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Tag: EFCC

  • Alleged theft: Akingbola’s case transferred to another judge

    Alleged theft: Akingbola’s case transferred to another judge

    The trial of a former managing director of Intercontinental Bank, Erastus Akingbola and his associate, Bayo Dada, was on Thursday transferred to a new judge.

    The Chief Judge of Lagos State, Justice Ayotunde Phillips, re-assigned the case to Justice Lateef Lawal-Akapo for trial.

    This followed the transfer of the former trial judge, Justice Adeniyi Onigbanjo, to the Commercial Division of the Lagos High Court, Ikeja.

    The case was previously re-assigned to Onigbanjo, after the first trial judge, Justice Habeeb Abiru, was elevated to the Court of Appeal on November 2.

    The News Agency of Nigeria reports that this is the second time the case will be re-assigned since the defendants were arraigned by the Economic and Financial Crimes Commission (EFCC).

    The defendants are standing trial on a 22-count charge of conspiracy and stealing of N47.1 billion belonging to the Intercontinental Bank (now Access Bank Plc).

    NAN reports that the defendants were first arraigned on May 31, 2011 before Abiru on the same charges.

    They had pleaded not guilty to the charges and the judge granted Akingbola bail in the sum of N100 million with two sureties in like sum.

    He also granted Dada a N50 million bail with two sureties in like sum.

    The trial, which was at the stage of adoption of final written addresses by the parties, was aborted as a result of Abiru’s elevation.

    Consequently, Akingbola and Dada were re-arraigned before Onigbanjo on February 26, 2012 and the matter started afresh.

    They had again pleaded not guilty to the charges and were granted bail with the terms earlier given to them by Abiru.

     

  • EFCC: Ten years after

    EFCC: Ten years after

    The Economic and Financial Crimes Commission (EFCC) is 10 years old. In this report, EMMANUEL OLADESU, AUGUSTINE AVWODE and LEKE SALAUDEEN highlight the impediments to a successful anti-graft war by the agency.

     

    The Chairman of the Economic and Financial Crimes Commission (EFCC) will render the agency’s account of stewardship in the last 10 years before the end of the year.

    It has been a challenging decade for the commmision. Opinion is divided on its achievements. Many people believe that its intervention has reduced corruption. Some will not give the agency a passmark because they feel that it has not lived up to expectation.

    Before the commission was established by former President Olusegun Obasanjo, the country’s reputation had been smeared by graft. Efforts by successive administrations to curb the menace were abortive. When Gen. Muhammadu Buhari toppled the civilian authorities in 1983, he cited corruption to justify its action.

    When President Olusegun Obasanjo took over in 1999, it was obvious that he had a lot of work to stem the drift. The EFCC, therefore, was establised as a response to pressure from the Financial Action Task Force on Money Laundering (FATF), which named Nigeria as one of 23 countries that have refused to cooperate with the international community in its avowed commitment to eradicate money laundering.

    Essentially, the EFCC is a law enforcement agency saddled with the responsibility of investigating financial crimes, including advance fee fraud and money laundering. According to the Economic and Financial Crimes Commission (Establishment) Act, 2003, the agency is the designated the Financial Intelligence Unit (FIU) in Nigeria, which is charged with the responsibility of co-coordinating the various institutions fighting money laundering and enforcement of all laws dealing with economic and financial crimes.

    Essentially, the commission exists to investigate all financial crimes including advance fee fraud, money laundering, counterfeiting, illegal charge transfers, futures market fraud, fraudulent encashment of negotiable instruments, credit card fraud, contract scam and so on.

    Its powers also include the adoption of measures to identify, freeze, confiscate or seize proceeds derived from terrorist activities, economic and financial crime-related offences.

    A particular provision in the Act, which the commission has used to maximum effect in chasing corrupt politicians is the power to examine and investigate all reported cases of economic and financial crimes, with a view to identifying individuals, corporate bodies or groups involved; determine the extent of financial loss and such other losses by government, private individuals or organisations.

     

    EFCC chairmen’s turbulent tenure

     

    From 2003 to date, EFCC has been led by three chairmen. They are Mallam Nuhu Ribadu, Mrs Farida Waziri and Mr. Ibrahim Lamorde.

     

    Nuhu Ribadu

     

    The pioneer chairman of the EFCC set a high standard in the commission. He fought the war with vigour. in the fight against corruption. Reflecting on his tenure, Obasanjo, who appointed him, said he would re-appoint him, if he had the opportunity to do so.

    Ribadu has no precedence to lean on as a crime fighter. Although he was well prepared for the job, it was a different terrain, unlike the police. Reflecting on his appointment, he said: “My appointment as the Chairman of the EFCC was a call to take up a turbulent task. I had to follow the statements of my previously written will to serve in a country where there is a lack of functional institutions to check the mismanagement of public funds and related criminal misconduct. Trust in public institutions had been demolished and perpetrators went about wearing their crimes like badges of honour.

