CSO Demands Investigation Into NCC, ICRC Trillion Naira Concession

A civil society organisation, Advocates of Equity and Justice Movement, has alleged that
the Federal Government, through the Nigerian Communications Commission (NCC), has since April 2024, been losing N1.5billion daily with the potential to incur huge liability claims in the near future.

According to the organisation, if care is not taken, Nigeria may not be as lucky as it was in the Process & Industrial Developments Ltd
(P&ID) case to escape an $11 billion claim, mainly because it would not be dealing with a single claimant that is only known locally.

Convener of the movement, Comrade Seidu Bello Momodu, said this time around, the country is pitched against multiple global telecommunications, data and financial conglomerates with the capacity to undermine the Nigeria’s digital strides.

According to him, the conglomerates include the California-based Mobileum Corp., WeDo Technologies, SIGOS, Airlinq Inc., Tetramatrix Technologies PVT Limited, Integration Objects Inc., SCIPA SA and Equinox Conformity Solutions Limited, among others.

Comrade Momodu said the existing and potential losses to Nigeria are as a result of the corporate dispute among the shareholders of 3R Company Nigeria Limited, the company that won the concession of Revenue Assurance Solution (RAS) project under a Public Private Partnership (PPP) arrangement spearheaded by the Infrastructure Concession Regulatory Commission (ICRC) in 2022.

The corporate dispute has involved the shareholders engaging in a serious legal battle that has led them to various regulatory and enforcement institutions including Office of the Inspector General of Police (IGP), the Economic and Financial Crimes Commission (EFCC), the Corporate Affairs Commission (CAC) and the Federal High Court. The shareholders are now faced with the crucial decision of either proceeding to an arbitration venue or continuing the proceedings in the hallowed judicial chamber.

The RAS project was conceived in 2016 and underwent the standard procurement procedure of the ICRC that culminated in a Concession Agreement between the NCC and 3R Nigeria Limited. The project is expected to block gaps in revenue accountability by using cutting edge technology solutions to ensure that telecom licensees make correct payments of annual operating levies and other accruable fees to NCC.

Comrade Momodu has asked both the presidency and the National Assembly to launched an immediate investigation into the underhand dealings.

He explained, “Not long after the Agreement was signed on 26th April 2023, the Managing Director of 3R Nigeria Limited, Mr. Wodi Raymond, initiated a move to remove all other shareholders from the company’s operations. Ibrahim Bagudu, a businessman, holds 20% stake and was instrumental in financing both the pre-bidding phase and post-bid winning expenses. Another shareholder was Sheriff Babagana Mohammed Lawan.

“The two shareholders discovered, albeit late, that Mr. Raymond had effectively excluded and sidelined them in the RAS project, which is being implemented by 3R Revenue Assurance Limited, the Special Purpose Vehicle (SPV) incorporated specifically for the implementation of the project. 3R Nigeria Limited owns 3R Revenue Assurance Limited with 99.9% shareholding. The remaining 0.1% was nominally allotted to its former General Manager, Mr. Vijay Gurav, in trust for the company.

“When Raymond became too silent for comfort, the aggrieved stakeholders instructed their lawyers, the Law Firm of YC Maikyau SAN, to demand for the accountability and transparent operations of both 3R Nigeria Limited and its subsidiary, 3R Revenue Assurance Limited. The letter of Maikyau SAN dated 30th June 2023 was crisp.

“Maikyau SAN reminded Raymond on the over 20% shareholding of his Clients and demanded for accountability and a full disclosure of the activities of the two companies. Unknown to the aggrieved stakeholders, Maikyau’s innocent demand would open a can of worms that will make the implementation of the project near impossible.

“Upon receipt of Maikyau’s correspondence, Mr. Raymond unequivocally declined to acknowledge the duo’s shareholding in both 3RCL and 3RRAS. In his response dated 7th July 2023, he stated that the aggrieved stakeholders do not own any share in the aforementioned companies, as they did not perform their obligations under their respective Shareholders Agreements to deserve any share in either 3R Nigeria Limited or 3R Revenue Assurance Limited.

