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Tag: EFCC

  • How I got N1.2b cash from Fayose, others, by bank chief

    The Federal High Court in Lagos yesterday heard how the N1.2 billion allegedly given to former Ekiti State Governor Ayodele Fayose from the Office of National Security Adviser (ONSA) was moved to the state.

    The Economic and Financial Crimes Commission (EFCC) is trying Fayose for allegedly receiving and keeping N1.2 billion and $5 million said to have been stolen from the ONSA.

    Testifying before Justice Mojisola Olatoregun, the 11th prosecution witness, Mr Sunday Alade, said he was the Akure, the Ondo State capital Branch Manager of Zenith Bank Plc in 2014 when the money was moved to his branch.

    Led in evidence by prosecuting counsel, Mr Rotimi Jacobs (SAN), the witness said he got a call from his Head of Operations asking him to prepare to head to Akure Airport to receive some cash from a customer.

    “On June 17, 2014, I was in my office in Zenith Bank, Akure. I received a call from my Head of Operations, Abiodun Oshodi, that a customer would be coming to make a deposit into his account with the bank.

    “He said in order to provide security, we should arrange for a bullion van to go to the airport to pick the cash.

    “After an hour, Oshodi came and said the customer had arrived. He introduced Abiodun Agbele as the customer.

    “He said we should prepare to go to the airport. I asked for time to arrange for security, but they said that won’t be necessary as they had sufficient security. They came with MOPOL (mobile policemen) and some soldiers in a Hilux van,” Alade said.

    The witness said he joined Oshodi and Agbele to the airport, along with the bullion van and the security men.

    He added: “At the airport, we waited for a few minutes before the arrival of the aircraft. Three individuals came out of the aircraft.

    “Two of them walked away. The remaining person introduced himself as O. Adewale. The cash was offloaded into the bullion van and we drove to Zenith Bank in Akure.”

    Read also: Fireworks in Fayose’s trial as judge, EFCC’s lawyer clash

    Alade also said when he and the others got to the bank, the money was counted in his presence.

    According to him, Oshodi, Adewale and Agbele were also present at the bank.

    “The money was counted in our presence. It was N724 million. We were informed that there was a balance. We went back to the airport and picked N494 million.

    “The total cash amounted to N1.219 billion. Another aircraft brought the N494 million.

    “I gathered that the cash was lodged in three bank accounts – those of De-Privateer, Spotless Investment and Ayodele Fayose.

    “I also understand that some cash was taken away that day by Mr Agbele.”

    Asked who Adewale was, he said: “Adewale O. introduced himself as (former Minister of State for Defence) Musliu Obanikoro’s ADC (aide-de-camp).”

    On whether or not he knew those who walked away from the aircraft after it landed, the witness said: “One of them resembled Obanikoro. I never met him in person. But he resembled the person I saw on television and newspapers.”

    Under cross-examination by defence counsel Ola Olanipekun and Olalekan Ojo, both SANs (for Spoless Limited, Fayose’s co-accused), the witness said he did not know where the money came from.

    Asked if he knew what the money was meant for, he said: “Not at all.”

    The witness said it took 10 days to process the cash.

    Responding to a question by Ojo if he submitted a bulk cash register to the EFCC on the transaction, the witness said: “No.”

    Ojo showed the witness a statement of account belonging to Spotless Investment.

    He was asked to identify entries for October 6, 2014, September 5, 2014 and December 6, 2014.

    Alade said the entries showed the transfer of N11.173 million each described as “mortgage repayment” and “mortgage loan liquidation”.

    He added: “But I didn’t know anything about the transactions.”

    To this, Ojo said: “Don’t worry.”

    Before the trial began, Jacobs said he was involved in an accident and had to come to court in crutches.

    The lawyer asked the court to allow him take only one witness, but he did not disclose when or where he had the accident.

    He was seen wearing a heavy bandage brace on his right foot without a footwear.

    There was also no indication that the case would be transferred to another judge.

    EFCC Acting Chairman Ibrahim Magu reportedly wrote to the Chief Judge, asking that the case be withdrawn from Justice Olatoregun and re-assigned to another judge.

    Magu was said to have expressed lack of confidence in the judge.

    But no reference was made to the purported letter to the CJ by the EFCC acting chairman.

    Fayose had pleaded not guilty when he was arraigned on an 11-count charge on October 22, last year.

