INVESTIGATION: Inside UNILAG’s multi-million naira budgetary abuse and academic discord

The University of Lagos located in Nigeria’s commercial capital, Lagos, has been embroiled in controversies with allegations bothering on misappropriation of funds to the tune of N5 billion, forgery, and misconduct among other administrative vices.

In this report, Olanrewaju Oyedeji reveals exclusive details on the crisis.

Allegations of financial fraud and petitions from members of the UNILAG community had culminated in a situation which saw the governing council suspending the Vice Chancellor, Prof Oluwatoyin Ogundipe. This led President Muhammadu Buhari to set up a presidential panel to investigate the crisis that was threatening to engulf the ivory tower.

Ogundipe was later reinstated, but the chairman of the governing council of the institution, Wale Babalakin resigned from his position.

Anti-corruption bodies like the Economic and Financial Crimes Commission (EFCC) Independent Corrupt Practices and other Related Offences Commission (ICPC) were called in, but even they were accused of inactivity, and doing nothing to bring perceived guilty parties to book.
With Prof Ogundipe and Babalakin at the center of the raging crisis and allegations, Ripples Nigeria went in to ascertain the true position of things.

Documents seen by Ripples Nigeria showed that large sums of monies were awarded in questionable contracts to companies, and entities that were in some cases untraceable. For instance, a total of  N49.43 million was spent for renovation of the Vice Chancellor’s lodge in 2017. In 2018 another N2.2 million was expended for refurbishing the guest chalet in the same lodge, while an extra N550,284 was spent on acquiring furniture for the building. In 2019, the varsity spent another N2.04 million on the lodge refurbishing while spending same amount in 2020.

One of the staff quarters In Unilag

In three years the University of Lagos management spent N55 million naira on the Vice chancellors’ lodge.

In 2017, another sum of N41.82 million was spent for the renovation of the bursar’s apartment while N16.12 million was spent on renovating the residence for director of works (former residence for registrar). When contacted, the University‘s bursar, Mr Olalekan Lawal refused to comment on this, noting that he was not authorized to speak on such issues.

A search on the Corporate Affairs Commission (CAC) for the contractor listed as Taiwo and Sons Enterprises that handled the renovation of the pro-chancellor’s resident proved abortive, as the company was not listed. However, similar organizations found in terms of name were inactive on the CAC portal (meaning they failed to file their returns). Others were registered outside the date of execution of the contract for the renovation of the Pro-chancellor’s lodge. The renovation was worth over one million naira.

Budgetary process abuse

The approval limit of the Vice Chancellor is 2.5million naira for goods and services. however, the UNILAG Vice Chancellor, Professor Ogundipe was accused of failing to seek approval for funds outside his approval powers.

For instance, the university administration consistently spent several millions of naira on renovation of residential buildings for its top officials constantly for a number of years.

In one case, a total of N112 million was spent on renovation of principal officers’ quarters. But  the Tenders board limit is put at N50 million. The Vice Chancellor in his defense in documents seen by Ripples Nigeria, noted that deficiencies that gave room for snakes and rodents ingress made the increments of  over N50 million naira necessary.

“The renovation work includes both civil works and housing furniture. In accordance with the Memorandum of appointment (MOA), outgoing VCs leave with their furniture. Consequently, the total furniture stated in the report should be broken down into renovations and purchase of furniture and equipment respectively. On assumption of office, after evaluation of the state of the property, the Works and Physical Planning Department identified certain deficiencies that needed attention. For example, leaking roof, old louvres (which gave opportunity for rodents and snakes ingress)”, he stated.

A top member of the dissolved governing council of the University, who spoke to Ripples Nigeria, also confirmed this development, noting that efforts to get accountability in this case failed.

The Vice Chancellor was also accused by the former governing council of Wale Babalakin of paying the Dean of student affairs over N2 million monthly as security votes, between May 2017 and September 2018. The council alleged that the payment was done without its knowledge. Although, the Vice Chancellor noted that the payment was historical as according to him, previous deans enjoyed same benefit.

The Vice Chancellor was also accused of approving allowances for foreign grants above his approval limit, including adding a ’Local Running’ or ‘Incidental expenses’, which the governing council said is illegal in the varsity system.

Checks by Ripples Nigeria revealed that companies that were inactive, or not listed on the Corporate Affairs Commission (CAC) portal were in operation with the University of Lagos.

An inactive company is one that has not made any Significant Accounting Transaction during the last two financial years or has not filed Financial Statements and Annual Returns during the last two financial years.

The new CAMA law of 2020 classified many of such organizations as inactive.

A non-listed company in this case is one that cannot be found on the CAC portal.

An instance is Mr Wash Nigeria Limited. Although registered in 2003, the company was listed as inactive by the CAC as of the time of this report. Despite this, Mr Wash Nigeria was the one that handled a N33.62 million project for the varsity.

The Project details include; Maintenance Service Contract for the Hostels Facilities in Eni-Njoku Hall, Makama Bida Hall, Fagunwa Hall, Madam Tinubu and Shodeinde Hall.

Picture of Fagunwa Hall, one of the hostels maintained by Mr Wash

The contract awarded to Mr Wash brewed controversies as the works committee department noted that it was not allowed to supervise the contract or determine if it was executed.

