The Human and Environmental Development Agenda (HEDA) has petitioned the Economic and Financial Crimes Commission (EFCC) to probe Okechukwu Enelamah, the minister of industry, trade and investment, for diverting a $160 million World Bank project.
In a petition to the EFCC signed by Lanre Suraj, its executive director, HEDA explained that the minister unlawfully diverted $35 million of the said sum originally meant for the growth and employment (GEM) project.
The group said the funds being financed by loans from the World Bank and United Kingdom Department for International Development (DFID) was meant to support about 4,000 small and medium-sized enterprises(SMEs) across Nigeria.
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According to HEDA, the minister, however, breached the legal framework and contracts of the fund, by attempting to “convert it to an SME fund with suggestions that he earmarked only 25 companies to benefit.”
“It was stated in the report under reference that the Minister allegedly deviated from the project terms and brought a former personal staff, Ugo Ikemba, from his private equity company, African Capital Alliance as project co-ordinator and it was also alleged that the personal staff is not only on contract employment but also on the salary of $5 million monthly,” added HEDA.
“This petition and your intervention is expedient because the project is allegedly administered by the monopoly power and influence of the minister and in turn breaching the legal framework and guidelines made for the smooth administration of the project.”
Enelamah, however, denied the allegations. Speaking through a statement issued by Bisi Daniel’s, his spokesman, the minister said contrary to the allegations, GEM project has been “a success story”.
“It has contributed to the diversification of the Nigerian economy, by supporting sectors that have high growth potential and create massive employment,” he said.
“The project supports micro, small and medium-sized enterprises (MSMEs) operating in five high potential sectors of the economy, namely: ICT, entertainment, tourism, hospitality, light manufacturing, and construction.
“It also offers more direct support to firms channelled through a platform- called the Business Innovation and Growth (BIG) Platform – to provide various trainings, technical assistance and grant schemes.”