The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has initiated legal action to recover N1.37 billion allegedly misappropriated during former Kaduna State Governor Nasir El-Rufai’s tenure. The anti-graft agency approached a Federal High Court in Kaduna, requesting an interim forfeiture order on funds linked to a fraudulent light rail project that never came to fruition.
According to court filings, the controversy centers on a joint venture agreement executed in October 2016 between the Kaduna State Government and Indo Kaduna MRTS JV Nig. Ltd. Investigations revealed that the company was not registered with the Corporate Affairs Commission—a violation of the Companies and Allied Matters Act (CAMA) 2020. Despite this, over N11 billion was transferred to the company’s account at Sterling Bank through a series of transactions between December 2016 and January 2017.
Rather than deploying the funds to execute the light rail project, the company’s president, Jitender Sachdeva, allegedly directed the bank to convert the money into a fixed deposit account, accruing interest of N326.8 million. While N10 billion was reportedly refunded to the Kaduna State Government in 2019, N1.04 billion remained unaccounted for, later found to have been transferred to GTA Engineering Nigeria Ltd. under the guise of a feasibility study payment—a study that, according to the ICPC, never occurred.
Citing the Proceeds of Crime (Recovery and Management) Act (2022), the Advance Fee Fraud Act (2006), and the Nigerian Constitution, the ICPC has asked the court to order the forfeiture of these funds. The commission also requested permission to publicize the court proceedings in national newspapers, inviting interested parties to challenge the forfeiture order.
In a swift response, El-Rufai and members of his former cabinet have denied any wrongdoing. They maintain that all transactions were conducted in line with due process and described the light rail project as a Public-Private Partnership (PPP), partially financed through a projected $600–700 million loan from the Indian EXIM Bank, with Kaduna State contributing 15% equity. They attributed the project’s failure to secure a sovereign guarantee from the Federal Government, rendering the loan inaccessible. Furthermore, they pointed to a feasibility study conducted by Systra and GTA Engineering costing $2.8 million (N890 million), insisting that this remains an asset of the state.
The controversy over the stalled light rail project comes at a time when Kaduna State is grappling with significant financial challenges. Governor Uba Sani, who succeeded El-Rufai, recently lamented inheriting a debt burden of $587 million, N85 billion, and 115 contractual liabilities, complicating the payment of salaries and other financial obligations.
As legal proceedings unfold, the ICPC remains steadfast in its call for the forfeiture of the N1.37 billion, asserting that returning these funds to the Kaduna State Government is in the public interest.
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Source: Osun Defender
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