EFCC detains NAHCON Chairman over N90bn Hajj subsidy scandal

The Executive Chairman of the National Hajj Commission of Nigeria (NAHCON), Jalal Arabi, and the Commission’s Secretary, Abdullahi Kontagora, are currently in the custody of the Economic and Financial Crimes Commission (EFCC) over allegations of mismanaging the N90 billion 2024 Hajj subsidy. This development was confirmed to The PUNCH on Wednesday.

Documents obtained by The PUNCH reveal that the EFCC recovered a total of SR314,098 from the NAHCON Chairman and other senior officials. The anti-graft agency’s investigation has revealed that the N90 billion Hajj subsidy was misappropriated, with Arabi allegedly overpaying himself and other officials beyond the authorized operational costs.

According to the documents, the approved 2024 Hajj operational costs for key NAHCON personnel were $4,250 for the Chairman/CEO, $12,750 for Commissioners, $3,825 for the Secretary, and $15,300 for Directors/Chief of Staff. However, the EFCC alleges that the Chairman fraudulently overpaid himself and others. Arabi, who was entitled to SR15,929, allegedly received SR50,000. Similarly, three commissioners, who were each entitled to SR15,929, received SR40,000 each. The Secretary allegedly received SR30,000 instead of the SR14,336 he was entitled to, and the Directors/Chief of Staff reportedly received SR30,000 each instead of the SR2,550 they were due. The total of SR314,098 was recovered from these overpayments.

Arabi had been previously questioned by the EFCC on July 29 before being released on bail. However, the investigation intensified last week when several top officials of the Hajj Commission were arrested by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) over similar allegations of mismanaging the N90 billion subsidy.

A source within the EFCC, who requested anonymity, disclosed that the NAHCON Chairman was detained again on Wednesday for further questioning. “The Secretary and Chairman of the commission are in our custody and are facing serious interrogations regarding the N90 billion subsidy, among other allegations,” the source said.

A separate document obtained by The PUNCH reveals that SR8,614,175.27 in cash withdrawals from the N90 billion released by the Federal Government to NAHCON remains unaccounted for.

The document details the financial transactions related to the 2024 Hajj operations. It states that the Federal Government released N90 billion to NAHCON to subsidize the operations, with N1,764,705,937.62 deducted by the Central Bank of Nigeria as bank charges. The remaining N88,235,294,063.72 was converted to USD 62,307,164.48 and transferred to NAHCON’s British SAAB account in Saudi Arabia, which was subsequently converted into SR233,527,252.47.

The document further notes an opening balance of SR19,813,810.89 for the 2024 Hajj activities, with an inflow of SR485,000,000.00 from NAHCON and a closing balance of SR78,985,266.03, including SR20,637,908.23 refunded by the Ministry of Hajj and Umrah in Saudi Arabia. It also highlights that SR22,815,367.74 was withdrawn in cash from the British SAAB account by one Abubakar Muhammed Lamin during the 2024 Hajj operation, with SR8,614,175.27 still unaccounted for.

The EFCC’s investigation into NAHCON’s activities since 2022 has also led to the recovery of estacodes paid to staff who did not undertake approved study tours and payments made to Shuraka’a al-Khair Group Ltd for unrendered services.

According to the document, “Investigation into the criminal aspects of NAHCON’s activities has resulted in the recovery of estacodes paid to staff who did not travel to Indonesia for a study tour. Additionally, sums of SR1,026,000.00 and SR1,780,019.99 were recovered from Shuraka’a al-Khair Group Ltd, purportedly for consultancy services related to the recovery of SR20,637,908.23 from the Ministry of Hajj and Umrah in Saudi Arabia.”

The document also reveals that supporting documents for the consultancy payments, including the Executive Chairman’s approval, were fraudulently backdated to January 23, 2024, to facilitate a payment of SR780,019.59 to Shuraka’a al-Khair Group Ltd on April 14, 2024.

“The first suspect, Jalal Arabi, confessed that the consultant did not render any services,” the document states. It also noted that a meeting of the Expanded Transitional Executive Committee (Exco) on January 25, 2024, with seven members and 18 staff in attendance, did not discuss the payment to Shuraka’a al-Khair Group Ltd. However, the commission’s secretary allegedly inserted the approval for the 7.5% consultancy payment into the minutes under “Any Other Business” to perfect the fraudulent documentation.

The document further notes that SR1,026,000.00, equivalent to about N430,920,000, was recovered from one Eastern Gulf Company in Saudi Arabia.

As investigations continue, the EFCC and ICPC are expected to deepen their probe into the activities of NAHCON and its officials.