The Economic and Financial Crimes Commission (EFCC) has granted bail to Olu Agunloye, the former Minister of State for Power, just one week after his initial detention. Dele Oyewale, the spokesperson for the EFCC, confirmed Agunloye’s release on Wednesday.
Agunloye had recently been declared wanted by the anti-corruption agency in connection to an alleged $6 billion fraud linked to the contentious Mambilla hydropower project. The EFCC had urged anyone with valuable information about his location to come forward. In a previous encounter in September, the former minister was interviewed by the EFCC regarding the identical issue.
The backstory to this development involves accusations by former President Olusegun Obasanjo, who accused Agunloye of mismanagement and inadequate briefings regarding the Mambilla Power Project during his 1999-2003 term. Obasanjo raised concerns about Agunloye’s authority in awarding a $6 billion contract to Sunrise Power and Transmission Ltd for the project in 2003, calling on him to provide an explanation.
In response, Agunloye clarified that the initial contract for the Mambilla Power Project was awarded as a Build, Operate, and Transfer (BOT) contract in May 2003 under his watch. He asserted that the government was not obligated to pay any amount to Sunrise under the BOT agreement, as it was to be fully funded by the newly registered company.
However, Agunloye refrained from disclosing details of the authorization he received to undertake a $6 billion government project, especially considering Obasanjo’s policy limiting ministerial approval to no more than N25 million.
The EFCC subsequently interrogated the ex-minister regarding the controversy and a questionable payment allegedly linked to his bank account. The payment, labeled “FRM LENO,” was traced to his account after he committed the federal government to the disputed contract awarded to Sunrise Power Ltd, promoted by Leno Adesanya.
A further investigation by the EFCC revealed that Agunloye had spent the money on shopping and transportation around Orlando, Florida, in the United States, rather than on medical expenses. This discovery triggered another investigation dating back to the 2000s. Agunloye’s bail comes amidst ongoing investigations into the allegations against him.