The Nation Newspaper

Tag: corruption

  • Maigari’s board denies corruption allegations

    Maigari’s board denies corruption allegations

    The embattled Aminu Maigari-led Executive Board of the Nigeria Football Federation (NFF) has said that all the allegations levelled against it are false, unfounded and a plot to destroy all the remarkable successes it recorded in the past four years by forces opposed to the leadership of the football house.

    A prominent member of the NFF Executive Board, who pleaded anonymity, has risen in strong defense of the federation in the face of an avalanche of financial impropriety allegations levelled against it by the so-called ‘’NFF Emergency Congress’’.

    He vehemently denied the allegations that board members partook in the sharing of the Super Eagles’ Brazil 2014 FIFA World Cup largesse of $3.6 million from the Federal Government.

    According to him, ‘The Sports Minister personally brought the money in question to Brazil and delivered it directly to the players and officials. No board member got a dime. lt is a case of giving a dog a bad name to hang it.’’

    The outspoken board member also refuted another allegation that the sum of $90,000 got missing inside the aircraft conveying the Flying Eagles to a competition last year. He insisted that nothing of such ever happened.

    On the issue of the Super Eagles’ quarrel over the FIFA World Cup participation money, he stated that both players and officials held a meeting where the players and coaching staff were told what they would get ahead of time just as they were also reminded that such money from FIFA comes two months after the competition.

    Said he, ‘the truth is that the board adequately briefed the players and officials on the FIFA largesse and it was explained that the money only comes months after the World Cup. It is therefore arrant nonsense any talk that the board denied the players what is due to them.’’

    According to the prominent NFF figure, all the allegations were totally untrue as the Maigari-led NFF Executive Board and its management staff had been very prudent in the handling of the finances of the federation vis-a-viz the numerous programmes the NFF executed in the years under review.

    ‘’It is very unfortunate that all manner of allegations are being brandished by those who are envious of the landmark achievements recorded by this present board. Need I recount that this board worked very hard to ensure that Nigeria won the coveted African Nations Cup in South Africa after 20 years of waiting even as the Golden Eaglets lifted again the FIFA U-17 World Cup in UAE last year, while all our other national football teams did the country proud at every competition to warrant President Goodluck Jonathan playing host to the victorious teams as many times as possible this past four years’’, the top official said.

    He, however, commended President Jonathan for his unflinching support for the NFF and the national teams even as he restated the board’s appreciation to Mr. President and all Nigerians for the support of the Super Eagles in Brazil.

    The respected board member refuted the allegations that money was missing or misappropriated, arguing that the board was made up of responsible Nigerians who followed laid down procedures in every transaction, especially when money was involved, hence the board was more than ready to render account of its stewardship in the fullness of time.

    Said he, ‘’Let me make it clear that monies received from the Federal Government in the form of subvention or allocation will be fully accounted for while all the gray areas will be cleared to the last kobo. In fact, the board is ready to defend itself and to clear any doubt in the minds of the public who may have been deceived by some misguided individuals who want to rubbish whatever achievement this board has recorded.’’

    On the suspension of Nigeria by the Federation of International Football Association (FIFA) following the purported ‘sacking’ of the NFF board, the football administrator argued that this was the direct consequence of the court action brought upon the NFF by a stakeholder and the subsequent purported sacking of the board at the hurriedly called ‘’NFF Emergency Congress’’ in Abuja afterwards.

    ‘’l am pained by the turn of events. My view is that we should have waited till the NFF August General Election to effect the leadership change if it’s necessary. One more month will not kill anybody. We are in a democracy. FIFA preaches democracy. You see, illegality cannot beget illegality. Those who claimed that they ‘sacked’ the Maigari-led board should have waited for awhile,“ he concluded.

  • Lamentation of two ex-militants

    Lamentation of two ex-militants

    For some time now, there have been complaints about the Presidential Amnesty Programme. Most  times there are complaints, the leadership of the programme has always explained them away by saying the complainants were fake.  Adediwura Aderibigbe tells yet another tale of aggrieved ex-militants who traced their woes to their camp leaders

    The duo walked into The Nation’s headquarters in Lagos. The young men in their late 20s did not look an inch individuals who can foment trouble. Phillip Ukange and Avurakoghene Ogofotha said they are ex-Niger Delta militants, whose allowances are allegedly being owed. They presented identification cards to prove they were militants enrolled on the Amnesty Programme.

    Mili 3
    Ogofotha

    Ogofotha said after laying down his arms following the offer of amnesty by the late President Umar Yar’adua, he enrolled at the University of Benin. Now, he is troubled that his education is under threat as the expected source of funding has dried.

    Ukange said he was entitled to N65, 000 monthly allowance; he said he only got paid for six months.

    The young men claimed they were victims of corruption in the Presidential Amnesty Programme having being enrolled in the 2012 phase two of the initiative.

    Ogofotha said: “I want to do something meaningful with my life. I am an ex-militant of the second phase of the amnesty programme, I have not been paid since 2012 when they started paying money into the account of the second-phase ex-militants.

    “As at the time, they gave us a phone contact of a man called Tony (he said he couldn’t recall Tony’s full name) who was said to be the paymaster. We called him but to no avail. We also tried to go to the office but whenever we attempted going there they would bar us.

    “Although some other affected ex-militants have gone to lay complaints but nothing was done; sometimes we would be molested by the military men there.

