The Nation Newspaper

Tag: Oronsaye

  • Oronsaye, others diverted N14bn pension funds using phoney names, contracts – witness

    Oronsaye, others diverted N14bn pension funds using phoney names, contracts – witness

    Trial opened yesterday in the case against ex-Head of Service of the Federation (HOSF), Steve Oronsaye and some others before the Federal High Court, Abuja with a prosecution witness giving details of how the defendants allegedly diverted 14billion pensioners’ fund using phoney names and contracts.

    This is the second case involving Oronsaye, as he is also being tried before Justice Olasumbo Goodlcuk of the High Court of the Federal Capital Territory (FCT), Maitama, Abuja for allegedly exploiting his position as Chairman of the Presidential Committee of Financial Action Task Force (PCFATF), under President Goodluck Jonathan, to divert about N382.9m, using a secret account in Access Bank.

    Oronsaye, Osarenkhoe Afe and three firms are being tried before the Federal High Court on a 35-count charged in which they were accused among others, of engaging in illegal acts of “conducting procurement fraud by means of fraudulent and corrupt act on the contract of biometric enrolment”.

    The firms are: Fedrick Hamilton Global Services Limited (believed to be owned by Afe), Cluster Logistic Limited, Kangolo Dynamic Cleaning Limited, and Drew Investment & Construction Company Limited.

    Testifying yesterday in the case before the Federal High Court, an operative of the Economic and Financial Crimes Commission (EFCC) Rouqayya Ibrahim gave details of how Oronsaye and others allegedly diverted states funds using about 66 illegal bank accounts.

    Ibrahim said Oronsaye and others effected the alleged diversion through payments to “ghost” pensioners and disbursements of funds for non-existing contracts.

    The witness said the defendants also engaged in payments of non-existing allowances to fake members of staff and to the National Union of Pensioners and Association of Federal Civil Service Retirees.

    Ibrahim was led in evidence by prosecution lawyer, Adebisi Adeniyi. She added that aside a company – Innovative Solutions Uptrach Communications Limited – which executed “a semblance” of a contract awarded, other firms were paid for non-existing jobs.

    The witness said: “Sometimes in 2010, the EFCC was invited amongst other organisations, including ICPC (the Independent Corrupt Practice and other related offences Commission) and the DSS (Department of State Service) by the Head of Service of the Federation for verification of pensioners.

    “During the course of that verification, my colleagues who were doing the verification, discovered payment mandates for payment of pensioners bearing 32 names for the amount of over N94m as pension which was suspicious to them.

    “And, based on that, they required further information concerning the mandate and statement of account from the Head of Service of the Federation. It was discovered that indeed that some of the names on the list were fake pensioners.

    “Based on that, the EFCC constituted a pension fraud team to properly investigate the activities of the Head of Service in respect of pension payments.

    “I was drafted to be a member of the team including 10 other colleagues of mine. We wrote letters to all the existing banks at that time, about 32 of them, to furnish us with the statements of account operated by the Head of Service for payment of pensions and also payment mandates.

    “Based on the replies from the banks and from Accountant General’s office, we discovered that the Head of Service was operating 66 illegal accounts.

    “We also discovered that there were five basic modus operandi used by officials of the pension office to siphon pension funds from the accounts.

    “What our investigation established generally was that about N14bn was siphoned from the pension fund by the Head of Service.

    “The modus operandi I earlier mentioned were, non-existent collective allowances, where the suspects, some of whom are already standing trial in other courts will request for account numbers usually of staff or associated persons and the allowances will be paid into the accounts which will then be withdrawn in cash and give it to whoever asked them to present the account.

    “We also discovered illegal and non-existent contracts, specifically biometric enrolment contracts without the companies executing any contracts.

    “We also had ghost pensioners where names were inserted into the pension table and payments were made to them even when they were not pensioners.

    When she made move to use chart to demonstrate how the defendants allegedly perpetrated the fraud, the defence, represented by Oluwole Aladedoye, objected.

    Ruling, Justice Gabriel Kolawole upheld Aladedoye’s objection on the ground that since Adeniyi said he did not intend to tender the document, which bore Oronsaye’s photographs, allowing the witness to use it in the course of her evidence would not serve any purpose.

    The judge also held that the procedure of using the chart to demonstrate her evidence was unknown to law, adding that the situation envisaged under section 239 of the Evidence Act, whereby a witness could be allowed to use a document to refresh his or her memory had not arisen.

    Justice Kolawole held that by previous decisions of the Supreme Court and provisions of section 28 and 29 of the Evidence Act, the court had no choice but to order a “trial within trial”.

    He adjourned to June 21 for the trial-within-trial.

    When she resumed her evidence without the chart, Ibrahim referred to a confessional statement by Afe, but was halted Justice Kolawole, who said he would not record the witness’ oral evidence in relation to the statement unless it was first tendered and admitted as exhibit.

    But, when Adeniyi attempted to tender the statement, Aladedoye opposed the admissibility of the statement, arguing that it was obtained from his client under duress.