    “I was given an appointment to stand in the way of these celebrated fraudsters, without an office and funds to launch my operations. But we went on to form what became a prime anti-corruption body in the country. Our activities are left for history and honest critics of political evolution to gauge and tell of our impact.”

    Under Ribadu, the commission addressed financial corruption by prosecuting and convicting a number of high-profile corrupt individuals, ranging from Nigeria’s former chief law enforcement officer to many bank chief executives. In 2005, the EFCC arrested government officials, including former Bayelsa State Governor Diepreye Alamieyeseigha.

    In September 2006, the agency had concluded investigations on 31 out of 36 governors for corruption. In April 2008, it investigated Obasanjo’s daughter, Senator Iyabo Bello for allegedly receiving N10 million ($100,000) from the Ministry of Health. The former Health Minister Prof. Nike Grange and her deputy, Chief Gabriel Duku, were tried for stealing over N30,000,000 ($300,000) from the ministry’s unspent funds. The court later exornerated them.

    Towards the end of his tenure, things went awry for the charismatic chairman. A series of events almost made his tenure to end in anti-climax. It was alleged that the former President was using the commission to witch-hunt perceived political foes. On August 6, 2008, Ribadu was demoted from Assistant- Inspector General (AIG) to Deputy Commissioner of Police (DCP). He was sent to the Institute of Policy and Strategic Studies, Kuru, Jos, for a course.

     

    Farida Waziri

     

    On June 6, 2008, Waziri was sworn in as the chairperson of the EFCC. Her tenure was short- lived. She spent only three years in office. Critics always used the Ribadu era as a yardstick for judging her performance. In September 14, 2010, the Head of the Forensic Unit of the EFCC, Abdullahi Muazu, was assassinated in Kaduna. He had been actively involved in the trials of several heads of banks. Waziri was dismissed by President Goodluck Jonathan on November 23, 2011. Lamorde, the Acting Chairman was confirmed as the chairman on February 15, 2012 by the Senate.

     

    Lamorde

     

    As far as the war against economic crime and corruption is concerned, Lamorde has played a significant role. He is a pioneer staff. He has been described by some people as the “valiant heart” of the commission and the rallying point in the partnership between the EFCC and its strategic allies. He has twice served as the Director of Operations and Acting Chairman. He was a member of the pioneer officers drafted from the Nigeria Police that midwife the EFCC in 2003 under the leadership Ribadu.

    Lamorde is a professional with vast experience in fraud investigation spanning more than two decades. He is a silent operator; disciplined, harworking and diligent. The Adamawa-born police officer served as a Divisional Crime Officer (1988 – 1989) and Police Public Relations Officer (1989-1993). In 1993, the Special Fraud Unit (SFU) of the Nigeria Police Force was created and he became one of the pioneer officers. He served in the SFU from 1993 to 2002.

    While he was with the SFU, he served with the United Nations Civilian Police in East Timor from March 2000 to March 2001. He was the Chief Investigation Officer of Ermera District of East Timor. In September 2002, he was transferred to Oyo State, where he served as Divisional Police Officer, until April 2003. On the creation of the Economic and Financial Crimes Commission (EFCC), he was seconded to serve as the Director of Operations from April 2003 to December, 2007. He was appointed the Ag. Chairman of the EFCC in January, 2008 to May, 2008. He was recalled back to the Nigeria Police and posted to the Area Command in Ningi, Bauchi State as the Area Commander from June, 2008 to November 2008. He was later redeployed to the Bauchi State Police Command, Criminal Investigation Department (CID) as the Officer -in -Charge. In December 2010, he recalled to the Economic and Financial Crimes Commission as Director of Operations. He held that position until his appointment as the Ag. Chairman of the EFCC on Wednesday, November 23, 2011.

    He supervised the prosecution of 522 ‘Advance Fee Fraud’ cases at various High Courts between April 2003 and June 2008. 253 of them were successfully prosecuted and convictions secured. The efforts led to the extradition of three fugitives to the United States. Lamorde, being the pioneer Director of Operations, has greatly helped to change the public perception of law enforcement, locally and internationally. He has also helped in fostering international law enforcement cooperation in the country.

     

    Cases abandoned by EFCC

     

    However, many believe that the war against corruption is in limbo. The zeal, they claim, is waning. The commission, according to observers, lost steam since the exit of its pioneer chairman, Ribadu, who instituted cases against former governors and public officials. Ribadu prosecuted and secured the conviction of the former Inspector General of Police, Mr Tafa Balogun, who pleaded guilty to eight counts of money laundering charges to the tune of N16 billion in 2005. He was sentenced to six months imprisonment.