    “I am not the only one, we are over hundred. Some got their money for a number of months while others were partly paid. When we disarmed, I actually started school with the hope of using the allowance to pursue my education in the university but that was not the case. It became difficult for me to pay my school fees to the extent that I had to resort to menial jobs to remain in school. As it is now, my graduating from the school is hanging in balance; I may not be graduating with the right grade because of financial difficulties. All I want is to get paid in full from January 2012 till date.”

    They said as militants they could afford all they wanted but not freedom to live and walk around. “There was money but we were not free to move around and enjoy the money. We were always staying in the bush,” said 28-year-old Ogofotha.

    He went on: “Some of the repented ex-militants might have gone back. For me, I don’t want to go back; I want to go to school and live a different life but I need the money to complete my education. I may not be able to give you the exact number of the ex-militants affected by the unpaid allowances but I know we will be up to five hundred as it cuts across different states.

    “They have influenced the list of the ex-militants, some of them have put their girlfriends in the position. They receive money that ex-militants are supposed to be receiving and they are even going for training abroad.

    “When we took our protest to Abuja in 2013, they promised that they would send officials to come and rectify the problem in Warri. They did come to find out if we were the real people documented as ex-militants. And when they came, they found out that we were the real people because they came with their own list which tallied with what was on ground. They promised us that when they got back to Abuja they would rectify the problem but since then we have not heard anything.”

    mili 4
    Phillip

    Ukange said he got his first six months payments.

    “When I noticed I stopped receiving money I called my Generale,George Esebaro. He is the leader of the group called Uti Camp which I belonged. When I called him, he said I was a very rude boy, that since I had been receiving my money I did not pay return, I did not call him let alone send him call cards so that was why he went to Abuja to block my account.

    “He told me that the people that have been receiving normally paid him some money. So, if I could not do the same, then I should not expect to keep receiving money. Since then, he stopped responding to my calls; sometimes he would pick, he would warn me not to disturb him and hang up.”

    Ogofotha offered more insight: “At the initial stage before they started paying into our accounts, the money was being paid through our leaders who were always deducting from our legitimate allowance; out of N65, 000 we were being paid, each ex-militant would pay their leader N25, 000 – sometimes we were not even paid anything.

    “Meanwhile, at a point, some ex-militants refused to comply and all allowances were blocked by the leader of my camp, Abraham Ekokotu. He had gone to court to get a documentation to back his action which resulted in the blockade of accounts from my camp called Agbalakoko Camp.

    “When the affected ex-militants stopped receiving money, they had to seek a way out and he forced them to sign an agreement even as some of them could not read, they had to sign. The accounts were later unblocked when the people succumbed to his demands.

    “It has not been easy for me going to school though my brother has been assisting me in a little way and advising me not to get involved in anything violent. When they stopped my payment, my intention was to go back to the creeks but my father did not allow me to.”

     

  • Stealing is corruption, please

    Stealing is corruption, please

    The ICPC chairman, who echoed President Jonathan, should be told to face his core duties OR quit

    The contention by Mr. Ekpo Nta, Chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), that stealing should not be misconstrued for corruption is unfortunate and an attempt to subvert the objectives of the anti-graft agency. Mr. Nta told visiting engineers at the commission’s headquarters in Abuja last week that ordinary Nigerians could be forgiven the mistake, but not educated people. Feigning indignation, the ICPC boss said: “Stealing is erroneously reported as corruption. We must go back to what we were taught at school to show that there are educated people in Nigeria. We must address issues as we were taught in school to do.”

    It is saddening that Mr. Nta, a lawyer who was brought ostensibly to give verve to the anti-graft war, failed to appreciate the pernicious nature and nexus between stealing and corruption in the country. He rather gave the impression that they are two distinct and unrelated categories of offences, that is if he believes that stealing is even an offence at all.

    The terse clarification later by his spokesman that stealing is an offence under the law that could be prosecuted by policemen was not just an after-thought, a reaction to the angst expressed by Nigerians to his statement, but was even more damaging to the battle to rid Nigeria of all forms of corruption. His veiled attempt to designate stealing as a minor offence is an indication that the ICPC boss is unfit for the position.

    A visit to the commission’s website tells the story clearly. “Corruption in Nigeria”, it says, “undermines democratic institutions, retards economic development and contributes to government instability. Corruption attacks the foundation of democratic institutions by distorting electoral processes, perverting the rule of law, and creating bureaucratic quagmires whose only reason for existence is the soliciting of bribes.”

    Transparency International describes corruption as the abuse of entrusted power for private gain. While it is conceded that corruption is not limited to outright stealing, any attempt to make a clear distinction should be condemned as dubious and self-serving.

    Bribery may not be the only form of corruption, but it is a very important aspect of corrupt practices in Nigeria. The ICPC itself grew out of an appreciation of the incalculable damage done to the development of Nigeria by those who have cornered the common wealth and converted public institutions and their funds to private use.

    Sad enough, the ICPC that was established in 2000 as the first agency solely saddled with the task of halting the trend has failed the nation as corruption continues to fester and the agency is more interested in repeating views expressed by the President than enlisting Nigerians in fighting the scourge.

    The ICPC chairman owes Nigerians an explanation on how it has conducted his duty in the commission. How well has he adhered to the oath he swore to at his inauguration in office in October 2012? How many convictions has the commission secured from the courts in its 14 years of existence and, especially, since Mr. Nta assumed office? What innovations has he brought to ensure that officials caught in the act are made to pay the price?

