NAHCON Chair Detained by EFCC as Agency Recovers 314,098 Saudi Riyal

The Executive Chairman of the National Hajj Commission of Nigeria (NAHCON), Jalal Arabi, along with the Commission’s Secretary, Abdullahi Kontagora, have been detained by the Economic and Financial Crimes Commission (EFCC) over allegations of mismanaging the N90 billion subsidy allocated for the 2024 Hajj operations.

According to a document obtained on Wednesday, the EFCC revealed that it had recovered a total of 314,098 Saudi Riyal (SR) from Arabi and other top-ranking officials of NAHCON. The anti-graft agency’s investigation indicated that Arabi fraudulently overpaid himself and others from the Hajj subsidy funds.

The approved operational costs for the Chairman, Commissioners, Secretary, and Directors for the 2024 Hajj, as stated in the budget, were $4,250, $12,750, $3,825, and $15,300, respectively. However, the EFCC alleges that these officials received much more than their entitled amounts. For instance, the Chairman was supposed to receive SR15,929 but was instead paid SR50,000. Similarly, the three Commissioners, who were each entitled to SR15,929, received SR40,000 each, while the Secretary received SR30,000 instead of SR14,336. Directors and the Chief of Staff were entitled to SR2,550 but were paid SR30,000 each.

The EFCC first interrogated Arabi on July 29 before releasing him on bail. However, on Wednesday, both Arabi and Kontagora were detained again for further questioning about the N90 billion subsidy and other allegations. A source within the EFCC, speaking anonymously, confirmed that both officials were in custody and facing serious interrogation.

Further investigation revealed a significant amount of unaccounted cash withdrawals. According to a document obtained by our correspondent, SR8,614,175.27, withdrawn in cash from the N90 billion released by the Federal Government, has not been accounted for by NAHCON. The document detailed the financial transactions involving the subsidy, including the conversion of funds into U.S. dollars and their subsequent transfer into NAHCON’s British SAAB account in Saudi Arabia.

The document also highlighted discrepancies in the commission’s financial dealings, including the withdrawal of SR22,815,367.74 in cash from the British SAAB account by one Abubakar Muhammed Lamin in Saudi Arabia during the 2024 Hajj operations. Of this amount, SR8,614,175.27 is yet to be accounted for, raising further concerns about financial mismanagement within the commission.

Meanwhile, the ongoing investigation into NAHCON’s activities since 2022 has led to the recovery of funds paid as estacodes to staff who did not undertake study tours, as well as payments made to Shuraka’a al-Khair Group Ltd for services that were not rendered. The document revealed that SR1,026,000.00 and SR1,780,019.99, paid to Shuraka’a al-Khair Group Ltd for consultancy services, were also recovered.

It was discovered that the supporting documents for the payment of these consultancy services, including approvals from the Executive Chairman, were fraudulently backdated to January 23, 2024, to facilitate the payment of SR780,019.59 to Shuraka’a al-Khair Group Ltd on April 14, 2024. Arabi reportedly confessed that the consultant did not provide any services.

The investigation also uncovered that the Commission’s Secretary had inserted the approval for the consultancy payment into the minutes of an Expanded Transitional Exco meeting held on January 25, 2024, under AOB (Any Other Business), to perfect the documentation necessary for the disbursement of the funds. Consequently, the sum of SR1,026,000.00, equivalent to approximately N430.92 million, was also recovered from one Eastern Gulf Company in Saudi Arabia.

The EFCC’s investigation continues as the agency works to unravel the full extent of the alleged financial misconduct within NAHCON.