    EFCC alsoAlamieyeseighafor money laundering. He was convicted and released on plea bargain.

    Since then, the corruption trials have not gone beyond the plea stage, some for as long as six years after first arraignment in court. Many ex-government office holders, who had been accused of corruption, are still walking free. Some of them are in the National Assembly making laws for the country.

    Former Abia State Governor Orji Uzor Kalu was arraigned on July 27, 2007 before an Abuja High Court on a 107 count charge of money laundering, official corruption and criminal diversion of public funds in excess of N5 billion. He approached the Court of Appeal to set aside the ruling of the Federal High Court that he had a case to answer. The appellate court dismissed the appeal for lack of merit and gave the anti-graft agency the nod to prosecute him. With the charges still hanging on his neck, the former governor is touting himself as a possible presidential candidate in 2015.

    Another pending case is that of former Governor Dariye of Plateau State, who was arraigned by the EFCC before an Abuja High Court on a 23-count charge involving the sum of N700million. He was granted bail, but he later challenged the jurisdiction of the court to try him. He argued that the alleged offence committed by him took place on Plateau State and the funds involved belonged to the state, and argued that his trial ought to take place in the state, not in Abuja. The judge dismissed Dariye’s objection, which prompted him to approach the Court of Appeal, which also threw out the application and ordered him to go and face his trial. While the case is still pending before the court, Dariye won a senatorial seat in the 2011 polls.

    Former Governor Saminu Turaki of Jigawa State was docked on a 32-count charge of stealing N36billion from the state treasury. He was granted bail on July 27, 2007 by Justice Binta Murtala Nyako of the Federal High Court, Abuja. His bail was contested by the EFCC on the ground that the former governor possesses multiple nationalities and could jump bail, if granted. Turaki has secured the transfer of his trial to his home state. While the argument over his bail was on, Turaki had won a seat in the Senate. He was in the National Assembly between 2007 and 2011.

    His Enugu State counterpart, Chimaroke Nnamani, was also arraigned before the Federal High Court in Lagos on a 105-count charge for allegedly stealing N5.3billion The case, which was instituted by the EFCC since 2007, is still pending. He was a member of the Senate between 2007 and 2011.

    Former GovernorJolly Nyame of Taraba State was docked on 41-count charge in July 2007. He was alleged to have embezzled N1.3billion and collected N180million from a contractor as a kick-back from a N250 million contract awarded to the company for the supply of stationeries to the state government.

    Other cases of corrupt enrichment that EFCC tried to prosecute included the alleged contract inflation by the former Speaker of the House of Representatives, Dimeji Bankole. He was arraigned on June 8, 2011 over a 16- count charge. Bankole and his deputy, Usman Nafada,2 were dragged to court over a 17-count charge alleged misappropriation of a N10 billion loan. However, the case was thrown out on January 31, 2012.

    Former Chairman of House Committee on Power, Ndudi Elemelu, was docked over a N5.2billion fraud charge brought against him by EFCC . Justice Garba Umar ruled that he had no case to answer, but the case is still pending at the Abuja High Court before Justice Adebukola Bolajoko.

    A land mark judgment recorded by the EFCC was the conviction of former Board Chairman of the Nigeria Ports Authority, Chief Olabode George.

    He was sentenced to 30 months imprisonment over a N85 billion fraud without an option of fine by a Lagos High Court. George was convicted on 35 out of 68 count charge involving contract spliting, inflation, abuse of office and disobedience of lawful order.

     

    Prosecution time frame

     

    The EFCC has charged 368 cases to court and recorded 80 convictions at the end of August 2013. Within the same period, the commission made recoveries of N6,583,108,350; $19,251,519; 20,520 Euros and 19,000 Pound Sterling.

    According to the commission, a number of cases for which investigations have been concluded, would be charged to courts across the zones where the Commission maintains offices .

    A legal luminary, Yusuf Ali (SAN), said that the apprehension by the public over the fate of the corrupt cases filed by the EFCC is not misplaced. He observed that the time frame for disposing of the cases has taken too long.

    Ali identified major reasons for the protracted litigations. He doubtedf, if the EFFC has qualified people to handle its investigation. He said, if investigations were not thoroughly done, the case would suffer series of adjournment. “The question one could ask here should be whether the EFCC has done its assignment properly before heading to court”, he said. Second, the defendants often fight back through their lawyers, who capitalise on the loopholes in the charges preferred against them and apply for frequent adjournment. Third, the EFCC prosecution needs specialised training so that they could file the charges properly and appear at every hearing. Fourth, Nigerians attitude to cases of corruption is not helpful. “There is no pressure on anybody to do the right thing”, he added. Also, he said the judiciary must be well equipped to perform. Our judges still record court proceeding in long hand, which prolongs trial of cases”, he fumed.