    It is perhaps more than a mere coincidence that President Goodluck Jonathan had earlier said the same words and noted that neither corruption nor poverty is the bane of Nigeria’s development. Mr. Nta must note that he might have been appointed by President Jonathan, but he should not take his gratitude to the point of undermining the cause of sanitising the Nigerian public space. His role is  clearly defined by the law establishing the commission and it is in no wise similar to the function of the official presidential spokesman.

    The ICPC was conceived as an independent body, thus its funds are charged on the consolidated fund, yet Mr. Nta seems not to appreciate this and would rather leave his core duties to the Nigerian nation and repeat statements made by the President.

    We urge the board of the ICPC to call Mr. Nta to order. Cases pending in various courts for five to eight years have been credited to failure of diligent prosecution, and, in some cases, outright collusion between the prosecution, defence and the Bench. This should stop. Well-heeled public officials found to have dipped their hands in the till must be brought to justice. Sophistry by the ICPC chairman should not stand in the way. All forms of corrupt practices, including stealing, must be fought with vigour. And, if officials saddled with the task are showing signs that they are sympathetic to the ill, they should be asked to step out of the range.

    It does not lie in the mouth of President Jonathan who presides over a terribly corrupt nation, or that of Mr Nta who is supposed to tackle corrupt practices in the same sick country to try to make any distinction between stealing and corruption. It is an unhelpful academic exercise.

  • CIPSMN boss urges govt to tackle corruption, others

    The Federal Government has been urged to tackle vices, such as corruption, fraud and robbery which are threatening the growth of the economy.
    Speaking at the induction of members of the Chartered Institute of Purchasing and Supply Management of Nigeria (CIPSMN) in Ikeja, Lagos, its President, Alhaji Mohammed Aliyu, said though the government (and others in the past) promised to solve these problems when it took over, he asked: “But what are we seeing today? Why do we have the worst possible stationery of fraud, in security factories? Why is business so difficult to conduct in Nigeria? Why increase in unemployment, embezzlement of public funds, mismanagement of depositor’s money in banks, fraud and investment scams?”
    He accused the government of being insincere with the implementation of the Public Procurement Act (PPA) 2007 and the CIPSMN Act 21 of 2007 aimed at fighting corruption in the procurement and contract awards and upholding professionalism, adding: “Corruption on the part of government officials vested with trust is calculated to undermine the rule of law, trust and erode public confidence.”
    He said corruption breeds stealing from the treasury or tax payers and “undermines the moral fibre of the citizenry’’.

  • Curtailing corruption in sport

    Today, sport world over is threatened by corruption and this act is capable of destroying the very essence of why people engage in sporting activities. Each time we mention corruption in sport, you will hear people share different opinion on what they perceive to be the cause as well as those considered to be involved in sport corruption. According to Transparency International, “Corruption is the abuse of entrusted power for private gain. It hurts everyone who depends on the integrity of people in a position of authority”

    Corruption in sport comes in different forms and shades, referees and players can take bribes to fix matches. Club owners can demand kickbacks for player transfers. Companies and governments can rig bids for construction contracts. Organised crime is behind many of the betting scandals that have dented sport’s reputation. And money laundering is widespread. This can take place through sponsorship and advertising arrangements. Or it may be through the purchase of clubs, players and image rights. Complex techniques are used to launder money through football and other sports. (Transparency).

    In Nigeria we have seen cases of perceived corruption in sport I say perceive because so far we have not had a concrete evidence to show. Funny enough, due to the perceived corruption in sport, the organised private sector have been hesitant in funding sport as would have been expected. Rather than attract more sponsors over the years we have seen a dwindling fortune in the sponsorship of sport events within Nigeria

    The essence of today’s write up is to bring to mind the need for all those involved in the management of sport in Nigeria, to see the reason why things must be done differently. We need to understand that the cumulative implication of negative perception overtime, can lead to a very bad situation whereby, sport will have no more appeal to investors.

    Accountability and transparency should be the watch word for all sport practitioners. People should understand that there is nothing like free money in sport. All monies generated for sporting cause should also be expended for that cause. Now I don’t want people to read this piece and believe that bribing officials is part of sporting cause. If we must know, such acts are considered as indices of match-fixing.

    What are the causes of corruption in sports? We must understand that there are certain factors that encourage corruption in sports. When people who are not qualified to manage sports are put in positions of management, it is evident, that they will mess up the entire industry by getting involved in unconventional means of sustaining power at all cost. Coaches that are not good enough will always encourage bribing referees.

    The whole issue of secrecy and lack of transparency in sport business is another factor that encourages corruption in sports. There are also no established norms and standards through which financial management is carried out in our sport industry. More importantly, we have people of very low integrity administering most sports in Nigeria.

    Those who administer sports must first be professionals and those who aspire to be board members of sport federations should be men and women of proven integrity. I have written before now, about the need for people in sport to be honest.In fact, I did say that the failure of honesty within the sport circles is the bane of corruption in the system. Referees are compromised by corrupt managers and at the end of the day the innocent spectators are cheated because they are not given the opportunity to watch genuine sports events devoid of any form of corrupt manipulation.

    Sport is a multimillion dollar industry and it’s not surprising, why we continue to find corruption within it. My take is for us to develop best protocols and systems that will be able to screen prospective employees and sports men. Also, we need to carry out an integrity check on every actor of our sport.

    While I am very much aware that in Nigeria we have men and women of honour that are legitimately making their money in sport, I also know that there are some bad eggs within the community. We need therefore, to search them out, identify them and also ensure they are totally expelled from all sport related ventures so as to free our sport from their claws.