    Aladedoye said, apart from the November 24, 2011 statement, the two others made by Afe on February 24, 2011 and on March 16, 2011, were obtained through “oppression”.

    He stressed that “they (the two statements) were made through oppression. The second defendant was induced, threatened, harrassed to make this statements.”

    Aladedoye urged the court to order a trial-within-trial to test th authenticity of the statement And to enable him demonstrate how his client was allegedly compelled to admit to the charge.

     

  • How Oronsaye diverted public funds, by witness

    How Oronsaye diverted public funds, by witness

    A High Court of the Federal Capital Territory (FCT) in Maitama, Abuja heard yesterday how former Head of Service of the Federation (HOSF), Steve Oronsaye allegedly diverted public funds for personal use.

    An operative of the Economic and Financial Crimes (EFCC), Hamman Adama Bello, who gave details of the alleged diversion by Oronsaye, also told the court that the ex-HOSF invested public funds for personal benefit, without du authorisation.

    Bello, who accused Oronsaye of receiving N45million from the office of the national Security Adverser (NSA) while Sambo Dasuki was in office, also told the court how former Finance Minister, Ngozi Okonjo Iweala overruled Oronsaye’s suggestion to ex-President Goodluck Jonathan to direct some government agencies to fund the activities of the Presidential Committee of Financial Action Task Force (PCFATF), which he (Oronsaye) headed.

    The EFCC official, who testified at the resumed hearing in Oronsaye’s trial, was led in evidence by lead prosecution lawyer, Offen Uket.  He told the court that Oronsaye allegedly made false representation to some government agencies, from which he got funds which he converted to personal uses.

    Oronsaye is facing a seven-count  amended charge in which he is among others, accused of criminal breach of trust for allegedly converting about N382.9m belonging to the PCFATF to his personal use while he headed it between between 2013 and 2015.

    The prosecution alleged that Oronsaye sourced about N382.9m from the Central Bank of Nigeria (CBN) and the office of the NSA in the name of the PCFATF and deposited it in a secret account with Access Bank Plc, without the knowledge of other members of the committee.

    Oronsaye was said to have invested the money at  between 9 and 9.5 per cent interest rate in the said secret account which he allegedly opened and operated unilaterally as the sole signatory, without the knowledge of other members of committee.

    The prosecution said the only account of the PCFATF known to all members of the committee and which Oronsaye and the then Secretary to the committee, Jalal Arabi (now Permanent Secretary, Presidential State House) were its co-signatories, was the one kept with Zenith Bank Plc.

    By his alleged acts Oronsaye is said to have committed offences contrary to Section 311 and punishable under Section 315 of the Penal Code Act.

    In his testimony yesterday, Bello said Oronsaye made request for additional funding from the CBN, without the knowledge of members of his committee, even when there was no need for such additional funds.

    Bello said: “Again, the defendant (Oronsaye) forwarded a request for more funding, but suggested to then President Goodluck Jonathan that the regulatory agencies, like the CBN, Security and Exchange Commission (SEC), Nigeria Deposit Insurance Corporation (NDIC), and others, who will, in turn be the beneficiaries of the committee’s work, should be made to fund the activities of the committee. The defendant failed to mention to the President the fact that he had already received some funds from the CNB.

    “The then Minister of Finance, Dr. Ngozi Okonjo-Iweala was asked to advise the President. Investigation revealed that she clearly disagreed with the position of the defendant and advised that the committee should be funded from the Presidency, while the remnant of their request be forwarded to the Budget Office.

    “Investigation showed that money was never a problem for the committee as shown by the account statement of the committee’s account with Zenith Bank Plc. But even with this, the defendant made sure whenever a problem was solved for the committee by the Presidency, he presented the same problem to the CBN to address and get parallel funding in the Access Bank account,” Bello said.

    The witness, who said investigation also revealed that the account Oronsaye allegedly opened secretly in Access Bank, and into which he paid funds from others sources other than the Presidency, was operated by him and his personal aides.

    He said the committee was well funded by the Presidency, through the office of the Accountant General of the Federation (AGF) to the extent that it lacked nothing, a development that made his investigating team to conclude that Oronsaye’s request to the CBN “was not only improper, but fraudulent.”

    The witness said further investigation revealed that Oronsaye wrote on March 25, 2013 to the CBN, requesting for N164,525,000 an amount similar to the committee’s budget for the year, which the Presidency had approved and disbursed to the committee in full.

    On how Oronsaye allegedly disguised his operation of the Access Bank account, the witness said he utilised the services of his personal aides, who made withdrawals on his behalf.

    Attempt by the prosecution to tender the letter from the SGF was rejected by the defence led by Kanu Agabi (SAN).

    Trial judge, Justice Olasunbo Goodluck in a ruling upheld Agabi’s objection to the admissibility of the document and rejected it. The judge  adjourned further hearing to June 28.

     

  • Group: Oronsaye being persecuted

    Group: Oronsaye being persecuted

    A non-governmental organisation, the Integrity Group, has alleged persecution in the ongoing trial of former Head of Service of the Federation (HOS), Mr Steve Oronsaye.

