Continued from yesterday
Currently we have not seen any documentation which shows who was presented with the said boat. Our review of the Award Ceremony documentsshows no boat presentation, we enquired from Mr. Fidelis Imiehiakhe and Mr. David Oleka (both of whom attended the ceremony) if there was such a presentation they had no recollection that a boat was awarded during the ceremony.

There are however indications (which we are currently investigating) that either Yinka Idowu or the former DG was presented with the boat.

That at the beginning of 2008 the NSE expended the sum of N45,000,000.00 (Forty Five Million Naira) in purchasing 64 Rolex watches for presentation to employees who had served the NSE for 10 years, that later in the same year Candy Floss Limited was given N95, 000,000.00 (Ninety Five
Million Naira) for an additional purchase of 91 Rolex watches and subsequently after the award ceremony another 10 Rolex watches at the cost of N46, 000,000.00 (Forty Six Million Naira) were purchased.

We observed that the Award Ceremony document shows that only 73 out of the 1 65 Rolex watches purchased were actually presented to the awardees which means that 92 Rolex watches valued at N99, 500,000.00 (Ninety Nine
Million, Five Hundred Thousand Naira) are unaccounted for.

We further observed that the ‘schedule containing the list of staff members eligible for long service awards only contains 63 names’ suggesting that 10 additional and unauthorized people received presentations.

In the same vein Candy Floss Limited was given N100, 000,000.00 10 Hundred Million Naira) for the purchase of 14 cars to be presented to employees who had served the NSE for 25:- 30years, at the same time 3 cars purchased by the NSE in January and March 2008 far the total sum of
N59,000,000.00 (Fifty Nine Million Naira) (1 land cruiser jeep purchased for N30,000,000.00 (Thirty Million Naira) and 2 Lexus cars purchased for
N29,000,000.00 (Twenty Nine Million Naira) were written off the books at the end of the same year by their allocation to the Long Service Award account as part of the gifts given during the ceremony.

However, the Award Ceremony document shows that only 7 people were presented with cars compared to the 14 cars which were to be purchased by
Candy Floss Limited and the 3 additional cars written off, meaning that 10 cars valued at approximately N66, 142,857.00 (Sixty Six Million, One Hundred and Forty Two. Thousand, Eight Hundred and Fifty Seven Naira) are unaccounted for.

It was again noted that although Candy Floss Limited was given the sum of N50, 000,000.00 (Fifty Million Naira) for the special presentation to employees who had worked with the NSE far 25 _ 30 years, another sum of N55, 000,000.00 (Fifty Five Million Naira) was again disbursed in respect 0f the special presentation which was to include a luxurious jeep and a special gift of the former Director General’s choice.

This suggests that there was a duplication of payment and a double purchase of a luxury car for the former Director General’s choice.
It was further noted that although Candy Floss Limited was given N6, 000,000.00 (Six Million Naira) for the purchase of 20 plasma televisions, only 13 plasma televisions were awarded whilst although Candy Floss Limited was also given N5, 400,000.00 (Five Million, Four Hundred Thousand Naira) for the purchase of 45 deep freezers only 33 were awarded thus 7 televisions   and 12 deep freezers valued at N3, 540,000.00 (Three Million, Five Hundred and Forty Thousand Naira Only) are unaccounted for.

Also noted is the fact that Articles 52 of the Employee Handbook for Management and Senior Staff as well Article 55 of the Employee Handbook for Junior staff limits the value of gifts/cash that can be given to employees for the long service award.

We observed that the gifts awarded/presented far exceeded the value stated in these handbooks. These Articles further stated that these awards should be presented to only members of staff, but we observed that former members of staff were also given awards.
Further investigations to be carried out in respect of the Long Service
Award will focus on determining the following among others:

Whether any payments were made by Candy Floss Limited or its agent/officers to the accounts of officers of NSE including the former D.G, ADG e.t.c;
Whether the amount received by Candy Floss was justified when compared with the market value of services rendered at the time under reference;
Whether there was council approval for the purchase and subsequent use of the boat as a long service award gift;

Whether the writing off of the boat in this manner by the NSE was in contravention of corporate governance principles, the code of conduct in operation at the NSE and/or other rules, regulations or legislation; and  Whether the transaction was in contravention of corporate governance
principles, the code of conduct in operation at the NSE and/or other rules,regulations or legislation;

Whether the 74 Rolex watches were actually purchased by the NSE and if there is any relationship between the NSE and the companies from whom they were allegedly purchased;

What formed the basis for the amounts spent on purchasing each of the gifts presented?
Why former staff members were awarded gifts in breach of the
provisions of the Staff Handbook; Confirm whether the presented items were ever purchased and if they were where they are presently; and Possible causes of action, if any, against Yinka Idowu and other associated persons.

Business Travels Overseas
In the year 2007 the reported expenditure for the expense classification, Business Travels Overseas (“BTO”) was N450, 000,000 (Four Hundred and Fifty Million Naira) as against an annual budget of. N60, 000,000 (Sixty Million Naira) indicating that the sum of N390, OOO, O0O: 00 i.e. 650% was expended in excess of the annual budget. We were unable to verify the actual expenditure reported for 2007 as we were informed by officers of the IT department that the ledger accounts had not been computerized in 2007.

In the year 2008, the reported expenditure for BTO was stated to be N615,736,301.62 (Six Hundred and Fifteen Million, Seven Hundred and Thirty Six Thousand, Three Hundred and One Naira, Sixty Two Kobo) after
reclassification.

Our investigations reveal that the total sum expended on BTO in 2008 prior to reclassification was, N 1, 900,000,000 (One Billion and Nine Hundred Million Naira). The sum =N=l, 300,000,000 (One Billion and Three Hundred Million Naira) was reclassified under different expense description/classes.

For instance, the sum of N953, OOO, OOO and Twenty Six Million Naira) indicating that the sum expended was N1, 000,000.00 (One Million Naira) below the annual budget. We were unable to verify the actual expenditure reported under the expense classification in 2007 for the same reason stated in respect of the BTO in 2007.

In the .year 2008 the reported expenditure for MSQ was reported to be
N239,521,403.16 (Two Hundred and Thirty Nine Million, Five Hundred and Twenty One Thousand, Four Hundred and Three Naira, Sixteen Kobo).

In the year 2009, the reported expenditure for MSQ was stated as N70,781,874.79 (Seventy Million, Seven Hundred and Eighty One Thousand,Eight Hundred and Seventy Four Naira, Seventy Nine Kobo) after reclassification as against the actual budget of N 113,000,000 (One Hundred and Thirty Million Naira) suggesting that actual expenses were N39,000,000 (Thirty Nine Million Naira) below budget.

Our investigations reveal that the total sum expended on Maintenance of Staff Quarters in that year prior to reclassification was N 135, 067,773.39

(One Hundred and Thirty Five Million, Sixty Seven Thousand, Seven Hundred and Seventy Three Naira, Thirty Nine Kobo), the sum of N64,285,898.60 (Sixty Four Million, Two Hundred and Eighty Five Thousand,Eight Hundred and Ninety Eight Naira, Sixty Kobo) was reclassified under
different expense heads.