    Let me also say that no one can come and do it for us. It is only we in sport, that can make sport clean again and this starts from you reading this article. Once you are able to reject corruption in whatever guise in sports then we are gradually fighting the war against it and God willing sport shall overcome all its corrupt enemies.

  • How courts frustrate corruption cases

    How courts frustrate corruption cases

    Why is there no headway in most corruption cases? The courts are to blame, says Femi Falana (SAN) in this paper he presented at the 2014 Law Week of the Aba Branch of the Nigerian Bar Association (NBA), Abia State

    Introduction

    In May 2007, a number of governors completed their eight-year term of office. Having lost the immunity conferred on them by Section 308 of the Constitution, the Economic and Financial Crimes Commission (EFCC) invited them for investigation on the basis of several petitions alleging diversion of public funds running to billions of naira. Some reported for interrogation while others sought interlocutory and perpetual injunctions restraining the EFCC from arresting, investigating or prosecuting them in any manner whatsoever and howsoever.

    Among those who were charged to court only two have been convicted and given light sentences. The majority of the defendants have continued to manipulate the criminal justice system to frustrate their trial. To the eternal shame of the country one of the ex-governors who got a clean bill of health by a Nigerian court was later convicted and jailed by a British court. Out of the two, who jumped bail in the United Kingdom, one is now a Senator of the Republic.

    Not unexpectedly, the Nigerian people have justifiably blamed lawyers and judges for frustrating the anti-graft agencies from successfully prosecuting politically exposed persons and other members of the ruling class accused of corrupt practices and money laundering. In this presentation we shall examine how the neo-colonial legal system is regularly exploited by senior lawyers in favour of rich and powerful criminal suspects to the detriment of accountability and transparency in the society.

     

    Judicial cover for criminal suspects

    In June 2007, an ex-governor was granted leave by a state High Court to enforce his fundamental right to personal liberty and fair hearing. The leave was made to operate as a stay of action pending the determination of the application. However, upon the conclusion of investigation into the complaint of his involvement in serious economic sabotage, the ex-governor was arraigned at the Federal High Court on a 107-count charge by the EFCC. The defendant’s lawyers reported the anti-graft agency to the then Attorney-General of the Federation and Minister of Justice, Mr. Mike Aondoakaa (SAN). In his reply to the petition the Justice Minister stated that the charge filed against the ex-governor was contemptuous since leave was made to operate as a stay of action in the application for the enforcement of the latter’s fundamental rights.

    Convinced that the Minister’s opinion was subversive of the rule of law I advised the EFCC to proceed with the criminal case. My advice was anchored on the case of Nzewi & Ors. v. Commissioner of Police (2002) 2 HRLRA 156 where it was held:

    “It is clear that what the Court intended in that order is that the applicants should not be arrested unless there is a legal basis or justification for it. It cannot be said to mean that the order granted to the applicants a general bill of immunity or insurance from legal processes or redress in appropriate cases. The order was not meant or could not have intended to make the applicants or any of them an institution or anybody above the law. It was implicit in that order that while they carry on their lawful business peacefully and while they continue to be law abiding, their fundamental rights as enshrined in our Constitution remain inviolate and guaranteed. No court of law can make an order capable of turning a citizen into an out-law… There is nothing in the court’s order which forbids the police from performing their normal duties and no court will do that as that can lead to a state of general break down of law and order.”

    Both the trial court and the Court of Appeal have dismissed the preliminary objection of the ex-governor on the ground that no contempt of court was committed by the EFCC at the trial court. The legal battle has now shifted to the Supreme Court where the interlocutory appeal may not be determined for several years to come. Such gross abuse of judicial process is encouraged under the criminal legal system when it is trite law that the police and the anti-graft agencies are not precluded from investigating even public officers who are clothed with immunity by the Constitution. The rationale for subjecting them to investigation was explained in Fawehinmi v. Inspector-General of Police (2002) 23 WRN 1 at 98 by Uwaifo JSC (as he then was) who held inter alia:

    “The police clearly have a duty under section 4 of the Police Act to do all they can to investigate and preserve whatever evidence is available. The evidence or some aspect of it may be the type which might be lost forever if not preserved while it is available, and in the particular instances given it can be seen that the offences are very serious ones which the society would unlikely overlook if it had its way. The evidence may be useful for impeachment purposes if the House of Assembly may have need of it. It may no doubt be used for prosecution of the said incumbent Governor after he has left office. But to do nothing under the pretext that a Governor cannot be investigated is a disservice to the society.”

    It is further submitted that the state has an unequivocal power to derogate from the fundamental rights of citizens to personal liberty where they are alleged to have committed criminal offences. As the fundamental rights guaranteed in the Constitution are not absolute there are derogations that have been recognised in the interest of public order, public safety or public morality. One of such derogations is provided for in Section 35 (1) (c ) of the 1999 Constitution which states that the right to personal liberty of any person can be justifiably violated “for the purpose of bringing him before a Court in execution of the order of a court or upon reasonable suspicion of having committed a criminal offence.” In Ekwenugo v. F.R.N. (2001) 6 NWLR (PT 708) 171 the Court of Appeal held that:

    “If there is a reasonable suspicion that a person has committed an offence his liberty may be impaired temporarily. In the same vein, a person’s liberty may be tampered with so as to prevent him from committing an offence. In short it is clear that no citizen’s freedom is absolute. The freedom or liberty of a citizen ends where that of the other man starts.”

