Unveiling the dark side: Is TETFund Also soiled?

By Kalu Okoronkwo

The recent allegations of embezzlement and fraudulent contracts against the management of Tertiary Education Trust Fund( TETFund)will be a big dagger piercing through the hearts of higher education in Nigeria as it is the only agency that has been commended hitherto for helping to bridge the infrastructural gaps in our tertiary institutions: universities polytechnics and Colleges of Education across the country.

As students strive for knowledge and educators labour to impart it, the rot festering within the corridors of the funding institution threatens to undermine their noble pursuits.

The Fund’s procurement process serve as fertile ground for corruption to flourish. It was recently alleged that in one instance, TETFund paid a whopping sum of N2.9 billion to a questionable contractor for unexecuted job and could not provide evidence for the execution of the contract, including the list of participants, links to the online portal for the training, and pictures or video clips of training sessions.

TETFund as an intervention agency was set up to provide supplementary support to all level of public tertiary institutions with the main objective of using funding alongside project management for the rehabilitation, restoration and consolidation of Tertiary Education in Nigeria.It was established by the Act of 2011 after repealing the Education Tax Act Cap. E4, Laws of the Federation of Nigeria, 2004 and Education Tax Fund Act No. 17, 2003 and charged with the responsibility for imposing, managing and disbursing the tax to public tertiary institutions in Nigeria.

The main source of income available to the Fund is the two percent education tax paid from the assessable profit of companies registered in Nigeria. The Federal Inland Revenue Services (FIRS) assesses and collects the tax on behalf of the Fund.However, beneath its lofty mandate lies a labyrinth of deceit, manipulation, and exploitation, perpetuated by those entrusted with its stewardship.It is a disturbing truth that corruption has woven its insidious tendrils deep within the very fabric of TETFund and exacerbating the already dire state of the nation’s academic infrastructure.

According to a report by Premium Times, five days before the end of the administration of former President Muhammadu Buhari, the Tertiary Education Trust Fund (TETFund) secretly awarded a contract worth over N3.8 billion (N3,812,500,000) in disregard for the law.The said contact lacked any evidence of execution as investigations revealed further that the Fund paid the contractor a total sum of N2.9 billion (N2, 932,032,516.28) in four installments between 30 June and 17 November 2023.Also in violation of the law establishing it, TETFund sourced the funding for the project from the 2023 annual direct disbursement budget domiciled in the agency for the use of about 251 beneficiary institutions, that is, public universities, polytechnics, and colleges of education across Nigeria.

The 2023 direct disbursement budget for these institutions which amounted to N15.2 billion was for Information Communication and Technology Intervention Projects. But instead of releasing the funds to the institutions as mandated by law, TETFund illegally deducted upfront 50 per cent of the funds from each of the institutions, amounting to a total of N7.6 billion.

It was also discovered that there was no evidence of bidding for the contract as demanded by Nigeria’s procurement law. Approval was neither sought nor given by the Federal Executive Council (FEC) or even by the President. “TETFund bypassed these mandatory requirements to award the contract tagged: ‘Capacity Building Certificate Course (Communication, Entrepreneurship, and Productive Skill Development) inclusive of the Train-the-Trainer programme for 502 (five hundred and two) participants’” the report said. Further investigation also revealed that the contract was awarded to a company – Fides Et Ratio Academy.

The company has no functional website while it is described by TETFund as “an IP Licensee for Prof. Klaus Stierstorfer, a copyright owner and intellectual property right holder in all range of communication skills development courses marketed globally under Edunet Solutions.”The letter of contract award dated May 24,2023 was signed by the Director of Human Resources and General Administration, Kolapo Okunlola.

However, upon enquiry by PREMIUM TIMES on the subject, the Bureau of Public Procurement (BPP), the body statutorily empowered to regulate contract awards for ministries, departments, and agencies of the government, said “the contract is not found in its database.”The contract award is therefore a violation of the Public Procurement Act 2007, which by virtue of its section 15(a), as applicable to “all procurement of goods, works and services carried out by: the Federal Government of Nigeria and all procurement entities”. The law under section 15(c) only exempts the procurement of special goods, works and services involving national defence or national security.

