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Three South Eastern States-Imo, Abia and Ebonyi say money due to them from Oil wells in their territory’s locked up in a secret account and want the federal government to speak out on it

A letter written to President Goodluck Jonathan by an oil exploration specialist may have unwittingly gingered indigenes and governors of the South-East states of Imo, Abia and Ebonyi to ask more questions about revenue accruing from 95   oil wells newly returned to   old Imo State. Johnny Maduafokwa, the specialist,  alleged in a letter to President Jonathan, dated  16th September, 2010, that about eight trillion Naira from the oil wells, which ought to have been shared among the three states and himself, was being kept in a secret escrow account. He asked the federal government to give full account of the money. 

Since the controversial letter was made public, a cross section of the people and organisations from the three states have been reacting in support of the demand. Many who spoke to Newswatch expressed surprise that the present governors of the states, who are Rochas Okorocha, of Imo, Theodore Orji, Abia, and Martin Elechi, Ebonyi have not taken any concrete action to retrieve their people’s money. The general question coming from the people of the three states to President Jonathan now is: Where is our oil money?

Maduafokwa, a senior partner in Macfredricks and O’neal Energy Limited, based in Port Harcourt, Rivers State, repeated his assertion and demand in a reminder letter he sent to the President last month.  He also went a step further to even raise  issues about the safety  of the money.” I want the Federal Government to tell Nigerians what has happened to about eight trillion  Naira which has accrued on 95 oil wells recovered from Rivers State, for the states in old Imo State. If the money which they claim is in an escrow account is still intact, let the government make official disclosure on the status of the account now,” he said in an interview with Newswatch

In the letter which he titled: “Imo, Abia, Ebonyi Oil Matter: Status of the Escrow Account In Respect of 95 Oil Wells”,  Maduafokwa gave details of how he was hired by Orji Uzor Kalu and Achike Udenwa, former governors of Abia and Imo states, respectively, to lead their states in a campaign that resulted in the return of the oil wells during the administration of President Olusegun Obasanjo.

Maduafokwa recalled that prior to the year 2000, about 95 oil wells located between old Imo and Rivers states were erroneously classified as “disputed” or “undecided” by the federal government. He explained that the action of the federal government then, was sequel to the report of the then Justice Mamman Nasir Commission of 1976, on the delineation of state boundaries. On account of the report of the Nasir Commission, he said, “the Federal Government suspended (even till date), the payment of revenues accruing or accruable from the affected oil wells to any of the then Imo and Rivers states.”

Maduafokwa further informed President Jonathan that on 11th October, 2000, former Vice-President Atiku Abubakar, acting in his capacity as chairman, National Boundary Commission, set up a Special Presidential Committee on Verification of Oil Wells. He said the committee which had Hamman Tukur, then chairman of RMAFC as chairman recommended the return of the affected oil wells to the old Imo State, now made up of Imo, Abia and Ebonyi States.

Particulars of the oil wells which he provided in the letter to President Jonathan, of which shows that 11 are now in the present  Imo State while 82 is presently in Abia State. None is located in the present Ebonyi state.

 In conclusion, Maduafokwa prayed the president, to use his exalted office to ensure justice on the matter, by directing relevant agencies of the government to carry out a number of actions. He wants full disclosure of the status of the escrow account for the 95 oil wells, as well as the amount of the “locked in” revenue since 1976 and the actual revenue due and payable to each of the three affected states. The demand also included information on interest accruing or accruable to the “locked in “sum since 1976 and a request to have a parley on the matter, with the governors of the three South-East states.

Eight trillion Naira now outstanding represents the conservative estimate of  amount which is expected to be in the escrow account presently. Maduafokwa had contracted to a bank, the duty of working out the amount accruable in the account, pointing out that final reconciliation of figures would be arrived at, if meetings with relevant agencies of government are held on the subject.

He also called for a timely intervention into the matter by the president. He explained that a quick intervention now would help in resolving a court matter which he said he instituted against the South-East states at a time they denied the existence of a contract between him and the states on the subject. The matter in which he is asking to be paid 1/3 of money due to the states from the oil money, is still pending at the   Supreme Court.

Similar efforts were made by the immediate past governors of Imo and Abia states to convince the federal government to disclose the amount of money in the escrow account. Before he left office last year, Ikedi Ohakim, former governor of Imo State, personally signed and sent a letter of demand for information on the account, to President Jonathan in 2009. The letter was later copied to the Ministry of Petroleum Resources and the Revenue Mobilization Allocation and Fiscal Commission. .

Kalu, at a time, made similar demand on the issue from the federal government during his tenure as governor of Abia but nothing concrete came out of the efforts.

Since the contents of   Madusfokwa’s letter was made public, reactions from the South-East have been widespread. A group of South-East professionals said in a press statement two weeks ago that they were shocked to hear of the existence of such huge sum of money in favour of the three state at a time they were neck deep in debt.

League of South-East Professionals, as the group is called, said in statement signed by the President, Chima Nwachukwu, a lawyer, that they would soon embark on a campaign to compel the Federal Government to disclose the exact amount that had accrued from the wells since 1976.

Newswatch learnt that the present governors of the three states are also strategising on an ideal approach to convince Jonathan to release the money in the escrow account. The governors recently reviewed the situation and agreed on three strategies. First, to put their houses in order through an out of court settlement with Maduafokwa. Secondly, to table the matter for public debate through their representatives at the National Assembly and  finally, to seek for legal redress, if the first  two options failed.

Newswatch learnt also that representatives of the three states in the Revenue Mobilisation, Allocation and Fiscal Commission, RMAFC, also mooted the idea of tabling it for discussion formally, but later agreed to wait for presidential directive on the matter.  In agreeing to adopt a wait and see attitude, the  representatives of the three states in RMAFC, who are Casmir Anyanwu, for Imo, Okeagu Ogada for Ebonyi and Chris Adighije for Abia, are said to be optimistic that President Jonathan would soon table the matter formally  for discussion.

Elias Mbam, RMFAC chairman was reported to have justified the directive on the need to give full effect to relevant sections of the Nigerian constitution. Mbam was said to have argued that the payment was a constitutional matter. “If you have mineral resources in your state and it is developed and it generates revenue into the federation account, you are entitled to 13 percent of what is paid into the federation account,” he said.