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Tag: Arms deals

$2.1bn arms deals: N1.5bn traced to ex-minister’s son

Dasuki’s ex-aide loses embassy job

A bureau de change operator has told the Economic and Financial Crimes Commission (EFCC) that N1.5billion was paid into his account for the son of a former Minister of Finance.

Salisu Umaru said he did not know what the minister’s son used the cash for. The former minister and his son were not named “so as not to jeopardise the investigation”. The cash is believed to be part of the $2.1 billion “phoney” arms deals funds.

Also at the weekend, it was learnt that the army has replaced one of its officers under probe for the phoney arms deals, Col. Nicholas Ashinze, with Col. M.A. Abdullahi as the nation’s military attaché to Germany.

Col. Ashinze is to refund N7.3million, which was paid to him as estacode and air fares.

Salisu, who gave the EFCC details of how the N1.5billion was wired into his company’s account, said he never knew what the cash from the Office of the National Security Adviser (ONSA) was meant for.

He said : “I was invited by EFCC and when I reported, I was shown my company’s account statement with Zenith Bank called Jabama Ada Global Nigeria Limited in which there was an inflow of N500million on 5/2/2015 and N1billion on 16/4/2015 into the account from the Office of the National Security Adviser.

“On the inflow of N500million into my company’s account on 5/2/2015, I wish to state as follows : That on the same date(5/2/2015), I paid the equivalent of US$2,380,952 to the son of the minister, being the equivalent of the said N500million at the rate of N210 per dollar.

“I do not know what he used the money for. My own business is to buy and sell dollars. It is only the minister’s son that can explain what the money was meant for. The minister’s son signed and collected the said N500million.

“On the N1billion inflow into my company’s account on 16/4/2015, I wish to say the money was disbursed as follows: $1,000,000, being the equivalent of N220million; and $327,000 (equivalent of N72,600,000) were paid cash to the son of the minister while the sum of N704,400,000 was transferred to various accounts based on the instruction of the minister’s son. He gave some of the instructions through text messages. Some of the instructions were also received from the father.

“I also want to state that I do not know what the N1billion was meant for and what it was used for.”

Col. M.A. Abdullahi’s initial nomination for the job was turned down by a former Chief of Army Staff, Lt.-Gen. Kenneth Minimah.

Gen. Minimah was said to have favoured Col. Ashinze because he speaks German fluently.

Col. Ashinze had been ordered by the army to refund N7.3million, including an estacode of N6million and N1.3milion air fares.

But the embattled former military aide to Col. Dasuki asked the army to prevail on the EFCC to lift the restriction on his account to be able to refund the cash.

A top source said: “Ashinze has been replaced with Col. M.A. Abdullahi as Defence Attaché to Germany because the EFCC is yet to conclude investigation of some military officers.

“In fact, Ashinze was replaced as soon a he was shortlisted for interrogation and before the EFCC began his drilling.

“While in EFCC’s custody, the military police brought the letter asking him to refund the N7.3million allowances. He said the army should lift the ban placed on his account to effect refund of the money.”

March 14, 2016
Arms deals: EFCC detains, grills ex-NAF chief

Following alleged voluntary surrender, the Economic and Financial Crimes Commission (EFCC) has detained a former Chief of Air Staff, Air Marshal Adesola Amosu, in connection with the ongoing investigation of the $2.1billion arms procurement scam.

Amosu was grilled for about 17 hours by EFCC operatives.

There were indications that the accounts of the ex-NAF chief have been restricted and some houses allegedly traced to him put under surveillance.

The Assets Forfeiture and Recovery Unit of the EFCC was verifying some of the properties allegedly identified with him.

January 28, 2016
Arms Deals: Bank accounts of ex-military chiefs restricted

• Restriction placed on Badeh’s accounts

The Special Investigative Panel on arms procurement may have indicted two former Chiefs of Army Staff and 14 serving officers of the army in its investigation of arms contracts for the military, The Nation can reveal.

This comes just 24 hours after President Muhammadu Buhari mandated the Economic and Financial Crimes Commission (EFCC) to establish the scope of the culpability of the immediate past Chief of Defence Staff (CDS), Air Chief Marshal Alex Badeh; former Chief of Air Staff, Air Marshal Mohammed Umar (2010 -2012) and the immediate past Chief of Air Staff, Air Marshal Adesola Amosu, in alleged fraudulent arms purchases for the Air Force between 2007 and 2015.

