Date Published: 04/18/10

How Ribadu sold seized properties to fake companies

Nuhu Ribadu

Six unregistered companies bought most of the 21 properties seized from former Police chief Tafa Balogun, Economic and Financial Crimes Commission (EFCC) records have shown.

Besides, proceeds of the sale of the houses belonging to Balogun and ex-Governor of Bayelsa State D.S.P. Alamieyeseigha have not been deposited in the Consolidated Revenue Fund of the Federation.

The properties of the convicted former public officers were disposed of in 2006, but there are conflicting figures on how much was realized by the commission.

There were claims that about N12billion was raked in from the disposal of the illegally acquired assets. Yet, there were counter-claims that less than N6billion was realised.

It was gathered that the conflicting claims arose because the proceeds were not remitted to the Consolidated Revenue Fund (CRF) as statutorily required.

The proceeds were deposited in an "illegal" account, tagged Recovery Account in violation of the EFCC Act and extant laws on CRF.
It was learnt that lack of proper records led to the inauguration of a committee by the Chairman of the EFCC, Mrs. Farida Waziri.

The committee was headed by a director, who was said to have been recruited by a former Chairman of the EFCC, Mallam Nuhu Ribadu, under whose tenure the assets were sold.

According to the Interim Report of the Committee, due diligence was not followed in selling the forfeited property.

The report, which was obtained by The Nation, reads: "The Committee observed that due diligence and Know Your Customer (KYC) requirements were not observed in the sale of Tafa Balogun’s property. This is evidenced in the fact that of the nine persons who bought Tafa Balogun’s houses, only three are legal persons. These are Multi Banks Savings and Loans Limited; Otunba Otukayode; and Conau Limited.

"From enquiries made at the Corporate Affairs Commission (CAC) and based on their letter Ref/PRD/9/Vol XX/072 dated 12th February 2009, the committee can authoritatively aver that the other "buyers" do not legally exist. These are Fadco Investment Limited; Matbeny Holdings; Capri Martins Finance Limited; Onesimus Global Investment |Limited; Yasua Plaza Tenants Limited; and Shakir Tenants Nigeria Limited.

"One of the main dangers attending such indiligence include the risk of convicts buying back forfeited assets through proxies. There is also the danger of the sales forfeiture process becoming an avenue for money laundering and practices inimical to the Establishment Act.

"Regarding the deposit of proceeds of the sale of Tafa Balogun’s property, the Committee observed the following:

•"The non-involvement of the Auditor-General of the Federation as required by the Establishment Act and extant Financial Regulation, especially Regulation 2520.
•"Neglect or omission to deposit proceeds of the sale of the forfeited property in the Consolidated Revenue Fund as required by the EFCC Establishment Act and extant Financial Regulations.

"Our opinion is upheld by the letter of the Accountant-General of the Federation, Ref/FST/ AB/EFCC/1/Vol. 1/ dated 4th March 2009 where he affirmed: ‘…records in our office and the Consolidated Revenue Account of the Federal Government of Nigeria did not confirm receipt of the proceeds of sales in respect of the listed properties.

"In his letter Ref/1094/2004/CONF/30 dated 12th February 2009, the Auditor-General of the Federation also affirmed the non-inclusion of his office in the asset disposal process. He said: ‘…The Auditor-General of the Federation was neither informed of the sale of the assets… nor provided with reference number, date and amount of the Treasury Receipts for the proceeds of the sale of the same contrary to Financial Regulation 2520(Revised 2006).

"As indicated above, Section 31(2) of EFCC Establishment Act 2004 and Financial Regulation (Revised 2006 2520) requires that proceeds be deposited in the Consolidated Revenue Fund of the Federation within 48 hours of receipt of sale in the nearest sub-treasury. The law requires that receipts of sales be deposited with the Auditor-General of the Federation pursuant to Financial Regulation 2520(Revised 2006)

On Alamieyeseigha’s properties, the committee said: "As was the case in the disposal of Tafa Balogun’s assets, officers of the commission did not involve these relevant parties in the valuation of the properties earmarked for disposal.

"On the crucial subject of deposit of proceeds of the sale of Alamieyeseigha’s properties, the committee wishes to observe that the creation of a dedicated account violated the rule that proceeds of sale be sent to the nearest sub-treasury within 48 hours."

On proceeds from sale of forfeited assets, the committee said the rules and regulations guiding such were violated.

The report added: "The Committee would also want to observe further that the lodgment of proceeds of sales of forfeited assets and forfeited cash in what the Commission calls the Recovery Account is a violation of the EFCC Establishment Act and Extant Financial Regulations.

"This situation is further compounded by the habit of failing to promptly cash and appropriately deposit forfeitures made out in cheques and drafts. As at the time of writing this Interim Report, the Committee has identified N3.4billion in stale cheques; N484,385, 904.69million in un-cashed banks drafts; and $554,878,78 lying dormant in the Lagos Exhibit Room.

"The committee understands some of these cheques have been revalidated. But what use is the re-validation when such cheques remain locked up in the vaults of the Exhibit Room."