commission to the Company for contracts executed can be verified from the Company’s bank account held with Zenith Bank Plc, with Account Number 1013495377.
d. INTERACTIVEN WORLDWIDE NIG. LTD., RC. NO. 779442
The Directors of Interactive Worldwide Nig. Ltd. (the Company) are Tukur Umar, Saratus Abubakar Sadiq and Uzoma Nwakuche.
The Company has since the assumption of Mr. Gwarzo as the DG of the Commission executed several contracts for the Commission, which include the fumigation of the Commission’s Head Office, the NCMI and the Lagos Zonal Office, among others. See Appendix B 1 attached hereto. In addition, the Company has executed more contracts for the Commission which are not listed in Appendix B1, however these contracts can be verified from the Commission’s accounting records.
12. The personal interest of Mr. Gwarzo in the above listed companies clearly contravenes the provisions of Nigerian law, which distinctively prohibit public officers from putting themselves in situations where their personal interest conflicts with their public duties. Further, the use of the said companies to provide services to the Commission and as vehicles for carrying out illegal activities, clearly amounts to earning wealth illegally, which violates the laws of Nigeria, in particular, the Economic and Financial Crimes Commission (Establishment etc.) Act CAP E1 2004 (the “EFCC Act”), the Criminal Code Act and the Code of Conduct for Public Officers as
set out in Part 1 of the third Schedule to the 1999 Constitution CAP C23 LFN 2004 (the “Constitution”).
Diversion of Commission’s Assets
13. In 2015, the Commission purchased three vehicles from Stallion NMN Limited for the use of the Commission and for its projects. This implies that the acquired vehicles are designated “pool cars”. Unfortunately, Mr. Gwarzo diverted the vehicles for the personal use of himself and the two (2) Executive Commissioners at the time. See Appendixes C1-C10 attached hereto.
14. It must be noted that this was done notwithstanding that Mr. Gwarzo collected the sum of N84,388,886.00 (Eighty-Four Million, Three Hundred and Eighty-Eight Thousand, Eight Hundred and Eighty-Six Naira) as monetized car grant/allowance for four (4) CARS on June 8, 2015. The aforementioned amount was paid into Mr. Gwarzo’s bank account held with Guaranty Trust Bank Plc, with Bank Account No. 0023868895.
15. The diverted vehicles were not in the Commission’s premises but in the personal houses of Mr. Gwarzo and the Executive Commissioners, until the expiration of the tenure of the two (2) Executive Commissioners in January 2017, when the vehicles in their custodies were returned to the Commission. The one being used personally (in the form of a status car) by Mr. Gwarzo still remains in his custody.
16. The manner in which the above-mentioned vehicles have been used by Mr. Gwarzo and the Executive Commissioners is in the manner in which a status car is operated rather than a pool or project car, as no member of staff or any project team has been availed the use of any of those vehicles since they were purchased.
17. Mr. Gwarzo’s Special Assistant, Mr. Daiyabu Kurfi uses the Commission’s car as a personal/status car. It must be noted that his grade as Assistant Director already entitles him to a monetized car grant/allowance (in lieu of car) and he has been duly paid the amount due to him in this regard. In spite of this, he has allocated an official car to himself with the full knowledge and consent of the DG of the Commission.
18. The above-mentioned act, amounts to gross abuse of power and office as the Commission’s Directors are not entitled to such privileges.
Siphoning of Public Funds
19. When Mr. Gwarzo assumed office as the Director General of the Commission, he commenced the use of the Commission’s Annual Staff training as a conduit to siphon public funds. It is on record that the provisions of the Public Procurement Act, was disregarded by Mr. Gwarzo with respect to the approval of monies proposed for the 2015 Local Staff Training.
20. Prior to Mr. Gwarzo’s tenure, the Commission used to pay between the sums of N60,000 and N150,000 to reputable training providers such as the Chartered Accountants of Nigeria, Nigerian Institute of Management, Financial Institutions Training Centre, Nigerian Institute of Advanced Legal Studies, Lagos Business School and the Centre for Management Development to train a staff of the Commission.
21. However, when Mr. Gwarzo assumed office as DG of the Commission, Mr. Gwarzo commenced paying sums ranging from N700,000 to N780,000 per staff as training fee to training institutions owned by his friends and associates. Some of the training providers were disguised as reputable foreign training organizations, even when it was evident that the training providers did not have any pedigree or history of training anyone abroad. The training institutions were evidently owned and managed by Nigerians and run locally. This unfortunately led to poor quality training programmes for the Commission’s staff as the Commission paid more for less quality. See Appendix D1 attached hereto.
Violation of Laws and Policies
22. Mr. Gwarzo, as DG of the Commission, collected the sum of about N6,000,000.00 (Six Million Naira) from the Commission as first-class air ticket fare to travel to Hong Kong in October 2016. This act was done in total disregard of the Federal Government’s directive issued in April 2016, and circular Ref. No. SGF. 6/S.2/X/545 of March 31, 2016, which expressly prohibit government officials from flying in first-class seats.
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23. The circular clearly states that all Chief Executives, Directors General, etc. of the Federal Government parastatals, agencies are henceforth to travel on economy class for both local and international travels.
24. The above-mentioned sum was paid into his bank account with Guaranty Trust Bank Plc, with account No. 0023868895. See Appendix E1 attached hereto
25. In addition, Mr. Gwarzo spent about N2 Billion on “golden handshake” in 2015 for staff of the Commission who voluntarily disengaged from the Commission, with the aim of reducing the Commission’s overhead costs. This huge sum of about N2 Billion was not in the Commission’s approved budget for 2015 and by extension was not part of the Appropriation Act for the same year. This is a clear breach of relevant regulations as the said amount was spent without appropriation.
26. Furthermore, since the conclusion of the exercise, the Director-General has defied logic by continuously embarking on staff recruitments with reckless abandon and without advertisement or observing due process.
In conclusion, the above-listed acts of Mr. Gwarzo and his accomplices, constitutes contravention of various laws of the Federation of Nigeria, amount to acts in contravention and outside of his power, unlawful enrichment, liability to account and to refund such ill-gotten gains to the Federal Republic of Nigeria and worthy of investigation by law enforcement agencies and the National Assembly.