Also lined up for investigation by the anti-graft agency are 14 other retired and serving military officers and 21 firms said to have been awarded the contracts.

There were indications last night that the appropriate government agencies might have placed restriction on the accounts of Badeh and the others being probed along with him.

The military authorities have already recalled two of the officers listed for interrogation by EFCC from terminal leave.

Highly placed sources said yesterday that the second leg of investigation of procurement deals in the army has already been concluded.

This aspect of the investigation, a source said yesterday, “traced some deals to two ex-Chiefs of Army Staff and 14 others.”

“The recommendations on these serving and retired officers have been referred to the presidency.One of the officers even diverted arms funds for political purposes,” the source added.

“So, what we did was just to wrap up the report on the sleaze in the Nigerian Air Force for consideration by the Presidency. We are doing it in batches.”

Other sources said that a restriction order had been placed on the accounts of ex-CDS Badeh and the 17 other retired and serving officers facing interrogation.

Some of those affected are the most senior Air Force officer, AVM A. M. Mamu(the Chief of Administration); AVM O.T. Oguntoyinbo (former Director of Production, Defence Headquarters); AVM R.A. Ojuawo (Air Officer Tactical Air Command, Makurdi); AVM J.B. Adigun(former Chief of Accounts and Budgeting in NAF); AVM JA Kayode-Beckley(Director, Armament Research in Air Force Research and Development Centre); AVM T Omenyi (MD, NAF Holdings); four top officers at the Defence Headquarters(DHQ), Air Cdre AO Ogunjobi; Air Cdre GMD Gwani; Air Cdre SO Makinde; Air Cdre AY Lassa and Col. N. Ashinze , who was the Special Military Assistant to the ex-National Security Adviser, Col. Sambo Dasuki.

One source said: “As part of the investigation of these officers, some of their properties have been identified. These houses will be attached under the Assets Forfeiture Clause in the EFCC Act pending the conclusion of probe into their alleged involvement in the arms deals.

“This is a normal step in any high-profile investigation like the one at hand.”

Sections 28 and 34 of the EFCC (Establishment Act) 2004 and Section 13(1) of the Federal High Court Act, 2004 empower the anti-graft agency to invoke Interim Assets Forfeiture Clause.

“Section 28 of the EFCC Act reads: ‘Where a person is arrested for an offence under this Act, the Commission shall immediately trace and attach all the assets and properties of the person acquired as a result of such economic or financial crime and shall thereafter cause to be obtained an interim attachment order from the Court.’

Section 13 of the Federal High Court Act reads in part: “The Court may grant an injunction or appoint a receiver by an interlocutory order in all cases in which it appears to the Court to be just or convenient so to do.

(2) Any such order may be made either unconditionally or on such terms and conditions as the Court thinks just.”

Meanwhile, findings confirmed that two of the 18 officers in Badeh’s group have been recalled from terminal leave ahead of their retirement.

Another source said: “Two of the officers, who are on terminal leave have also been recalled until they are cleared by the EFCC.”

A highly-placed military source said: “The handover of these officers to EFCC is a personal matter, not a service issue. “For instance, a top military officer has been in EFCC detention since December 23, 2005 and there were issues that the Nigerian Army has not sent any officer to him.

“The truth is that there was no way the Army can intervene on his behalf because of the issues at stake. “The officer has been claiming that nothing was found against him but we will leave that to the EFCC and eventually the court. “All these officers are certainly on their own. They have to bear individual cross to clear their names.”

January 17, 2016
$2b arms deals: All set for Dasuki’s, Dokpesi’s trial

EFCC charges ex-NSA, AIT chair, Bafarawa, others to court

The Economic and Financial Crimes Commission (EFCC) yesterday filed money laundering charges, among others, against businessman Dr. Raymond Dokpesi.

Also charged before the Federal High Court are: Former National Security Adviser (NSA) Sambo Dasuki, former Sokoto State Governor Attahiru Bafarawa, former Minister of State for Finance Bashir Yuguda and former Director of Finance, Office of the National Security Adviser(ONSA), Shaibu Salisu.

The detained suspects were yesterday served copies of the charges, The Nation learnt.

Some of the suspects were meeting last night with their counsel, an indication that they might be arraigned today or before the weekend.