    Lawyer and human rights activist Chidi Ewulum blamed the slow dispensation of justice on the EFCC’s shody investigation and the penchant for filing amendment charges against accused persons after their arraignment. He said the defendants’ counsel always seize that opportunity to ask for adjournments to enable them study and respond to the new charges.

    Ewulum observed that the lawyers hired by the EFCC for the prosecution have contributed to the setbacks. He suspected that many of them may connive with the defence team to elongate the suits, especially, those involving highly placed persons for their mutual benefit. He also observed that former governors on trial followed a familiar pattern of challenging the jurisdiction of the courts.

    Ewulum said the office of the Attorney General of the Federation and Minister of Justice is a clog in the wheel of EFCC because the minister dictates to the commissionon the case to prosecute or not. He called for full autonomy for the EFCC, if corruption mustbe reduced in the civil and public service.

    However, the EFCC spokesman, Wilson Uwujaren, claimed that those accusing the commission of abandoning the case files of corrupt politicians and governors do so out of ignorance. He said the anti-graft agency has done so much and had taken high profile cases to court to determine.

    He lamented that, in spite of the commission’s efforts to change the mindset of Nigeria that culprits are gradually facing the law, corruption seems to pervade all the facets of the economy. The spokesman, however, assured that the EFCC is working towards strengthening its fight.

     

  • EFCC and other stories

    EFCC and other stories

    Tracking news and reporting or investigating them in Nigeria is fast becoming a cumbersome affair in a country where scandals unfold in unimaginable proportion every passing moment of the day. Once there is a news break, before you settle down to look carefully at the issues involved, another news break comes in to unsettle you. With the frequency and rapidity of news breaks in the country, the media world is facing a deluge of news items. The screaming headlines in our daily newspapers attest to this fact, as journalists engage in a rat race to undo one another in news coverage.

    Last Monday, a good number of senior journalists attended a one-day workshop on reporting financial crimes. The event took place in Abuja under the auspices of the Economic and Financial Crimes Commission, EFCC. Ibrahim Lamorde, the humble chairman of the EFCC, was on hand to declare the workshop open. So also were some of his henchmen-Osita Nwaja, deputy director, public affairs, and Wilson Uwujaren, acting head of media affairs unit, as well as many other operatives of the commission. Almost all the nation’s media houses -newspapers, magazines, radio, TV – were represented at the event.

    Papers were presented by eminent journalists in core areas of ethics, news reporting and investigations. Thereafter, the floor was thrown open for participants to ask questions. A number of issues bordering on free flow of information between the commission and news hunters were raised. While the journalists believed they were not getting enough, the commission explained that, in some cases, news is deliberately held back so as not to jeopardize their investigations. According to the commission, once the news gets to the public domain, those who could be targets of arrests easily go underground, while witnesses also get scared and may be unwilling to volunteer information to the agency.

    The decision of the commission to host the workshop underscores the importance which it attaches to the role of the media in the fight against corruption and economic crimes in the country. Just as Lamorde puts it, “Without a doubt, the media is a critical stakeholder in the anti-graft war. With your pen, you could make or (break) the fight against economic crimes and corruption … We need the media to help sensitize the people to the ills of corruption and economic crimes”.

    The chairman of the EFCC then used the occasion to correct the “notion that the commission is selective in investigating persons suspected of committing economic crimes; that only those who have fallen out of favour with the powers that be are touched by the commission; that the commission has gone to sleep” and all that. The chairman then went on to say that “even in the midst of contrary evidence, a section of the press has been so swayed by this stereotype that they are unwilling to shift their gaze”. “This”, according to him, “is sad”. “Corruption “, he said, “threatens all sectors, including the media. I expect the media to lend its investigative skills to helping the EFCC fight corruption and not allow itself to be sucked in by the corrupt and become a pawn in their hands to undermine the commission”.

    The take-home from the workshop is the fact that the media should exercise its constitutional mandate as the fourth estate of the realm with the highest sense of modesty and responsibility. All the speakers at the parley seemed to have agreed that to make meaningful impact on the anti-graft war in the country, the media must be very cautious in their coverage of economic crimes matters and ensure they verify their facts before publication.

    A number of publications on the war against corruption were freely given out by the EFCC at the workshop. One of them was a bulky magazine titled Zero Tolerance. Two days after the workshop, some of the contents of the magazine went viral in the media. As usual, former President Olusegun Obasanjo was widely quoted as throwing jabs at his former deputy, Atiku Abubakar, and the immediate past EFCC chairman, Farida Waziri. These have elicited serious controversy and debate in the polity. With both Atiku and Waziri up in arms against Obasanjo, the public is, once more, being treated to another season of accusations and counter-accusations, all bordering on corruption by major actors in our nation’s political history. As it is, the last may not have been heard in the last few years about what transpired in the corridors of power in the war on corruption and official sleaze.

