NAHCON Chairman and Secretary Arrested Over Alleged Hajj Fund Mismanagement

The Economic and Financial Crimes Commission (EFCC) has arrested Jalal Arabi, Executive Chairman of the National Hajj Commission of Nigeria (NAHCON), and Abdullahi Kontagora, the commission’s Secretary, in connection with alleged financial misconduct involving the N90 billion allocated for the 2024 Hajj subsidy.

EFCC sources report that the two officials are being investigated for suspected mismanagement of the subsidy funds. Preliminary findings suggest significant financial irregularities and abuse of office. According to a document obtained by The PUNCH, the EFCC has recovered SR314,098 from Arabi and other senior NAHCON officials.

The investigation revealed that Arabi and others were overpaid beyond the approved operational costs. The budget specified that the Chairman/CEO should receive $4,250, Commissioners $12,750, the Secretary $3,825, and Directors/Chief of Staff $15,300. However, Arabi allegedly received SR50,000 instead of SR15,929; commissioners received SR40,000 each rather than SR15,929; the Secretary was paid SR30,000 instead of SR14,336; and Directors/Chief of Staff received SR30,000 instead of SR2,550.

Additionally, the EFCC has uncovered unaccounted cash withdrawals amounting to SR8,614,175.27 from the subsidy fund. The Nigerian government allocated N90 billion to subsidize the 2024 Hajj, with N1,764,705,937.62 deducted by the Central Bank as bank charges. The remaining N88,235,294,063.72 was converted to USD and then to Saudi Riyal, totaling SR233,527,252.47.

The investigation also highlighted discrepancies in the cash withdrawals and payments. SR22,815,367.74 was withdrawn in cash from NAHCON’s British SAAB account by an individual named Abubakar Muhammed Lamin, despite an expected payment of SR14,905,910.47 for services and allowances. Furthermore, SR8,614,175.27 remains unaccounted for.

The EFCC’s probe, which began in July, also revealed fraudulent activities dating back to 2022. This includes unapproved estacodes and payments to Shuraka’a al-Khair Group Ltd for services not rendered. The EFCC recovered SR1,026,000.00 from Eastern Gulf Company in Saudi Arabia due to fraudulent backdating of consultancy payment approvals.

The alleged mismanagement of Hajj subsidy funds has far-reaching implications. For many Nigerians, the subsidy is a critical component in making the pilgrimage financially feasible. Any mismanagement could undermine public trust in NAHCON and impact the accessibility of Hajj for future pilgrims.

The controversy also draws attention to the broader issues of transparency and accountability within government agencies. As investigations continue, stakeholders and the public will be watching closely to see if the funds are recovered and if those responsible are held accountable. The EFCC’s actions signal a commitment to addressing corruption in public institutions, but the effectiveness of these measures will ultimately depend on the outcomes of the ongoing investigations and any subsequent legal actions.