    The Court of Appeal has since had cause to decry the dangerous practice of obtaining court orders to halt the investigation of criminal cases. That was in the case of the Attorney-General of Anambra State v. Chief Chris Uba (2005) 33 WRN 191 where Bulkachuwa JCA (as he then was) held that “For a person, therefore, to go to court to be shielded against criminal investigation and prosecution is an interference of powers given by the Constitution to law officers in the control of criminal investigation. The Plaintiff has no legally recognizable right to which the court can come to his aid. His claim is not one that the Court can take cognizance of for it has disclosed no cause of action. The Plaintiff cannot expect a judicial fiat preventing a law official in the exercise of his constitutional power.”

    In view of the categorical pronouncements of the appellate courts on the powers of the police and the anti-graft agencies to subject all criminal suspects to investigation it is tantamount to judicial misconduct on the part of High Court judges to continue to grant orders of perpetual injunction restraining anti-graft agencies from arresting, investigating and prosecuting politically exposed persons accused of engaging in serious cases of corruption, money laundering, fraud and allied offences. Indeed, it is illogical to contend that a governor who was not immune from investigation while in office can be shielded from investigation when he/she is out of office.

    Regrettably, senior lawyers have continued to approach the courts to halt the investigation and prosecution of criminal suspects. In Bukola Saraki v. Inspector-General of Police (Unreported Suit No: FHC/ABJ/CS/231/2012) the Plaintiff sought to restrain the Special Fraud Unit (SFU) of the Nigeria Police Force from investigating an allegation of N9 billion fraud levelled against him. As counsel to the defendants we challenged the competence of the suit on settled principles of law. In reaction to the objection the Plaintiff rightly withdrew the suit. Thereafter, he reported for the investigation. I have just confirmed that the suspect has filed a fresh suit at the Federal High Court with a view to stopping the police from prosecuting him having been indicted in the investigation.

    In Mohammed Abacha v. Federal Republic of Nigeria (unreported) Suit No: SC.40/2006) the appellant sought to quash his trial at the Federal Capital Territory High Court on the ground that the immunity enjoyed by his father extended to the acts which constituted the offence for which he was charged. In dismissing the spurious objection the apex court held:

    “The appellant tried to say that he was covered by State immunity. By the provision of section 308 of the 1999 Constitution, it was his late father – General Sani Abacha the then Head of State who had State immunity during the period that he was in office and no more than that. The appellant was not an official of the State. The immunity enjoyed by his father did not extend to him. He was not on a firm ground when he attempted to lay claim to immunity. He was not covered by any shred of immunity.”

    The court ordered the appellant to return to the trial court and face the music. Notwithstanding that the case was suspended for 14 years the appellant is not precluded from raising fresh objections which may, once again, be contested up to the Supreme Court while the substantive case is further stalled. This case has confirmed the manipulation of the criminal justice system by rich criminal suspects. Apart from Nigeria I know of no other country which allows criminal suspects to have criminal cases suspended or adjourned sine die on flimsy grounds. The dangerous practice calls for an urgent review of the criminal justice system in the overall interest of the society. If the trend is not stopped other people accused of engaging in armed robbery and terrorism may soon be asking for interim, interlocutory or perpetual injunctions to stop the state from investigating or prosecuting them.

     

    Conviction of Nigerian VIPS by foreign courts

    In recent time, some Very Important Personalities and aliens, who cannot be brought to book in Nigeria for committing economic and financial crimes, have been convicted abroad. Apart from exposing the country’s legal system to ridicule before the international community such conviction is a serious indictment of the members of the legal profession. Three cases, which have recently questioned the commitment of the country to tackle the menace of corruption are reviewed below:

    i. Akingbola’s Cases

    Mr. Erastus Akingbola, a former Chief Executive of the Intercontinental Bank Plc had the N10 billion-charge against him pending at the Federal High Court struck out by Justice Clement Archibong (rtd.) for alleged prosecutorial irresponsibility by four- Senior Advocates of Nigeria. The trial in the sister case of N47 billion fraud filed against the defendant at the Lagos State High Court had been concluded and adjourned for judgment before the trial judge, Wale Abiru J. was promoted to the Court of Appeal. As the trial was abruptly terminated the trial of the defendant has commenced de novo.

    But the defendant has challenged the jurisdiction of the same court to try him for stealing and fraud arising from the alleged manipulation of the capital market. Although, the ruling of the trial court has been fixed for May 2, 2014, the civil suit filed against the defendant in a British High Court by the Access Bank Plc. was concluded in July, 2012. In granting the reliefs sought by the Plaintiff the trial court ordered the defendant to refund the sum of N212 billion illegally diverted from the bank. The foreign judgment was registered at the Federal High Court in Lagos.

    ii. Ibori Scandal

    In a bid to shield Chief James Ibori, an ex-governor of Delta State from prosecution a number of judges and lawyers threw caution to the winds. Notwithstanding that his record of conviction for stealing building materials in 1995 was tampered with and destroyed, the Upper Area Court judge who jailed him gave oral testimony in a case well conducted at the High Court by the Late Chief Gani Fawehinmi (SAN). But the case was dismissed on the nebulous ground that it was not proved beyond reasonable doubt that Chief Ibori was the actual convict. The verdict was curiously upheld by both the Court of Appeal and the Supreme Court.

    In the same vein, the 171-count charge of money laundering, fraud and corruption filed against Chief Ibori at the Federal High Court, Kaduna was discontinued in his favour. Following the ruling of the Court of Appeal that his trial in Kaduna was illegal the Asaba Judicial division was hurriedly set up for the trial. As there was no provision for building a court in the 2008 budget of the Federal High Court the Delta State government at the instance of the accused, donated two buildings – one to house the court and the other to house the judge!

