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  • CBN probe: Emefiele used proxies to acquire bank – Investigator

    CBN probe: Emefiele used proxies to acquire bank – Investigator

    • CCTV footage reveals how $6.23m was removed from vault
    • Ex- SGF, Emefiele, 12 top officials likely for trial
    • AMCON Managing Director’s interrogation commences
    • Massive printing of money uncovered at apex bank
    • Outrage over 593 illegal accounts in US, UK, China

    The immediate past governor of the apex bank, Mr. Godwin Emefiele  allegedly used proxies to acquire an old generation bank,  the Special Investigator on the Central Bank of Nigeria ( CBN), Mr Jim Obaze  has said.

    In his report  , submitted to President Bola Ahmed Tinubu on December 20, Obaze detailed how a second generation bank was acquired in 2019 allegedly by Emefiele and a late  businessman in circumstances deemed opaque. He further disclosed that the bank was acquired by the two individuals without evidence of payment

    He rated Emefiele as a mysterious shareholder who gave interest-  free,  long-term loan (with no fixed repayment schedule) to the entities that acquired the old generation bank.

    He said the two entities which acquired the  bank do not have physical presence in Dubai in the United Arab Emirates where they claim to be domiciled.

    He said by Section 3(5) of the Banks and Other Financial Institutions Act they are not supposed to be allowed to operate or acquire a bank in Nigeria.

    He said when he wrote the supposed owner of one of the entities and the ultimate acquirer of the bank  to submit proof of funds, the said owner claimed to be indisposed. He said since September, he has not heard from him.

    Although he said those involved in the transactions are  seeking “political solution”, he asked the Federal Government to recover the  bank. He also recommended that the second generation bank acquired in 2019 be taken over by the government.

    He said the banks should be strengthened and sold in the nearest future.

    He also said the internal loans created in the second generation bank in the process of acquiring it were not being serviced and had gone bad.

    He said a former Managing Director of the bank resigned due to consistent pressure from Emefiele and the shareholders to create the  loans.

    These disclosures were contained in two separate letters to President Bola Ahmed Tinubu on December 20th by Obazee.

    On the acquisition of the old generation  bank , Obazee said he   discovered that some persons were used as proxies by  Emefiele to set up the main entity that acquired the bank. 

    He said his team   has completed its investigation on the acquisition and has also held meetings with the relevant parties except an expatriate said to be  hospitalized in Switzerland.

    The investigator gave the story line of the acquisition to support his findings.

    He said the entity first  sought the CBN’s no-objection to its proposed consolidation with the old generation bank,  excluding its UK operations via a letter dated October 25, 2021. The entity stated that the consolidation was being contemplated in four phases.

    ·The acquisition of 91.5% of the issued shares of the bank

    ·Mandatory Tender Offer (MTO) for the remaining shares of the bank

    ·Buy out of  shares that are not voluntarily sold to it( entity)  on the MTO; and

    ·Merger with the bank,  with the bank now  the surviving entity.

     The entity,  in its  letter stated that the consolidation was  to be funded via a combination of debt and equity. CBN via letters dated March 3 and 9, 2022 granted no objections to the entity’s requests to obtain a $300,000,000 facility from Afrexim Bank as well as capital injection of $175,000,000 from two of its existing shareholders .

    Read Also: Emefiele, ex-minister, 14 others indicted in CBN probe

    Via a letter dated June 3, 2022, it  informed the CBN that it had made the payment of the purchase consideration to the selling shareholders on June 1, 2022, and had thus successfully completed the acquisition of 93.41% of the issued shares of the bank.

    It  sought approval for the Mandatory Take-Over (MTO) of the remaining 6.59% of the bank’s shares vide a letter dated October 14, 2022. The MTO was triggered by the successful acquisition of 93.41% of the shares in the bank. The entity was granted a no-objection to acquire the remaining 6.59% shares vide a letter dated October 24, 2022.

    He said  on November 2, 2022, the entity  officially launched the MTO, offering to acquire the remaining shares. The MTO concluded with the entity purchasing an additional 0.64% of the issued shares of the bank , thus bringing its total shareholding to 94.05% of the bank’s issued shares. .

    Obazee said some of those behind the acquisition of the bank did not meet the requirement in Section 3 (5) of the Banks and Other financial Institutions Act. In particular, he alleged that the two groups behind the entity , both based in Dubai, have no physical presence in that country.

    He said he  contacted the Nigeria Embassy in UAE  to verify the presence of the two groups  in UAE as well  as their corporate status. It was found that these entities do not have physical presence in Dubai as claimed. This contravenes  Section 3 (5) of the Banks and Other financial Institutions Act,  2020. Accordingly, they are not supposed to be allowed to operate or acquire a bank in Nigeria.

    He said he looked into the activities of the entity and discovered that there is a mysterious shareholder who has given interest – free , long term loan (with no fixed repayment schedule) to certain  companies . This mysterious shareholder is believed to be Mr. Godwin Emefiele.

    Concerning the acquisition of the second generation bank, Obazee claimed  that Emefiele connived with some proxies.

    He said the acquisition of the bank was without evidence of payment.

    His report said: “When we carried out investigation, we discovered that some persons were used as proxies with the connivance and assistance of Mr. Godwin Emefiele and the CBN ” to acquire the bank  without evidence of payment.

    The facts from the investigation show that :

    AMCON  moved N20billion to another bank as placement sometime in 2017. On the back of that, the bank granted a loan of N25billion to the promoters of the  acquisition group  to buy the second generation bank. 

     The loan was further backed by the shares of the bank . Upon acquisition, the second generation bank returned the N20billion back to the lending bank .  Thereafter, the lending bank repaid AMCON from the cash flow so created.

    When the loan granted by the lending bank to the  acquisition group matured with outstanding balance, the MD of the lending bank (which was then in a serious liquidity crisis) called for repayment. Unfortunately for the shareholders of the bank,the acquisition group could not repay the loan. 

     Consequently, the MD of  the lending bank got his lawyers to write to the bank on two occasions — threatening to take over the second generation bank based on the shares they had pledged as security.

    After much pressure from him, the bank created internal loans of about N50billion between June and October 2019 and moved the proceeds to repay lending bank on behalf of the shareholders.

