PFIPC Scandal: ICPC Uncovers More Fake Agencies as Tinubu Orders Forensic Probe

By Frontline Reporters

ABUJA — President Bola Tinubu has ordered a comprehensive forensic investigation into the scandal surrounding the fictitious Presidential Foreign Intervention Promotion Council (PFIPC), following revelations by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) that at least two additional fake agencies may have been created within the Federal Government’s administrative structure.

The President’s directive was disclosed on Wednesday by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, while briefing State House correspondents after the Federal Executive Council meeting at the Presidential Villa, Abuja.

The meeting was the council’s first sitting since June 29.

Oyedele said the ICPC’s preliminary findings had exposed significant weaknesses in the government’s administrative and internal control systems, prompting the council to order a forensic review designed to uncover how the fictitious agency was created and how it succeeded in obtaining official government codes.

He said the investigation would examine government processes, procedures and internal controls that made it possible for the fake agency to operate within the Federal Government’s system.

“The council has directed that we commission a forensic investigation that will look into our processes, our procedures, internal control weaknesses that allow some of these things to happen, because the findings discovered that we indeed have additional fake agencies,” Oyedele said.

According to him, the objective is not merely to identify those responsible but to establish precisely what went wrong, determine the extent of the breaches and strengthen government systems against future abuse.

Oyedele disclosed that the Attorney-General of the Federation and his ministry had been directed to work with relevant agencies to address the matter from administrative, accounting and governance perspectives.

Fake Agencies, Fake Personnel

The minister said the investigation would also extend to the Integrated Personnel and Payroll Information System (IPPIS), warning that the existence of fictitious government agencies could potentially facilitate the creation of fictitious employees on the Federal Government payroll.

“Mr President directed that the review should extend to IPPIS, because if you have fake agencies, you most likely have fake employees,” he said.

Oyedele stressed that the government could not afford a situation in which fictitious personnel were added to the payroll while genuine civil servants continued to demand improved wages and working conditions.

He disclosed that a total of N9.495 trillion in subsidy savings and incremental revenue had so far been channelled into the payment of additional salaries and allowances for civil servants.

According to him, the amount exceeded the actual savings that accrued to the Federal Government from the removal of the petrol subsidy.

“We don’t want to be further constrained by fake agencies and fake personnel. This is something we take very seriously, and the Nigerian people will get updates as we progress,” he said.

How the Fake Agency Got Government Codes

Oyedele described the development as a serious institutional failure, saying individuals, allegedly working in collusion with others, succeeded in creating an agency that appeared to have a legitimate presence within the Federal Government.

He revealed that the fictitious agency had allegedly secured both an administrative code and a Treasury Single Account (TSA) code.

The minister, however, said no funds were ultimately paid into the accounts associated with the fake agency.

“The only thing that didn’t happen was we didn’t pay any money to those accounts. But it’s gone too far to even get to that level. Now the idea is we want to find out what went wrong and strengthen the system,” he said.

ICPC Findings Reveal More Fake Agencies

The Minister of Information and National Orientation, Mohammed Idris, provided additional details on the ICPC findings, confirming that the investigation had uncovered more than the initially reported PFIPC.

Idris said the President was informed that the scandal involved not only the fictitious council and an alleged fake Director-General but at least two other fake agencies that had entered the government’s administrative process.

“So what the President said was that this is not just about accounting; it is also about the administrative looseness that was discovered by the ICPC,” Idris said.

He explained that Tinubu had directed the Attorney-General and the Finance Minister to jointly investigate the administrative and accounting systems that allowed the fictitious entities to emerge.

The government, he added, would engage professional audit firms to conduct a comprehensive forensic examination of the system.

The objective, Idris said, was to identify the loopholes, plug them permanently and prevent a recurrence of what he described as a national embarrassment.

Scandal May Predate Tinubu Administration

Idris cautioned against assuming that the development originated under the present administration, saying the investigation would establish when the alleged irregularities began.

“I want you to know that this didn’t just happen now. It is possible that this dates back longer than when the President was in office,” he said.

According to him, the President was also interested in determining whether similar fictitious agencies or administrative breaches existed elsewhere within the Federal Government.

The broader investigation, he said, would therefore seek to identify systemic weaknesses and introduce safeguards capable of preventing similar incidents in the future.

FG Approves Tax Treaties With Ghana, Tanzania, Switzerland

Meanwhile, the Federal Executive Council approved the signing of Double Taxation Avoidance Treaties between Nigeria and Ghana, Tanzania and Switzerland.

Oyedele said the agreements were designed to create a more predictable tax environment for businesses and investors while expanding opportunities for Nigerian companies seeking to invest abroad.

He said the government was working towards developing a robust network of tax treaties that would strengthen Nigeria’s competitiveness as an investment destination.

According to the minister, Nigeria still has considerable ground to cover compared with leading African economies such as South Africa, which has more than 60 tax treaties.

$1.25bn Development Financing Approved

The council also approved a $1.25 billion financing facility from the International Development Association and the International Bank for Reconstruction and Development to support Nigeria’s Actions for Investment and Job Acceleration development policy financing programme.

Oyedele described the facility as concessional, with a repayment period of about 30 years.

He said the funds would be channelled towards accelerating investment and job creation, which he identified as one of the Federal Government’s foremost priorities.