    According to the group, Oronsaye’s report which recommended the merger of the Economic and Financial Crimes Commission (EFCC) with other anti-graft agencies, is the reason he was targeted.

    National Coordinator of Integrity Group, James Alo and secretary, Aliu Sanni, said the report of the Presidential Committee on the Rationalisation and Restructuring of the Civil Service, which Oronsaye chaired, proposed the merger of the EFCC with the Independent Corrupt Practices Commission (ICPC) and an autonomy of the Nigerian Financial Intelligence Unit (NFIU) in line with Nigeria’s agreement with international anti – graft and anti-money laundering agencies.  The NFIU is currently a unit in the EFCC.

    The statement wondered why the EFCC would exhume a case which had been investigated and which cleared Oronsaye of any wrong doing.

    “The EFCC had concluded its investigation as far back as 2010 while the suspects were also arraigned in 2011 and even got judgment against one of the suspects in 2013 before the commission reopened the case based on ‘additional statement from a witness’. We wonder at the desperation of EFCC to punish this man”.

    The Integrity Group recalled that Oronsaye was, “the one that started the investigation into pension fraud when he was Head of Service, he was also the one that set up the Pension Reform Task Force team. He was the one that submitted the report of the task force to the EFCC and the ICPC for further investigation, if he was guilty, would he now want to expose himself by inviting the agencies to conduct further investigations?”.

    The group urged the federal government to protect “those who are being persecuted” and heed the advice of Catholic archbishop of Abuja, John Cardinal Onaiyekan that the anti-corruption war should not be seen as a persecution of people who stepped on powerful toes while in government.

  • Oronsaye got N50m from Dasuki’s $2.1bn arms funds — Witness

    Oronsaye got N50m from Dasuki’s $2.1bn arms funds — Witness

    A High Court of the Federal Capital Territory (FCT) in Maitama, Abuja was told yesterday that former House of Service of the Federation (HOSF) got N50m from ex-National Security Adviser (NSA), Sambo Dasuki, from $2.1billion set aside for the procurement of arms by the Goodluck Jonathan government.

    An operative of the Economic and Financial Crimes Commission (EFCC), Hammaadama Bello, said this yesterday while testifying as prosecution witness in Oronsaye’s trial for allegedly diverting public funds.

    Bello mounted the witness box shortly after the prosecution rearraigned Oronsaye on a seven-count amended charge of criminal breach of trust, to which he pleaded not guilty.

    He was first arraigned on March 15, 2016 on a two-count charge of criminal breach of trust, in which he  was accused of exploiting his position, as the Chairman of the Presidential Committee on Financial Action Task Force (PCFATF) between 2013 and 2014 to convert the committee’s N190m for personal use.

    In the amended charge, Oronsaye was said to have converted a total N382.9m belonging to the committee to his personal use between 2013 and 2015.

    Oronsaye was said to have sourced the N382.9m from the Central Bank of Nigeria (CBN) and the Office of the National Security Adviser (ONSA) in the name of the PCFATF and deposited it in a secret account with Access Bank Plc without the knowledge of other members of the committee.

    The prosecution alleged that Oronsaye invested the money, at nine per cent interest, in the secret account, which he allegedly opened and operated unilaterally, as the sole signatory, and without the knowledge of other members of the committee.

    The prosecution said the only account legitimately operated by  the PCFATF, which was  known to all members, with Oronsaye and the then Secretary to the committee, Jalal Arabi as co-signatories, was the one with Zenith Bank Plc. Arabi now serves as the Permanent Secretary, Presidential State House.

    Oronsaye’s alleged offences are said to be contrary to Section 311 and punishable under Section 315 of the Penal Code Act.

    Led in evidence by prosecution lawyer, Offem Uket, Bello said Oronsaye collected N50m from Dasuki in the name of the PCFATF and made five “structured lodgments of N9m each” amounting to N45m into the Access Bank account.

    “We first investigated the structured lodgments and our finding was that the money came from the former NSA, Sambo Dasuki, and because I’m part of the Special Task Force that is investigating the arms deal, we have seen it in clear terms that the N50m was part of the arms scam money.

    “The money was given to the defendant cash. But in an effort to disguise and conceal the amount that was received, the money was split to N9m, amounting to N45m and was paid into the Access Bank account.

    “This was to circumvent the anti-money laundering rule of the bank and against the banking rules.

    “The defendant has also admitted to have received this money in cash and lodged same in the Access Bank account.

    “Investigation at this point has been proved that the Access Bank account was only known to the defendant and the defendant alone,” he said.

    Bello told the court that his agency was moved into investigating Oronsaye by a petition the commission received in 2015. He said they were unable to locate the author of the petition.

    He said a five-man investigative team headed by Ngunnan Kakwagh, that investigated the petition, wrote letters to the Access Bank Plc, Zenith Bank Plc and the CBN.

    “While the first account with Access Bank had a sole signatory, the second has two signatories – Mr. Stephen Oronsaye as Chairman of the committee, with his international passport attached and his phone number clearly stated.

    “He (Oronsaye) was tagged as Signatory A and Mr. Jalal Arabi was Signatory B and referred to as the Secretary of the committee. Both are to sign, which means A cannot sign without B and B cannot without A.