    He said before this, Emefiele,  as Governor of the Central Bank , had mounted pressure on the bank for these loans to be created within the second generation bank on behalf of their group. However the MD of the bank at that time resigned due to the consistent pressure from him and the shareholders to comply.

     He said the next in command – the Deputy Managing Director (DMD) who subsequently became the Ag. Managing Director (Ag. MD} also resigned within three months for the same reason.

    He said thereafter an Executive Director who then became Ag. MD took his vacation to avoid pressure for the approval of the loans. Unfortunately, the GM – Risk Management and GM -Corporate Banking approved the loans (about N50billion) while he was away and moved the proceeds to the  lending bank for the repayment of the shareholders’ loans.

     He said the above loans which are not being repaid currently have a total outstanding balance in excess of N64billion.

    “The Credit Approval Memoranda were passed by the two GMs to the Chairman who gave final approval for disbursement. All through that process, they bypassed the Management Credit Committee, Board Credit Committee and Full Board before disbursement. However, they were subsequently ratified. As a reward to the two GMs, they were immediately appointed Executive Directors while one of them became the MD over the Ag. MD who used to supervise him, ” he said.

    “The internal loans so created are not being serviced and have gone bad.

    How $6.23m was removed from CBN vault

    In another  damning revelation,   the Emefiele management team is said to have made a strange payment of $6.23milion from the vault of the apex bank in one day last February.

    The beneficiaries  are yet to be identified.

    Earlier snippets  from the probe about 593 foreign bank accounts allegedly operated illegally by Emefiele and others have already left many Nigerians in shock.

    It was gathered yesterday the embattled former CBN governor,a former Secretary to the Government of the Federation (SGF) and 12 top officials of the bank may face trial in connection with the payment of the $6.23milion.

    Those recommended for trial include directors, Deputy Directors, Assistant Director and Branch Controllers.

    Two suspects have been arrested in connection with what was described by the Special Investigator as “forgery, concealment, conspiracy and fraud”.

    The alleged withdrawal of the cash was committed at the Abuja branch of the CBN.

    The cash withdrawal was captured on CCTV,according to a document sighted  by our correspondent.

    The document details how the cash was withdrawn.

    It reads: “Around the date, 7th February and 8th February, 2023, the sum of  US$6.23 million was unlawfully removed from the vault cash from the Foreign Payments Office, Abuja Branch, of the Central Bank of Nigeria. The physical acts of the unlawful removal of this amount were captured on the CCTV footage which was viewed and preserved.

    “Findings show that:  A letter dated 23rd January, 2023, with a signature mark, ‘Muhammadu Buhari’, was sent to a government official with caption, ‘ Presidential Directive on Foreign Election Observer Missions’

    “The letter referred to in (i), above, trail another letter dated 26th January, 2023, with signature mark, directed to’ Mr. Godwin Emefiele, the Governor, Central Bank of Nigeria’, for payment of the sum of $6.23million as ‘ a contingent logistics advance… in line with Presidential directive.

    “A follow-up letter dated 31st January, 2023, was sent to the Governor, Central Bank of Nigeria, requesting for approval to effect payment of the sum of $6.23m.

    “The letter referred to in {iii), above, contained a signature mark and approval notation of the Governor, Mr. Godwin Emefiele, and conveying consent to pay the sum of US$6.23m.

    “The letter referred to in (iv)  above trailed a letter dated 7th February, 2023  sent to Abuja Branch, furthering process for the payment in cash of the sum of $6.23m to persons yet to be identified.”

    The document said an official took steps, procured the dollar cash, and released same to persons yet to be fully identified.

    It said another official of the CBN has admitted in a written statement that he “acted in collaboration with, an Assistant Director in the Banking supervision Department of the Central Bank of Nigeria and some persons he is yet to identify, to conceive and carry out the act of stealing the sum of $6.23million out of the vault of the Central Bank of Nigeria.

    “A fraudulent cash withdrawal of $6.23million perpetrated since February 8 2023, was not discovered nor taken seriously till the 4th of December, when a Request for Information was issued by the Office of the Special Investigator.

    “There is therefore an appearance of concealment by officers who occupied some positions up to, and around the period 7 and 8th February, 2023.”

    The Special Investigator said he suspected that the CBN under Emefiele was printing money  and converting it for its own use.

    He said huge liquidity intervention in the banking sector by the CBN from 2014 to date was not derived from the operational income stream.

    He said he also suspected that the CBN was operating secret reserves which location was known only to itself and not disclosed in the Financial Statements of the years under review.

    Another document reads: “There is no provision in any law in Nigeria where the CBN is authorized to print the national currency and convert same to its own use.

    “The financial statements of the CBN over the years do not tally with its numerous financial interventions, save as it suggests that the CBN operates secret reserves which location is only known to itself and not disclosed in the Financial Statements of the years under review.

    “For instance, the huge liquidity intervention in the banking sector by the CBN from 2014 to date was not derived from the operational income stream of the CBN.

    “ On request, the CBN officials could not show the source of this fund. It is observed that the CBN determines its financial reporting standards; it ended up mixing-up cash basis with accrual basis in its accounting system.”

    “The Bank’s Statement of Cash Flows in the audited financial statements, fail to show the source and   application of the huge banking sector intervention and other 43 intervention programmes in several trillions of Naira from 2014.

    “The overflow of this in subsequent years is indicative since the opening balance of one year is logically the ending balance of the preceding year. In situations like this, the only explanation is that money was printed by the CBN, and same was converted to its own use.”

    Outrage over CBN probe revelations

    Reacting to the revelations from the CBN probe,Professor Uche Uwaleke, Director Institute of Capital Market Studies, Nasarawa State University Keffi told The Nation that much of what transpired in the CBN was indicative of abuse of the position of the CBN governor as Chairman of the board.

    “I do not think the issue is that the former Governor invested money in foreign banks. I think it is more of a failure of corporate governance where such funds are placed without authorisation by the CBN Board. It is equally an abuse of the position of the CBN Governor as the Chairman of the Board,” he said..

    He added that “the blame goes to the external auditors of the Central Bank for not disclosing some of these infractions in their report. Part of the blame equally goes to the National Assembly for failing in their oversight functions”.