    On the political turf itself, all is not well with our politicians, especially among the ranks of the ruling Peoples Democratic Party, PDP. A splinter group among the PDP, with about seven governors as arrowheads, now known as the New PDP or NPDP, is doing all that is possible to assert themselves in the political space. It is now a war between the old and the new PDP as the struggle for power in 2015 assumes a frightening dimension. In the meantime, all efforts by the NPDP to open offices in Abuja and the states have met with stiff resistance with the old PDP using the police as veritable weapons against its perceived opponents. Offices have been barricaded by the police in Abuja and Port Harcourt. The climax was the prevention of Chibuike Amaechi and his guests from accessing the Government House in Port Harcourt last Thursday.

    In the meantime, Bamanga Tukur, the chairman of the old PDP, has continued to spit fire by referring to the members of the splinter group as rascals. Tukur is at the epicentre of the ongoing controversy over his style of leadership of the party since he took over as chairman. Perhaps, it is not inappropriate to refer to the splinter group as rascals because what Nigeria needs now is the emergence of some rascals in the polity. This is to invigorate the process of governance in the country.

    The political temperature in the country was further heightened in Warri, Delta State as the Itsekiri people gave their monarch, the Olu of Warri, an ultimatum to vacate the throne. This was predicated on the recent proclamation of the monarch renouncing the Ogiame title and other traditional rites being practised by the Itsekiri nation. The renunciation sparked off several protests with the indigenes barricading the palace of the monarch for several days. Not even the timely interventions of Emmanuel Uduaghan, the state governor, could sway the people. After four days of protest, the monarch capitulated, and rescinded his earlier decision to renounce the title. That is the triumph of people’s power and an indication that the people can no longer be trampled upon. This is a signal for people who are holding positions of authority either at the community, local government, state or national level to understand that they are doing so on behalf of the people and not vice-versa. Sovereignty belongs to the people and these powers must be exercised in conformity with the wishes of the people. Not to terrorise them or impoverish them.

    Last Thursday, Mike Ozekhome, Senior Advocate of Nigeria who had been in kidnappers’ den for about 20 days, was set free. But this was not without paying a ransom, the value of which has not been properly laid in the public domain. It is indeed a sad commentary in our national life that a flourishing kidnap industry has taken over everywhere with people’s lives being endangered every day. Not only this. Millions of hard-earned money is also involved in the thriving and criminally lucrative business. It is sad that the country’s security agencies have not found an enduring solution to this epidemic, which is why many people tend to accuse some of them of connivance.

    However, the week ended on a sadder note as Olusegun Agagu, former governor of Ondo State, died in Lagos last Friday night. May the Lord grant Olufunke, his wife of many years, his children, family, his colony of friends and admirers the fortitude to bear this irreparable loss. His sudden death, once more, underscores the transience of life. May he find solace in the bosom of His creator. Amen.

  • Utomi denies taking Bank PHB loan for election campaign

    Utomi denies taking Bank PHB loan for election campaign

    Renowned political economist, Prof. Pat Utomi , on Tuesday told a Lagos High Court, Ikeja, that he did not obtain any loan from the defunct Bank PHB to fund his 2007 presidential campaign.

    Utomi told the court presided by Justice Lateefat Okunnu that he spent only N30 million on the campaign.

    Utomi made this clarification while being cross-examined by the counsel to the Economic and Financial Crime Commission (EFCC), Mr. Kemi Pinheiro in a matter brought against the bank’s former managing director, Mr. Francis Atuche.

    He insisted that his presidential campaign did not gulp N2 billion as being suggested by the prosecution counsel.

    Pinheiro had suggested that Utomi’s campaign was funded by the bank while cross examining him as the defence witness in the matter.

    The EFCC had sued Atuche, his wife, Elizabeth and the bank’s former chief operating officer, Ugo Anyanwu over alleged theft of the bank’s N27.5 billion.

    Counsel to the EFCC, Mr. Pinheiro had alleged that the bank advanced a N2 billion credit facility to Baywood Continental Limited, a company whose board was chaired by Utomi.

    Pinheiro claimed that the loan was secured from Bank PHB about the same time Utomi was going around the country soliciting for votes for his presidential ambition.

    But Utomi, a former Chairman of Bank PHB Corporate Governance Committee, denied the allegation, saying that Baywood Continental did not collect any loan from the bank.