Further findings revealed that on June, 30 2023, the company’s account with Fidelity Bank Plc was credited with over N550 million (N550,380,780.23) by the Central Bank of Nigeria on behalf of TETFund. The transfer is with mandate number CBN/PROJ/224/JUN2023. Over N820 million (N820,223,850) was additionally paid into the account on 12 July 2023.While also on 26 July 2023 and 17 November 2023, the sums of N1.5 billion (N1, 503,743,850) and N62.68 million (N62, 684,036.05) were credited into the account by the CBN on behalf of TETFund, respectively.Just recently too, the Human and Environmental Development Agenda (HEDA Resource Centre) petitioned the Economic and Financial Crimes Commission over alleged graft in TETFund.

The group urged the anti-graft agency to investigate alleged irregularities surrounding the contracts awarded by the agency.The petition, which was addressed to Olanipekun Olukoyede, the Chairman of EFCC, was signed by HEDA’s Chairman, Olanrewaju Suraju.Why the Economic and Financial Crime Commission has waded into the matter by inviting the Executive Secretary, Tertiary Education Trust Fund, Sonny Echono, to respond to cases of corruption against the Fund, mere dismissal of the deep rooted corruption allegation against TETFund by the Executive Secretary without tangible evidence to prove same amount to paying lip service to issues of endemic corruption plaguing the Nigerian society.

The politicization of TETFund exacerbates its descent into moral bankruptcy as positions of influence within the organization has become bargaining chips in the political game, with appointments based on loyalty rather than competence. Consequently, qualified individuals are sidelined in favor of cronies, eroding the institution’s effectiveness and perpetuating a culture of mediocrity.

The impact of TETFund’s ethical erosion reverberates far beyond the confines of its offices. It strikes at the very foundation of Nigeria’s future, sabotaging the potential of an entire generation.

As funds meant for education are squandered and opportunities are denied, the dreams of aspiring scholars are dashed against the rocks of corruption.

The exposure of TETFund’s unethical practices serves as a clarion call for accountability and reform. It is imperative that swift and decisive action be taken to cleanse the institution of its moral rot and restore faith in the power of education to uplift and transform society.

Transparency must be enforced at every level, with stringent oversight mechanisms put in place to ensure that funds are allocated judiciously and utilized for the intended purpose. Those found guilty of corruption must face the full force of the law, serving as a deterrent to others who would seek to exploit the system for personal gain.Furthermore, TETFund must reaffirm its commitment to meritocracy, appointing individuals of integrity and competence to lead the charge for change. Only through a concerted effort to purge itself of corruption and embrace ethical governance can TETFund reclaim its rightful place as a champion of education and a beacon of hope for Nigeria’s future.

Like their counterparts in private tertiary institutions, TETFund must develop as a matter of urgency a model for governance structures characterized by a higher degree of professionalism and accountability. With boards of trustees comprising experienced educators, industry leaders, and respected professionals.The Fund requires a framework for strategic guidance and oversight that prioritizes academic quality and institutional integrity and shun the often-politicization of its leadership where appointments are frequently influenced by partisan interests rather than meritocracy, leading to inefficiencies and mismanagement.In the battle against corruption, there can be no bystanders. It is incumbent upon all stakeholders – government, academia, civil society, and the citizenry at large to unite in the fight to cleanse TETFund of its ethical impurities and pave the way for a brighter tomorrow.

For in the words of Nelson Mandela, “Education is the most powerful weapon which you can use to change the world.” Let us wield that weapon with courage and conviction, and together, we shall overcome.

Kalu Okoronkwo is a leadership and good governance advocate. He writes from Lagos via kalu.okoronkwo@gmail.com