The Nation Newspaper

Tag: EFCC

  • Court faults seizure of suspect’s assets

    A Federal High Court in Abuja has held that the Economic and Financial Crimes Commission (EFCC) was wrong in confiscating two luxury cars belonging to a suspect.

    Justice Elvis Chukwu, in a judgment, held that the EFCC acted illegally in seizing the vehicles belonging to a former presidential candidate and National Chairman of the African Liberation Party (ALP), Dr. Emmanuel Osita Okereke, without court’s order.

    The judge ordered the commission to release both cars.

    The EFCC had on January 23 this year, arrested Okereke, also a former head of the now disbanded taskforce against unlawful importation and smuggling of goods, small arms, ammunition and light weapons, on suspicion of alleged criminal conduct.

    The two vehicles – Toyota Land Cruiser SUV with registration No. FE 03 ABJ and a Toyota Hilux pickup with registration number FE O16 ABJ – were confiscated by the EFCC.

    Although he regained freedom three days later, on January 25, the EFCC held on to his cars, a development that compelled him to sue the anti-graft agency.

    In the fundamental rights enforcement suit, Okereke challenged his undue detention and the continued seizure of his vehicles.

    He said both actions by the EFCC violated his rights as guaranteed under sections 35 and 44 of the Constitution.

    Okereke accused the EFCC of sponsoring publications in the media to smear his image and brand him a rogue.

    He sought a N5 million compensation against the commission.

    In its counter argument, the EFCC denied any wrong doing.

    It argued that the plaintiff was invited for questioning upon reasonable suspicion of his alleged involvement in criminal activities.

    The EFCC denied unduly detaining the plaintiff.

    According to the EFCC, Okereke was granted bail the same day he was arrested, but failed to meet his bail conditions.

     

  • EFCC goes after erring bureau de change operators

    EFCC goes after erring bureau de change operators

    The Economic and Financial Crimes Commission (EFCC) has been asked to investigate for prosecution of indicted persons within the management of 20 Bureau De Change (BDC) operators whose operating licences were revoked yesterday.

    The Central Bank of Nigeria (CBN) revoked the licences of the BDCs after it discovered in the course of its examination of the sale and utilisation of foreign exchange that some operators purchased unusual amounts of foreign exchange from some Deposit Money Banks (DMBs).

    The affected BDCs are FBN BDC, Amity Global BDC Ltd, Haruna A. Rahaman BDC Ltd, Majia BDC Ltd, Ahali BDC Ltd, Lawabash BDC Ltd, Bin Dahuud BDC Ltd, Garin Gabas BDC, D & D BDC Ltd and Daytrader BDC Ltd.

    Others are Fatahul BDC Ltd, Global Payments BDC Ltd, Startime BDC Ltd, Planet Ventures BDC Ltd. Also affected were Fadima BDC Ltd, Optimum BDC Ltd, Secon BDC Ltd, Asabana BDC Ltd, Maiksal BDC Ltd and Alim BDC Ltd.

    Obot U.O, who signed the circular announcing the licence revocation on behalf of CBN Director, Financial Policy & Regulation said: “This, we hope, would serve as a deterrent to others and demonstrate government’s resolve to stamp out money laundering and also the bank’s zero tolerance for regulatory infractions”.

    He said the affected BDCs did not render returns on the utilisation of the foreign exchange purchased. They also failed to provide documentary evidence that their purchases were utilised for eligible transactions in accordance with the relevant provisions of the Money Laundering (Prohibitions) Act 2011 (as amended) Terrorism (prevention) Act 2011 (as amended).

    The action also violated the CBN Anti-Money Laundering/Combating the Financial Terrorism Regulations (AML/CFT), 2013, the CBN Foreign Exchange Manual and the extant Guidelines for the Guidelines of BDCs in Nigeria and AML/CFT Regulations 2013.

  • N9m scam: Court orders arrest of Polish woman

    An Abuja High Court on Thursday issued a warrant for the arrest of a Polish woman, Mrs. Dora Gilmaska, who is standing trial for a N9 million scam.

