The Economic and Financial Crimes Commission (EFCC) has detained the chairman of the National Hajj Commission of Nigeria (NAHCON), Jalal Arabi, along with another top official over alleged mismanagement of the N90 billion Hajj subsidy for 2024.
NAHCON’s secretary, Abdullahi Kontagora, was detained along with Mr Arabi, PREMIUM TIMES can report.
PREMIUM TIMES confirmed the development from EFCC and NAHCON officials who have been briefed about the case but have no permission to share their knowledge with the press.
The detained officials were still in custody facing interrogation as of the time of filing this report, the sources confirmed to our reporter.
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The federal government released N90 billion to NAHCON to subsidise the 2024 Hajj expenses of pilgrims.
Out of this money, N88.2 billion (N88,235,294,063.72) was converted to USD $62.3 million ($62,307,164.48) and transferred to NAHCON’s account, PUNCH newspaper reports, citing a document nailing down some specific details of the case.
In Saudi Arabia, the $62.3 million was converted to SR233.5 million (SR233,527,252.47).
PUNCH further reports that EFCC’s investigation has led to the recovery of SR314,098 (Saudi Riyal) from the suspects.
The money was recovered from the NAHCON chairman and other ranking officials as part of the funds allegedly overpaid to them as Hajj operational costs expenses, PUNCH reports.
EFCC also alleged that Mr Arabi fraudulently overpaid himself, the commissioners, secretary and directors for the 2024 Hajj operational cost.”
The document stated that the 2024 budget allocated specific operational costs for key officials: $4,250 for the chairman/CEO, $12,750 for commissioners, $3,825 for secretaries, and $15,300 for directors/chief of staff.
However, the anti-graft agency alleged that Mr Arabi paid himself Saudi Riyal (SR) 50,000, far above the SR15,929 he was entitled to.
Similarly, the three commissioners received SR40,000 each instead of SR15,929, while the secretary was paid SR30,000 instead of SR14,336, according to the document sourced by PUNCH newspaper.
It also said the directors and the chief of staff were also overpaid, receiving SR30,000 each, when they were only entitled to SR2,550.
PREMIUM TIMES reported that Mr Arabi was initially questioned by the EFCC on 29 July and subsequently released on bail.
In May, President Bola Tinubu approved the release of a N90 billion subsidy for the 2024 Hajj.
However, in July, some Northern governors raised concerns about the management of the subsidy.
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) is also investigating the case.
Last week, the anti-corruption agency arrested and interrogated the Director of Procurement of the Hajj commission.
Other allegations
According to PUNCH, EFCC has discovered the withdrawal of SR8.6 million (SR8,614,175.27) in cash from the SR233.5 million paid into NAHCON’s account.
The document said the cash withdrawal remains unaccounted for by NAHCON.
The document also cited cases of payment of funds to a company for services that were not rendered.
There are also cases of payments of estacodes to staff members for study tours they did not undertake.
NAHCON’s defence
NAHCON and its chaperson, Mr Arabi, has consistently denied any wrongdoing concerning their management of the Hajj funds.
On 29 July, Mr Arabi held a post-Hajj press briefing where he explained how the N90 billion Hajj subsidy was utilised.
Mr Arabi said NAHCON incurred additional costs beyond the N90 billion grant received from the federal government to ensure the success of the exercise.
According to him, of the N90 billion, about N80 billion was expended as subsidies for 50,000 pilgrims from the states and the Federal Capital Territory (FCT), with each receiving N1.6 million.
He also said other pilgrims under the Hajj Savings Scheme (HSS) and all officials of the commission used up over N10 billion.
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He said the Central Bank of Nigeria (CBN), which disbursed the funds on behalf of the federal government, deducted 2 per cent service charge per pilgrim. This, according to the commission, amounted to about 1.7 billion.
He said NAHCON paid around N4 billion to cover unexpected, additional accommodation costs in Medina. A document that he shared stated that the commission initially estimated the cost at Saudi Riyal (SR) 850 per bed space for 11,000 spaces. But it said the money could only secure 8,754 spaces.
NAHCON said the additional expenses, coupled with the CBN deductions, resulted in a loss of approximately N6 billion for NAHCON.`
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