There were indications on Friday that a former governor of Ondo State, Dr. Olusegun Agagu, may be arrested by the Economic and Financial Crimes Commission.

Agagu’s imminent arrest is in connection with his role as the Minister of Power and Steel under former President Olusegun Obasanjo’s administration, during which $16 billion was allegedly spent on electricity generation projects without results.

Also, Agagu is wanted by the EFCC to give account of his six years leadership in Ondo State, which ended last Tuesday, when the Court of Appeal in Benin, upheld the nullification of his election by the State Election Petitions Tribunal, chaired by Justice Garuba Nabaruma.

The EFCC had in the twilight of Agagu’s tenure stopped the cashing of about N14bn cheques issued in respect of some contracts allegedly awarded hurriedly, just as freezing of the accounts of  Ondo State was Governor Segun Mimiko’s first action, shortly after being sworn- in on Wednesday.

Although the House of Representatives is yet to debate and adopt the report submitted by the Ndudi Elumelu-chaired power committee, sources close to the EFCC told Saturday Punch on Friday in Abuja, that Agagu would be required to provide answers to a litany of allegations levelled against him during the House power probe. A final report of the probe submitted to the House allegedly indicted him.

An EFCC source said, “Yes, we are going to ask him some questions. This is the right time for him to get himself to clear his name, that he was not one of those that messed up our power industry. Before, as a governor, there was nothing we could do. But now that his immunity has expired, he would need to clear himself once and for all.

“It is not that we have found him guilty, but the former governor must come and explain the role he played while he was a minister.”

The source said that would not be the only issue that the commission would take up with Agagu. It would also ask him to explain some of his actions while in office.

For example, the former governor, the source said, would be expected to clarify some of the contracts he hurriedly awarded while the case concerning his removal from office was pending at the appellate court.

The EFCC had on Wednesday January 14, 2009 raised the alarm on the plan of the Agagu administration to spend about N8bn from the state’s treasury through, the award of contracts.

The Elumelu committee had focused on spending in the power sector between 1997 and 2007. It had recommended that the EFCC and the Independent Corrupt Practices and other Related Offences Commission should further probe and if need be, prosecute all those indicted.

Also recommended for probe are the governor of Cross River State, Mr. Liyel Imoke, and other former ministers who presided over the power sector.

When Agagu appeared before the House panel, he said the $16bn that the House had claimed was spent was no big deal.

It was, however, gathered that the EFCC, which had earlier interrogated Agagu while he was still governor, was not satisfied with his testimony as he was said to have answered only the questions that he liked and parried others.

The commission, it was further learnt, felt that there was a need for him to provide answers to other salient questions and would have arrested him before now but for the immunity that he enjoyed while he held sway as the governor.

In the course of the commission’s investigation, it arrested the General Manager of SCC Nigeria Limited, one of the companies allegedly involved in some contracts in the state. The commission had claimed that Agagu’s efforts to spend N8bn began shortly after the state Election Petitions Tribunal nullified his election was unpleasant.

A source from the commission had told our correspondent then that it was in a bid to carry out its investigation that the commission invited the General Manager of one of the companies handling the projects in contention.

The government was also alleged to have awarded a contract to SCC Nigeria Limited for Owena Water Transmission Project for about N14.4bn.

According to the commission, out of the total amount, the Ondo State Ministry of Works paid N3.8bn as mobilisation fees to the contractor.

The EFFC, therefore, went ahead to stop the issuance of the cheque, which was supposed to be paid by Zenith Bank Plc. The EFCC also invited the contractor handling the completion of the Owena Multipurpose Dam project in Ondo State.

An Israeli, Mr. Y. Levi, who is the General Manager of the SCC Construction Company handling the N14.4bn contract, was also invited to the Abuja office of the EFCC.

The project, initiated in 1971 by the Western Region, is said to be a joint project between the Federal Government and the Ondo State Government.

The project was inaugurated by Obasanjo in April 2007, but the state government said that it would spend N14.4bn on the project.