    Dr. Wahab Balogun of Ambosit Capital Managers noted that the allegations against Emefiele operating 593 accounts in foreign countries raised serious concerns and potential dangers, both for the individual and the Nigerian financial system.

    His words “Holding numerous foreign accounts while in such a powerful position raises questions about potential conflicts of interest and improper use of influence. It could suggest personal gain or attempts to circumvent financial regulations.”

    The sheer number of accounts across different countries Dr. Balogun said “makes it difficult to track transactions and raises suspicions of potential money laundering or other illicit activities and if confirmed, these allegations could severely damage the reputation of the Central Bank and the Nigerian financial system, potentially impacting investor confidence and foreign currency inflows.”

    He added: “Ordinary Nigerians rely on the Central Bank and its governor to uphold ethical standards and manage finances responsibly. Such accusations, if true, could significantly erode public trust in the institution.

    On who should be blamed for the alleged impunity, Dr. Balogun said “it requires further investigation and legal proceedings. However, various factors could have contributed to the situation like, “existing regulations and supervisory systems within the CBN or other financial institutions might be inadequate to effectively monitor and prevent such activities by high-ranking officials.

    “If Emefiele did not properly disclose these accounts to relevant authorities, it could indicate weaknesses in existing disclosure norms or intentional attempts to conceal such holdings. The powerful position of the CBN governor, coupled with potential political affiliations or influence, could have hampered effective scrutiny and accountability.

     “It’s difficult to blame the CBN Act solely for this situation. While the Act outlines regulations and ethical codes for the governor, ensuring their adherence requires a robust system of checks and balances. The effectiveness of these systems, along with individual accountability, plays a crucial role in preventing such situations.

    “Independent and transparent investigations are crucial to establish the facts, determine the legality of his actions, and identify any potential wrongdoing. If wrongdoing is proven, Emefiele should face appropriate legal consequences to uphold the rule of law and deter similar actions in the future.”

    The incident he said “necessitates a review of existing oversight mechanisms within the CBN and other financial institutions to identify and address any loopholes that allowed such activity to occur. In addition, “open and transparent communication throughout the investigation and legal process is essential to maintain public trust and confidence in the financial system.

    Also speaking on the development, Mr Gbolade Idakolo, Managing Director/CEO SD&D Capital Management Limited said: “the revelations of the special investigation ordered by the president has shown the enormous flaws in the CBN Act which gives unchallenged powers to the CBN Governor to the extent that he can easily pocket the CBN board.

    “The line of reporting of the CBN Governor directly to the President is also not adequate as CBN should have dotted reporting lines to the Ministry of Finance which should be the supervising ministry.

    “The alleged malfeasance of the CBN Governor went undetected because it was in active connivance with top presidential aides who allowed the president to approve economically damaging policies of Mr. Emefiele because of their personal gain.

    Going forward, the CBN Act he said “should be revisited by the 10th National Assembly with a view of reviewing perceived loopholes so that this kind of economic calamity would not repeat itself in the future. Based on the report allegedly submitted so far, it shows  that the former CBN Governor used his position to enrich himself and his cronies while taking advantage of the confidence bestowed on him by President Buhari.”

    Former Executive Director, Keystone Bank Limited, Richard Obire, attributed what happened to poor governance practices at the CBN during that past administration.

    He said the CBN had no active board, because the CBN governor was also the Chairman of Board.

    “I think the CBN Act should be reviewed to ensure that the CBN Governor is not also the Chairman of the Board of Directors of the bank. You can’t be a Governor and Chairman of the Board of Directors. That will help to improve oversight,” he said.

    Obire, said Senate Committee on Banking, Insurance and Other Financial Institutions should  do more on its oversight roles.

    He said that to ensure sound and effective decision-making, central banks need to have robust governance arrangements.

    According to him,  the cost of governance failures is high as seen in the disclosures by the probe panel.

    He explained that aside causing reputational damage, such failures can have a severe financial impact by giving rise to losses.

    He added that sound governance of central banks has a direct macro-economic relevance including promoting a sound economy and financial stability.

    In one of his presentations at a financial markets conference in Lagos, former CBN Deputy Governor, Operations, Tunde Lemo, said Ways and Means grew from N239 billion in 2013 to N24 trillion in 2022, pushing  inflation to 18-year high of 27.3 per cent in October 2023.

    He advised the apex bank to  drop its quasi-fiscal activities and focus on price stability.  

    Emefiele would have faced firing squad for high treason in China — Onanuga

    Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, said the revelations on how Emefiele ran the CBN would have fetched him the capital  punishment were he to be a Chinese official.

    “If Godwin Emefiele and his gang had committed these egregious misappropriations in China, they  will by now be facing the firing squad for high treason”, Onanuga said on his X handle aonanuga@1956, yesterday

    Among other infractions,  Emefiele allegedly invested public money (billions of dollars) in 593 accounts in the United States, China and the United Kingdom without authorisation.

    In the UK alone, Emefiele allegedly kept £543,482, 213 in fixed deposits without authorisation by the CBN Board and the Investment Committee.

    Also, about N1.7 trillion spent on COVID 19 intervention management did not get to the right beneficiaries.

  • Emefiele would have faced firing squad for high treason in China – Onanuga

    Emefiele would have faced firing squad for high treason in China – Onanuga

    Special Adviser to the President on Information and Strategy, Bayo Onanuga, has described the revelations on former Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, as high treason deserving of a capital punishment.

    Onanuga was reacting to revelations made by the report of the Special Investigator on CBN and Related Entities, Jim Obazee, which was made available to the media on Thursday.

    Among other infractions, it was discovered that Emefiele invested public money (billions of dollars) in 593 accounts in the United States, China and the United Kingdom without authorisation.

    Read Also: CBN probe: Emefiele used proxies to acquire bank – Investigator

    In the UK alone, Emefiele kept £543,482, 213 in fixed deposits without authorisation by the CBN Board and the Investment Committee.

    Also, about N1.7 trillion spent on COVID 19 intervention management did not get to the right beneficiaries.

    However, in a tweet on his verified X handle, aonanuga@1956, the Presidential Spokesperson said if Emefiele’s infractions had been committed in a country like China, his penalty would have been death by firing squad for high treason.

