ICPC Seeks Forfeiture Of N1.37bn Allegedly Diverted Under El-Rufai’s Govt
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has initiated legal action to recover N1.37 billion allegedly misappropriated during the administration of former Kaduna State Governor, Nasir El-Rufai.
The anti-graft agency approached a Federal High Court in Kaduna, requesting an interim forfeiture order on the funds, which were allegedly linked to a fraudulent light rail project that was never executed.
The money, now recovered into ICPC’s account with the Central Bank of Nigeria (CBN), is part of an ongoing investigation into financial mismanagement during El-Rufai’s tenure.
Dubious Contract Award and Fund Diversion
According to court filings, the Kaduna State Government under El-Rufai entered into a joint venture agreement in October 2016 with Indo Kaduna MRTS JV Nig. Ltd. for a light rail transport system.
However, investigations revealed that at the time of the contract award, the company was not registered with the Corporate Affairs Commission (CAC), a clear violation of the Companies and Allied Matters Act (CAMA) 2020.
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Despite this, over N11 billion was allegedly transferred to the company’s account at Sterling Bank through multiple transactions between December 2016 and January 2017.
Instead of executing the project, the company’s president, Jitender Sachdeva, allegedly instructed the bank to place the funds in a fixed deposit account, generating an interest of N326.8 million.
Missing Funds and Legal Action
Following concerns over the stalled project, N10 billion was reportedly refunded to the Kaduna State Government in 2019, but N1.04 billion remained unaccounted for.
ICPC’s investigation revealed that the remaining sum was transferred to GTA Engineering Nigeria Ltd., a subsidiary of Skipper Nigeria Ltd., under the pretext of a feasibility study payment—a study the commission claims was never conducted.
Citing the Proceeds of Crime (Recovery and Management) Act (2022), the Advance Fee Fraud Act (2006), and the Nigerian Constitution, ICPC has asked the court to order the forfeiture of the funds.
The commission also sought approval to publicize the court proceedings in national newspapers, allowing any interested parties to challenge the forfeiture request.
El-Rufai’s Response and Denial
In response, El-Rufai and members of his former cabinet denied any wrongdoing, insisting that all payments followed due process.
They described the light rail project as a Public-Private Partnership (PPP) with funding expected from a $600–700 million loan from the Indian EXIM Bank, while the Kaduna State Government contributed 15% equity.
According to them, the project stalled due to the Federal Government’s refusal to provide a sovereign guarantee, making the loan inaccessible.
They also claimed that a French consultancy firm, Systra, alongside GTA Engineering, conducted a feasibility study costing $2.8 million (N890 million), which remains the state’s asset.
The former officials accused ICPC of shifting its allegations, initially claiming N13 billion was missing, and pressuring Sterling Bank to deposit N1.3 billion into an escrow account with the CBN.
They described the forfeiture process as politically motivated and insisted that all transactions were transparent.
Kaduna’s Financial Woes
The controversy surrounding the light rail project comes amid growing concerns over Kaduna State’s finances.
El-Rufai’s successor, Governor Uba Sani, recently lamented that he inherited a huge debt burden of $587 million, N85 billion, and 115 contractual liabilities, making it difficult to pay workers’ salaries.
As legal proceedings continue, the ICPC maintains that the recovered funds should be forfeited and returned to the Kaduna State Government in the public’s interest.
Hafsoh Isiaq is a graduate of Linguistics. An avid writer committed to creative, high-quality research and news reportage. She has considerable experience in writing and reporting across a variety of platforms including print and online.
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