Revealed: How  Lagos University Pro-chancellor, VC diverted N198 million accreditation funds for luxury car purchase

Lagos State University (LASU) administration has illegally withdrew the sum of  N198 million and diverted the funds for purchase of 12 cars for it’s top management staff, Premium Times, an online newspaper has reported.

The funds were withdrawn from the university employees pension contributions.

Apart from the purchase of 12 cars, the university expended N83.37 million to purchase four buses, leaked document from the institution shows.

In March last year, the university authority withdrew the sum of N215 million from the pension escrow account, an amount it claimed was used for expenses in the accreditation of 17 academic programmes in the institution.

A memo that emanated from the university authority claimed that Lagos State Government had approved N215 million to fund the  accreditation exercise, but because the fund was not released as at the time of accreditation, they had to borrow from the staff’s pension account.

Worse still, the university bulletin of  June 21, 2018 edition shows that only N148 million was actually the expenses incurred during the  accreditation exercises.

Good as it is, the bulletin was co-signed by Mr. Tony Dansu, the secretary, Academic Staff Union of University and his assistant Mr. Adeolu Oyekan.

By October, last year, the university undertook another accreditation exercise. However, its pro-chancellor unilaterally gave approval for the withdrawal of N474 million from the staff Pension Investment Fund.

The pro -chanellor said the Lagos state government has agreed to fund the accreditation exercise, but was unsure when the money will be released, hence decided to borrow from the contributions pension fund.

The university authority said it will return the money with interest as soon as the Lagos state government releases the promised fund.

However, insider sources from the university confirmed that besides the corruption that characterized the deal, Mr.  Ninalowo, the pro-chancellor, withdrawal  approval   was above his powers.

The rule is that for any expenditure  beyond N20 million, the pro-chancellor has to seek the approval of the governing council, which was not the case in the deal.

Insider sourced in the university disclosed that the management diverted the money from its intended purpose and purchased 12 luxury cars for top management staff.

They say the purchase has no connection with the accreditation process.

The vehicles were three pieces of Toyota Corolla1.8 Gli CVT AT LS Luxury model at N63 million plus VAT, seven pieces of Toyota Corolla 1,8 Gli CVT AT FS luxury model at N113.9 million, and two pieces of Toyota Yaris Sedan AT LS (New Model) at N21.42 million for a total of N198.34 million.

The university’s vice-chancellor, Olanrewaju Fagbohun, also approved the purchase of four 18-seater buses for a total sum of N83.37 million.

The cars were distributed to top management members in the week of October 22, 2018, our investigation revealed.

I challenge the university administration to list how the vehicles were distributed, one of the sources said.

When the explanation of Mr. Olanrewaju Fagbohun, the pro vice-chancellor was sought, he declined comment.

However, Mr. Ademola Adekoya, the LASU spokesperson, said the university will not respond to any of the allegations, dismissing them as untrue.

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