    Justice Abubakar Umar issued the warrant at the resumed hearing of the case on Thursday as Gilmaska failed to appear before the court.

    The Economic and Financial Crimes Commission is prosecuting Gilmaska, the Executive Officer of Icon Media and Marketing Agency Limited, for allegedly forging and issuing a dud cheque of N9 million to one Tayo Olugbemi in 2012.

    The News Agency of Nigeria (NAN) reports that the judge issued the warrant as counsel to the accused, Mr. Chris Okoye, did not offer any reason why his client failed to appear in court.

    Umar said when arrested, Gilmaska should be kept in the custody of the EFCC till October 8, being the next date of hearing.

    The judge also fixed October 8 for adoption of final written addresses by prosecution and defendant counsel.

    Earlier, EFCC counsel, Mr. Sam Ugwuegulam, told the court that the case was slated for adoption of final written addresses.

    However, counsel to the accused urged the court to adjourn following the absence of his client.

    Okoye said that his client had not communicated to him her reason for not attending the trial.

     

  • EFCC appeals ruling in UBEC’s N787m contract case

    EFCC appeals ruling in UBEC’s N787m contract case

    The Economic and Financial Crimes Commission (EFCC) has appealed a Federal High Court, Abuja’s ruling, freeing five people and two companies, charged with N78million fraud. The alledge fruad in related to contract awarded by the Universal Basic Education Board (UBEC) between 2004 and 2005.

    The contract was for the supply of 109,400 plastic chairs and tables for public schools.

    Those freed include former UBEC’s Executive Secretary Prof Bridget Omotunde Sokan, Molkat Manasseh Mutfwang, Dr. Andrew Ekpunobi and Michael Aule (directors in UBEC).

    Also freed is Alexander John Cozman (a foreign contractor) and two of his companies – Intermarkets USA LSC and Intermarkets Nigeria Limited.

    They were arraigned in 2009 by the EFCC on a 64-count charge.

    Justice Adamu Bello, in the September 19 ruling on a no-case submission by the accused, held that the prosecution failed to establish a prima facie case against the on to warrant their being called upon to enter defence.

    In a notice of appeal filed on Monday by EFCC’s lawyer, Wahab Shittu, the commission raised two grounds of appeal, urging the appellate court to order the freed accused to enter their defence before the lower court.

    The EFCC urged the court to allow its appeal and set aside the lower court’s order.

    In its first ground of appeal, the EFCC argued that the judge erred in law by upholding and granting the respondents (the accused’) application for a no-case submission “in spite of the evidential materials, oral and documentary placed before the lower court at the close of the prosecution’s case.”

    It argued that “there are sufficient materials before the lower court entitling the 1st to 7th respondents to offer explanations and enter defence before the lower court.

    “The evidence adduced by the prosecution against the 1st to 7th respondents was neither discredited as a result of cross-examination nor manifestly unreliable as erroneously held by the trial court.

    “The lower court did not advert its mind to the fact that at the stage of no-case submission, questions do not arise as to whether the court believed the evidence tendered.”

    The commission’s second ground of appeal is that the lower court erred in law on the purport and meaning of jurisprudence of prima facie in reaching a decision that the accused had no case to answer.

    It argued that it was “a settled law that prima facie case is the minimal incriminating evidence that must be apparent to the court when the prosecution closes its case in a criminal case.”

    The appellant argued that the trial court failed to consider most of its evidence that were sufficient to make the court hold in favour of the prosecution.

    EFCC’s Head, Media and Publicity Unit, Wilson Uwujaren, in a statement yesterday confirmed the appeal.

    He quoted Shittu as arguing that “the lower court did not give weight to the legally admissible evidence (report) from the Auditor-General of the Federation, marked exhibit 6, indicting the accused neither did it weigh in other reports from the State Security Services, (SSS) marked exhibit 10 and the investigative report of EFCC also marked exhibit 59.”

