Yakubu seeks reversal of forfeiture
Funds should be well spent – CISLAC
By Abdulaziz Abdulaziz and
Vivian Okejeme, Abuja
The federal government, has within the last one week, raked in over N92.99 billion through recoveries by the Economic and Financial Crimes Commission (EFCC), and whistle-blower red flags that led to closure of some phony accounts, containing unclaimed monies, totalling some $151million and N8 billion.
Last week, the EFCC obtained two separate court orders forfeiting cash recovered by EFCC operatives to the federal government, following a raid on a house belonging to a former Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Mr. Andrew Yakubu, and another order forfeiting monies linked to former Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, stashed in some banks.
An equivalent of N3.1 billion was recovered from the former NNPC’s boss residence, while a total of N34 billion was permanently forfeited by Mrs. Alison-Madueke following court orders.
N55.8bn stashed in banks
Penultimate Sunday, Minister of Information, Alhaji Lai Mohammed, issued a statement announcing recovery by the government of $151m and N8bn looted funds from three sources through whistle-blowers.
He said the recoveries were made possible following actionable information given by whistle-blowers to the office of the Minister of Justice and Attorney-General of the Federation, Abubakar Malami (SAN).
Mohammed said: “The biggest amount of $136.7million was recovered from an account in a commercial bank, where the money was kept under an apparently fake account name.
“This was followed by N7billion and $15million from another person and N1billion from yet another.”
Andrew’s N3.1bn from slum
Also last week, a Federal High Court sitting in Kano, directed a former GMD of NNPC, Mr. Yakubu, to forfeit $9,772,000 and £74,000 recovered from his residence in Sabon Tasha slum of Kaduna to the federal government.
The presiding judge, Justice Zainab B. Abubakar, granted the interim forfeiture order following an ex-parte application filed by EFCC counsel, Barrister Salihu Sani.
The two tranches of the foreign currencies amount to over N3.1 billion in the current official exchange rate of N317 per dollar.
Under the Money Laundering Prohibition Act as well as the EFCC Act, suspected proceeds of crimes could be temporarily forfeited to the government before determination of the substantive case.
On February, 3, operatives of the Commission stormed a building in Sabon Tasha Kaduna City, belonging to the former NNPC boss and recovered the money stashed in a huge fire-proof safe.
On February 8, Yakubu reported to the Commission’s Kano Zonal Office where he admitted being the owner of both the house and the money recovered.
Yakubu, who was the GMD of NNPC between 2012 and 2014, is still in the EFCC custody and may be docked any time soon.
Diezani’s unclaimed N34bn
While Yakubu’s uncovered cash is on interim forfeiture, some N34 billion came to the federal government ready for spending, as a Federal High Court sitting in Lagos, ordered the final forfeiture of N23.4 billion, N9.08 billion, and $5 million (about N34 billion in total) linked to former Petroleum Minister Alison-Madueke.
The seized money, according to the EFCC, was stolen from the NNPC and stashed in three banks in Nigeria, in US dollars and Naira.
Out of the loot, N23.4 billion was kept in Sterling Bank Plc. The sum of N9.08 billion was kept in First Bank Plc and $5m in Access Bank Plc.
Justice Muslim Hassan, who had issued an interim forfeiture order on the funds on January 6, on Thursday gave a “final forfeiture order”.
The judge said he was satisfied with the argument of the anti-graft body that the monies were proceeds of illegal activity.
Justice Hassan, who gave the order, gave Sterling Bank and any other interested party 14 days to appear before him to prove the legitimacy of the monies, failing which the funds would be permanently forfeited to the Federal Government of Nigeria.
The banks or any of its customers, the court ruled, failed to convince the court on the legitimacy of the funds.
Yakubu seeks reversal
However, Mr. Yakubu, one of the accused persons from whom recoveries were made, has approached the court that issued the order of interim forfeiture, to set aside the order, saying the court lacks jurisdiction to issue such order.
Counsel to the former NNPC boss, Mr. Ahmed Raji (SAN), said the court lacks the territorial jurisdiction to entertain the matter, being one related to a crime alleged to have been committed in Abuja outside the territorial jurisdiction of this noble court.
In a motion on notice with suit number FHC/ICN/CS/24/2017, Raji argued that by Section 45 of the Federal High Court Act, states that an offence shall be tried only by a court exercising jurisdiction in the area or place where the offence was committed.
He argues that “no aspect of the perceived offence in respect of which the Order of 13th February, 2017 was made, was committed within the Kano Judicial Division of this Honourable Court.”
Yakubu said the federal government lacks the competence (locus standi) to seek the interim order of the court granted on 13th February, 2017.
“By Section 28 of the EFCC Act, only the commission, i.e. the EFCC has the vires to seek an Order for the interim forfeiture of property under the Act. The power of this Honourable Court to make interim forfeiture Order(s) pursuant to Sections 28 & 29 of the Economic and
Financial Crimes Commission Act, 2004 (hereinafter “EFCC Act”), is applicable ONLY to alleged offences charged under the EFCC Act and not to offences cognisable under any other law.
“The Ex-parte Order of this Honourable Court dated 13th February, 2017, was made in respect of alleged offences under the Independent Corrupt Practices and other Related Offences Commission Act (hereinafter “ICPC Act”), and not the EFCC Act as prescribed by Section 28 & 29 thereof.
“The conditions precedent to the grant of an interim forfeiture Order under Sections 28 & 29 of the EFCC Act were not complied with by the Applicant before the Order was made”, Raji argued in the motion.
He further contended that “the combined effect of Sections 28 and 29 of the EFCC Act is that a charge alleging infractions against the provisions of the EFCC Act, ought to be brought against a suspect before the powers of this Honourable Court under Sections 28 & 29 of the EFFCC Act, to order interim forfeiture of property, can be actuated.
According to him, without a formal charge, no prima facie evidence can be established in order for the provisions of Section 28 and 29 of the EFCC Act to be actuated.
“In the instant case, no charge was brought against the Respondent/Applicant before the provisions of Section 28 and 29 of the EFCC Act were activated to grant the ex-parte order of 13th February, 2017,” Raji further submitted.
CISLAC wants loots judiciously used
Meanwhile, a Civil Society Organisation, Civil Society Legislative Advocacy Centre (CISLAC), has urged for judicious use of the recovered funds, even as it applauded the recoveries as “very heart-warming.”
In a statement signed by its Executive Director, Auwal Musa Rafsanjani, CISLAC advocated for use of the recovered fund to address challenges in the areas of education, health and water supply faced by Nigerians.
H said: “This should be done in a systematic, strategic, deliberate and dedicated manner. The past practice of injecting looted funds through the broad budget cycle has proved to be ineffective. The Executive should liaise with the National Assembly to ensure that special supplementary approval is obtained for the expenditure of recovered monies.”
The statement also recommended formation of what the organisation called “Specialized Service Delivery Account domiciled with the Central Bank be established, into which all the recovered funds are deposited. “This will be managed by an Ad hoc Multi-Stakeholder Management Committee made up of designated technocrats from the focal ministries and volunteers from relevant Professional Bodies, the Media, Civil Society and the Anti-corruption Agencies.
“The duty of this Committee is to appraise specific project proposals from the focal ministries to ensure relevance, efficiency, maximum impact and that projects can be completed within specific timelines.
“They would also monitor funds disbursement from the account and report back to Nigerians. This will ensure efficiency without creating another agency that would constitute a drain pipe to already scarce resources.”
