A forensic audit report has revealed that N1.9 trillion (N1,959,011,334,397) was unlawfully withdrawn from the Abia State Government treasury during the tenure of the former governor, Okezie Ikpeazu.
The audit was conducted by KPMG International Nigeria Limited and commissioned by the current governor, Alex Otti, to examine the state’s finances from May 29, 2015, to May 28, 2023.
The 359-page report, titled “Final Report: Provision of Process Review Services to Abia State Government,” showed that the Abia state government maintained 78 bank accounts across 14 commercial banks, with a net credit balance of N3,495,207,127.14 as of May 28, 2023.
Funds were misappropriated through various means, including allocations to non-existent projects, loans without stated purposes, unutilized credit facilities, unremitted internally generated revenue (IGR), and illegal deductions from the IGR. Other issues included payments made before approvals, funds allocated without competitive bidding, and withdrawals lacking supporting documents or payment vouchers.
Under this government, payments often lacked adherence to the state’s procurement laws and financial regulations. A significant misallocation was the N10 billion intended for constructing the Abia State Airport, which was not built. Instead, former governor Ikpeazu claimed the funds were redirected to road projects, citing improvements in local infrastructure as justification.
Ikpeazu, through his former commissioner for information, John Kalu, denied any misappropriation, stating the funds were reallocated to other projects with the State Executive Council’s approval.
Ikpeazu reiterated that the decision to rechannel the funds was based on the lack of adequate roads for potential airport users. He provided examples of roads completed with the reallocated funds and denied that any money was diverted.
In response to the audit findings, the current administration, represented by Information Commissioner Okey Kanu, has submitted the report to the Economic and Financial Crimes Commission (EFCC) for further investigation and potential prosecution.
The EFCC has reportedly commended Governor Otti for commissioning the audit, noting that it facilitates their investigation. Some individuals mentioned in the report have been invited for questioning as part of the ongoing inquiry into the alleged financial misconduct.