    EFCC said the former governor and Agbele, who is facing a different charge, allegedly took possession of N1,219,000,000 on June 17, 2014 to fund Fayose’s 2014 governorship campaign.

    The commission said Fayose “reasonably ought to have known” that the money “formed part of the proceeds of an unlawful act, to wit: criminal breach of trust/stealing”.

    EFCC said the former governor, on the same day, received cash payment of $5 million from Obanikoro without going through a financial institution.

    The commission said the sum exceeded the amount authorised by law, thereby violating the Money Laundering Act.

    Justice Olatoregun adjourned till May 10 and 14 for continuation of trial.

  • EFCC arrests businessman for raking N7b from 20,700 investors

    Detectives are holding businessman who allegedly collected N7billion from 20,700 potential investors.

    Babagana Abba Dalori, 35, a 2010 graduate of Electrical/Electronics, University of Maiduguri, is the Managing Director, Galaxy Transportation and Construction Services Limited. He is being held by the Economic and Financial Crimes Commission (EFCC).

    Dalori allegedly lured unsuspecting investors with mouth- watering Returns on Investment (RoI).

    He also promised his investors as high as 135% and, in some cases, 200 % on their investment.

    According to the suspect, he started his business in 2012 with just a tricycle (Keke NAPEP) and by 2014, hundreds of people had shown interest in it and he felt the need to diversify.

    A document on the investigation said: “The suspect further claimed during interrogation by the EFCC operatives that he diversified into sand mining, Haulage business (tipper), transportation (commercial buses) while hundreds of investors were still falling on themselves to part with their hard earned money as the stake on Return on Investment had been raised from 135 percent to 200 percent.

    Read also: Beware of car thieves’ new tricks, EFCC warns Nigerians

    “In 2016, Dalori veered into full transportation business as he registered Galaxy Transport and Construction Company with his mother as co- director.

    “In 2017, he claimed that he invested about N400 million to acquire a quarry licence and started mining at Mpape, Abuja. He added that he had offices in 11 states and continued to lure his investors with mouthwatering returns.”

    The EFCC explained that about 20,700 potential investors had fallen victim of the suspect’s business antics.

    The document added: “He continued collecting money from investors until his investors rose to 20, 700.

    “But instead of concentrating on the line of business for which the investors had put their money, he further diversified as he registered and delved into Galaxy Global Energy Limited, Galaxy Miners Concepts Limited, Galaxy Global Farms, Galaxy Guest Palace Limited, Galaxy Hospital, Galaxy Computing, Galaxy Block making and Galaxy Car Wash.

    “Investigation further revealed that in all the above companies registered, which spread across three cities of Abuja, Maiduguri and Yobe, the investors were never carried along, neither were they co-owners of the companies.

    “Several investors interviewed explained that they invested between N2million to N20million in Galasy Company but were never carried along in the multimillion investments he diversified into.

    “Prior to his arrest by the EFCC, most of the investors had been agitated as the suspect remained incommunicado.”

    “Several visits to his office in Abuja did not yield positive results as the suspect was said to have switched off his phones while Galaxy offices were now deserted by his officials. The suspect is being quizzed by the EFCC operatives while investigation is ongoing.”

    When the operatives confronted Dalori over the alleged fraudulent activities under his Galaxy scheme, the suspect said: “I have a mindset to be an entrepreneur and assist people and provide jobs since there are no white-collar jobs again. I started as a transporter with a tricycle at a Yarkasuwa Market Gwarimpa, Abuja and the Keke NAPEP later expanded to 50 tricycles.

    “I bought a house in Gwarimpa and later sold the house for N8.2 million in 2014. I used this money to diversify to other businesses.

    “Between 2012 and 2014, the business boomed while my friends, relations and classmates picked interest in the businesses.

    “But natural disaster and flood affected the businesses in 2018, thereby creating problems for me and the consequent inability to meet up with the investors”.

    When asked if he knew that what he was doing was fraudulent, Dalori replied in the negative, saying that “all I was doing was to assist fellow Nigerians and I have no intention defraud anyone. The businesses were okay and I was paying good returns to the investors before the natural disaster and floods caused my problems and affected the investments.”

  • Court to EFCC: you lack power to probe or recover civil contract debts

    A Federal High Court sitting in Ibadan, the Oyo State capital, has said the Economic and Financial Crimes Commission (EFCC) has no power to arrest anyone or investigate cases of debt recovery arising from a breach of contract.

    Justice J. O. Abdulmalik stated this in an April 1 judgment.