    “If Godwin Emefiele and his gang had committed these egregious misappropriations in China, they  will by now be facing the firing squad for high treason”, Onanuga said.

  • Emefiele, ex-minister, 14 others indicted in CBN probe

    Emefiele, ex-minister, 14 others indicted in CBN probe

    • Investigator’s report shows massive plunder of apex bank
    • N31.78b paid to print new naira notes
    • £543.45m fixed in British bank
    • N1.62tr COVID-19 funds unaccounted for

    Former Central Bank Governor Godwin Emefiele and a minister are to face trial over the scandal that rocked the apex bank in the last one year, it was learnt yesterday.

    After a five-month probe, Emefiele, the minister and 14 others who have been implicated in over N26.6 trillion fraud, have been recommended for trial.

    Those implicated include former and serving top officials of the apex bank.

    No fewer than 16 former government and CBN officials were alleged to have indulged in fraudulent use of ‘Ways and Means,’ which stood at N26.627 trillion.

    Also, a former influential aide of former President Muhammadu Buhari may be arraigned with Emefiele.

    In September 2022, the aide had allegedly told Emefiele to proceed with the naira redesign.

    The printing of the new notes cost N61.5 bilion out of which N31.79 billion has been paid.

    There were indications that the aide also sold a “dummy” to the former president.

    Preliminary investigations into the activities of the CBN and related entities revealed many infractions, including the violation of the apex bank’s Act, alleged looting, diversion of funds and sidelining of the Board of Directors.

    Other allegations were lack of presidential approval, extra budgetary spending, forgery, concealment, stealing, conspiracy and fraud.

    Unauthorised investments

    Some documents available to The Nation, based on the report by the Office of Special Investigator, gave insights into how the rot in the CBN was perpetrated.

    The Special Investigator on CBN and Related Entities, Mr. Jim Obazee, was appointed in July, 2023.

    He submitted an Interim Report on December 9, 2023.

    It was learnt that the final report was submitted to the President on the December 20.

    The investigations exposed what a source described as a “monumental scandal”

    Some documents, available to The Nation, contain some highlights of the first phase of the probe of accounts and operations of the CBN.

    It was discovered that Emefiele invested public money (billions of dollars) in 593 accounts in the United States, China and the United Kingdom without authorisation.

    In the UK alone, Emefiele kept £543,482, 213 in fixed deposits without authorisation by the CBN Board and the Investment Committee.

    Also, about N1.7 trillion spent on COVID 19 intervention management did not get to the right beneficiaries.

    Ways and Means

    A major breakthrough in the probe of the CBN was the manipulation of “Ways and Means” by Emefiele and his team.

    Investigations showed that the former CBN governor and those who worked with him could not produce evidence of “Ways and Means,” which now stands at N26.627trillion.

    It was found out that there were instances of arbitrariness where there was no presidential approval, but billions of Naira were taken out from the nation’s Consolidated Revenue Fund (CRF) account.

     Some of the findings were as follows: “The CBN officers and even the then Acting CBN Governor could not produce the presidential approval of most of the expenses described as “Ways and Means”.

    “When confronted to provide  the breakdown of the supposed N22,719,703,774,306.90 that was presented to the 9th  National Assembly to illegally securitise as “Ways and Means” financing, they were only able to partially explain a total of N9,063,286,720,318.92 or N9,258,040,720,318.92 (depending on which official you are considering his submission) and an  unreasonable attribution of non-negotiated/unadvised interest element of N6,678,874,321,541.97. This shows the point where the officers of the immediate past administration as well the erstwhile CBN governor and others connived, defrauded and stole from the common wealth of the country with the aid of civil servants.

    “The true position of the “Ways and Means” as documented from the reconciliation between the CBN and the Ministry of Finance at the time is N4, 449, 149, 411. 584.54. This may have been the main reason the past administration hurriedly sought that the advances of N22,719,703,774,306.90 be securitised by the 9th National Assembly on the 19th December 2022; which they also hurriedly did despite the fact that it contravenes Section 38 of the CBN Act, 2007.”

    “The probe showed that the CBN Governor on the 19th December 2022 “ signed an advice to the former President Muhammadu Buhari to restructure “Ways and Means” of N23,719,703,774,306.90, despite presenting a different figure to the National Assembly on the same date.

    “The fact that the balance of the “Ways and Means” was documented as N26.63 trillion as at June 8, 2023 by the erstwhile CBN Governor shows an unrepentant attitude of the management of the CBN because they continued to carry the “Temporary Advances to the Federal Government” as a running current account, despite the obvious contravention of Section 38 of the CBN Act, 2007, which they swore to uphold,” the document said.

    Naira redesign

    Obazee, who worked with different teams of crack detectives, also uncovered the intrigues behind the naira redesign, which almost led to the collapse of the nation’s economy.

    The outcome of the investigation confirmed that an ex-presidential aide gave the directive to Emefiele.

    Section 19(1) of the CBN Act requires that “Naira notes and coins shall be of such forms and designs and bear such devises as shall be approved by the President on the recommendation of the Board of the CBN.”

    It was unclear the circumstances under which the former presidential aide allegedly gave instructions to Emefiele.

    A document said:  “The Naira Redesign was not approved by the Board of CBN and President Muhammadu Buhari in accordance with the law. Buhari only tagged along. Sometimes in September 2022, the erstwhile Governor of the CBN claimed that during his visit to the Presidential Villa, one of the presidential aides told him to go and consider redesigning the Naira.

    “On 6th of October, 2022, Emefiele wrote Buhari seeking approval to redesign and reconfigure N1,000, N500, N200 and N100 notes. Buhari approved the proposal same day. But Buhari approved the currency be printed in Nigeria.

    “On that 6th October 2022, former President Muhammadu Buhari approved Emefiele’s request and directed that he should redesign and reconfigure the four denominations of the Naira notes as prayed, but should print them locally.

    “Emefiele did not consult with the management of the CBN or seek any recommendation from the Board of the CBN as required by Section 19 of the CBN Act, 2007.