    “On the other hand, Access Bank account had a signatory. Investigations have also revealed that such accounts are not to be run with only single signatory,” Bello said.

    Another prosecution witness, an Assistant Manager in the Marketing Department of Zenith Bank Plc, Musa Gulani, said the regular practice was for a government agency or committee to operate accounts with at least two signatories.

     Under cross-examination by Oronsaye’s lawyer, Ade Okeaya-Inneh (SAN), Gulani confirmed that there were withdrawals from the account. He said he did not know the purpose for which the withdrawals were made.

    Trial judge, Justice Olasumbo Goodluck, has adjourned further hearing in the case to June 13.

  • Group: why Oronsaye’s trial should be reconsidered

    A non-Governmental Organisation (NGO), the Integrity Forum, has given reasons why the trial of former Head of Service of the Federation (HoS), Mr Steve Oronsaye, should be dropped.

    The group said “key figures during the public hearing on corruption in the pension office exonerated the former HoS while the senate committee equally absolved him of any wrong doing”.

    As a result of this, “he deserves to be commended for his service to the country rather than be put on trial.”

    The group’s statement, signed by National coordinator James Alo and Secretary Aliu Sanni, alleged that its review of circumstances surrounding the entire case against Orosanye “smacks of vendetta and a bid to punish him for no just cause.”

    The Integrity Forum traced Orosanye’s travail to his time as HoS when he made effort to reform the pension scheme which was then rife with high level corruption and in the process stepped on powerful toes.

    The group recalled that on assumption of duty as HoS,  Orosanye begun an exercise aimed at saving cost, eradicating and eliminating ghost pensioners. “To this end, he instituted an exercise to carry out physical verification and biometric capture of pensioners across the country”.

    It added that Orosanye’s aim was to also ensure  that a seamless e-payment system was put in place, “to ensure that new pensioners who had never received pension were also captured electronically to ensure ease of payment”.

    According to the group, Orosanye’s effort deserved commendation considering that during the exercise,  mind-boggling frauds spanning several years were unearthed in the pension scheme. “ Many names and account numbers were duplicated, while many fake pensioners provided false documents in order to claim benefits. It was also in the course of this that some officials were discovered to have cloned pensioners files while under-age individuals were also collecting pension benefits in a scheme that had the collusion of a few  employees of the pension office. The culprits were handed over to law enforcement agencies. All these were uncovered by the exercise instituted by Oronsaye”, the group said.

    The decision by Oronsaye to put an end to the pension scam no doubt put him on collision course with some key members of the pension scam ring, the group said. “ Since he was the one that brought in the EFCC to investigate the pension scam and also gave information that led to the arrest of most of the ring leaders, at what point did the narration change?

  • How Oronsaye spent Fed Govt’s N190m, by witness

    How Oronsaye spent Fed Govt’s N190m, by witness

    THE High Court of the Federal Capital Territory (FCT), Abuja, yesterday heard how former Head of the Civil Service of the Federation (HOSF), Steve Oronsaye, allegedly spent Federal Government’s N190 million he purportedly kept in a secret account while serving as chairman, Presidential Committee on Financial Action Task Force (PCFATF).

    Oronsaye, who served in that capacity under the Goodluck Jonathan administration, was arraigned before the court on March 15, on a two-count of breach of trust.

    He was alleged to have, between 2013 and 2014, defrauded the Federal Government of N190 million, using his position as chairman of PCFATF.

    Oronsaye was accused of converting the N190 million to his personal use. He was said to have invested the fund in Access Bank Plc’s Banker’s Acceptance for a tenor of 90 days at nine and 12 per cent interest “in violation of extant financial regulations”.

    A prosecution witness, Olubunmi Ojoko, an employee of Access Bank, said she served as an officer in charge of the account Oronsaye allegedly opened in the name of PCFATF without the approval of the accountant-general of the Federation (AGF).

     She added that the existence of the account was also kept from other members of the committee.

    Ojoko, who is the second prosecution witness, spoke yesterday while testifying at the resumption of proceedings in Oronsaye’s trial.

    Ojoko was called to the witness box when the first prosecution witness, Ngunnan Kakwagh, concluded her testimony, having been cross-examined by defence lawyer, Kanu Agabi (SAN).

    Kakwagh, while testifying on March 15, claimed that Oronsaye operated the Access Bank account in the name of PCFATF and received N240 million from the CBN through the account.

    Kakwagh said Oronsaye also made “five structured payments” of N9 million each, making a total of N45 million, into the account in one day in September 2013. She added that of the total N285 million, Oronsaye invested N190 million in fixed deposit and converted it with the accrued interest into personal use.

    Led in evidence by lead prosecution lawyer, Ufom Uket, Ojoko gave details of how Oronsaye allegedly opened the Access Bank account on behalf of the PCFATF in 2012, without the approval of the AGF.

    “He (Oronsaye) called me that he needed to open an account on behalf of the Presidential Committee on Financial Action Task Force.