     

     

     

     

     

  • EFCC arrests four suspects for alleged N2.05b fraud

    EFCC arrests four suspects for alleged N2.05b fraud

    The Economic and Financial Crimes Commission (EFCC) announced yesterday a major breakthrough in its anti-fraud battle.

    Four suspects, including two bureau de change operators – Salihu Liman Mahmoud and Dan Asabe Ibrahim – have been arrested for alleged N2.05billion fraud.

    The other suspects are two students of the University of Jos (UNIJOS) – Isaiah Friday and Azzaior Samuel.

    According to the EFCC, the suspects invaded Union Bank’s database and manipulated it to steal N2.05billon.

    The commission said it recovered N475.3million from the suspects.

    Other items recovered include furniture worth N10 million from Mahmoud’s one-bedroom apartment in Yaba, Lagos Mainland; four vehicles; landed properties in Kano and Kaduna and a four-bedroom duplex worth N45 million in Lagos

    According to a statement by the Head of Media and Publicity of the EFCC, Mr. Wilson Uwujaren, the suspects specialise in breaking into computer data of banks.

    It said their arrest followed a report by Union Bank of Nigeria, Plc.

    The statement said: “The fraudsters, who specialise in breaking into the computer data base of financial institutions in order to carry out dry posting of funds, were arrested in Lagos and Jos.

    “ Their arrest came on the heels of a petition which the Commission received from Union Bank of Nigeria Plc, Marina, Lagos sometime in January 2013, alleging that a criminal attack had been launched on its data base known as “Flexcube”, by unknown criminals.

    “The criminals falsified the bank records and accounts and created unjustified huge opening balances in several accounts across the bank’s branches and subsequently transferred funds from those accounts to several accounts in other banks.

    “The petition, which was signed by A.F Olufade, Head of Fraud Investigation at the bank, said cash withdrawals and electronic transfers totalling over N2.05billion was involved in the scam.”

    The commission said one of the suspects, Isaiah Friday, who is a computer maintenance artisan, coordinated the scam.

    The statement added: “Upon receiving the petition, the Commission’s Banks and Other Financial Institutions Fraud section swung into action.”

    Investigations by the commission, however, revealed that Friday, who was carrying out computer system maintenance services for one of Union Bank branches in Jos on a part-time basis, paved the way for the fraudsters to penetrate the bank’s database. Friday was traced and arrested. His arrest led to the arrest of Azaaior Samuel.

    “Investigations further revealed that Mahmoud, who is the mastermind of the fraud with others now at large, had approached Samuel if he knew anyone working with the Union Bank. Samuel gave Friday’s contact and Friday was contacted.

    “They told him they needed access to the bank’s database in order to carry out some postings. They promised to give Friday N1, 500,000 if the deal succeeded. Friday obliged and on the day the crime was committed, Samuel disguised as a colleague of Friday who had accompanied him to work in order to gain access to the bank’s premises. They carried out the postings to six different company accounts domiciled in Union Bank’s Marina branch in Lagos.

    “The accounts are: Gona Bureau De Change Limited, Jaxmine Bureau De Change Limited, Dan Kawu Bureau De Change Limited, Godswill Great Communications, ZHG Services Limited and A and B Console Limited.

    “The postings were carried out and the syndicate thereafter went to the bank to draw all the funds. Friday was paid as promised and other syndicate members now at large shared the remaining balance.”

    The EFCC said it had so far recovered N475,326,720 from the suspects, including $2,129,900 and N134,542,720.

    The statement added: “Other items recovered include: furniture worth N10 million from Salihu Liman’s one-bedroom apartment in Yaba, Lagos, four vehicles, landed properties in Kano and Kaduna and a four-bedroom duplex worth N45 million in Lagos.

    “Investigation into the scam continues.”

  • Utomi to court: Bank PHB board ratified N25.7b loan

    Utomi to court: Bank PHB board ratified N25.7b loan

    A Lagos High court, Ikeja, heard on Monday that the loan totalling about N25.7 billion for which the former managing director of the defunct Bank PHB, Mr. Francis Atuche, is facing trial was approved by the board and did not offend the code of corporate governance for banks.

    A renowned economist, Prof. Pat Utomi made this declaration at the resumed hearing of the matter before the court presided by Justice Lateefa Okunnu.

    Utomi, who was the vice chairman of Bank PHB’s board of directors, in his evidence in chief led by Atuche’s counsel, Chief Anthony Idigbe (SAN), insisted before the court that the loans granted by Atuche, were ratified by the bank’s board of directors.

    The Economic Financial Crimes Commission had charged Atuche to court for allegedly stealing N25.7 billion belonging to the bank.

    Charged alongside Atuche as defendants are his wife, Elizabeth and former Chief Financial Officer of the bank, Ugo Anyanwu.

    Prof. Utomi read from the minutes of the board meeting where the loans were ratified.