    “Emefiele did not seek the recommendation of the Board of the CBN nor revert to former President Muhammadu Buhari to inform him nor seek his presidential approval for the new redesigns and the fact that he is now recommending only three denominations

    “Emefiele took the redesigns, a mere change of colour to De La Rue in UK for a fee of £205,000. Only N1, 000, N500 and N200 were redesigned.

    “As at August 9, 2023, N769 billion of the new notes were in circulation. The printing cost was N61.5 billion, out of which N31.79 billion has been paid.

    In a separate document, the probe confirmed the investment of billions of dollars in 593 foreign accounts in the United States, China and the United Kingdom without approval from the board or the President.

    “The former governor of the CBN invested Nigeria’s money without authorisation in 593 foreign accounts in the United States, China and the United Kingdom while he was in charge.

    “All the accounts where the billions were lodged have all been traced by the investigator, In the UK alone, Emefiele kept £543,482, 213 in fixed deposits without authorization by the CBN board and the Investment Committee of the bank,” the document added

    COVID-19 intervention funds

    Another scandal which was unearthed was the inability to trace about N1.62 trillion COVID-19 intervention funds.

    Read Also: Yuletide: Don’t think of vacation this season, we’ve burden of Nigerians on our shoulders, Shettima tells NEC

    It was discovered that “the N1,622,119,412,095.16 was surreptitiously transferred to the following individuals and organizations: Police Trust Fund(N29,750,000,000.00); Companies and individuals (N22,680, 275, 135.45); borrowed for salaries (N720, 682,827,000.00); Donations to public (N40,000,000,000.00); Office of Accountant-General of the Federation (N196, 190,789,994.72); MDAs (N303,514, 294,725.21); and others (N293,986, 243,831.39).

    Diversion of N17b by DMB

    On the Nigeria Electricity Supply Industry (NESI), the former CBN Governor was accused of unlawful manipulation of the approval of the President.

    Investigation indicated that 14 Deposit Money Banks (DMB) were involved in what is termed “criminal diversion of N17, 232,349, 193.55.

    But the list of the 14 banks was still kept under wraps as at press time.

    A source said: “We have the list which includes some rated banks. But at the appropriate time, Nigerians will know them.”

    Two of the banks are to refund over N3 billion each.

    The least amount to be refunded is N8, 902, 081 by a reputable bank.

    Also a web management firm is to refund N4.8 billion, being the sum said to have been illegally diverted from NESI Stabilisation Strategy Limited.

    Explaining what Emefiele did, the synopsis of the investigation on NESI was as follows: “The Presidential Approval granted by the then President Goodluck Jonathan was rightly stated by him that NESI should be a Company Limited by Guarantee, but the Committee of Governors misled the Board of the Central Bank of Nigeria by inter-alia:

    “Relying on a non-existent advice by the Office of the Attorney General and Minister of Justice, to incorporate a Company Limited by Shares for which the Allotted Share Capital exceeded the Authorized Share Capital (See 380% Meeting of the Committee of Governors held in January 2015); and

     ”Allotting unauthorised share capital without lawful approval by the President of the Federal Republic of Nigeria.

    Investigation also spotted illegal Issuance of Debentures by NESI Stabilisation Strategy Limited.

    “There was misrepresentation of Presidential Approval (NESI Stabilisation Strategy Limited). NESI, as approved by former President Goodluck Jonathan, was supposed to be an SPV limited by Guarantee, but Emefiele, relying on a non-existent advice, made it a company limited by shares.

    “By law, an SPV cannot issue Debentures, as it is precluded from forming a Debenture Trust. Worse still, a virgin entity without any operational track record cannot issue Debentures as it has no trading or earnings history to justify the requirements of the Debenture issue.

    “Despite these, the Committee of Governors of the Central Bank of Nigeria on the date of its Meeting of 21st  January 2015,  caused a violation of Section 31 of the CBN Act, 2007 by authorising the issuance of Debentures by NESI Stabilization Strategy Limited to which the initial sum of N64,861,954,000.00 (Sixty Four Billion, Eight Hundred and Sixty One Million, Nine Hundred and Fifty Four Thousand Only), was diverted from Public Funds under the guise of Debenture issuance. This practice has grown to N952,414,745,000 (Nine Hundred and Fifty Two Billion, Four Hundred and Fourteen Million, Seven  Hundred and Forty Five Thousand Naira Only) by the Financial Year end 2021”, the document added.

    “N1.325billion was stolen pre-incorporation and the money was funneled to four companies, including a legal firm which got N300 million.”

    The note on the allegations against some banks read: “A total of 14 DMBs engaged in the manipulation by unlawfully arranging and collecting 1.9535 percent of the total disbursements paid to the DMBs participating in the Nigerian Electricity Market Stabilisation facility.

    “The fees are paid to the banks in the ratio of their contributions to the NEMSF disbursement, according to External Auditor’s Notes to the Financial] Statement of NESI Stabilisation Strategy Limited.”

    Also, a firm linked with some CBN officials was paid N4, 897,789,000 allegedly “illegally diverted from NESI Stabilisation Strategy Limited.”

  • Fundamental rights: Court sets January 8 for judgment in Emefiele’s suit

    Fundamental rights: Court sets January 8 for judgment in Emefiele’s suit

    A High Court of the Federal Capital Territory (FCT) in Maitama has scheduled January 8 for judgment in the fundamental rights enforcement suit filed by former Central Bank of Nigeria (CBN) Governor Godwin Emefiele.

    Justice Olukayode Adeniyi chose the date after lawyers to the parties in the case made their final submissions.

    Justice Adeniyi said he would, along with the judgment, deliver ruling on the preliminary objections filed by all the four respondents in the suit.

    Listed as respondents in the suit are: the Federal Government, the Attorney-General of the Federation (AGF), the Economic and Financial Crimes Commission (EFCC), and its Executive Chairman.

    Emefiele is praying the court for, among others, an injunction restraining the respondents from further arresting and/or further detaining him upon his release by the court without preferring a criminal charge against him.

    He also sought damages of N1 billion in his favour for the violation of his fundamental rights.

    On Monday, Emefiele’s lawyer, Mathew Burkaa (SAN), averred that his client was detained for 151 days as against the 48 hours allowed by the Constitution.

