November 27, 2024
ABUJA, Nigeria — The Chairman of the Revenue Mobilisation, Allocation & Fiscal Commission (RMAFC), M.B. Shehu, is at the center of a burgeoning scandal involving a contentious $330 million payment swap allegedly orchestrated to benefit Tiaras White Consults Limited. The move has sparked a storm of protests from Nigeria’s nine oil-producing states, excluding Imo, which have disavowed the company’s claims to represent their interests.
At the heart of the controversy is a petition sent to President Bola Ahmed Tinubu by Zilcon Higgs International Limited, a firm originally contracted by the governors of the nine states to recover over $2.4 billion in unaccounted funds omitted by the Federation Account Allocation Committee (FAAC) Post-Mortem Committee. The petition accuses RMAFC of attempting to redirect payments to Tiaras White Consults, a company registered in July 2023—eight months after Zilcon Higgs secured a judgment for the recovery work.
A Disputed Claim
Zilcon Higgs, backed by engagement letters from the oil-producing states, contends that Tiaras White did not execute any aspect of the contract. Instead, Tiaras White allegedly secured a consent judgment awarding it a staggering $330 million in consultancy fees. This judgment, which the states are now challenging in a Federal High Court in Abuja, has been labeled by stakeholders as fraudulent and lacking legal standing.
The states have filed lawsuits seeking to overturn the consent judgment, arguing that it constitutes an injustice and undermines the constitutional rights of the oil-producing states. Their suits emphasize that Tiaras White’s claim is not supported by any valid contractual agreement or evidence of work done.
Investigations Intensify
Zilcon Higgs has also petitioned the Economic and Financial Crimes Commission (EFCC), which has launched an investigation into the payment swap. Key RMAFC officials, including Chairman M.B. Shehu, have been interrogated. The company alleges that despite receiving official correspondence from Zilcon Higgs, Shehu has denied knowledge of the firm’s work and engagement letters. This contradiction has heightened calls for a thorough investigation into Shehu’s role in the alleged fraud.
Supporting its claims, Zilcon Higgs provided the EFCC with detailed documentation, including verified letters of engagement from the states. These documents further cast doubt on the legitimacy of Tiaras White Consults’ claims and bolster calls for accountability within the RMAFC.
Calls for Presidential Intervention
The oil-producing states and Zilcon Higgs have called on President Tinubu to intervene decisively. They urge the President to suspend any payments to Tiaras White Consults, dismiss RMAFC Chairman Shehu, and ensure a transparent investigation into the allegations.
“President Tinubu’s administration has prioritized transparency and accountability, and this case represents a litmus test for those values,” Zilcon Higgs stated in its petition.
Public Trust at Stake
The controversy has sparked widespread concerns about governance in Nigeria’s revenue allocation system. Critics argue that the alleged payment swap undermines public trust and raises serious questions about the oversight of public funds.
As the legal battles continue, all eyes are on President Tinubu and his administration to demonstrate a firm commitment to justice and transparency. By addressing the allegations decisively, the President has the opportunity to set a precedent for good governance and institutional accountability in Nigeria.
This case serves as a stark reminder of the need for vigilance in protecting public resources and ensuring that government institutions are led by individuals of unquestionable integrity.