In the suit, which is yet to be assigned to a judge, Dokpesi is slammed with six counts, according to court sources.

The AIT/Ray Power chairman admitted collecting N2.1billion from the office of the NSA. The money, he said, is for media services.

Dokpesi is charged along with his company – Daar Holdings and Investment Limited.

They are accused of violating the Money Laundering Act, the EFCC Act and the Public Procurement Act.

Dasuki, who is charged along with the others, is already standing trial before the Federal High Court, Abuja for alleged illegal possession of firearms and money laundering.

There were strong indications yesterday that the accounts of most of the suspects had been frozen.

According to an EFCC source, who spoke in confidence, filing the charges “is a demonstration of our commitment to the rule of law”.

He said the EFCC would not want to detain all the suspects for long “because they are overstretching our facilities”.

“Their fate will now be determined by the court. It is the court that will decide whether they should be granted bail or be remanded in prison custody,” the source added.

The investigation of the $2.1 billion arms deals will continue in spite of filing of charges, it was learnt.

Although the details of the charges were not released last night, it was learnt that the EFCC chose to beat most of the suspects to their game.

“These suspects were already plotting to go to a High Court to quash the detention warrant issued by a Chief Magistrate’s Court against them.

“We have to move faster to checkmate plans to stop their trial.”

When contacted last night, Mr. Ahmed Raji (SAN), who is one of the counsel to the former National Security Adviser, Mr. Sambo Dasuki said: “My client has been served with the charges preferred against him. I am now studying them with his team of lawyers in preparation for the arraignment.”

It was gathered that the charges against Dasuki and others border on misapplication and stealing of funds.

Most of the accounts of the high-profile suspects have been frozen by the EFCC. None of the suspects has access to their accounts. We have placed Post No Bill (PNB) on their accounts until the court takes a decision.

“Their international passports are also with us to restrict their movement to the country pending the time the court will decide as may be appropriate.”

Dokepsi, who is on bail from the EFCC, was last Friday ordered to be produced by Justice Gabriel Kolawole (also of the Federal High Court, Abuja).

The order followed an ex-parte application by Dokpesi, who claimed to have been unlawfully detained beyond 48 hours by the EFCC. The judge, who heard Dokpesi’s lawyer, Mike Ozekhome (SAN) in chambers, ordered the EFCC to produce Dokpesi before his court on the next hearing date of December 14.

Ozekhome, who told reporters what happened in the judge’s chambers, said the judge also ordered the EFCC to show cause why he should not grant Dokpesi’s prayer for unconditional or conditional bail.

Dokpesi hinged his prayers on the grounds that no formal charge had been brought against him, over 48 hours after his detention.

The applicant said he went to honour a verbal invitation from EFCC on December 1 and had been detained since then after subjecting him to hours of “unprepared interrogation”.

He argued that the offences alleged against him “are ordinarily bailable”. He promised not to jump bail and not to interfere with witnesses or the course of justice if any formal charge is filed against him.

Dokpesi said with his social status, the court could grant him bail on liberal terms. Or on self recognisance as he has no criminal antecedents or record. He promised to attend court if eventually he is formally arraigned.

December 9, 2015
Arms deals: Fresh controversy over $1b loan approved for Jonathan
- Ex-president returns home, loyalists regroup to defend tenure
- Dasuki writes EFCC, asks for more timeMore questions may be awaiting former President Goodluck Jonathan on arms deals during his tenure after his weekend denial in Washington DC that he never incurred a bill of $2 billion on arms procurement.This includes the whereabouts of the over $1billion loan approved for him by the 7th National Assembly for arms purchase to fight the Boko Haram insurgency.
  It was unclear last night whether the loan was accessed by the administration before the expiration of its tenure on May 29.
  
  His loyalists claimed yesterday that the money was not made available before he left office.
  
  There were suggestions that the Special Investigative Panel on arms procurement may be asked to establish the truth about the loan.
  
  More military officers, ex-ministers and arms contractors may be invited for clarifications, it was gathered.
  
  Jonathan returned to Abuja from the USA on Friday with his ex-members said to be regrouping to defend arms deals during his presidency and other allegations against the administration.
  
  Jonathan had on July 16, 2014, written to the 7th National Assembly for the approval of a $1 billion loan for the fight against Boko Haram.
  
  The ex- President said he needed the cash to upgrade military equipment and for training as well as logistics for the Armed Forces.
  