    “I met him at his residence in Asokoro, where I handed him the documents for the account, including the Access Bank account opening request of the committee signed by him, his passport photograph, copy of his passport and documents that set up the committee by the then secretary to the government of the federation.

    “I scrutinised the documents and discovered that the AGF’s approval was not included. So, I asked him for it and he said it was not necessary.

    “I asked for the AGF’s approval because it is needed when opening a government account. Since he said it wasn’t necessary, I took him by his word. I took the documents to the bank and the account was opened,” the witness said.

    Ojoko said she never met any other member of the committee, including Jalal Arabi, who served as PCFATF’s secretary, throughout the period the account was operated. Ojoko said  four lodgments, totalling N285 million, were made into the account from the CBN and other cash deposits, part of which were invested in fixed deposits, with part of the accruing interest re-invested.

     The witness said Oronsaye had withdrawn about N150 million from the account as at when the account was closed. She said what he (Oronsaye) withdrew from the account was part of the accrued interest on the investments.

    She said he made the withdrawal, using cheques which he allegedly issued in favour of himself and various beneficiaries.

    Ojoko added that besides“the direct withdrawals” by Oronsaye, “there were other various beneficiaries.

     “The first transfer was N50 million in October 2012. The second in April 2012 was N90 million from the CBN. In May 2013, there was a cash lodgement of N45 million. The fourth lodgement of N100 million came in December 2014 from CBN.

    “After the first lodgement (of N50 million  from CBN) several cheques were drawn by the defendant (Oronsaye) in favour of various beneficiaries. The second inflow of N90 million was invested in a fixed deposit account. It was fixed in Banker’s Acceptance, which is a form of investment, for 90 days at nine per cent.

    “On maturity, the N45 million (the third inflow) had come and it was fixed for 90 days. Upon maturity, they (the investments) were usually rolled over on the instruction of Mr. Oronsaye and the interests credited into his current account.

    “The N100 million (the fourth inflow) came in December 2014 and it was placed in fixed deposit in Banker’s Acceptance for 90 days. The total investments and roll overs were about 28. About N150 million interests accrued on all the investments. Now the account is at zero balance after the N163.5 million in it was transferred to the Treasury Single Account,” the witness said.

    Before tendering the bank statement in relation to the account, the prosecution lawyer guided the witness in reading some parts of the bank statement.

    The court later admitted in evidence, the account opening package, bank statements, mandate documents raised by Oronsaye and other documents relating to the account.

    Justice Olasumbo Goodluck adjourned to today for defence to cross-examine the witness.

  • How Oronsaye spent FG’s N190m kept in secret account – Witness

    How Oronsaye spent FG’s N190m kept in secret account – Witness

     

     

    A High Court of the Federal Capital Territory (FCT) Abuja was Wednesday treated to details of how former Head of the Civil Service of the Federation (HOSF), Steve Oronsaye allegedly expended Federal Government’s N190million he purportedly kept in a secret account while serving as the Chairman, Presidential Committee on Financial Action Task Force (PCFATF).

    Oronsaye, who served in that capacity under the Goodluck Jonathan administration, was, arraigned before the court on March 15, 2016 on a two-count of breach of trust.

    He was said between 2013 and 2014, defrauded the Federal Government of N190m using his position as the then Chairman of the PCFATF.

    Oronsaye was accused of converting the N190m to his personal use through the investment of the fund in Access Bank Plc’s Banker’s Acceptance for a tenor of 90 days at 9 and 12 per cents interest rates “in violation of the extant financial regulations”.

    A prosecution witness, Olubunmi Ojoko, an employee of Access Bank, said she served as an officer in charge of the account, Oronsaye allegedly opened unilaterally in the name of the PCFATF without the approval of the Accountant-General of the Federation (AGF).

    She also said the existence of the account was also kept from other members of the committee.

    Ojoko, who is the second prosecution witness, spoke Wednesday while testifying at the resumption of proceedings in Oronsaye’s trial.

    Ojoko was called to the witness box when the first prosecution witness, Ngunnan Kakwagh concluded her testimony, having been cross-examined by defence lawyer, Kanu Agabi (SAN).

    Kakwagh had, while testifying on March 15, claimed that Oronsaye unilaterally operated the Access Bank account in the name of the PCFATF and received a total of N240m from the CBN through the account.

    Kakwagh said Oronsaye also made “five structured payments” of N9m each, making a total of N45m, into the account in one day in September 2013.

    She added that, out of the total N285m, Oronsaye invested N190m in fixed deposit and converted it along with the accrued interest into personal use.

    Led in evidence by lead prosecution lawyer, Ufom Uket, Ojoko gave details of how Oronsaye allegedly opened the Access Bank account on behalf of the PCFATF in 2012, without the approval of the Accountant-General of the Federation (AGF).

    “He (Oronsaye) called me that he needed to open an account on behalf of the Presidential Committee on Financial Action Task Force.

    “I met him at his residence in Asokoro, where I handed him the documents for the account, including the Access Bank account opening request of the committee signed by him, his passport photograph, copy of his passport and documents that set up the committee by the then Secretary to the Government of the Federation.

