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Fresh revelations have emerged over how the management of Transnational Corporation (Transcorp) plc allegedly abused its offices, squandering proceeds of Transcorp’s Initial Public Offer (IPO) and subsequently ruined NITEL and its mobile telephony arm, Mtel.
What amounts to a spending spree was anchored on the N22 billion realised from the IPO proceeds part of which were slated to finance the rejuvenation of NITEL and Mtel.
Official documents accessed by BusinessDay showed details of sustained expenditure mainly for consultancy services and other questionable items, say security sources. 
The fresh facts further raised questions of ethics and have been a source of embarrassment to renewed attempts at selling both Nitel and Mtel to new investors due to the huge debt overhang on the two enterprises.
Investigations revealed that the mismanagement of Transcorp’s IPO proceeds was perfected through several firms, including GESI, a company Tom Iseghohi, group managing director of Transcorp, is siad to have interests alongside one Mike Ike and through which N441,589,119.95 was paid out for sundry contracts and projects.
GESI is a retainer company for the recruitment of transformation of talents to Transcorp and it is led by Mike Ike, the company’s vice president. His appointment later as a staff of Transcorp was opposed by several board members of Transcorp.
In one of the memos to Iseghohi, some Trancorp board members raised questions of ethics in the employment of Ike, as the corporation’s project manager and noted that $1.202 million or N140.206 million in addition to another N301.382 million had been routed through GESI to Ike, M.G Ekon, and Kevin Caruso, NITEL’s chief executive officer.
Some of the questionable payments include N28.750 million to members of the National Assembly in two instalments of N14.375 million each with payment numbers CQ01/2008/78372 and CQ02/2008/78441; the over N132.235 million to an advertising/PR agency in seven instalments with the highest being the N53.536 million (payment number CQ01/2008/78354) “for multi-media image sustenance”.
Other payments to the advertising agency are N35.73 million (CQ02/2008/78441) “for PR and corporate reputation management”; N1.15 million (CQ012008/78342) to a prominent senator in this political dispensation and N22.05 million (CQ01/2008/78338) “for media public relations”.
The rest of the payments to the advert agency are N6.6 million (CQ01/2008/78326) “for billboards and year end gifts”; n11.135 million (CQ12/2007/78283) for “2007 year end events and gifts” and N2.026 million (CQ11/2007/78223) being “payment for adverts in various dailies”.
In another instance, N934.346 million was categorised as loans to Mtel for network re-launch, among others; but strangely Mtel officials say they could not trace the inflow in the company’s accounts and records. 
The loan was purportedly paid in 13 instalments between 2007 and 2008. it ranged from N5 million for “NITEL loan paid direct to Bid Engineering Limited” to N171 .5 million (payment number CQ12/2007/78315) for “NITEL: Loan to pay October 2007 salaries/rent” and N237.926 million (payment number CQ11/2007/78233) classified as “Mtel: Loan advance as per memo 29/11/07”.
Similarly, N49.998 million (CQ05/2007/020) was paid for the rent of a floor for Transcorp in NECOM House. However, this payment could not be located on NITEL’s accounts or records.
On disbursements for foreign consultancy, findings indicate that the payments were lodged in the same GESI’s account. This included a N121.937 million while another N44.371 million was paid to one Chidi Diugwu, Chris Ehimuan, Chris Osondu and Decon Global as consultancy fees, among others for “Project Space” and unnamed consultancy services.
Similarly, N4.2 million was also paid to Ejimofor Akah also for “Project Space”; N14.274 to Harmattan Ventures on “Project NOK” and space; N14 million to Hasasa Enterprises for Mtel re-launch, and consultancy on Mtel and NITEL.
Also listed on the schedule of transactions and payments were N1.626 million to Chris Ehimuan and Kevin Caruso; N20.8 million to Interra Networks for consultancy and assessment of Mtel; N1.425 million to Ita Anthony on Project Space, and several other payments to others also on Project Space.
The sum of $225,000 was paid to GESI for the appointment of Kevin Caruso as telecommunications transformation adviser on July 20, 2007 and another $67,500 or N8.775 million paid via a First Bank cheque no HC 56704348 on August 13, 2007 for the Transcorp 100 days strategic business transformation.  
The $67,500 was paid into GESI’s account no: 003786064422 in Bank of America.
On legal services, over N202.38 million was paid to 10 firms in 11 transactions. They include the N65 million to a legal firm (cq12/2007/78252) “being legal fees”; N49.5 million to another law firm (CQ11/2007/78203) as well as N43 million (CQ12/2007/78317) “for representing NITEL in N14 billion suit.” 
Transcorp made a controversial entry into the Nigerian economic landscape in 2006 as a mega corporation with the robust aim of being a multinational institution and was supported clandestinely by former President Olusegun Obasanjo. Within its short existence acquired majority equity in both Transcorp Hilton Hotel (formerly Nicon Hilton Hotel) and the first telecom national carrier, NITEL and Mtel.
Transcorp had on December 26, 2006 gone to the capital market to raise N60 billion, but got only N22 billion.
Ndi Okereke-Onyiuke is chairman, Transcorp and also doubles as director-general, Nigerian Stock Exchange (NSE) while Tom Tom Iseghohi is its managing director.
Not a few market watchers had concluded that the firm’s managers have derailed from the purpose and intent of the corporation, wallowing in ethical abuse.
Before Iseghohi’s coming, Transcorp’s first managing director was Fola Adeola and was succeeded by Bernard Longe. 
After Longe’s departure, the board decided that an acting managing director, Munir Ja’afaru, hold the fort for six months to stabilise the operations of the company while a new managing director would be sourced through a competitive process.
Iseghohi emerged as chief executive with strong support from Okereke-Onyiuke and assumed office in June 2007. In the past two weeks, however, Iseghohi has been in the custody of the Economic and Financial Crimes Commission (EFCC) over allegations of mismanagement of funds.
His detention is believed to be connected with the poor state of NITEL and Mtel which fortunes have dipped considerably since Transcorp took over their management. 
The bid to rejuvenate both companies informed the ongoing liaison between Transorp which holds 51 percent and the Federal Government with its 49 percent with a view to scaling down their equity for transfer to a new core investor with the technical know to inject life into the ailing national carrier.