An Economic and Financial Crimes Commission (EFCC) witness, Umar Babangida, told the Federal Capital Territory (FCT) High Court, Apo, on Thursday that former Minister of Power and Steel, Dr. Olu Agunloye, informed former President Olusegun Obasanjo why Sunrise Power and Transmission Company Limited (SPTCL) was recommended for the construction of the Mambilla Hydroelectric Power project.
Babangida, who was the 3rd prosecution witness (PW-3), testified in the trial of the ex-minister for alleged fraud in the Mambilla project.
The EFCC arraigned Agunloye on an amended seven-count charge for disobeying presidential directive, conspiracy, forgery and receiving gratification.
He, however, pleaded not guilty to the charges.
The witness told Justice Jude Onwuegbuzie that Agunloye intimated the former president on the project after his appointment as minister.
Babangida, an Assistant Commissioner of Police (ACP), while being crossed examined by the defence counsel, Adeola Adedipe (SAN), said Obasanjo approved that SPTCL and Tafag Nigeria Limited be invited for negotiation.
“By the time negotiation was concluded by the Federal Ministry of Power and Steel, the then Minister of Power, Dr. Olusegun Agagu, was no longer the minister. Agunloye took over from Agagu.
“SPTCL emerged successful after the negotiation,” he stated.
The witness further told the court that upon assumption of office as the new minister of power, Agunloye wrote a letter, dated July 7, 2003, titled: “Construction of Mambilla Hydroelectric Power project.”
“The defendant in his letter to ex-President Obasanjo gave four reasons for the recommendation of SPTCL for the Mambilla project.
“The reasons include: ‘Sunrise Power Transmission Company Limited parades experienced manpower from People’s Republic of China and Nigeria.
“A Memorandum of Understanding (MoU) was already signed between Nigeria and China on the project during the visit of the Vice-President to China.
“The involvement of the government of China provides security for the contractor company.
“The acceptance of government’s participation of no more than 25 percent,” Babangida explained.
