Baring any last-minute change of plans, the Economic and Financial Crimes Commission (EFCC), will arraign directors of a private firm, Hedge Fund Securities Company for allegedly allowing itself to be used as a conduit by the Delta State government to siphon billions of naira from the Paris Club refund.

Sources at the EFCC said already, investigation into the matter has been completed and the agency is set to arraign the directors in court over their roles in the alleged diversion of the said commission due to another firm.

Hedge Fund Securities was said to have been engaged by the Delta State Government after a financial consultancy firm, Mauritz Walton Ltd, had successfully reconciled the state’s debt profile with the Ministry of Finance and Debt Management Officer on the Paris Club refund.

However, rather than pay the agreed commission to Mauritz Walton Ltd, Delta State Government engaged and paid Hedge Funds the commission, after the job had been completed by Mauritz Walton Ltd.

Following the development, Mauritz Walton petitioned the EFCC last year over what it described as “payment of its fees to Hedge Fund Securities, a known front to people close to Delta State Government.”

Hedge Fund Securities was allegedly paid a substantial amount of money as consultants to Delta State on Paris Club refund, after Mauritz Walton had successfully executed an agreed contract with the state government.

In the petition, Mauritz Walton urged the EFCC to probe Hedge Securities and other individuals named in the petition which according to it, were engaged as an after- thought to siphon consultancy fees due to the company. “Hedge Securities and other persons fronted for the government of Delta state to siphon the commission which would have been paid to Mauritz Walton for a job duly executed”, the petition alleged.

Titled: “Petition for the Recovery of Our Consultancy Fees Fraudulently Paid to Hedge Fund Securities and Others on the Reconciliation and Recovery of Over Deduction of Foreign Loans (1995 – 2006) Paris Club Refund on the Account of Delta State Government”, the petition calls on the anti-graft commission to dig deep into those behind formation of Hedge Securities and use its good offices “in recovering our full consultancy fees which is been paid to Hedge Securities, and other persons as consultants.”

The consulting firm accused Hedge Securities of reaping where it did not sow, adding “Hedge fund was primarily fronted by the governor’s brother in-law, and another friend of the governor, for the sole purpose of laundering and illegally collecting Consultancy fees on Delta State Paris Club Refund. This was done to avoid paying the legitimate consultant, Mauritz Walton Nig. Ltd, and to siphon the refund through 3rd parties and award of phony contracts.”

Mauritz Walton Nig. Ltd, said it was engaged by Delta State government in November 2014 to reconcile and recover the state’s over deductions on foreign loans by the federal government.