    Burkaa faulted the argument by the Federal Government and the AGF that the deponent to Emefiele’s affidavit in support of the originating summons, Dr. Okanta, never had any contact with the applicant.

    He said the deposition by the respondents showed that the Federal Government held his client incommunicado.

    Burkaa said the development was an enough basis for the court to enter judgment in Emefiele’s favour, adding that every Nigerian deserved the court’s protection.

    Read Also: Emefiele’s Naira redesign policy made farmers bankrupt, says FG

    He also told the court that Emefiele’s rights had been violated and that the former CBN governor was apprehensive of being arrested again, going by the antecedents of the respondents.

    Lawyer to the Federal Government and the AGF, Oyin Koleosho, prayed the court to dismiss the suit for lacking in merit.

    Koleosho said his clients’ opposition to the suit was based on the authority and the source of information of the deponent to the affidavit in support of the originating application.

    He averred that Emefiele was transferred to the custody of EFCC on October 26, while the application was filed on October 31, saying that between that period there was no contact or communication between Emefiele and the deponent.

    Koleosho, a lawyer from the Federal Ministry of Justice, added that in Emefiele’s further and better affidavit, there was nowhere a reference was made to the time, date, and venue where the applicant and the deponent met, submitting that this rendered the deposition incompetent.

    Lawyer to the EFCC and its Chairman, Farouk Abdullah, also prayed the court to dismiss the suit, arguing that it is misconceived and filed in bad fate.

  • Emefiele’s Naira redesign policy made farmers bankrupt, says FG

    Emefiele’s Naira redesign policy made farmers bankrupt, says FG

    The federal government  on Monday, December 11 expressed concern that the Naira re-design policy implementation by the Central Bank of Nigeria (CBN) from December 15, 2022, to early February this year resulted in financial hardship for farmers, pushing them into bankruptcy.

    In a similar manner, federal lawmakers declared that the rate of hunger and famine in the land has resulted into deaths of the poor in rural areas.

    Lamentations on effects of the controversial naira redesign which later landed the initiator, Emefiele in detention since June this year and hunger arising from insecurity, came to the fore, during budget defence session the Honourable Minister of  Agriculture  and Food Security, Senator Abubakar Kyari had before the National   Assembly joint committee on Agriculture.

    In his presentation before the joint committee chaired by Senator Saliu Mustapha (APC – Kwara Central), the Agric Minister said the focus of the 2024 budgetary proposals for the sector is to achieve food security in the country which.

    According to him, several factors like insecurity and naira re-design policy carried out about a year ago, impoverished the farmers and severely threatened food security in the country .

    “The cash crunch caused by the Naira re-design , made most of the farmers sold their farm produce at give away price for survival , since buyers couldn’t access cash to buy the produce from them.

    “The policy which coincided with harvest season , ended rendering the farmers empty financially,” he said.

    In their separate remarks at the session, Hon Dahiru Ismaila Haruna from Toro Federal Constituency in Bauchi State and Hon Ademorin Kuye from Shomolu Federal Constituency , Lagos State, raised the alarmed on urgent need by the federal government to address the high rate of hunger in the country largely caused by insecurity.

    Read Also: Contractors plotting to frustrate use of concrete for roads – Umahi

    Hon Haruna in his remarks said ” Hon Minister , being from the North East , the picture i’m about to paint shouldn’t be stranged to you at all.

    “The pathetic picture of people dying of hunger on daily basis while majority of those surviving , feed once a day .

    “Making it worrisome is the fact that even people from neighbouring countries like Chad, Niger, Benin Republic and Central Aftrica , are trooping in to mop up the little food  , signalling total famine in the area if not urgently addressed by stockpilling the silos.”

    But Hon Ademorin in his own remarks , wrote off the silos by putting it to the Minister that most of the silos built by President Jonathan administration, are alleged to be concession for N20million each.

    The Minister however in his response , assured the lawmakers that all issues raised are being addressed and would be decisively addressed in the 2024 fiscal year.

    Kyari said food security is the number one out of the 8- point agenda of President Bola Tinubu administration and that the Ministry has repositioned it self for actualization of the agenda.

    According to him , some of the action plans already being implemented to ensure food security in the country aside securing of the farmlands by security agencies are ” certification of available planting materials for some food security crops in readiness for dry season farming.

    “Reviewing the mechanisms and processes for delivering fertilizers and agro pesticides input to farmers under a transparent and accountable regime.

    “Fast-track the take off and operations of the National Agricultural Development fund.

    “Implement  a joint action    plan with the Federal Ministry of Water Resources to unlock the huge irrigation potentials of the River Basins Development Authorities and other flood plains in the country to guarantee all year round food production etc.”

    He earlier in his submission told the committee members that for the 2024 fiscal year, a total of N362.940billion was earmarked for the sector out of which n124.1billion is for the Ministry.

    The breakdown of the N124.1billion according to him, shows that N10.6billion is for personnel cost, N1.34billion for overhead and N112.497billion for capital expenditure.

  • Court sets January 8 for judgment in Emefiele’s fundamental rights suit

    Court sets January 8 for judgment in Emefiele’s fundamental rights suit

    A High Court of the Federal Capital Territory (FCT) in Maitama has scheduled January 8, 2024, for judgment in the fundamental rights enforcement suit by former governor of the Central Bank of Nigeria (CBN), Godwin Emefiele.

    Justice Olukayode Adeniyi chose the date on Monday after lawyers to parties in the case made their final submissions.

    Justice Adeniyi said he will, along with the judgment, deliver ruling on the preliminary objections filed by all the four respondents in the suit, marked: FCT/HC/CV/040/2023

    Listed, as respondents int the suit, are Federal Government; Attorney-General of the Federation (AGF); the Economic and Financial Crimes Commission (EFCC) and its Executive Chairman.

    Emefiele is praying the court for among others, an injunction restraining the respondents from further arresting and or further detaining him up on his release by the court without proffering a criminal charge against him.

    He also sought damages of N1 billion in his favour for the violation of his fundamental rights.

    On Monday, Emefiele’s lawyer, Mathew Burkaa (SAN) noted that his client was detained for 151 days as against the 48 hours allowed by the Constitution.