    He said the loans were ratified during the board of directors meeting of Bank PHB held on July 9, 2008.

    He listed the companies that benefitted from the credit facilities to include Extra Oil Limited (N3.9 billion); Tradjeck Limited (N3.5 billion), Future View Securities Limited (N3.5 billion); Petosan Oil and Gas Limited ( N4 billion) and Falcon Securities (N8 billion).

    Utomi said the ratification of the loans did not offend the code of corporate governance for banks in Nigeria.

    He said neither Atuche nor Anyanwu violated the bank’s corporate governance ethics in granting the loans as the bank during its 38th board of directors meeting would not have ratified the loans if they did.

    He said,” In the business of banking which involves risk, it is the duty of the board to take decisions on the optimal risk that the bank can be exposed to.

    “We always ensured that illegality was not pursued but we also recognised that management needed to act and take risk on behalf of the bank.”

    He also told the court that integrity was the high point of the process, adding that the board did not notice fraudulent practices or illegality from any of the committees during the process.

     

     

     

  • Ex-Finbank chiefs ask court to dismiss theft charge

    Ex-Finbank chiefs ask court to dismiss theft charge

    A former Managing Director of Finbank Plc, Okey Nwosu and his co-defendants, on Monday asked a Lagos High Court, Ikeja, to dismiss the N10.9 billion theft charge preferred against them.

    Nwosu and three former directors of the bank made the request in separate no-case submissions filed by their counsel.

    The News Agency of Nigeria (NAN) reports that Nwosu is standing trial alongside the trio of Dayo Famoroti, Danjuma Ocholi and Agnes Ebubedike before Justice Lateefat Okunnu.

    According to the Economic and Financial Crimes Commission (EFCC), the former bank chiefs are facing a 26-count charge of stealing to which they had pleaded not guilty.

    The EFCC had closed its case on June 28 after calling nine witnesses to testify against the bank chiefs.

    At the resumed hearing of the case on Monday, the defendants’ counsel — Messers James Ocholi (SAN), Seyi Sowemimo (SAN) and Okorie Kalu — said they had filed no-case submissions.

    They told the court that they filed the applications because no prima-facie case had been established against the defendants to warrant them to open their defence.

    The EFCC counsel, Mr. Rotimi Jacobs (SAN), opposed the applications, saying the prosecution had filed its counter-affidavit to the applications which had been served on the defendants.

    Justice Okunnu adjourned the matter till September 30 for hearing of the applications.

     

  • Why Tafa Balogun was arrested, jailed for fraud -Ribadu

    Why Tafa Balogun was arrested, jailed for fraud -Ribadu

    The pioneer Chairman of the Economic and Financial Crimes Commission (EFCC), Mallam Nuhu Ribadu, has explained why he (as an Assistant Commissioner of Police) arrested a former Inspector General of Police, Tafa Balogun.

    He said since justice is blind, Balogun crossed the line and had to face trial for corruption.

    He also said there are smarter crooks than ex-governor James Ibori in the country.

    The EFCC under Ribadu had arrested and put the former IGP on trial for about N5.7billion official corruption.

    Ribadu, who bared his mind on one of the most celebrated trials in the country in an interview with EFCC Magazine, “Zero Tolerance,” said the fear of God made him to arrest the then IGP instead of his status.

    He said: “Well, the point is that whoever crosses the line will be dealt with. Whether a constable or an IGP, it’s the same thing. The solution is not to cross the line.

    “When you execute your mandate honestly, you become blind to the position of individuals. Justice is blind.

    “So, Tafa Balogun was my boss as the Inspector-General of Police, but he crossed the line. He did things that were wrong and was brought to our attention, and the law took its course.

    “To be honest, I thank God for having only one fear; that is the fear of God. It is not arrogance or anything, no it’s just that I feel what is right is right and in doing what is right, I don’t fear any mortal.

    “I have never looked for anything in terms of benefit in any position I have occupied; even in the police, an IGP could not give me anything.

    “A President could not give me anything. Obasanjo never gave me an office pin up till this very moment! Never!

    “A lot of people feel EFCC broke several laws or Obasanjo gave me everything. What did he give me? The entire budget of EFCC from beginning up to the time I left was not up to N11billion for five years! We never got anything extra, never!

    “The people we brought to justice were the closest people to him (Obasanjo), they were PDP men; but others will turn it upside down and lie. It’s really sad, and a lot of them got away with it.”

    On the corruption charges against ex-Governor James Ibori,

    “There are worse people than James Ibori in Nigeria. I think probably James was not the smartest one among them. There are some crooks worse than James; and I still see them.

    “Some of them are even being celebrated right now in our country. Some of them are trying to re-write history. James didn’t handle his own criminal affairs smartly, and he ended up paying dearly for it.