  • N270m fraud: ‘Ajudua doesn’t deserve fresh bail’

    N270m fraud: ‘Ajudua doesn’t deserve fresh bail’

    The Economic and Financial Crimes Commission (EFCC) yesterday filed a notice of appeal against the ruling of a Lagos High Court, which granted bail to suspected fraudster, Fred Ajudua.

    Ajudua and Charles Orie are on trial for allegedly defrauding two Dutch businessmen of N270 million.

    Worried that Ajudua had frustrated his trial for seven years, the EFCC raised an objection to the defendant’s bail application on the grounds of failing health.

    But when the courts were on vacation, Justice Ganiyu Safari granted Ajudua bail for N50 million with two sureties to enable the defendant attend to his health.

    Dissatisfied by the ruling, the EFCC, in its notice of appeal, insisted that Ajudua did not deserve to be on bail.

    Signed by Oluwafifehan Ogunde, the notice stated that Ajudua, being a socialite, might interfere with prosecution witnesses.

    EFCC argued that the accused did not present any compelling medical report to warrant the decision of the court in his favour.

    Also, the substantive case before Justice Joseph Oyewole was yesterday adjourned till October 2, following disagreements between the two parties.

    Although Ajudua was absent in court, the second defendant, Orie, was present. But the parties could not reach an amicable agreement.

    Counsel to EFCC, Mrs. A. P. Sanusi, reminded the court that there was a pending motion before it went on vacation, adding that the prosecution was served four applications, filed by the first defendant. Ajudua’s lawyer, Richard Omohomreh, who admitted that he has four applications before the court, stated that the life of his client (Ajudua) was still in danger at the hospital.

  • EFCC appeals ruling in UBEC directors’ case

    The Economic and Financial Crimes Commission (EFCC) has appealed last week’s ruling by the Federal High Court, Abuja, freeing five people and two companies, charged with fraud in relation to a N787million contract awarded by the Universal Basic Education Board (UBEC) between 2004 and 2005.

    The contract was for the supply of 109,400 plastic chairs and tables for public schools.

    Those freed include former UBEC’s Executive Secretary, Prof. Bridget Omotunde Sokan, Molkat Manasseh Mutfwang, Dr. Andrew Ekpunobi and Michael Aule (directors in UBEC).

    Also freed is Alexander John Cozman (a foreign contractor) and two of his companies – Intermarkets USA LSC and Intermarkets Nigeria Limited.

    They were arraigned in 2009 by the EEFCC on a 64-count charge.

    Justice Adamu Bello, in the September 19 ruling on a no-case submission by the accused persons, held that the prosecution failed to establish a prima facie case against the accused persons to warrant their being called upon to enter defence.

    In a notice of appeal filed on Monday by EFCC’s lawyer, Wahab Shittu, the commission raised two grounds of appeal and urged the appellate court to order the freed accused persons to enter their defence before the lower court.

    The EFCC also urged the court to allow its appeal and set aside the order of the lower court dated September 19 this year.

    In its first ground of appeal, the EFCC argued that the trial judge erred in law by upholding and granting the respondents (the accused persons’) application for a no-case submission “in spite of the evidential materials, oral and documentary; placed before the lower court at the close of the prosecution’s case.”

    It argued that “there are sufficient materials before the lower court, entitling the 1st to 7th respondents to offer explanations and enter defence before the lower court.

    “The evidence adduced by the prosecution against the 1st to 7th respondents was neither discredited as a result of cross-examination nor manifestly unreliable as erroneously held by the trial court.

    “The lower court did not advert its mind to the fact that at the stage of no-case submission, questions do not arise as to whether the court believed the evidence tendered.”

     

     

  • Aviation contract: Absence of counsel stalls Borishade’s trial

    The absence of defence counsel, Chief Adegboyega Awomolo (SAN), on Monday stalled hearing in a suit filed by the Economic and Financial Crimes Commission against a former Aviation Minister, Babalola Borishade and three others.

    At the resumed hearing, Counsel to the EFCC, Mr. Sebastian Hon, had told the court that Awomolo, who is the counsel to Timothy Dairo, a former personal assistant to Borisade, was absent in court.

