The House of Representatives ad-Hoc committee report on fuel subsidy that indicted both government agencies and some oil firms is beginning to have ripple effects as former governor of Kwara State, Senator Bukola Saraki has been invited by the Special Fraud Unit (SFU) of the Nigeria Police Force (NPF) for questioning.
It was learnt that the SFU invited the senator, who represents Kwara central senatorial district, over N8.5 billion loan granted by the defunct Intercontinental Bank Plc to some companies he is believed to be a shareholder.
The SFU, it was gathered, wants Saraki to come and clarify how the marginal loans owed the banks by the companies were written off.
The three companies Senator Saraki is believed to own shares in are: Limkers Nigeria Limited, Skyview Properties Limited and Joy Petroleum.
However, the force public relations officer, Olusola Amore, a deputy commissioner of police, when contacted yesterday on the issue, told LEADERSHIP SUNDAY that he was not aware of any such development.
Meanwhile, Saraki’s invitation may not be unconnected with the principal role he played in moving a motion on the floor of the Senate where he had remarked that the “fuel subsidy management lacks transparency and control”. His motion in the Senate is believed to have influenced the members of the House of Representatives into probing the oil sector.
He had also raised the alarm that, with the trend in 2011, the nation might have fuel subsidy bill of over N1.2 trillion as against the N240 billion budgeted in the Appropriation Act.
The report of the House ad-hoc committee that was tabled last week may have vindicated Saraki with its discovery that fuel subsidy gulped a whopping N2.588trillion in 2011.
It was learnt that since last Wednesday when the committee’s report was made public, Saraki has been under intense pressure and condemnation from high quarters, including the marketers.
“The former governor has been receiving calls blaming him for all the mess unearthed by the House ad hoc committee. He has also spent a considerable time going to influential forces in government to explain that he meant well with his motion. But these forces were not persuaded by his argument”, a source close to the senator explained yesterday.
But a close source privy to the loan transactions said the SFU has no business with the management of bad debts which is now the responsibility of the Asset Management Corporation of Nigeria (AMCON).
The source said: “The major issue involved here is that of margin loans. Shares bought were used as collateral. When the shares lost about 75 per cent of their value, the security depreciated, necessitating negotiation between the bank and its customers.
“Writing off portions of non-performing loans is not unusual in the industry, especially when the security cannot be called in.
The process for write-off of portions of the said loans were started by a former executive vice chairman of the defunct Inter-Continental Bank Plc, Akingbola, and was only implemented by his successor, Mr. Lai Alabi, whose mandate was debt recovery”.