    “I scrutinised the documents and discovered that the Accountant-General of the Federation’s approval was not included. So I asked him for it and he said it was not necessary.

    “I asked for the Accountant-General of the Federation’s approval because it is needed when opening a government account. Since he said that it wasn’t necessary, I took him by his word. I took the documents to the bank and the account was opened,” the witness said.

    Ojoko said she never met any other member of the committee, including Jalal Arabi, who served as the PCFATF Secretary, throughout the period the account was operated. Ojoko said a total of four lodgements, totalling N285m, were made into the account from the CBN and other cash deposits, part of which were invested in fixed deposits, with part of the accruing interest re-invested.

    The witness said Oronsaye had withdrawn about N150m from the account as at when the account was closed. She said was he (Oronsaye) withdrew from the account was part of the accrued interest on the investments. She said he made the withdrawal, using cheques which he allegedly issued in favour of himself and various beneficiaries.

    Ojoko added that aside “the direct withdrawals” by Oronsaye, “there were other various beneficiaries.

    “The first transfer was N50m in October 2012. The second was in April 2012 was N90m from the CBN. In May 2013, there was cash lodgement of N45m. The fourth lodgement of N100m came in December 2014 from CBN.

    “After the first lodgement (of N50m from CBN) several cheques were drawn by the defendant (Oronsaye). In favour various beneficiaries. The second inflow of N90m was invested in fixed deposit account. It was fixed in Banker’s Acceptance which is a form of investment, for 90 days at 9 per cent.

    “On maturity, the N45m (the third inflow) had come and it was fixed for 90 days. Upon maturity, they (the investments) were usually rolled over on the instruction of Mr. Stephen Oronsaye and the interests were credited into his current account.

    “The N100m (the fourth inflow) came in December 2014 and it was placed in fixed in Banker’s Acceptance for 90 days. The total investments and roll overs were about 28. About N150m interests accrued on all the investments. Now the account is at zero balance after the N163.5m in it was transferred to the Treasury Single Account,” the witness said.

    Before tendering the bank statement in relation to the account, the prosecution lawyer guided the witness in reading some part of the bank statement.

    Ojoko said, “On September 20, 2013 -there was a cheque withdrawal of N900, 000 in favour of Mr. Stephen Oronsaye. On October 31, 2013, there was a cheque withdrawal of N500, 000 in favour of Mr. Stephen Oronsaye. On December 12, 2013, there was a cash withdrawal of N3m in favour of Mr. Stepehen Oronsaye.

    “On December 23, 2013, there was another withdrawal of N3m in favour of Mr. Stephen Oronsaye. On January 29, 2014, there was another withdrawal of N3m in favour of Mr. Stephen Oronsaye. On February 3, 2014, there was a withdrawal of N3m by Mr. Stephen Oronsaye.

    “On February 17, 2014, there was a withdrawal of N600, 000 by Mr. Stephen Oronsaye. On April 8, 2014, Mr. Stephen Oronsaye, withdrew N3m with cheque. On July 3, 2014, there was withdrawal of N3m by Mr. Stephen Oronsaye. On July 10, 2014, there was withdrawal of N3m by Mr. Stephen Oronsaye.

    “On October 30, 2014, N900, 000 was withdrawn by Mr. Stephen Oronsaye. On December, 17, 2014, there was N3m withdrawal by Mr. Stephen Oronsaye. On December 22, 2014, the sum of N950, 000 was withdrawn by Mr. Stephen Oronsaye. On December 24, 2014, there was withdrawal of N980,000 by Mr. Stephen Oronsaye.

    “On January 6, 2015, there was N2m withdrawal by Mr. Stephen Oronsaye. On March 16, 2015, the sum of N650, 000 was withdrawn  by Mr. Stephen Oronsaye. On March 20, 2015, there was N3m withdrawal by Mr. Stephen Oronsaye,” she said.

    The court later admitted in evidence, the account opening package, bank statements, mandate documents raised by Oronsaye and other documents relating to the account.

    Trial judge, Justice Olasumbo Goodluck adjourned to today for the defence to cross-examine the witness.

     

  • ‘Oronsaye diverted N190m using secret account’

    ‘Oronsaye diverted N190m using secret account’

    •Court grants ex-HOSF N10m bail

    A federal High Court in Abuja yesterday heard how former Head of Service of the Federation (HOSF), Steven Oronsaye allegedly diverted N190 million belonging to the Federal Government.

    An operative of the Economic and Financial Crimes Commission (EFCC), Ngunnan Kakwagh told the court, while testifying as the first prosecution witness, that Oronsaye unilaterally operated an Access Bank account in the name of the Presidential Committee on Financial Action Task Force (PCFATF).

    Kakwagh testified shortly after Oronsaye was arraigned on a fresh two-count charge in which he is accused of committing the alleged fraud on June 12, 2013 and December 30, 2014 using his position as the then Chairman of the PCFATF.

    The witness said PCFATF existed between 2012 and 2014 and received payments from the Central Bank of Nigeria (CBN) through the account without the knowledge of other members of the committee.