    He told the court that he received a letter from Awomolo that he would be absent in court due to other matters.

    The News Agency of Nigeria (NAN) reports that as a result of this, Justice Abubakar Umar, adjourned further hearing in the case to November 7.

    Borisade and Dairo are standing trial alongside Rowland Iyayi, a former Managing Director of the Nigeria Airspace Management Agency, and George Eider, an Australian, for the alleged mismanagement of N5.2 billion Aviation Safe Tower contract.

    They were arraigned on November 19, 2009 by the EFCC on a 15-count charge of taking bribe and forging aviation contract documents.

     

     

  • Group urges EFCC to probe Ondo council official

    A group, the Ondo Elders and Youths Amalgamated Forum (OEYAF), at the weekend, urged the Economic and Financial Crimes Commission (EFCC) and other anti-graft agencies to investigate allegations of financial impropriety levelled against a local government director.

    In a petition signed by its Coordinator, Mr. Samuel Fanibe, and Secretary Joel Memuletiwon, the group urged the commission to probe the alleged financial scam perpetrated by the official in all the councils he had worked.

    OEYAF said: “The need for your commission to beam its searchlight on the financial scandal committed by the director, who is one of the presidential candidates of the National Union of Local Government Employees (NULGE), became imperative in view of his ambition.

    “It is pertinent to remind your commission that the official was one of the nine senior workers in local government councils, who attempted to defraud the state, in collaboration with senior officers of the Ministry of Local Government and Chieftaincy Affairs, of N650 million through last years’ leave bonus.

    “He has been involved in various alleged frauds in all the councils he had worked. He has acquired assets worth several millions of naira. He has three sprawling hotels at Ikare-Akoko, Owo and Ore.

    “He also has four hostels at Akungba-Akoko and three around the Federal University of Technology, Akure (FUTA). He has 14 houses rented out in various locations in Akure.

    “He also has over N150 million in various bank accounts with fictitious names. We urge the EFCC to probe the official and pledge to provide it with documents and other materials that will further expose him.”

  • Atuche: EFCC, Utomi disagree over loan ratification

    Atuche: EFCC, Utomi disagree over loan ratification

    The Economic and Financial Crimes Commission (EFCC) on Friday faulted Prof. Pat Utomi’s testimony that Bank PHB’s Board of Directors ratified some loan facilities granted by the bank’s former managing director, Francis Atuche.

    Mr. Kemi Pinheiro (SAN), Counsel to the EFCC, faulted the claim while cross-examining Utomi, a former Executive Director of Bank PHB, before a Lagos High Court, Ikeja.

    The News Agency of Nigeria (NAN) reports that Utomi is the first defence witness in the trial of Atuche and his wife, Elizabeth.

    The duo are being prosecuted alongside a former Chief Financial Officer of the bank, Ugo Anyanwu, before Justice Lateefat Okunnu.

    They were arraigned by the EFCC for allegedly stealing N25.7 billion belonging to Bank PHB (now Keystone Bank).

    Utomi had on Monday testified that the N100 billion loan facilities granted to some companies were ratified by the board members at a meeting held on July 9, 2008.

    Cross-examining the witness, Pinheiro argued that another board of directors meeting held on August 25, 2010, indicated that the loans were never ratified.

    “The same board questioned the facility and denied knowledge of the ratification,’’ he said.

    Pinheiro said the purposes for which the loans were obtained were not contained in the minutes of meeting Utomi tendered before the court.

    He said the purported ratification was approved by Utomi and other board members because they had obtained loans directly and indirectly from the bank.

    Pinheiro said that Utomi obtained personal loans of N40 million and N10 million in three separate instances from Bank PHB during Atuche’s tenure.

    Responding, Utomi insisted that the board ratified the loans following the presentation of the bank’s credit committee.