    Burkaa faulted that argument by the Fed Govt and the AGF that the deponent to Emefiele’s affidavit in support of the originating summons, Dr Okanta never had contact with the applicant.

    Read Also; Contractors plotting to frustrate use of concrete for roads – Umahi

    He said the position by the respondents showed that the Federal Government held his client incommunicado.

    Burkaa said the development was enough basis for the court to enter judgment in Emefiele’s favour, adding that every Nigerian deserved the court’s protection.

    He further told the court that Emefiele’s rights had been violated and the former Governor of the CBN was apprehensive of being further arrested going by the antecedents of the respondents.

    Burkaa noted that Emefiele’s further harassment by agents of the respondents, may eventually affect Emefiele’s life.

    He urged the court to grant his client’s prayers and award damages in his favour.

    Lawyer to the Fed Govt and the AGF, Oyin Koleosho prayed the court to dismissed the suit for lacking in merit.

    Koleosho said his clients’ opposition to the suit was based on the authority and the source of information of the deponent to the affidavit in support of the originating application.

    He noted that Emefiele was transferred to the custody of EFCC on October 26, while the application was filed on October 31, saying that between that period there was no contact or communication between Emefiele and the deponent.

    Koleosho, a lawyer from the Federal Ministry of Justice, added that in Emefiele’s further and better affidavit, there was no where reference was made to the time, date and venue where the applicant and the deponent met, submitting that this rendered the deposition incompetent.

    Lawyer to the EFCC and its Chairman, Farouk Abdullah equally prayed the court to dismiss the suit, arguing that it is misconceived and filed in bad fate.

    Abdullah told that court that Emefiele was brought to EFCC custody on October 26 and the commission obtained a remand order on October 27 to detain him for 14 days.

    The EFCC lawyer said while he would not trivialise the activities of the Fed Govt, there were different ministries, departments and agencies with different mandates.

    Abdullah noted that Emefiele, in his originating application, claimed that some infractions were committed by the Department of State Services (DSS) and that the DSS ought to have been made a party to the case.

  • Court to deliver judgment in Emefiele’s fundamental rights Jan 8

    Court to deliver judgment in Emefiele’s fundamental rights Jan 8

    Justice Olukayode Adeniyi of an FCT High Court on Monday fixed Jan 8, to deliver judgment in the enforcement of fundamental rights suit filed by the suspended Central Bank of Nigeria (CBN) governor, Godwin Emefiele.

    The judge fixed the date after listening to arguments canvassed for and against the suit by parties .

    He equally reserved ruling in the preliminary objections filed by all the four respondents in the suit, marked FCT/HC/CV/040/2023

    The embattled Emefiele had dragged the Federal Government, the Attorney-General of the Federation (AGF), Executive Chairman, Economic and Financial Crimes Commission (EFCC) and the Commission before the court to enforce his fundamental rights to life, personal liberty, fair hearing and freedom of movement.

    Emefiele sought a declaration of the court that his continued detention by the agency of the first and second respondents since June 10, 2023 and subsequent transfer to the custody of the third and fourth respondents on October 26, 2023 without being arraigned in court is unlawful.

    He said the respondents in deviance of several valid subsisting court orders for his release amounts to a grave violation of his fundamental rights to life, personal liberty, as guaranteed by the 1999 Constitution of Nigeria (as amended) and the African Charter on Human and Peoples’ Rights.

    He, therefore, among others sought an injunction restraining the respondents from further arresting and or further detaining him up on his release by the court without proffering a criminal charge against him.

    He also sought damages of N1 billion in his favour for the violation of his fundamental rights.

    Earlier, counsel for Emefiele, Mathew Burkaa SAN, told the court that the applicant was detained for 151 days contrary to the law stipulating 48 hours.

    He therefore urged the court to enter judgment and award damages in his client’s favour.

    Burkaa submitted that the assertion of the first and second respondents challenging the authority of the deponent to Emefiele’s affidavit in support of the originating summons showed more.

    He claimed that the deponent, Dr Okanta Emefiele, never had any meeting with the applicant to make the deposition showed that the Federal Government held him incommunicado.

    According to him, this is enough basis for the court to enter judgment in Emefiele’s favour, submitting that every Nigerian deserved the court’s protection.

    He further argued that Emefiele’s rights had been violated and the he was apprehensive of being further arrested going by the activities of the respondents.

    The applicant’s further harassment by agents of the respondents, Burkaa submitted, may eventually affect Emefiele’s life.

    Responding, counsel for the first and second respondents, Oyin Koleosho, SAN urged the court to dismissed the suit for lacking in merit.

    He submitted that the government’s opposition to the suit was based on the authority and the source of information of the deponent to the affidavit in support of the originating summons.

    Hecsaid that Emefiele was transferred to the custody of EFCC on Oct, 26, while the application was filed on October 31.

    He added that between that period there was no contact or communication between Emefiele and the deponent.

    He further submitted that in Emefiele’s further and better affidavit, there was no where reference was made to the time, date and venue where the applicant and the deponent met.

    He submitted that this rendered the deposition incompetent.

    Read Also: No attempt to forcefully remove Emefiele from correctional centre, says NIS CG 

    Counsel for the third and fourth respondents, Farouk Abdullah, prayed the court to dismiss the suit for being misconceived and brought in bad fate.

    He informed the court that Emefiele was brought to EFCC custody on Oct. 26 and the commission obtained a remand order on October 27 to remand the applicant for 14 days.

    He said while he would not trivialise the activities of the Federal Government, there were different ministries, departments and agencies with different mandates.

    According to him, Emefiele in his originating summons made certain allegations in which he alleged some infractions were made by the Department of State Service (DSS).

    He added that the DSS ought to have been brought into the suit.

    Earlier, counsels for the respondents had argued their respective preliminary objection against the suit brought before the court by the Emefiele.

    (NAN)

  • No attempt to forcefully remove Emefiele from correctional centre, says NIS CG 

    No attempt to forcefully remove Emefiele from correctional centre, says NIS CG 

    The Controller General of the Nigeria Correctional Service (NCS), Haliru Nababa, has said the Department of State Services (DSS) and the Economic and Financial Crimes Commission (EFCC) never attempted to forcefully abduct former Central Bank of Nigeria (CBN) Governor Godwin Emefiele from the Correctional Centre at Kuje in Abuja.