    Kakwagh said Oronsaye received about N240 million from the CBN through the account. She added that the defendant, in September 2013, also made “five structured payments” of N9 million each, totalling N45 million into the account in one day. He said Oronsaye invested N190 million in fixed deposit and converted it, with the accrued interest, into personal use.

    Kakwagh, who was led in evidence by prosecution lawyer, O Uket, told the court that Oronsaye, as the sole-signatory to the account, equally issued cheques, in his name, to various individuals, who made withdrawals from the account.

    The witness, who said she was part of the team that investigated the petition against Oronsaye, said: ”The team analysed the documents provided by the bank. One of the accounts was named the Presidential Committee on Financial Action Task Force (Current account) and the sole signatory is Mr. Stephen Oronsaye – the defendant.

    Justice Olasumbo Goodluck adjourned to April 13.

    Justice Goodluck, before adjourning, rejected EFCC’s objection to Oronsaye’s bail application. She proceeded to grant Oronsaye bail at N10m with two sureties at N5m each.

    The judge directed that the sureties must be resident in Abuja and must be serving or retired civil servant not below the level of a director in the federal civil service o?r its agencies.

    Justice Goodluck directed that Oronsaye’s passport tendered before a Federal High Court in Abuja, in relation to another case, should be submitted to her court in the event that the trial at the Federal High Court was concluded before the one before her court.

     

  • Oronsaye diverted N190m using secret account – Witness

    Oronsaye diverted N190m using secret account – Witness

    A High Court of the Federal Capital Territory (FCT) heard Tuesday how former Head of Service of the Federation (HOSF), Steven Oronsaye allegedly diverted N190million belonging to the Federal Government.

    An operative of the Economic and Financial Crimes Commission (EFCC), Ngunnan Kakwagh told the court, while testifying as the first prosecution witness, that Oronsaye unilaterally operated an Access Bank account in the name of the Presidential Committee on Financial Action Task Force (PCFATF).

    Kakwagh testified shortly after Oronsaye was arraigned on a fresh two-count charge in which he is accused of committing the alleged fraud on June 12, 2013 and December 30, 2014 using his position as the then Chairman of the PCFATF.

    The witness said PCFATF existed between 2012 and 2014 and received payments from the Central Bank of Nigeria (CBN) through the account without the knowledge of other members of the committee.

    Kakwagh said Oronsaye received about N240m from the CBN through the account. She added that the defendant, in September 2013, also made “five structured payments” of N9m each, totalling N45m, into the account in one day.

    The witness said Oronsaye invested N190m in fixed deposit and converted it along with the accrued interest into personal use.

    Kakwagh, who was led in evidence by prosecution lawyer, O Uket, told the court that Oronsaye, as the sole-signatory to the account, equally issued cheques, in his name, to various individuals, who made withdrawals from the account.

    The witness, who said she was part of the team that investigated the petition against Oronsaye, said:”The team analysed the documents provided by the bank. One of the accounts was named the Presidential Committee on Financial Action Task Force (Current account) and the sole signatory is Mr. Stephen Oronsaye – the defendant.

    “The means of identification was the bio-data page of the international passport of the defendant. Further analysis of the statement of account (Access Bank), we found out that the account was opened in 2012 with the request from the defendant, to Access Bank, requesting that the account be opened, which he was the sole signatory as he chairman of presidential committee on FATF.

    “The (investigative) team found out that the account had been funded by three transfers from the Central Bank of Nigeria and N45m deposited by the defendant. The first transfer was for N50m in October 2012 from CBN. The second transfer was for N90m in May 2013. Then in September 2013, the defendant made five structured payments of N9m making N45m.

    “In 2014 however, the transfer of N100m was made into the account from CBN. The first N50m was withdrawn by a cheque. The defendant (Oronsaye) being sole signatory to the account, issued cheques, to various persons an in his name to make withdrawals from the account.

    “N100m transfer was also paid into fixed deposit account. The sums of N30m, N10m and three separate sums of N20m each was also paid into fixed deposit all on the same day,” she said.

    The witness told the court that PCFATF members and the office of the Accountant-General of the Federation denied knowledge of the Access Bank account and that the only account of the committee known to them was the one with the Zenith Bank Plc.

    “We invited Jalal Arabi (staff of the State House and Secretary to the PCFATF). When asked about the Access Bank account, he stated that the committee had an account with Zenith Bank of which he is a co-signatory with the defendant (Oronsaye) and as such he had no knowledge of the Access Bank account.

    “Mr. Francis Usani (as Head of the Nigerian Financial Intelligence Unit,), also stated that as member of the committee, he was only aware of the committee’s account with Zenith Bank.

    “The team wrote a letter to the office of the Accountant-General of the Federation. On inquiry, it was realised that the committee had approval from the office of the Accountant-General of Federation for Zenith Bank account and was known to the office of the AGF. The team also made inquiry whether government agencies were allowed to move funds allocated to them, and if so how and where?

    “Office of the AGF responded to our letter of inquiry, stating that the office of the Accountant-General of the Federation was unaware of Access Bank account of the committee and had not given any approval for the opening of the account. The reply also stated that government parastatals and agencies are only allowed to invest in treasury bills.”