    Upon his arraignment the accused pleaded not guilty and raised a preliminary objection against the charge. The trial judge, Awokulehin J. struck out the charge and freed the defendant. However, as the Economic and Financial Crimes Commission took steps to re-arraign him, the defendant vamoosed and re-appeared in Dubai, United Arab Emirate, where he was arrested and deported to London. Following the conviction of his wife, sister, girlfriend and lawyer for aiding and abetting him in defrauding the people of Delta State the defendant pleaded guilty to the charge of fraud and money laundering. He was convicted and sentenced to 13 years’ imprisonment. It is interesting to note that Chief Ibori’s objection to the charge on the ground that he had been tried and freed of the same charges by a Nigerian judge was dismissed with an embarrassing indictment of the Nigerian judiciary.

    iii. The Halliburton Case

    From the reports of several investigation panels the Halliburton scandal indicted three former heads of state, a former Inspector-General of Police, former ministers, permanent secretaries and other officials of the Federal Government. Although some of the suspects indicted in the inquiry made confessional statements they were not charged to court. Some of the privies of the principal suspects, who were eventually arraigned in court, were let off the hook for want of diligent prosecution. In exasperation, the trial judge struck out the charges. The official connivance in sweeping the scandal under the carpet has since exposed the nation to underserved ridicule at home and abroad.

    The national embarrassment was aggravated when it was found that Halliburton and its officials who bribed the indicted Nigerian officials pleaded guilty to the charges of bribery and corruption before criminal courts in the United States and were accordingly convicted. While Halliburton was ordered to pay fines of millions of dollars the convicted officials were sentenced to prison terms. However, the former US Vice-President, and the CEO of Halliburton at the material time who was charged before an Abuja Court by the Mrs. Farida Waziri led-EFCC for his role in the scandal was “freed” without any arraignment whatsoever.

    No doubt, the decision of the Jonathan Administration to re-open the case is in the national interest. But the Attorney-General of the Federation should ensure, this time around, that the trial of all the persons involved in the scandals perpetrated by Halliburton, Wilbros, Siemens, Julius Berger, Daimler AG, Panalpina and Shell Nigeria Exploration and Production Co. Ltd. is handled by a team of incorruptible prosecutors. In the public interest the NBA should appoint some lawyers to hold a watch brief at the trial.

    At the end of this paper there is a table which shows the record of convictions and payment of fines of about $2 billion in the United States by individuals and corporate bodies which bribed Nigerian officials. In the case of Nigeria none of the accused persons was convicted but the companies which were indicted were asked to pay fines of $120 million.

    It is painful to note that the lawyers involved in the prosecution and defense of the cases referred to in this paper are Senior Advocates of Nigeria. The Nigerian Bar Association owes the legal profession a duty by calling lawyers who frustrate the prosecution of corruption cases to order. Trial courts are also enjoined to report such lawyers to the Disciplinary Committee of the NBA for appropriate actions.

    Conclusion

    A situation whereby the poor are daily railroaded to prison while criminals who are rich and powerful are allowed to breath the air of freedom has to stop. Judges should therefore, desist from conferring immunity or granting perpetual injunction restraining anti-graft agencies from investigating and prosecuting politically exposed persons. In a display of class solidarity with the ruling class the EFCC charges the rich accused of looting the treasury with money laundering while the poor are charged with stealing. Since the penalty for money laundering is two years or payment of fine while stealing attracts seven years imprisonment the discriminatory treatment of the two sets of criminal suspects should stop in the interest of justice and fair play.

    The new practice directions of the Federal High Court, the Court of Appeal and the Supreme Court require accelerated hearing of cases pertaining to corruption and terrorism as well as appeals arising from them. For instance, the trial of such cases is required to be conducted day by day at the Federal High Court. Regrettably, the practice directions are not been adhered to by all the relevant stakeholders. Hence, corruption cases are adjourned for all manners of reasons contrary to the letter and spirit of the law. In a recent case involving an ex-governor who is facing a serious corruption case the defense counsel, a Senior Advocate of Nigeria, applied for adjournment sine die to allow the defendant contest a gubernatorial election in one of the states. The trial court rightly rejected the application.

    In view of the presumption of innocence in favour of accused persons the prosecution should stop opposing applications for bail on frivolous grounds. In other words, the prosecution and the defence counsel should agree on the conditions to be attached to bail to enable the defendants to stand trial. However, where the parties are unable to reach an agreement the trial judge should impose bail conditions. The procedure will go a long way to accelerate the trial of criminal cases in our courts.

    To arrest the undue delay in the prosecution of criminal cases I suggest the introduction of front loading and Pre Trial Conference. The prosecution should go beyond making available to the defendants the proof of evidence. There should be sworn statements of all witnesses which should be served on the defendants in line with the current practice in civil cases.

  • ‘New pension scheme’ll eradicate corruption’

    ‘New pension scheme’ll eradicate corruption’

    The Contributory Pension Scheme (CPS) would eventually end corruption in the country if the law guiding its operation are adhered to, Managing Director of Premium Pension Limited, Mr. Wilson Ideva has said.

    He spoke at the Pension Fund Administration Summit for Education Ministries, Agencies and Institutions organised by Exam Ethics Marshals International in Lagos at the weekend.

    He said people steal what they do not need for fear of the unknown.

    According to him, the scheme has provided an umbrella that guarantees decent life for workers on retirement and secures a large pool of funds that could be deployed to national development.