Mr Wash must have been listed as inactive due to it’s inability to file returns. However, in January 2020, the organization made a request for payment valuation certificate (a payment certificate is to inform the client about release of payment to the contractor) for the sum of
N33.618 million. During the duration of their inactiveness, the organization still made transaction with the University of Lagos.

Attempts to reach Mr Wash Nigeria proved abortive as the organization did not have a known website or any readily available contact details online.

Madam Tinubu Hall, one of the halls maintained by Mr Wash

Another organization that got contracts from the University of Lagos was Myne Maxima Treasure, an organization also listed as inactive on the CAC portal.

N4.25 million for MTN E-library at Akintunde Ojo building

The project was for the Procurement of external electrical power back–up system

Earlier, a Professor, Oye Boniface had alleged that project had no letter of award and that it was reported as completed in November 2018.

It was alleged that there was no Tender Board approval, no Finance and General Committee nor Council approval. This is a violation of the Public Procurement Act of 2007 and the University Financial Regulations of 2016.

Awarding contracts to companies without tax clearance, an anomaly —Lawyer

A legal expert, Barrister Awosusi Kehinde (Esq), while speaking with Ripples Nigeria noted that the normal process of winning contracts involves preparing Tax clearance.

“You cannot take contracts from government because after filing your annual returns, you are expected to get a tax clearance certificate from the Federal Inland Revenue Service and you get a certificate of your annual return from the corporate affairs commission. That is when you are eligible to be awarded any contract. The annual return is duly signed by an accountant, a practicing accountant preferred to be a chartered accountant”, Awosusi noted.

Speaking further, he said it was the duty of the organization awarding the contract to demand for a Tax clearance certificate for the year ending.

He also noted that for an organization to have been listed as inactive on the CAC portal, they must have failed to file their returns for at-least two years.

N444m paid for new library building, but contract non-executed five years after

Another company, Dutum Company Limited was awarded a contract worth over one billion naira, for the construction of the university’s new library. Checks however revealed that Dutum has been listed as inactive by the corporate affairs commission, meaning that it failed to file its returns.

Contract Award was worth N1.94 billion while N444.61 million representing 21% of contract completion was recorded to have been paid. The project was recorded as a failed one.

An Investigative Panel by the Council for the Regulation of Engineering in Nigeria (COREN) invited all the parties to probe causes of the failure of the project.

Also, the varsity governing council in a report seen by Ripples Nigeria had faulted the process that led to the emergence of  Dutum as the organization to build the Varsity’s library.

The Panel was of the view that Dutum Company Limited was not qualified to be awarded the contract for construction of the new library project. It stated that the organization should not have been prequalified, as “its lack of experience in the construction of multi-storey building on pile foundation was manifested in the course of implementation of the contract”.

The contract was inherited by the administration of Professor Ogundipe from the former Vice Chancellor, Professor R. A. Bello

Dutum reacts

When contacted, the director of Dutum, Tope Runsewe did not deny receiving over N400 million from the University of Lagos. He noted that the payment was in line with standard practices. He however denied that the project has failed, blaming ‘hyper-inflation of construction materials’ among other issues for the delay

“The project in question cannot at this stage be qualified a failure. In truth, there has been some delays on the project due to reasons beyond our control. These include internal adjustments on the part of the project owner, covid-19 related shut downs, hyper-inflation of construction materials, which resulted in the need for price review, amongst others.

“Despite these, we are making progress towards resumption and continuation of the project. We remain hopeful that work should resume within weeks so we can deliver another quality project as we have been engaged to do” Mr Runsewe said.

The project which was commissioned in 2016 remains non-executed five years down the lane. The organization was given an Advanced Payment in November 2016 to the tune of over N290 million, In December 2017 another N94,358 million was made. In January 2018, a sum of N25.84 million was paid to Dutum. In June of same 2018 a sum of N20.82 million was paid to Dutum while in August, 2018 another sum of N13.33 million was paid totaling M444.61 million and representing

22.95 percent of the total project money.

Iwaya perimeter fencing dilapidated despite N32m spent on project 

Documents seen by Ripples Nigeria showed that the University of Lagos spent over thirty-two million naira on perimeter fencing, however, checks and visits to the project by Ripples Nigeria revealed sparse work going on and signs of abandonment.

The contract winner, Unilag Consult is an organization with University of Lagos having 99% holding of its shares while University of Lagos Holding has 1%.

According to the description of service rendered by the organization on its official website, the organization describes itself as one which renders consultancy services.

“Unilag Consult is not only able to offer comprehensive, flexible and well-coordinated consultancy services, but it also has the capability and capacity to put together, in a timely manner, a multi-disciplinary team to meet all the specified requirements for providing an effective technical support” the website of the organization reads.

Read also: INVESTIGATION: N7.3bn paid for unnamed projects; how Nigerian govt spent N2.2trn in six months

When Ripples Nigeria spoke to a worker at the location, he told the newspaper that “they (workers) were waiting for certain things for work to commence further at the site of the building”

Although, in 2010, there was a legal dispute between the Eleye family and the University of Lagos authorities over a parcel of land at Balogun Street Extension in Iwaya area of Yaba. Documents seen by this newspaper also confirmed this development. This however, did not stop the varsity from paying over thirty two million naira (N32,508,416.00 ) to Unilagconsult for the construction of the fence. The total contract award sum was N57,264,158.52.