    Nababa said this when he appeared before the House of Representatives Committee on Public Petitions yesterday at the National Assembly in Abuja.

    His clarification followed a petition filed by the Centre for Social Justice, Equity and Transparency, alleging that the EFCC and DSS attempted to forcefully remove Emefiele from custody.

    House Committee Chairman Mike Etaba dismissed the petition on the grounds that it was sub judice when it came up yesterday for first hearing.

    Also, EFCC’s Director of Legal and Prosecution Department, Silvanus Tahir (SAN), said it was inappropriate to entertain the petition as it bordered on a subsisting court matter.

    Nababa, who was represented by the Assistant Controller-General in Charge of Operations, Nwakeze Emmanuel, said: “As far as we are concerned, we are not aware of any alleged attempt to forcefully release Emefiele. He is still in our custody, bubbling.”

    Responding, Etaba said: “This matter is in court. We can’t forge ahead with this matter because it is sub judice to us. This matter is hereby dismissed from this committee.”

    Tahir had said: “The petition, which we perused, borders on a pending court case. There is a subsisting criminal charge against Mr. Emefiele on whose behalf the petitioners have petitioned.” 

    “I am wondering if it is appropriate, given the fact that it borders on a subsisting court matter, for this committee to, by way of public hearing, delve into the matter, more so that Mr. Emefiele is ably represented by very senior lawyers in this matter, including Senior Advocates of Nigeria (SANs), and this petition did not emanate from them.

    Read Also: No attempt by EFCC, DSS to forcefully abduct Emefiele – NCS clarifies

    “In any event, we believe that if the allegations have substance, as the petitioners would want this committee to believe, it would have been ventilated before the honourable court before which this case is pending, because they are alleging a case of contempt. 

    “If it is a case of contempt, as it is being alleged, I thought the appropriate forum to ventilate that issue should be before the honourable court other than bringing it before this committee, given the sub judice nature of this case.

    “The court made an order admitting him to bail on conditions which, to the best of our knowledge, is yet to fulfill the bail condition. 

    “The correctional centre can confirm that he (Emefiele) is in their custody, ostensibly because of the reason of non-fulfillment of the bail condition.”

  • I didn’t go to Kuje to visit Emefiele – Ooni

    I didn’t go to Kuje to visit Emefiele – Ooni

    The Ooni of Ice, Oba Adeyeye Ogunwusi, has refuted reports that he visited embattled former Governor of the Central Bank of Nigeria (CBN) Godwin Emefiele at Kuje jail.

    The monarch’s spokesperson, Moses Olafare, told reporters on Wednesday that Oba Ogunwusi was at the prison on behalf of Hopes Alive Initiative, HAI, a non-governmental organisation that supports the prison owned by Queen Temitope, one of his wives.

    In honour of the Ooni’s eighth anniversary, he added, the programme, which was organised in collaboration with the Kuje correctional administration, focused on providing hope to prisoners regarding their reintegration into society after serving their sentences.

    “The intent of those spreading the news was to blackmail the monarch; there is nothing hidden about the event. In any case, the king never met Emefiele because it was an official event organised by the NGO in conjunction with the Kuje Correction Centre.

    Read Also: Why sanctions on Republic of Niger should be lifted, by Senator Ndume

    “The programme centres around giving hope to the inmate that, after serving out their terms, they still have hope to reintegrate back to the society. The Arole Ooni was invited to chair the event in commemoration of his eighth anniversary on the throne.

    “What is exclusive about a public programme where different public figures spoke and representatives of the inmate also spoke? How then did the Ooni manage to meet Emefiele?

    “We must be careful with how people spread falsehoods about people. The video of the event is available to the public. I am not even sure Emefiele attended the programme because he is only in detention and not an inmate yet, so why link the programme to Emefiele? It is simply to achieve  blackmail,” he stated.

  • Emefiele to seek N300m bail variation

    Emefiele to seek N300m bail variation

    Former Central Bank of Nigeria (CBN) Governor Godwin Emefiele is planning to approach the court for the variation of the N300 million bail granted him by a High Court of the Federal Capital Territory (FCT), The Nation has learnt.

    The plan followed the inability of the immediate-past apex bank boss to perfect the bail conditions.

    Emefiele had, on November 17 pleaded not guilty upon his arraigned on a five-count charge, marked: CR/577/2023, in which he is accused of “conferring corrupt advantage” contrary to Section 19 of the Corrupt Practices and other Related Offences Act 2000.

    On November 22, Justice Hamza Muazu gave a ruling in which he granted bail to Emefiele at N300 million with two sureties in like sum.

    Justice Muazu ordered him to   produce two sureties, who must have landed property in the Maitama District of the FCT.

    Justice Muazu said the sureties must present the property’s certificate of occupancy (C of O) in court for the purpose of verification.

    The judge, who ordered that Emefiele must not leave the court’s jurisdiction, directed him to deposit all his travel documents with the court, adding that he must always obtain the court’s permission before engaging on any trip outside the country.

    But, as at yesterday, it was learnt that he was still being held in Kuje correctional facility in Abuja owing to his inability to meet all the contractors attached to the bail.

    A member of his legal team confirmed that efforts were on to get him out before the week runs out.

    Read Also: Why Emefiele remains in detention in spite of bail

    The counsel said: “Yes. We are still on it. We hope to conclude on the bail issue before the week runs out.

    “But, we will be asking the court for a variation in respect of one of the bail conditions where he was restricted to the court’s jurisdiction.”

    At his last appearance in court on November 28, the former CBN governor was brought by heavily armed prison officials, who also took him away after proceedings.

    The prosecution opened its case its case on that day by calling three witnesses – Shamsudeem Abulili, an official of the Corporate Affairs Commission (CAC), Remigious Ugwu, a Compliance Officer with Zenith Bank Plc and Oluwole Owoeye, who is a Deputy Director, Banking Services with CBN and former Secretary to Major Contract Tendering Committee (MCTC) of the apex bank – who were also cross-examined.

    Further trial in the case is scheduled to resume on January 18 next year.