     

     

  • Letter to EFCC

    Letter to EFCC

    The Chairman, Economic and Financial Crimes Commission (EFCC),

    This is a formal petition to your Commission against the Federal Road Safety Corps (FRSC), a Federal Government agency responsible for traffic and safety of roads in Nigeria. The petition is being written on behalf of the overwhelming majority of Nigerians who have been rendered voiceless by the power that be.

    It is quite unusual for a letter of this type to be an open one. But since its subject matter is an open wound which, only the truth can heal, making it an open document becomes a sine qua non especially due to the prevailing expediency. Besides, this is the only easy means of reaching your Commission without any delay or foul play. Perhaps you will recall that a unit of your Commission, (the Special Control Unit on Money Laundering) paid a courtesy visit to the Nigerian Supreme Council (NSCIA) at its headquarters in Abuja last Friday. The purpose of the visit, according to the Head of the Unit, was to sensitize the Nigerian Muslim Ummah under the umbrella of NSCIA, on the need to cooperate with the unit on matters relating to money laundering and other related offences. Whether the same sensitization campaign was extended to the Christian Association of Nigeria (CAN) is another matter.

    Encounter with an EFCC representative

    Yours sincerely was one of those who played host to that unit. After an elaborate explanation on corruption generally and money laundering in particular, the leader of the team called for comments, questions and observation. As a journalist, my own comment came in form of question. And the question went thus:

    1. Is the duty of EFCC only to run after government officials who have left office and are suspected of stealing public funds? If the answer is no, why is EFCC not running after the Federal Road Safety Corps (FRSC)? The reason for this question is this: the same FRSC which designed and introduced a new driver’s license to Nigerians a few years ago came round in 2011 to introduce another with 100% tariff and reduced the three year tenor of that license to two years. Yet, the license is said not to be available after making people to pay for it. If that is not fraud what is it? And now, basking in the euphoria of its success on license matter, the same FRSC has gone ahead to design a new number plate to replace the old one without minding the rule of contract guided its transaction between the Commission and the public. Should the EFCC fold its arms and watch idly while a government agency is ripping off the public in such an audacious manner?

    2. What informs the idea of plea bargain that you adopted as a measure of performance? Should recovery of money from a daring thief be enough as punishment for stealing public funds? Isn’t that an encouragement for further theft especially by the younger generations?

    In response to my questions, the head of the EFCC delegation that paid visit to NSCIA admitted that he had been following the debates and controversy trailing the number plate saga but, according to him, nobody had formally petitioned his Commission on the matter. He therefore advised me to write a petition to EFCC if I felt strongly about the way the number plate was being handled in the country vis a vis the populace. I therefore gladly grabbed the advice and took it for a challenge because I really felt not only strongly but also terribly bad about it.

    The matter quickly reminded me of Margaret Thatcher’s impression of Nigerians, as relayed in this column two weeks ago, which enabled the Iron Lady to dream of coming back into this world as a Nigerian ruler after her death. It is unimaginable that any such open day robbery as that of number plate would be committed in any sane country by government officials in the name of generating funds for the government and get away with it. Constitutionally, generating funds is not part of the duties of FRSC but the idea was motivated by the urge to make money using the government as alibi.

    Breach of contract

    The concern here is not about the new number plate per se but about the manner in which it is being used to extort money from gullible Nigerians. For God’s sake, how can anybody breach a contract so audaciously and claim to be acting according to law? What law permits a government agent to dupe the public by any means and insist on enforcing such fraud? Besides asking me to petition his Commission on the matter, the EFCC man neither stated categorically that EFCC would invite FRSC nor express personal opinion on the matter.

    In his answer to my second question about plea bargain, the head of the visiting EFCC unit said that plea bargain is a contemporary global norm aimed at minimizing the extent of loss on stolen money. He went ahead to justify it as a rational way of punishing a thief which he described as better than mere imprisonment that could not fetch the defrauded person or institution anything.