    The judge declared that the EFCC Act 2004 does not empower the commission to arrest, detain anyone or investigate cases of breach of contracts in business transactions.

    He held that the commission only has power to arrest, detain or probe financial crimes, not civil transactions.

    Justice Abdulmalik gave the verdict in a suit filed by an Ibadan-based businessman, Elder Francis Morakinyo Afolabi, through his lawyer, Mr Joshua Olaniyan, against the EFCC and five others.

    Afolabi sued the EFCC following his arrest, alleged torture and freezing of his bank account by the commission.

    The EFCC had received a petition from Mr Kehinde Olaniyan, with the business name of Kehinde R. Olaniyan Nigeria Enterprises, over Afolabi’s alleged failure to fulfil a business transaction of N14 million in 2015.

    The petition was submitted to the Ibadan zonal office of the commission, which reportedly invited Afolabi.

    Other respondents are: three investigating officers of the commission and First Bank of Nigeria PLC, in whose custody Afolabi’s account was frozen.

    The complainant was admitted to bail while his bank account was frozen pending the completion of ‘investigations’.

    But Afolabi sued the commission and other respondents, seeking a declaration that his arrest and freezing of account was illegal as well as the publication of a public apology in two national dailies that are popular in Ibadan.

    He also sought N100 million damages against the six respondents.

    Citing the case of Lima versus Mohammed (1999) LPELR-1973 (Supreme Court), the judge declared that “an aggrieved party in a breach of contract is to seek civil redress by way of insisting on actual performance of the contract or seek damages for the breach”.

    Justice Abdulmalik held that some Nigerians use law enforcement agents to retrieve debts arising from civil transactions instead of approaching the court to do so, apparently in an attempt to avoid lawyers’ professional fees.

    The judge also held that Afolabi’s fundamental human rights were breached by his arrest and freezing of his bank account.

    He awarded N500,000 damages to the applicant.

    Justice Abdulmalik absolved the bank, saying it was under obligation to honour EFCC’s request to freeze the account freezing, being the commission empowered by law to do so.

    But the judge set aside the directive freezing Afolabi’s bank account.

    For justice to be done, the court held that Olaniyan, who use the EFCC to freeze Afolabi’s account, should publish a public apology in a national daily whose circulation is popular in Ibadan.

    Among the seven requests sought, six were resolved in favour of Afolabi.

    The court held that the commission has no power to investigate or resolve disputes arising from civil contracts; is not a debt recovery agency and freezing of Afolabi’s bank account was illegal.

    It also declared Afolabi’s arrest as a breach of his fundamental human rights and a form of torture.

    Justice Abdulmalik said: “On issues one, two, three and four of the applicants, there is no gainsaid that the first respondent (EFCC) does not have the power to resolve or/and investigate disputes arising from contracts or civil transactions. Also, as reiterated in a plethora of judicial authorities, the first respondent is not a debt recovery agent.”

    The judge referred to, among others, Section 6B of the EFCC Act 2004, Laws of Federation of Nigeria, which states that the commission shall be responsible for the investigation of all financial crimes, including advance fee fraud (419), money laundering, counterfeiting, illegal charge transfers, future market fraud, fraudulent encashment or negotiable instruments, computer credit card fraud, contract scam, etc.

    He said the transaction between Afolabi and Olaniyan was civil, adding that failure to honour terms of contract does not amount to a crime.

    Justice Abdulmalik also said such a matter is strictly a civil transaction that is outside the powers of the commission, irrespective of the garb it puts on the matter.

    “Carefully from the above facts, I do find that irrespective of the descriptive inventory lexicon employed by the fifth respondent (Kehinde Olaniyan) to title his petition or report to the first respondent, it does not dissipate the facts on the ground from being that of a civil transaction of contract which has gone wrong.

    “To cushion my point, the fif5th respondent’s report to the first respondent can be tantamount to a cry of ‘help me collect my money from the applicant’. Otherwise, the question will be ‘what does the fifth respondent really want the first to fourth respondents to investigate?’ There is no mystery about the fact: the fifth respondent supplied applicants goods worth N14,611,820:00 which has not been paid for…

    “The ‘investigation power’ vested on the first respondent is in relation to the commission of a crime and not a civil transaction, as simple as recovery of debt. The requisite sections of the Economical and Financial Crimes Commission (Est) Act, Laws of Federation of Nigeria 2004, as aforementioned, all referred to instance and occasion of suspicion of crime,” he said.

