By Newsmata
Submitting its report to Governor Monday Okpebholo on Wednesday, the 16-man Edo State Assets Verification Committee headed by a retired Federal Permanent Secretary, Dr. Ernest Afolabi-Umakhihe, has revealed how the immediate past administration of Godwin Obaseki plunged the state into financial mess as a result of alleged “mismanagement, improper allocation of resources, and the misuse of consultants in government operations, which created opportunities for corruption and abuse”.
Presenting the report, Dr. Afolabi-Umakhihe said, “One of the critical aspects of this report is the revelation of significant financial obligations left behind by the previous administration, some of which pose a heavy burden on the state’s fiscal health. These liabilities, including outstanding debts and contracts, require urgent attention and strategic management”.
The committee therefore recommended a review of certain government contracts and agreements, emphasising the need to ensure that they align with the best interests of Edo State.
The committee recommended that in the light of its findings, “the relevant authorities launch further investigations to hold those responsible accountable”, suggesting that “prosecuting individuals found culpable will send a strong message that Edo State is committed to integrity and transparency in governance”.
The report further suggested “a re-evaluation of government agreements, leases, and tenancies to ensure fairness and economic advantage for the state”. It similarly advised the government “to scrutinise corporate entities suspected of having unclear ownership structures linked to past administrations”.
For example, the Newsmata gathered that the committee, among others, found, in respect of the controversial Radisson Hotel, that while Edo State had committed over N19bn (N2bn for land purchase and N17bn raised from the capital market) of its own funds to its construction, including purchase of the original property, the previous administration ceded 80% of the ownership of the Hotel to an unknown company named Tribury House Limited registered in 2024 while Edo retained 20%. The company was said to have made no financial contribution.
The Committee observed, curiously, that the Obaseki-led government did not only cede 80% of the hotel’s ownership to the company, but the state government is also being charged directly from the federation account to defray the cost of the bonds issued in the name of the hotel till date.
On the Benin city mall, the committee reportedly discovered that though Edo State government spent over N7bn in the construction of the mall, the ShopRite was yet to pay a dime of their total obligation to the state government despite having moved into the mall in the twilight of the administration.
Core civil service functions were also found to have been outsourced to a company named Green Field at a contract sum of N5 billion which literally took over the functions of the state’s civil service, directly hiring, firing, transferring and training civil servants across the state. The Committee considered this a serious infringement on extant laws of the state.
On the contentious Edo-BEST program sponsored by the World Bank, the Committee discovered that of the $75m (USD) meant for basic education reforms and renovation of schools, only $5m came directly to the State Universal Basic Education Board, (SUBEB) the agency charged with the responsibility of implementation, while the remaining 93% of $70m was allegedly directly managed by the former governor under an arrangement referred to as Performance for Result. The SUBEB staff reportedly complained that out of the $5m allocated to them, only $2.5m was accessed before the project came to a close.
According to the committee’s findings, the state didn’t derive value from this project as the priority of the people of the state was how to fill the school infrastructure gap, teacher recruitment, security of pupils and hygiene, while a whopping sum of $75m was purportedly expended on procurement of tablets.
Introducing the report, Dr. Afolabi-Umakhihe, emphasised that the findings were not just a reflection of past actions but a call to action for the future.
According to him, “This report serves as a pivotal moment for Edo State, marking the need to take stock of our current position and chart a course toward greater accountability, financial prudence, and responsible asset management”.
Dr. Afolabi-Umakhihe noted that the committee’s work involved weeks of diligent research, site inspections, stakeholder engagements, and thorough verification to ensure transparency in handling the state’s assets and liabilities, adding that the report provided a comprehensive breakdown of Edo State’s assets and liabilities, including outstanding debts, contractual obligations, and financial commitments.
Receiving the report, Governor Okpebholo, who commended the team for their dedication, assured that their findings and recommendations would be acted upon.
The governor said, “I appreciate the committee for a job well done and the time invested in this exercise. I understand the challenges you faced, yet you successfully carried out this crucial assignment. Rest assured that your findings and recommendations will be implemented appropriately”.
Governor Okpebholo reaffirmed his commitment to addressing the issues raised, pledging that his administration would act decisively to strengthen governance and ensure responsible management of state resources.
Recall that when the committee was inaugurated November 26, 2024, the governor had insisted that the probe was not for witch-hunt.
He said the assets verification committee was an off-shoot of the Dr. Pius Odubu-led Transition Committee which was set up to collate all necessary information for a seamless hand over of Government.
“Based on the report, we have found it necessary to set up this committee to establish the true status of our assets as a state. This assets verification exercise is therefore a process that will confirm the existence, conditions, locations and ownership of all assets, whether fixed or movable, tangible or intangible.
“We are trusting this 16-member committee to do thorough checks and provide us with an updated record of Edo State assets and property. I want to also assure you that this exercise is not intended to witch-hunt anybody but to strengthen the fight against corruption, which is part of my mandate as Governor.
“The assignment we are giving you today is in line with my promise to ensure probity, accountability and transparency in government”.
Briefing journalists after the inauguration, Afolabi-Umakhihe, like the governor, had affirmed that the committee was on a fact-finding mission to unravel the state of affairs as inherited by the current administration on November 12, 2024.
He noted that the report by the Odubu-led transition committee highlighted some gaps which would be filled by his committee to ensure accountability, transparency and accuracy.
Umakhihe said, “We want to have full details of ongoing projects across the state, looking into financial and nonfinancial aspects of the government to present the facts the way they should be”.
He added that the committee’s mandate was to know the level of projects and to develop a pathway for government’s development agenda.
Also defending the setting up of the committee, one of the members, Prince Kassim Afegbua, said “because the previous government was short in terms of facts and figures that dominated the smooth governance process, we have a duty as APC, in line with the Renewed Hope Agenda of the federal government, to begin to interrogate certain gaps as captured by the chairman of this committee”.
Afegbua insisted that the committee would interrogate some grey areas in the last administration while a lot of persons would be invited to face it in line with its terms of reference.
A former member of the House of Representatives, Patrick Ikhariale, painted a disturbing picture of the state’s debt portfolio. Ikhariale, who recalled that Edo State was created in 1991, was concerned that “as we speak today, Edo State’s debt profile is about N450bn to N500bn; that is to say between 2016 and 12th of November 2024, Edo State had accumulated debts burden in over 2000, 3000 per cent compared to what we have had in the previous years”
He said “It is important that we look at the issues that concern Edo people. Obviously, the money we are talking about must, in our estimation, be used for what it was intended”.
On his part, Dr. Patrick Obahiagbon, posited that the exercise was to ensure accountability, detect fraud and ensure financial accountability by the past administration.
Obahiagbon, also a former member of the House of Representatives, stated that because the previous administration did not cooperate with the APC’s transition committee in providing needed information, “it’s like this government is starting on a political tabula rasa. So, starting on a political tabula rasa therefore, it behoves the government to know the state of affairs, where we were yesterday, and where we are today to be able to move forward”.