    He said the tremendous successes recorded by the industry in a short time would encourage workers to do their jobs honestly in the expectation that their future would be guaranteed.

    He averred that the funds could be used to hold down inflation and fix the country’s infrastructure gap.

    Ideva described the new scheme as an ‘unsung revolution’ adding that more than N4 trillion is already being managed under the scheme even when only six million out of the estimated 70 million workforce have embraced the scheme.

    He said: “What would happen if only a quarter of workers enlist in the scheme? There should be a signpost on every project executed with pension funds indicating the source of the funds to make Nigerians aware that the pension scheme has already begun to contribute to national development.

    The Head, Research and Corporate Strategy Department, PenCom, Dr. Farouk Aminu, represented by the commission’s Secretary and Legal Adviser, M. S. Mohammad, said: “The contributory pension industry can no longer be ignored as it has proved to be a veritable platform for attaining the Federal Government’s Transformation Agenda.”

  • Examples from Italy

    Examples from Italy

    •Nigeria has not been able to tame corruption because the will is lacking

    Corruption is no doubt a global scourge that is not limited to any country. Yet, some countries have substantially curtailed its prevalence to such an extent that it does not pose a formidable obstacle on the path of development. The existence in such countries of stringent anti-corruption laws that are strictly and impartially enforced serves as a deterrent against a thriving culture of graft. An example of such uncompromising stance against corruption was the recent conviction and sentencing to three years in prison of the Chief Executive of the Italian energy giant, Eni, Paolo Scaroni, by a court in the north-eastern town of Rovigo.

    Interestingly, Scaroni did not face legal sanction for financial fraud. Rather, he was found guilty of failing to uphold adequate environmental standards at the Porto Tolle power plant when he was Chief Executive Officer at the Italian utility company, Enel. His negligence was responsible for air pollution at the coal-burning plant in violation of Italian law. As a result of his conviction, hopes of Scaroni’s re-nomination by the government for a third term as Eni’s Chief Executive in May this year have been dashed. He also stands banned for holding public office for five years. The fact that he is described as one of Italy’s most powerful businessmen did not insulate Scaroni from justice.

    In a bid to fight corruption and improve the country’s corporate accountability, the Italian government has directed state-controlled companies to dismiss any director found guilty or indicted for certain crimes. Silvio Berlusconi, who served as Italian Prime Minister at various times for nine years, was on August 1, 2013, convicted of tax-fraud by the final appeal instance, Court of Cassation, and sentenced to four years imprisonment and a public office ban for two years. True, three of the four-year sentence is pardoned and Berlusconi will do unpaid social community work rather than face direct imprisonment since he is over 70 years old. That does not mitigate the damage done to his reputation. This is because he has been banned from the Senate and barred from serving any legislative office for six years.

    These examples from Italy show that it is indeed possible to effectively fight corruption where there is the requisite will. The necessary conditions to achieve this objective include the requisite water-tight legislation, strong anti-corruption agencies with the institutional autonomy to discharge their functions as well as an efficient and transparent legal/judicial system. The absence of all these ingredients in the Nigerian context has made her much trumpeted anti-graft war little more than a farce.

    In Nigeria, the anti-graft agencies are too feeble and are most times constrained from taking decisive action against corruption for political reasons. Even when suspects are charged to court for corruption, it is all too easy for clever lawyers to find technical loopholes in our laws to get their clients off the hook. Aside from the pervasive corruption that characterises the judiciary, the process of prosecution can be so complicated and cumbersome. The consequence is that cases are needlessly prolonged with frequent adjournments as well as endless appeals and cross appeals from one judicial level to the other.

    This situation encourages brazen corruption since perpetrators of such acts are confident that they can enjoy political protection and that, even if discovered, they can exploit the loopholes of the legal process to escape justice. Thus, corrupt bank chief executives as well as those charged with embezzling humongous amounts through pension fund and fuel subsidy frauds, for instance, are all walking free despite on-going theatrical court trials. The bottom-line is lack of the political will, particularly on the part of President Goodluck Jonathan to fight corruption despite his frequent affirmations to the contrary.

     

  • Where corruption and insurrection go hand in hand

    Nearly every country facing an extremist insurgency is run by a kleptocratic clique. Corruption, in other words, has security implications.

    On Feb. 20, Nigerian President Goodluck Jonathan fired his respected central bank governor, who was trying to discover what had happened to an estimated $20 billion that disappeared from the nation’s oil revenue over an 18-month period.

    Four days later, across the country in the parched northeast, members of the Boko Haram extremist group attacked a public boarding school, shooting children in their sleep and setting school buildings afire. It was the latest in a string of massacres by the group, whose statements call for an Islamic state ruled by sharia law in Nigeria.

    Is there any connection between the president’s actions and the Boko Haram insurgency?

    Motivations for complex phenomena like insurgencies never stem from a single driver. Still, a remarkable correlation exists between severe and systemic corruption and ideological extremism. Of the bottom 11 countries on Transparency International’s Corruption Perceptions Index — a well-known annual ranking of perceived corruption in nations around the world — eight harbor a violent extremist movement. Not one of the 11 countries identified as least corrupt does.

    In fact, nearly every country facing an extremist insurgency, from Nigeria to Afghanistan to the Philippines, is run by a kleptocratic clique. And almost every popular revolt aimed at toppling a government in recent years, from the Arab uprisings to Ukraine’s revolution, began as a protest against acute corruption.

    Corruption, in other words, has security implications.