    “There are smarter crooks than James, who did more damage to the EFCC; but God will judge them. James is serving a jail term in the United Kingdom.

    “So it was not only James and if we narrow it down to James alone then we are actually underestimating the way corruption fought back.”

    Responding to a question, Ribadu said the investigation of Ibori for fraud was not personal.

     

  • EFCC recovers N6.5b

    EFCC recovers N6.5b

    •Records 80 convictions

    The Economic and Financial Crimes Commission (EFCC) yesterday said it has charged 368 cases to court and recorded 80 convictions as at the end of August, 2013.

    It also said it recovered N6, 583,108,350; $19,251,519; 20,520 Euros and 19,000 Pounds Sterling from those involved financial crimes.

    The commission released the statistic in a statement by its Head of Media and Publicity, Mr. Wilson Uwujaren.

    The statement said: “Within the same period, the Commission recorded the following recoveries: N6, 583,108,350; $19,251,519; 20,520 Euros and 19,000 Pounds Sterling.

    “Beyond the recovery, EFCC intensified the prosecution of politically exposed persons, failed bank executives, captains of industries, beneficiaries of fraudulent oil subsidy payments and senior civil servants involved in pension fraud.

    “A number of cases for which investigations have been concluded, would be charged to courts across the zones where the commission maintains offices as soon as the courts resume from recess.

    “Meanwhile, the Commission deplores attempts by mischievous elements to distract it by imputing political motives to some of its investigations.

    “The Commission will not be cowed by such insinuations which are clearly unfounded.

    “Nigerians can be assured that only those who run foul of the law have reason to entertain fear of the EFCC.”

    In an interview with EFCC Magazine, “Zero Tolerance,” EFCC chairman Ibrahim Lamorde, said the commission is at the mercy of the Judiciary.

    He said: “The best we can do as an anti-corruption agency is to take cases to court; no matter how good the case is, once the matter is in court, you are at the mercy of the Judiciary.

    “What we have in Nigeria is for a number of reasons; these cases have refused to move forward. Some people have blamed the judicial officers for the progress of some cases, others blame the judicial officers for the progress of some cases, others blame the defence counsel who deliberately frustrate cases.

    “Some also put the blame on the judicial procedure that gives privileges to the accused persons and allows all manner of applications.”

    He faulted those criticising the EFCC for not going after big fishes.

    Lamorde added: “Who are the big fishes, I think people like drama. You don’t go after an individual because you want to make a name for yourself.

    “You do things thoroughly and make sure the things you do stands the test of time. We have seen cases that were rushed to the court about two years ago and had to be reinvestigated because proper job was not done before it went to court.”

  • N17b bond: EFCC quizzes ex-governor Saraki for two hours

    N17b bond: EFCC quizzes ex-governor Saraki for two hours

    •How the cash was spent, by ex-governor 

     

    For two hours, Economic and Financial Crimes Commission (EFCC) operatives quizzed yesterday ex-Governor Bukola Saraki on why Kwara State government secured N17billion bond during his eight-year tenure.

    He was also asked to explain why he allegedly negotiated to pay only N1.5billion of the N3.3billion pension funds he inherited.

    The EFCC sought to know why the N1.8billion balance was unpaid to pensioners.

    With yesterday’s development, the ongoing probe of Saraki has been widened to two more bends.

    The ex-governor had been grilled on the failure of Societe Generale Bank (SGBN) in his previous appearance.

    According to sources, Saraki got to the EFCC office in Abuja at about noon and left at 2pm.

    A source in EFCC, who pleaded not to be named, said: “We asked the governor to make statement on how the decision to secure bond was taken; whether it had the backing of the Kwara House of Assembly or not and what it was used for.

    “Based on the petitions written to us, there were issues on N3.3billion pension funds. Some aggrieved petitioners alleged that out of the funds, only N1.billion was paid to pensioners. They claimed that the pensioners were forced to for go N1.8billion.

    “Another matter we are investigating is the extent of the state government in th building of Kwara Shopping Mall.

    “These are still issues under investigation. We cannot say if Saraki is guilty or not. At the appropriate time, we will brief Nigerians.”

    A close aide of Saraki, however said his boss explained that he used the N17billion fund for 15 key projects.

    The source said: “The former governor made the EFCC to realize that the bond matter was approved by the state assembly and SEC which regulated and monitored how the funds were spent. At every stage of spending the regulatory agencies were briefed.

    “What the funds were expended on are International Aviation College; Kwara State University; Ilorin water distribution project;Agricultural irrigation support project; Kwara Advanced Diagnostic Centre;Loan refinancing: Streetlight project; Ilorin Stadium project Kwara Shopping Mall; and rural roads.”