  • Court to EFCC: you have no power to investigate or recover civil contract debts

    A Federal High Court, Ibadan has established that the Economic and Financial Crimes Commission (EFCC) has no power to arrest anyone or investigate cases of debt recovery arising from breach of contract.

    Justice J. O. Abdulmalik in an April 1, 2019 damning judgment, a copy of which was obtained by The Nation, declared that the EFCC Act 2004 does not empower the commission to arrest, detain anyone or investigate cases of breach of contract in business transactions. It held that the commission only has power to arrest, detain or investigate financial crimes, not civil transactions.

    He gave the judgment in a case dragged before him by an Ibadan-based businessman, Elder Francis Morakinyo Afolabi, through his lawyer, Mr Joshua Olaniyan, against the commission and five others. Afolabi dragged the EFCC to court for his arrest, torture and freezing of his bank account based on a petition submitted on him by Mr Kehinde Olaniyan who trades under the name Kehinde R. Olaniyan Nigeria Enterprises over failure to fulfill his own part of a business transaction worth N14 million with the latter in 2015. The petition was submitted to the Ibadan zonal office of the commission, upon which it invited Afolabi.

    Other respondents are three investigating officers of the commission and First Bank of Nigeria PLC in whose Afolabi’s Account was frozen.

    The complainant was admitted to bail while his bank account was frozen pending the completion of its ‘investigations’. But Afolabi dragged the commission and other respondents to court seeking a declaration of his arrest and freezing of account illegal as well as publication of a public apology in two national dailies that are popular in Ibadan. He also sought N100 million damages against the six respondents in the case.

    Citing the case of Lima versus Mohammed (1999) LPELR-1973 (Supreme Court), the judge declared that “an aggrieved party in a breach of contract is to seek for civil redress by way of insisting on actual performance of the contract or seek damages for the breach.” Justice Abdulmalik pointed out that it has become fashionable for some Nigerians to use law enforcement agents to retrieve debts arising from civil transactions instead of approaching the court to do so, possibly in an attempt to dodge lawyers’ professional fees.

    The judge also held that Afolabi’s fundamental human rights were breached through his arrest and freezing of his bank account. He, therefore, awarded N500,000 damages to the applicant but absolved the bank, stressing that it was under obligation to honour the request from the EFCC for the account freezing being a commission empowered to do such. The judge set aside the directive freezing Afolabi’s bank account.

    For justice to be done, the court also held that Mr Olaniyan, who dragged Afolabi to the EFCC, should publish a public apology in a national daily whose circulation is popular in Ibadan.

    Among the seven issues formulated, six were resolved in favour of Afolabi. The court held that the commission has no power to investigate or resolve disputes arising from civil contracts, is not a debt recovery agency, declared freezing of Afolabi’s bank account illegal, declared his arrest as a breach of his fundamental human rights and a form of torture.

    He declared: “On issues one, two, three and four of the applicants, there is no gainsaid that the 1st respondent (EFCC) does not have the power to resolve or and investigate disputes arising from contracts or civil transaction. Also, as reiterated in a plethora of judicial authorities, the 1st respondent is not a debt recovery agent.”

    The judge referred to, among others, Section 6B of the  EFCC Act 2004 Laws of Federation of Nigeria which states that the commission shall be responsible for the investigation of all financial crimes including advance fee fraud, money laundering, counterfeiting, illegal charge transfers, future market fraud, fraudulent encashment or negotiable instruments, computer credit card fraud, contract scam etc.

    He insisted that the transaction between Afolabi and Olaniyan was civil, pointing out that failure to honour terms of contract does not amount to a crime. He said it is strictly a civil transaction that is outside the powers of the commission irrespective of the garb the commission put on the matter.

    “Carefully from the above facts, I do find that irrespective of the descriptive inventory lexicon employed by the 5th respondent Mr Kehinde Olaniyan) to title his petition or report to the 1st respondent, it does not dissipate the facts on the ground from being that of a civil transaction of contract which has gone wrong.

    “To cushion my point, the 5th respondent’s report to the 1st respondent can be tantamount to a cry of ‘help me collect my money from the applicant’.  Otherwise, the question will be ‘what does the 5th respondent really want the 1st to 4th respondents to investigate?’ There is no mystery about the fact, the 5th respondent supplied applicants goods worth N14,611,820:00 which has not been paid for…

    “The ‘investigation power’ vested on the 1st respondent is in relation o the commission of a crime, and not a civil transaction, as simple as recovery of debt. The requisite sections of the E inimical and Financial Crimes Commission (Est) Act Laws of Federation of Nigeria 2004 as aforementioned all referred to instance and occasion of suspicion crime.” He declared.

