President Bola Tinubu has sacked the embattled chairman of the National Hajj Commission (NAHCON), Jalal Arabi.
Although no reason was given for the sack, PREMIUM TIMES reports that Mr Arabi is being investigated for allegedly misappropriating funds released by the federal government for this year’s Islamic pilgrimage.
The president has also appointed a new head for the Hajj commission.
According to a statement by President Tinubu’s spokesperson, Ajuri Ngelale, on Monday, Mr Arabi will be replaced by Abdullahi Usman, a professor.
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The president advised Mr Usman to lead the commission with integrity and transparency.
His appointment is subject to confirmation by the Senate, according to the statement.
The EFCC investigations
PREMIUM TIMES had earlier reported that Mr Arabi and NAHCON secretary Abdullahi Kotangora were indicted in an ongoing investigation by the Economic and Financial Crimes Commission (EFCC).
The EFCC said it uncovered a multi-million-dollar fraud allegedly perpetrated by the two top officials of the commission.
The anti-graft agency’s discoveries came from an extensive investigation into the suspicious use of funds allocated to NAHCON for Hajj operations over the years.
A review of the EFCC document revealed that the investigation dates back to 2022 after an operative of the anti-graft agency, who served on the NAHCON Central Security Committee that year, hinted at several infractions in the use of the Hajj commission’s funds.
Some of the irregularities highlighted in an intelligence report submitted by the EFCC insider after the stint on the NAHCON security committee include the payment of estacodes to staff members for a study tour that never took place and payment for a consultancy service that was not rendered, among others.
The document said that in addition to the intelligence report of the unnamed EFCC operative, the anti-corruption agency received petitions from some concerned NAHCON staff members.
The EFCC received seven petitions from the staff members against Messrs Arabi and Kontagora.
While investigating these allegations, the EFCC said it received another petition against Mr Arabi.
Major allegations against Arabi and secretary
Among the crimes allegedly perpetrated by Mr Arabi and the secretary include a consultancy fee controversially paid to Shuraka’a al-Khair Group Ltd, overpayment of estacodes to himself and other top officials, unaccounted cash withdrawal and the alleged mismanagement of N90 billion federal government subsidy for 2024 Hajj.
In its findings, the EFCC explained that the Saudi Arabian government refunded NAHCON SAR20.6 million (20.6 million Saudi Riyal) for services that were either poorly rendered or not rendered to some Nigerian pilgrims and tour operators at Masha’ir in December 2023.
The Ministry of Hajj and Umrah Saudi Arabia paid the funds in four tranches into NAHCON’s IBAN account on 27 December 2023.
EFCC said that after the payments by the Saudi authorities, Mr Arabi “fraudulently” contracted Shuraka’a al-Khair Group Ltd as a consultant via a letter of award dated 24 January 2024. The company was purportedly engaged to “recover” the money already received in the commission’s account.
The firm purportedly facilitated the recovery of SAR20.6 million from the Saudi authorities and was paid SAR1.7 million (SAR1,780, 019,59) as part payment for the “service”.
The EFCC, however, said it had recovered the money as Mr Arabi confessed the consultancy service was not rendered. It added that the award letter for the contract for which the firm was paid 7.5 per cent consultancy fees was issued after the Saudi government refunded NAHCON.
The EFCC also revealed 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, it was discovered that Mr Arabi paid himself SAR 50,000, far above the SAR15,929 he was entitled to.
Similarly, the three commissioners received SR40,000 each instead of SAR15,929, while the secretary was paid SR30,000 instead of SAR14,336.
The investigation also showed that the directors and the chief of staff were overpaid, receiving SAR30,000 each, when they were only entitled to SAR2,550 each.
In addition, EFCC said its findings showed that one Abubakar Lamin withdrew SAR22.8 million (SR22,815,367.74) in cash from the NAHCON’s British SAAB account in Saudi Arabia during the 2024 Hajj.
Out of this, “the total sum of SAR8,614,175.27 (SAR8.6 million) cash withdrawal is yet to be accounted for by NAHCON,” the investigators said, adding that the expected recovery is SR 314,098 which is equivalent to N131.9 million on or before 16 August.
The investigators said the refund of SAR18,857,888.11 and SR314,098 is also being awaited.
The sacked chairman was also accused of mismanaging the N90 billion subsidy for the 2024 Hajj, but he denied it, and offered explanations for how the money was spent.
About N80 billion of the Hajj subsidy was expended as subsidies for 50,000 pilgrims from the states and the Federal Capital Territory (FCT), each receiving N1.6 million, Mr Arabi said during a post-Hajj press briefing on 29 July, adding the commission incurred additional costs beyond the N90 billion grant received from the federal government.
According to him, other pilgrims under the Hajj Savings Scheme (HSS) and all officials of the commission used up over N10 billion.
The Central Bank of Nigeria (CBN), he added, deducted a two-percent service charge per pilgrim, amounting to about N1.7 billion.
Mr Arabi further explained that NAHCON paid around N4 billion to cover unexpected, additional accommodation costs in Medina. A document 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.
He said the additional expenses and the CBN deductions resulted in a loss of approximately N6 billion for NAHCON.
READ ALSO: How EFCC’s insider, aggrieved NAHCON staff members exposed alleged Hajj funds fraud
Meanwhile, the EFCC and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) have continued investigating the N90 billion Hajj subsidy fund.
Last Wednesday, the EFCC detained Mr Arabi after he was initially grilled and granted bail two weeks earlier.
That same Wednesday, some top officials of the commission were also arrested by the ICPC over alleged mismanagement or diversion of Hajj funds.
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