  Jonathan made the request in a letter entitled: “Tackling ongoing security challenges: The need for urgent action.”
  
  On September 25, 2014, the Senate approved the loan following the submission of the report of the Senate Joint Committee on Finance and that of Local and Foreign Debt by the Chairman, Senator Ahmed Makarfi.
  
  A reliable source, who spoke in confidence, said: “In spite of the submission of Interim Report, the ongoing probe of the arms deal is continuing. One of the areas being looked into is what became of the $1billion loan approved for Jonathan by the 7th Senate.
  
  “Actually, the loan was approved going by the records made available to the probe panel. So, if the panel is talking of $2billion, it must have been based on records in its care.
  
  “This development may lead to the invitation of some ex-ministers to clarify the status of the loan and whether or not it was diverted to other use.”
  
  But a former Minister said: “Initially, the vote was about $900m but the leadership of the 7th Senate advised the Executive to ask for $1billion to accommodate unexpected financial challenges in fighting Boko Haram.
  
  “The Ministry of Finance ought to write letters to those advancing the loan and those companies supplying the arms on how the government will remit the funds.
  
  “We however did not get the $1billion loan because the former Minister of Finance, Dr. Ngozi Okonjo-Iweala, did not sign necessary papers as a result of the inability of her office to receive the required votes and proceedings from the National Assembly.”
  
  Ex-President Jonathan returned to Abuja on Friday with his erstwhile cabinet members regrouping on how to defend their tenure.
  
  A highly-placed source said: “We have resolved to respond to any issue raised by the administration of President Muhammadu Buhari on facts and figures.
  
  “Ex-President Jonathan has started it in the US, we will no longer keep quiet because the stigmatization is increasingly becoming unbearable.
  
  “We will not confront Buhari government but we will be replying on points of records.”
  
  Embattled former National Security Adviser, Sambo Dasuki, was said to have written to the Economic and Financial Crimes Commission (EFCC) for more time to appear for grilling over the arms deals.
  
  The letter was submitted to EFCC on Friday by Dasuki’s counsel.
  
  A source in EFCC said: “We have received Dasuki’s letter, we will get back to him accordingly.
  
  “If after Monday, he continues to evade appearance before this commission, we will have no choice than to obtain a warrant of arrest from a court to pick him.
  
  “We have tried our best to be civil and handle the case in line with international best practices.”
November 22, 2015
Arms deals: Buhari orders arrest of Dasuki, others
Panel unveils how Nigeria was duped

facts & figures
- N643.8b •$2.1b
Extra budgetry interventions
- $2.3b •N13.7b
Failed contracts (53 out of 513 awarded between 2007&2015)
- N3.8b
Cash paid to company without evidence of any contract
- N2.2b•$1.6b •€9.9b
Fictitous contracts awarded
- Four Alpha jets
- 12 helicopters •Bombs & ammunition
Equipment purportedly paid for but not supplied
- N350b •$1.6b • €9.9b
Contracts awarded to two firms
- $132m • €9.9m
CBN transfers to banks without purpose on Dasuki’s instruction

Those implicated by the investigative panel on arms procurement have been ordered arrested by President Muhammadu Buhari, the Presidency said last night.

On top of the list – indeed the only one mentioned – is former National Security Adviser (NSA) Col. Sambo Dasuki.

But a source said last night that a former Chief of Army Staff was among the suspects.

Another said the suspects were not named to prevent their escape from Nigeria.

The interim report chronicles alleged massive mismanagement, misappropriation and outright theft of public funds in billions of naira and in foreign currencies –dollars, euro and pounds sterling.

Presidential spokesman Femi Adesina said in a statement that the President issued the executive order for the arrests after receiving the preliminary report of the probe of arms procurement between 2007 and 2015 by the committee raised on August 31 by National Security Adviser (NSA) Gen. Babagana Munguno.

“President Muhammadu Buhari has directed that the relevant organisations arrest and bring to book, all individuals who have been found complicit in these illegal and fraudulent acts,” the statement said last night.

The preliminary report submitted by the Air Vice Marshal (AVM) O.N. Ode (rtd)-led panel listed the many cases established against Col. Dasuki, who is currently in the eye of the storm.

A Federal High Court sitting in Abuja has ordered that he should be allowed to travel abroad, but the Department of State Services (DSS) said he must accept an invitation to defend himself in connection with some deals he was allegedly involved in.