  • EFCC knows I didn’t spend Kwara election funds –Belgore

    Hearings continued in the N450m money laundering case against Muhammad Dele Belgore (SAN) on Friday, with the senior lawyer saying he made full accounts to the Economic and Financial Crimes Commission (EFCC)  how the fund released for the 2015 PDP presidential election campaign in Kwara State was spent.

    Giving testimony in the 450m money laundering case against him and Professor Abubakar Suleiman, Belgore said he had supplied to the anti-graft agency all the information about who got what share of the money and the purpose it was meant for “as a matter of helping their investigations”.

    He reiterated that the funds were meant to prosecute the People’s Democratic Party (PDP) presidential campaign in Kwara State. He said at no time did the EFCC interview any of the people he had mentioned as having disbursed the money on the authority of the party, asserting that the claim that he disbursed any money is not factual.

    Read Also: Alleged fraud: EFCC opens case against bank, staff

    “I deny the charges/counts in their entireties. The information that I gave to PW 2 (EFCC  prosecutor) in my statement as to those who took possession, disbursed, and used the N450m which is the subject of these charges, was never pursued by PW 2,” Belgore said while being cross-examined by his counsel Ebun Sofunde (SAN).

    “(The PW2) had information of who took the money and what it was used for and he did nothing about it. So I totally denied count one to nine. I told EFCC these persons were the ones who disbursed them. EFCC never interviewed any of these persons to confirm whether I ever gave them any money. My exhibit did state the names of those who collected the money from the bank but I never said I disbursed.” Further hearings in the case have been adjourned to May 6.

  • Ex-minister ‘blew’ $56m cash on jet

    About $56million of the $1.09billion Malabu Oil Block cash was used by a former Minister of Petroleum Resources to buy a jet, The Nation has learnt.

    The aircraft has been traced to Dubai in the United Arab Emirates.

    Four anti-corruption organisations have petitioned the Economic and Financial Crimes Commission (EFCC) demanding the seizure of the jet.

    These disclosures were contained in the petition sent to the EFCC by the four groups.

    The petition was signed by the Chairman, Human Resource Development Centre (HEDA), Olanrewaju Suraju; Corner House Director, Nick Hildyard; Re: Common Director, Antonio Tricarico; and Co-founder, Global Witness, Simon Taylor

    They alleged that the jet was said to be worth 56million dollars.

    In the petition, which was addressed to the Acting Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ibrahim Magu, the anti-corruption groups said the jet was bought with proceeds of corruption relating to the fraudulent sale of OPL 245.

    They demanded the retrieval and forfeiture of the jet by the Federal Government through the EFCC.

    The four anti-corruption crusaders, which attended the court proceedings in Milan, said their position was strengthened by “findings from the on-going international corruption case taking place at the Milan, Italy Court”.

    The petition said: “The investigation focused on the sales of OPL245 to Eni and Shell. It also involves grievous allegations of corruption linked with several serving and former company managers, including Nigerian politicians.

    “Prosecutors in Milan were told by a former Federal Bureau of Investigation (FBI) agent, Debra LaPrevotte and Ten. Col. Alessandro Ferri both involved in the investigations of the case, that 56 million USD of proceeds of corruption was used by the former minister for the purchase of a private jet in Oklahoma City, USA.

    “The specific tail registration number of the aircraft was given as M-MYNA

    “What we heard from testimony in the court confirmed the information enclosed in a table produced by the FBI, and already disclosed as a public document in the court case, Crown vs. Malabu Oil and Gas, which was held at Southwark Crown Court in London, UK; namely that proceeds of the OPL 245 deal were used to purchase a Bombardier Global 6000 private jet with the registration number M-MYNA”

    “This aircraft is listed as registered to Tibit Limited (BVI) and registered in the Isle of Man. The FBI table notes that the aircraft purchase was made from Insured Aircraft Title Services, Oklahoma City, US. We note that the company appeared in a 2010 investigation by the US Senate Homeland Security and Government Affairs committee, Permanent Sub-Committee on Investigations, regarding their role in the purchase of aircraft by PEPs.”

