Reps probe N2bn alleged diverted funds by Abuja Investment Company

A sum of N2 billion allegedly diverted by Abuja Investment Company Limited (AICL) is to be investigated by the House of Representatives.

To this end, the House mandated its committee on Federal Capital Territory (FCT) to investigate the allegation, with a view to exposing the alleged diversion of funds and inefficiency and report back within three weeks for further legislative action.

The resolution was passed following the adoption of a motion sponsored by Shehu Musa who accused former AICL management of diverting over N2 billion proceeds from 13 subsidiaries of AICL.

The AICL subsidiaries include: Abuja property Development Company Ltd (APDC) with 100 percent shareholding, Abuja Urban Mass transport Company Limited (AUMTCO) with 100 percent shareholding, Abuja Market Marketing Limited (AMML) with 95 percent shareholding, Abuja Technology Village Free Zone (ATVFZ) with 51 percent shareholding and Abuja Film Village Ltd with 50 percent and Gas Farm Project with 50 percent shareholding.

The company also hold 20% shares in Abuja Leasing Company (ALC), 20% shares in Power North AICL Equipment Leasing Company, 20% shares in American Hospital and 10% shares in Aso Savings and Loans Plc.

Similarly, AICL owns 10% shares in Abuja Power Company Limited, 6.51% shares in Capital Hotels (Sheraton Hotels and Towers, Abuja) 5% shares in Abuja Downtown Mall.

In his lead debate, Musa expressed concern that despite the rapid growth of investments, the AICL, which is wholly owned by the FCTA is not remitting the required revenue to the FCT treasury; adding that the company has over $100 million currently under its management.

“Section 88 of the 1999 constitutiona empowers the National Assembly to investigate any matter or thing with respect to which it has power to make laws, the conduct of affairs of any person or authority charged with the responsibility of administering laws and disbursing moneys appropriated by the National Assembly for the purpose of making or amending laws and exposing corruption, inefficiency or waste in the execution of laws.

“The House is also aware that AICL, as an investment arm of the Federal Capital Territory Administration (FCTA) with a mandate to facilitate, encourage and attract investments into the FCT, was set up in October 2006 following the restructuring of Abuja Investment and Property Development Company Limited (AIPDC) which was incorporated in 1994,” he explained.

He observed that despite the rapid growth of investments, the company which is wholly owned by FCT administration is not remitting the required revenue to treasury.

KEHINDE AKINTOLA