    Nigeria, Africa’s largest oil producer, exemplifies some of them. For months before his ouster, the central bank governor, Lamido Sanusi, had been denouncing the gap between the sales price of exported oil and the amount of money that actually reaches government coffers. Most of the missing billions are believed to have been diverted to the pockets of the president and his cronies — with the help of the oil minister, who keeps the accounts.

    As one Western official in the capital, Abuja, put it in November: “The oil minister is Jonathan’s ATM.”

    Nigeria is a textbook example of the “resource curse.” It is blessed with vast mineral and oil wealth, but government officials have diverted much of those riches to their own pockets. As a result, Nigeria’s development outcomes are hardly higher than those of its destitute West African neighbors.

    Given the widespread graft at the top, it is no surprise that corruption permeates every level of government. Police officers shake down street vendors and bus passengers; they imprison people just to release them for payment of an illegal “bail.”

    “Most of our men joined the police to make money,” concedes Muhammad Guri, commander of a police bomb squad in the northern city of Kano, the target of numerous Boko Haram attacks on police stations.

    The worst offenders, say many Nigerians, are civil servants. Oil money that does make it to government coffers is often funneled to lower-ranking officials through contract fraud.

    Layers of padding in the contracts ensure kickbacks for the civil servants involved in awarding them, as well as hefty profits for the contractors themselves. In this way, even government spending that was supposed to contribute to economic development or health or education is hijacked for personal gain.

    Many Nigerians suggest the emergence of Boko Haram was in part a reaction to this systematized corruption. The group’s moniker translates to “Western-style education is sinful.” Many Westerners assume the name to be a rejection of tolerance, critical thinking and the scientific method; the significance may be quite different.

    But in Nigeria, the entire system of schooling is part of the corrupt structure. Students pay others to take their exams. Parents pay for a place in university.

    Even in nursery school, says Esther, the mother of a 3-year-old boy, “if you give something extra to the teacher at the end of the week, she pays attention to your child. If not, your child gets cranky.”

    University spots are extremely tough for ordinary Nigerians to secure, and plum jobs in the civil service are open only to college graduates.

    Kemi Okenyodo, director of the anti-corruption advocacy group CLEEN, puts it this way: “At least initially, Boko Haram had the principle of kicking back against the corruption in the state. It wasn’t against Western education per se. Western education was seen as a tool for corruption and oppression.” Many Nigerians share this analysis.

    None of this excuses Boko Haram, which perpetrates savage attacks on ordinary people who are victims of government corruption themselves. But militant, puritanical religious views of the type espoused by the group are a common reaction to acute corruption well beyond Nigeria. The reflex is visible among disenfranchised youths across North Africa, and in Somalia, Afghanistan, Central Asia and elsewhere. And government corruption is a common theme in foundational Al Qaeda documents.

    Closer examination of the correlation between corruption and extremism, and of how severe corruption interacts with other risk factors to fuel international security challenges, could inform better policy approaches.

    Secretary of State John F. Kerry recently condemned the “unspeakable violence” of Boko Haram militants before announcing increased counter-terrorism assistance for Nigeria’s government. As so often when confronted with extremism, U.S. decision-makers have allied themselves with the corrupt government and abusive security services.

    Missing from Kerry’s statements was any criticism of the suspension of the central bank governor or of the vast official theft of oil money, a crime that affects all Nigerians and may be providing fodder for the very extremists U.S. leaders would like to help eradicate.

    • Chayes, a senior associate at the Carnegie Endowment for International Peace contributed the piece for Los Angeles Times

  • Taxation Institute, EFCC, FRC, others to fight corruption

    Taxation Institute, EFCC, FRC, others to fight corruption

    The Chartered Institute of Taxation of Nigeria (CITN) is working out modalities with the Economic and Financial Crimes Commission (EFCC), National Financial Intelligence Unit and Financial Reporting Council (FRC) to tackle corruption and economic crimes in the country.

    In a statement, the institute said it has taken proactive steps to educate stakeholders, particularly tax practitioners, on various statutory requirements stipulated in the Money Laundering (Prohibition) Act, 2011 (as amended), the Financial Reporting Council Act of 2011, the EFCC Act of 2004, and the Terrorism (Prevention) Act, 2011 (as amended).

    CITN’s Acting Registrar/Chief Executive of the Institute, Mr. Adefisayo Awogbade, the steps are in line with the institute’s strict compliance to the statutory requirements of the regulatory bodies designated, by the Money Laundering (Prohibition) Act 2011 (as amended), as Non-Financial Institutions for the purpose of registration, reporting and conduct of customer due diligence.

    Awogbade described the rate of corruption in the country as alarming, adding that more often than not, many of the acts of corruption were facilitated by professionals for culprits. That is why the institute, in conjunction with these anti-corruption agencies, is facilitating an avenue to inculcate in its rank and file the various statutory provisions that are obligatory on them in the process of performing their professional callings.

    According to Awogbade, “The taxman plays a dual role, to the government, on one hand, and to the taxpayer on the other. It is, therefore, expedient to ensure that tax practitioners perform their duties professionally within the ambit and dictates of the laws of the land. We need to ensure that whatever we do as professionals are in tandem with the Charter of our Institute, as well as other statutory provisions.”

    He explained further that the Council of CITN was now better positioned than before to monitor all practitioners carrying the practising licence of the Institute.

    He said: “It is not enough for members to have practising licence to practice once and for all.

    “The Institute will continue to monitor each practitioner to the extent that re-certification would be done as regularly as practicable.”