Col. Dasuki has declined to accept the letter of invitation, preferring to remain within his Abuja residence. But he has not been able to travel. He is on trial for illegal arms possession.

Other members of the panel are: R/Adm J.A. Aikhomu (rtd.), R/Adm E. Ogbor (rtd.), Brig.- Gen L. Adekagun (rtd.), Brig.-Gen. M. Aminu-Kano (rtd.), Brig.-Gen. N. Rimtip (rtd.), Cdre T.D. Ikoli, Air Cdre U. Mohammed (rtd.), Air Cdre I. Shafi’I, Col A.A. Ariyibi, Gp. Capt. C.A. Oriaku (rtd.), Mr. Ibrahim Magu (EFCC) and Brig.- Gen Y.I. Shalangwa as secretary.

Part of the mandate of the panel is “in keeping with President Buhari’s determination to stamp out corruption and irregularities in Nigeria’s public service”.

Yesterday’s statement on the interim report of the panel said: “On the authority of Mr President, a 13-man committee was set up by the Office of the National Security Adviser to audit the procurement of arms and equipment in the Armed Forces and Defence sector from 2007 to date.

“While the committee which was inaugurated on 31 August 2015 is yet to complete its work, its interim report has unearthed several illicit and fraudulent financial transactions.

“As part of the findings, the committee has analysed interventions from some organisations that provided funds to the Office of the National Security Adviser, Defence Headquarters, Army Headquarters Naval Headquarters and Nigerian Air Force Headquarters, both in local and foreign currencies.

“So far the total extra budgetary interventions articulated by the committee is six hundred and forty three billion, eight hundred and seventeen million, nine hundred and fifty thousand, eight hundred and eighty five hundred naira and eighteen kobo (N643,817,955,885.18).

“The foreign currency component is to the tune of two billion, one hundred and ninety three million, eight hundred and fifteen thousand us dollars and eighty three cents ($2,193,815,000.83).

“These amounts exclude grants from the state governments and funds collected by the DSS and Police. It was observed that in spite of this huge financial intervention, very little was expended to support defense procurement.

“The committee also observed that of 513 contracts awarded at $8,356,525,184.32; N2,189,265,724,404.55 and €54,000.00; fifty three (53) were failed contracts, amounting to $2,378,939,066.27 and N13,729,342,329.87 respectively.

“Interestingly, it was noted that the amount of foreign currency spent on failed contracts was more than double the $1bn loan that the National Assembly approved for borrowing to fight the insurgency in the North East.

“The committee also discovered that payments to the tune of three billion, eight hundred and fifty million naira (N3,850,000,000.00) were made to a single company by the former NSA without documented evidence of contractual agreements or fulfilment of tax obligations to the FGN.

“Further findings revealed that between March 2012 and March 2015, the erstwhile NSA, Lt.-Col MS Dasuki (rtd) awarded fictitious and phantom contracts to the tune of N2,219,188,609.50, $1,671,742,613.58 and €9,905,477.00. The contracts which were said to be for the purchase of 4 Alpha Jets, 12 helicopters, bombs and ammunition were not executed and the equipment were never supplied to the Nigerian Air Force, neither are they in its inventory.

“Even more disturbing was the discovery that out of these figures, two companies were awarded contracts to the tune of N350,000,000.00, $1,661,670,469.71 and €9,905,477.00 alone. This was without prejudice to the consistent non-performance of the companies in the previous contracts awarded.

“Additionally, it was discovered that the former NSA directed the Central Bank of Nigeria to transfer the sum of $132,050,486.97 and €9,905,473.55 to the accounts of Societe D’equipmente Internationaux in West Africa, United Kingdom and United States of America for un-ascertained purposes, without any contract documents to explain the transactions.

“The findings made so far are extremely worrying, considering that the interventions were granted within the same period that our troops fighting the insurgency in the North East were in desperate need of platforms, military equipment and ammunition. Had the funds siphoned to these non performing companies been properly used for the purpose they were meant for, thousands of needless Nigerian deaths would have been avoided.

“Furthermore, the ridicule Nigeria has faced in the international community would have been avoided. It is worrisome and disappointing that those entrusted with the security of this great nation were busy using proxies to siphon the national treasury while innocent lives were wasted daily.”
November 18, 2015