By ADEBOLA AYINLA

The Rural Electrification Agency (REA), the agency of the Federal Government of Nigeria responsible for the electrification of unserved and underserved communities under the supervision of the Federal Ministry of Power, came under scrutiny in 2023 following internal and external probes into irregular payment practices, misappropriation of funds, and abuse of office. In March 2024, this led to the indefinite suspension of the former Managing Director alongside the Executive Management.

This was due to concerns about significant weaknesses in some government systems, operations and financial controls. Law enforcement agencies tasked with investigating the Agency expanded their inquiry into procurement and payment processes, focusing on how approvals were processed and how funds were released through Government financial platforms.

Months before the indefinite suspension, the former Managing Director, Ahmad Salihijo, had escalated concerns about irregular disbursement patterns to relevant authorities, citing unusual activity linked to payments processed through the Government Integrated Financial Management Information System (GIFMIS). Following the discovery, the REA Executive Management also initiated internal accountability processes and officials concerned within the finance and accounts department were queried and suspended immediately.

According to public service rules, there was a recommendation by the Senior Staff Committee (SSC) for their dismissal, which was submitted to the supervisory Ministry for ratification at the time when the indefinite suspension of the former Managing Director and Executive Management was announced.

Between August and September 2023, law enforcement agencies invited and interrogated REA officials to scrutinise payment records, procurement documentation and internal control processes connected to rural electrification projects nationwide.

Investigators uncovered that the primary culprits behind the unauthorised withdrawals from government coffers were the former Director of Finance, the former Director of Human Resources, and some senior accounts staff. These individuals executed payments without the necessary approvals or audit clearances, effectively bypassing the authority of the former Managing Director, Ahmad Salihijo, and the Executive Management.

Subsequent legal action has focused exclusively on these findings. In mid-2024, media outlets reported that several REA officials were arraigned over alleged fraud linked to unauthorised payment processing. The prosecution centred on the former Director of Finance, the former Director of Human Resources, and senior accounts officers.

Public court filings show that the cases were brought before the Federal High Court in Abuja under multiple charge numbers with the courts ordering arrests, arraignments, remand and asset forfeiture proceedings against indicted officials. Investigators stated that the disputed payments were processed without the approval or authorisation of the Managing Director and without mandatory internal audit clearance, in breach of established financial regulations.

This year, the law enforcement agencies obtained interim forfeiture orders over properties linked to proceeds of the alleged fraud, following applications granted by the Federal High Court in Abuja. From findings, the assets were traced to funds diverted through compromised payment processes and routed via personal and proxy accounts controlled by indicted officials.

Throughout the prosecution and forfeiture proceedings and court orders arising from the REA investigations, the former Managing Director and the Executive Management team were neither listed as defendants nor were they named on any charge sheets issued by the law enforcement agencies.

According to evidence examined by reporters, there is an absence of criminal charges against Salihijo and Engr. Barka Sajou, the former Executive Director Technical Services, nearly two years after investigations by several law enforcement agencies. The evidence reveals that at various times several other REA officials have faced prosecution for alleged fraud, criminal conspiracy and diversion of public funds.

The REA case serves as a stark illustration of how systemic loopholes can be exploited by public officials, enabling fraudulent activities without the knowledge or approval of agency leadership. This situation highlights the long-standing weaknesses in internal financial control frameworks across public institutions in Nigeria. As the public continues to demand accountability, the need for comprehensive reforms in governance and financial oversight has never been more urgent.

•Ayinla writes from Lagos.