    The facts

    Nigeria was using a particular kind of number plates before the creation of FRSC. Soon after its creation, the new road safety corps introduced a new number plate. After a few years, the newly introduced number plate was changed but the populace was not forced to acquire the new one except for new vehicles. Now, nobody is quarreling with FRSC on the introduction of a new number plate. The bone of contention is the contract on the old one. If the FRSC decided to change the number plate again without consulting anybody, why must the populace be forced to acquire it? The only reasonable way of going about it is to replace the old number plate free of charge since there was never an agreement between the agency and the populace on it. If FRSC chooses to force people to acquire the new number plate at (an outrageous) fee what then happens to the money they had paid for the old number plate especially when that old number plate will be collected from the vehicle owner who paid for it?

    VIO’s denial

    The argument here is that the new number plate should be meant for new vehicles while the old plate should remain with the old vehicle. And that is the main gist of this petition. In my quest for the whole truth about the controversial number plate, I visited a Vehicle Inspection Office (VIO) to make inquiry and my findings were shocking. An official in that office who spoke with me on condition of anonymity said the whole exercise was about ‘chop make I chop’ (i.e. a fraud). He said everybody already knew Nigerian flag which was on the old number and queried the rational for placing Nigerian map on number plates of vehicles only to ask vehicle owners to pay exorbitantly for it. He also confirmed that the only difference between the old number plate and the new one is the transfer of the local government number to the beginning from the end an action which he described as a mere gimmick to dupe the public. He then denied any involvement of VIO in the ‘dirty’ exercise and pointed out that the gimmick was between the FRSC and the Nigerian Police saying it all had to do with money.

    Asked to name the exact amount for acquiring a new number plate, the gentle man said it is N25000. And when I pointed out to him that the FRSC announced N10000 for replacement of the old number and N15000 for a new plate he said by replacing an old number a vehicle owner must automatically replace other documents like vehicle license and vehicle insurance documents. All these plus the number plate, according to him, will cost about N25000. Now, this is the question that concerns the EFCC: If the tenor of my vehicle particulars has not expired should I be forced to change them willy-nilly?

    The fraud called driver’s licence

    As for the driver’s licence, no fraud can be more daringly committed. The FRSC introduced a new driver’s licence in 2011 without much ado. It imposed a fee on it and unilaterally reduced its tenure. These were not contested by gullible Nigerians. But now, even after paying the stipulated fee, most Nigerians cannot obtain the license for which they have paid. Instead, they are given what is called a temporary licence which lasts only two months after the expiration of which you can be questioned and fined on the road either by the same FRSC or the Police. Is this not enough as an assignment for EFCC? Is FRSC above the law and immune to investigation?

    Terrorism angle

    The case of number plate as currently being handled by the FRSC is far beyond ordinary fraud. It actually amounts to terrorism by all means which is capable of igniting a keg of gunpowder if not altered. Terrorism, as mentioned in this column last week, is not just about killing and maiming innocent people by aggrieved renegades. What is going on currently about number plate in Nigeria is nothing but terrorism the fight of which falls within the EFCC’s jurisdiction. Some respondents to this column have either called for the boycott of the controversial number plate or rolling out of all vehicles in the country and then abandon them on the roads for the bullying FRSC and its Police counterpart to tow to their stations.

    Why open letter?

    I chose to write this open letter to you as the watchdog of corruption in the country with the intention of making copies available to all Nigerians so that in the near future you will not feign ignorance of information about this type of fraud. We are all Nigerians. If this kind of treatment is given to Nigerians in Diaspora what will be your role as the nation’s watchdog on corruption? With this open letter to you, the trust reposed in you by Nigerians in respect of taming the monster called corruption is being tested. And your success or failure in this case will determine the hope or despair of the citizenry in the national assignment given to you. Through the imposed number plates and the deadline given by FRSC Nigerians are being defrauded and you are generally perceived as a major rescuer.

    Warning

    In journalism, it is no news to report that a dog bites a man. What is news is a report that a man bites a dog. To avoid the latter situation as far as the issue of number plate is concerned your Commission must step in now and stop what may soon become a keg of gunpowder. Nigerians must not be taken for granted perpetually. The nation already has enough problems to grapple with. People’s revolt must not be added. To be forewarned is to be forearmed.