    The witness also told the court that Oronsaye made other 26 investments with the money in the Access Bank account. She added that 22 of the investments were liquidated by the defendant.

    While being cross-examined by Oronsaye’s lawyer, Joe Agi (SAN) the witness said she did not inquire from the office of the AGF if it knew about the Zenith Bank account.

    Justice Olasumbo Goodluck adjourned to April 13.

    Justice Goodluck, before adjourning, rejected EFCC’s objection to Oronsaye’s bail application. She proceeded to grant Oronsaye bail at N10m with two sureties at N5m each.

    The judge directed that the sureties must be resident in Abuja and must be serving or retired civil servant not below the level of a director in the federal civil service o‎r its agencies.

    Justice Goodluck directed that Oronsaye’s passport tendered before a Federal High Court in Abuja, in relation to another case, should be submitted to her court in the event that the trial at the Federal High Court was concluded before the one before her court.

     

  • Oronsaye to be arraigned over alleged N190m fraud Tuesday

    Oronsaye to be arraigned over alleged N190m fraud Tuesday

    The Economic and Financial Crimes Commission (EFCC) is to arraign a former Head of the Civil Service of the Federation, Mr. Stephen Oronsaye, in court on Tuesday for alleged N190million fraud.

    The former Head of Service is facing a fresh two-count charge of corruption and obtaining money by false pretence before Justice O. O Goodluck of the Federal Capital Territory High Court, Abuja.

    He was re-arrested by the EFCC following the uncovering of more alleged fraud during further investigation of his activities in office.

    The Head of Media and Publicity of EFCC, Mr. Wilson Uwujaren, said yesterday that filing of the  fresh charges followed the completion of investigation by the anti- graft agency.

    Oronsaye, it claimed, abused his position as chair of the Presidential Committee on the Financial Action Task Force to fraudulently obtain N190million, being part of the N240m grant which the committee received from the Central Bank of Nigeria.

    “The grant, investigation revealed, was allegedly paid into an account in Access Bank operated by Oronsaye without the knowledge of other committee members and he proceeded to invest the funds for personal gains,” the EFCC said.

    The charge reads, ” Stephen Oronsaye a.k.a. Mr Steve Oronsaye on or about 12th June, 2013 at Abuja within the jurisdiction of the High Court of the  Federal Capital Territory whilst being the Chairman of the Presidential Committee on Financial Action Task Force and in such capacity entrusted with certain property to wit: the sum of N90,000,000.00 ( Ninety Million Naira) committed Breach of Trust in respect of the said sum by converting it to your personal use through the investment of the said sum of N90,000,000.00 in Access Bank Plc’s Bankers Acceptance for a tenor of 90 days at 9.0% interest rate in violation of the extant financial regulations

    “Stephen Oronsaye a.k.a. Mr Steve Oronsaye on or about 30th December, 2014 at Abuja within the jurisdiction of the High Court of the  Federal Capital Territory whilst being the Chairman of the Presidential Committee on Financial Action Task Force and in such capacity entrusted with certain property to wit: the sum of N100,000,000.00 ( One Hundred Million Naira) committed Breach of Trust in respect of the said sum by converting it to your personal use through the investment of the said sum of N90,000,000.00 in Access Bank Plc’s Bankers  Acceptance for a tenor of 90 days at 12.0% interest rate each  in violation of the extant financial regulations”.

    “This new charge is different in all material particular from the existing charge for which Oronsaye, Osarenkhoe Afe, and their accomplices are being prosecuted before the Federal High Court, Abuja on 35 charges of fraud and money laundering involving N2billion.”

    The EFCC added: “In the previous charges, Oronsaye and his co-accused, were alleged to have been complicit in several contract awards during his tenure as HoS, using two companies – Federick Hamilton Global Services Limited, and Xangee Technologies Limited, for shady biometrics enrollment deals to the tune of N2 billion.

    “In one of the counts in the amended charge dated November 2, 2015, Oronsaye was alleged to have in connivance with Abdulrasheed Abdullahi Maina (now at large), Osarenkhoe Afe and Fredrick Hamilton Global Services Limited in July 2010 “In disguising genuine nature of the sum of N161,472,000 derived from an illegal act to wit conducting procurement fraud by means of fraudulent and corrupt act on the contract extension of biometric enrolment purportedly awarded to Innovative Solutions Limited by the Office of the Head of Service of the Federation, without following due process, an offence punishable under Section 14 (1) (b) of the Money Laundering (Prohibition) Act, 2004”.

    “Cluster Logistic Limited and Kangolo Dynamic Cleaning Limited, were also alleged to have connived with Maina (alias Abdullahi A. Faizal now at large) in February 2014 to “transfer the sum of N33,800,000 to West Waves Bureau De Change from the account of Cluster Logistic Limited maintained by Maina”.

    “The case before the Federal High Court has no bearing on the new information filed at the Federal Capital Territory High Court and therefore, puts a lie to the invidious insinuation by a section of the online media that the former HoS was a victim of persecution by the EFCC.”