“Raymond’s response resulted in a series of private investigations sponsored by the aggrieved stakeholders which exposed instances of fraud, unbridled corruption, insider dealing, influence peddling and various other criminal activities that are unfortunately common in Nigeria. It was uncovered that he surreptitiously allotted over 200% shares of the company to service providers, public officers, lawyers and other decision-makers without filing such share transfers at the CAC. It is obvious that Raymond did not intend to honour his Agreements. He was just using the RAS project to collect money, peddle influence and obtain free services from innocent individuals, companies and political office holders.

“For instance, Mr. Raymond maintains a record of highly connected individuals, companies, and stakeholders who rendered services or aided him between the years 2021 and 2022. He allotted over 140% of the Companys shares and interests to these individuals. He deceived them into believing that the share allotments were sweat equities as he lacked the financial resources to remunerate them for their services. Furthermore, he proceeded to make supplementary share commitments under the mistaken belief that the NCC project had two distinct revenue streams, thereby making additional commitments amounting to 80% to 4 distinct entities. The total shares allotted in the company were more than 200% of its shares, interests, and profits.

“As if the aforementioned confusion was not enough, Mr. Raymond proceeded to enter into two Credit Line Agreements on 25th May 2022 and 17th November 2022 with SCIPA SA and Equinox Conformity Solutions Limited respectively. The Agreement provided that 50% of all revenues received from NCC should be committed to Swiss-based SCIPA SA, the Swiss Security Company that was convicted of corruption in April 2023. The second Agreement jerked up the percentage accruable to SCIPA SA to 70%. Curiously, the NCC endorsed this Agreement.

“SCIPA had since advanced over $7 million to the Company. Unknown to SCIPA SA and its Nigerian agent, Equinox Conformity Solutions Limited, Mr Raymond used the loan to fund his lavish lifestyle including a purchase of a mansion at No. 30 Katsina Ala Street in the highbrow Maitama district in Abuja for over a billion Naira for which he paid N800 million while a bank advanced the remaining balance. With the drying up of further advances, the Bank has now put up the mansion for sale.

“The aforementioned allotment of shares and interests are separate from the technical partnerships that Mr. Raymond singlehandedly entered with Mobileum Corporation, WeDo Technologies, SIGOS, Airlinq Inc., Tetramatrix Technologies PVT Limited and Integration Objects Inc. Mr. Raymond committed over 50% to these technical partnerships. Curiously, the NCC also endorsed these technical agreements.

“Mr. Raymond, obviously, reckoned that he would not be able to commit the shares and other interests of the two companies without effecting changes in their register of members at the CAC. He therefore, in collaboration with his lawyers, illegally prepared company resolutions, forged signatures and made illegal filings at the CAC where he diverted the entire shares of 3R Nigeria Limited in 3R Revenue Assurance Limited to himself and his wife, Mrs. Sonia Finecountry Raymond.

“As at 4th August 2021, the shareholding in 3R Revenue Assurance Limited was 99.9% for 3R Nigeria Limited and 0.1% for Mr. Vijay Gurav. But by 15th July 2023, the share structure of 3R Revenue Assurance Limited had become 85% for Mr. Raymond and 15% for Mrs. Sonia A. Finecountry Raymond. This share structure was duly filed at the CAC.”

Momodu also said Mr. Raymond misled the office of the SGF that SCIPA SA was deliberately delaying release of additional funds in order to sabotage the RAS project. Out of patriotic fervor, the SGF wrote a letter dated 25th August 2023 to the Chief Executive Officer of SCIPA SA requesting for the release of the balance of funds under the Credit Line Agreement.

In its response dated 15th September 2023, he said SCIPA SA through its Chief Commercial Officer, Gianni Santoro, was categorical that release of funds under the Credit Line Agreement is based on milestones and subject to certain terms and conditions. While assuring the SGF of his company’s commitment to the project, Santoro observed that there was no any money due for the project at that stage.