    They alleged that “the individuals connected to Tibit Ltd, a BVI company involved in selling several Bombardier 6000 jets, have been the subject of a court case with the Australian Tax Office.

    Read also: Malabu Oil deal: FG claims $1.975b against JP Mogan, Shell, Eni

    “The report related to the Panama Papers has also raised questions about the Bombardier sales.”

    The anti-corruption organisations urged the government to seize the aircraft.

    They said: “The aircraft’s most recent flight, according to public aircraft tracking websites, was from Paris to Dubai airport on the 7th June 2017. The aircraft appears to have remained in Dubai since.

    “There is, therefore, reason to believe that the jet is still in Dubai airport and could be frozen by competent authorities as possible proceeds of crime.

    “We kindly urge you to verify this information and take appropriate steps, including asset freezing and forfeiture, where possible, under the 2018 Mutual Legal Assistance in Criminal Matters between Nigeria and United Arab Emirates.”

    The OPL245 is an offshore oil block with about nine billion barrels of crude.

    It was auctioned for $1.3 billion (1.1 billion euros).

    Although the Nigerian government received only $210 million as Signature Bonus, about $1.092 billion was traced to a London bank account which was suspected to be slush funds allegedly used to bribe some middle men and politicians in the country.

    A former President was accused of benefiting about $200 million from the Malabu oil deal.

    About $523million of the  $1.092billion paid for the block was shared out as bribes to some former ministers and politicians.

     

  • Breaking: 23 days after, EFCC frees Monday Ubani

    The Economic and Financial Crimes Commission ( EFCC ) at about 11am today released a former 2nd Vice-President of the Nigerian Bar Association (NBA) Monday Ubani after 23 days in its custody.

    Ubani was arrested and detained on March 19, along with ex-Senator Christopher Enai for allegedly failing to produce a former Managing Director of Nigeria Social Insurance Trust Fund, NSITF, Mrs. Ngozi Olejeme, who both men stood for as sureties.

    Olojeme is facing a N6.4billion fraud charge preferred against her by the EFCC.

    Read Also: Alleged fraud: EFCC opens case against bank, staff

    Ubani had maintained his innocence over Olejeme’s disappearance insisting that she absconded after the EFCC raided her home

    He also stated that his decision to stand surety for Olejeme was because he compelled her to return to Nigeria to face the charge against her and all effort to secure her bail was frustrated by the EFCC.

  • Alleged fraud: EFCC opens case against bank, staff

    The Economic and Financial Crimes Commission (EFCC) yesterday opened its case against Ecobank Plc and one of its employees Anieka Udoh at the Federal High Court in Lagos.

    It accused the bank and Udoh of “negligently” failing to exercise due diligence in relation to conduct of financial transactions with Major-General Umaru Mohammed.

    The prosecution called its first witness, Jones Oboh, in the alleged $50,000 and N9.2 million fraud case.

    The commission said the defendants fraudulently converted the Army chief’s Ecobank MasterCard account numbered 0015052989 from debit card to credit card.

    It said they debited the account of over USD 50,000 “without the knowledge and authority of Major-General Umaru Mohammed.”

    Oboh, a former Loan Recovery and Collection Officer with the bank, said the bank operated the account for five years without the customer’s knowledge.

    Led in evidence by prosecution counsel Bilikisu Buhari, the witness said it reflected on his system that Mohammed owed the bank N9.2million.

    “After checking the records of those owing the bank, I discovered that Mohammed was one of those granted loans by Ecobank Plc.

    “Sometime in March 2018, I called Mohammed on the phone to find out when he was going to pay back his loan.

    “But to my surprise, he said he did not owe the bank and that there was no time he applied for any form of loan from the bank. Thereafter, a meeting was set up between the bank and Mohammed through me.

    “It was in the meeting that Mohammed was told that his account was in the debit of N9.2million, showing that he utilised his Master Credit Card over a period of time.

    “Mohammed informed the bank that there was no time he applied for a Master Credit Card from Ecobank and that the only transaction he had with the bank was that he applied to open a domiciliary account in which a debit card was issued to him so as to use it whenever he travels out of the country,” Oboh said.

    The witness said he found out that in April 2013, t $38,725 was recorded against the complainant.

    “In July 2014, a reversal of $32,887 was made on the account of Mohammed, leaving a debit of $6,125 in 2014.

    “Afterwards, the bank opened a naira account in Mohammed’s name without his knowledge and dollars were converted to N261 to a dollar from his domiciliary account, leaving a debit balance of N3.1million on the Naira account.”

    The witness said the bank never wrote or invited the complainant to bring to his notice all the “eventualities” on his accounts for five years until he took a step to do that.

    “The bank left the account to grow in debit from N3.1million to N9.2million without informing the account owner.

    “The second defendant, Anieka Udoh, was the account officer of the complainant,” the witness said.  Justice Saliu Saidu adjourned until April 18 for continuation of trial.

  • Alleged fraud: EFCC opens case against bank, staff

    The Economic and Financial Crimes Commission (EFCC) on Wednesday opened its case against Ecobank Plc and one of its employees Anieka Udoh at the Federal High Court in Lagos.

    It accused the bank and Udoh of “negligently” failing to exercise due diligence in relation to conduct of financial transactions with Major-General Umaru Mohammed.

    The prosecution called its first witness, Jones Oboh, in the alleged $50,000 and N9.2million fraud case.

    The commission said the defendants fraudulently converted the army chief’s Ecobank MasterCard account numbered 0015052989 from debit card to credit card.

    It said they debited the account of over USD 50,000 “without the knowledge and authority of Major-General Umaru Mohammed.”

    Oboh, a former Loan Recovery and Collection Officer with the bank, said the bank operated the account for five years without the customer’s knowledge.

    Led in evidence by prosecution counsel Bilikisu Buhari, the witness said it reflected on his system that Mohammed owed the bank N9.2million.

    “After checking the records of those owing the bank, I discovered that Mohammed was one of those granted loans by Ecobank Plc.

    “Sometime in March 2018, I called Mohammed on the phone to find out when he was going to pay back his loan.

    “But to my surprise, he said he did not owe the bank and that there was no time he applied for any form of loan from the bank. Thereafter, a meeting was set up between the bank and Mohammed through me.

    “It was in the meeting that Mohammed was told that his account was in the debit of N9.2million, showing that he utilised his Master Credit Card over a period of time.

    “Mohammed informed the bank that there was no time he applied for a Master Credit Card from Ecobank and that the only transaction he had with the bank was that he applied to open a domiciliary account in which a debit card was issued to him so as to use it whenever he travels out of the country,” Oboh said.

    The witness said found out that in April 2013, the sum of $38,725 was recorded against the complainant.

    Read Also: EFCC arraigns govt workers for ‘illegally dealing in gold’

    “In July 2014, a reversal of $32,887 was made on the account of Mohammed, leaving a debit of $6,125 in 2014.

    “Afterwards, the bank opened a naira account in Mohammed’s name without his knowledge and dollars were converted to N261 to a dollar from his domiciliary account, leaving a debit balance of N3.1million on the Naira account.”

    The witness said the bank never wrote or invited the complainant to bring to his notice all the “eventualities” on his accounts for five years until he took a step to do that.

    “The bank left the account to grow in debit from N3.1million to N9.2million without informing the account owner.

    “The second defendant, Anieka Udoh, was the account officer of the complainant,” the witness said.

    Justice Saliu Saidu adjourned until April 18 for continuation of trial.

  • EFCC cautions bankers against money laundering, terrorist financing

    Acting Chairman, Economic and Financial Crimes Commission (EFCC), Ibrahim Magu has cautioned bank officials in the country against aiding money laundering and terrorist financing.

    Magu gave the warning in a statement by EFFC Spokesman, Mr Tony Orilade on Tuesday in Abuja.

    Orilade quoted Magu as giving the warning at an interactive session with Chief Compliance Officers of banks in Maiduguri, the Borno capital.

    The EFFC chairman urged bankers to ensure strict compliance with the Money Laundering Act.

    According to him, bankers must endeavour to report to the anti-graft agency, cash movements that fall above the allowed threshold.

    “Nobody should carry cash above the threshold of above N 10 million for corporate organisations and N5 million for individuals.

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    “Anything above the threshold must be routed through financial institutions,” he said.

    He further said that the issue of money laundering, terrorist financing and leakage of information would be eliminated by the commission with the help of bankers across the country.

    Magu said the EFCC would soon commence the profiling of Non-governmental Oragnisations (NGOs) in the North-East with a view to monitoring their financial activities.

    “We must profile all the NGOs in the North-East, I don’t know why an NGO will open more than 40 bank accounts.

    “We are going to ask your various banks to give us statements of accounts for each and every NGO,” he said. (NAN)