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Abacha Loot: Pressure mounts on FG to reveal expenditure, total amount looted

Published

10 months ago

July 10, 2023

NewsDirect

…Comply with court judgement, prove you are different from Buhari — SERAP tells Tinubu

…Hold Obasanjo, Yar’Adua, Jonathan, Buhari accountable — Falana

By Mathew Ibiyemi and Moses Adeniyi

As Nigerians look to truly experience a ‘Renewed hope’ under the administration of President Bola Ahmed Tinubu, there have have been contentions and pressure on successive governments to account publicly for looted funds recovered.

The calls to question the usage of repatriated funds particularly from ex-military dictator, Sani Abacha received a huge boost however with the Federal High Court judgement sitting in Abuja ordering the Federal Government to give vivid explanation of the details of the spending of about USD$5 billion Abacha loot beginning from the governments of former presidents Olusegun Obasanjo, Umaru Musa Yar’Adua, Goodluck Jonathan and the immediate past government of Muhammadu Buhari.

The development has left the government under pressure as it appears the government has claimed it has no vivid details of such expenditure in its records, according to its prayer before the court.

Meanwhile, as ordered by the court, the government of President Bola Tinubu is to “disclose the exact amount of money stolen by General Sani Abacha from Nigeria, and the total amount of Abacha loot recovered and all agreements signed on same by the governments of former presidents Obasanjo, Yar’Adua, Jonathan and Buhari.”

This is just as the court ordered that any allegations of corruption involving the execution of projects with Abacha loot be referred to the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) for investigation, as well as to ensure that anyone involved in alleged corruption in projects executed with Abacha loot is brought to justice if there is relevant and sufficient admissible evidence.

The judgment was delivered last week by Justice James K. Omotosho following a Freedom of Information suit number: FHC/ABJ/CS/407/2020, brought by the Socio-Economic Rights and Accountability Project (SERAP).

In his judgement, Justice Omotosho held that, “In the final analysis, the application by SERAP is meritorious and the Federal Government through the Ministry of Finance is hereby ordered to furnish SERAP with the full spending details of about $5bn Abacha loot within 7 days of this judgment.”

The court ordered the government to “disclose details of the projects executed with the Abacha loot, locations of any such projects and the names of companies and contractors that carried or carrying out the projects since the return of democracy in 1999 till date.”

The court also ordered the government to “disclose details of specific roles played by the World Bank and other partners in the execution of any projects funded with Abacha loot under the governments of former presidents Obasanjo, Yar’Adua, Jonathan and Buhari.

“The excuse by the Minister of Finance is that the Ministry has searched its records and the details of the exact public funds stolen by Abacha and how the funds have been spent are not held by the Ministry. The excuse has no leg to stand in view of section 7 of the Freedom of Information Act,” the court further ruled.

The court dismissed all the objections raised by the Federal Government and upheld SERAP’s arguments.

Consequently, the court entered judgement in favour of SERAP against the Federal Government.

The judgement, dated July 3, 2023, read in part: “The failure of the Minister of Finance to write to SERAP informing it of where the said information exists or to transfer the request to public office who has custody of such information is fatal to their case under section 5 of the Freedom of Information Act.

“The Ministry cannot use a blanket statement that it was not in possession of the said records of about $5bn Abacha loot sought by SERAP.

“The government failed to provide details of the projects executed with the money. It also failed to provide locations of the projects and the names of the companies and contractors that carried out or are carrying out the projects funded with the money.

“I hold that by the clear wordings of section 7 of the Freedom of Information Act, 2011, access to information about spending details of $5bn Abacha loot was denied SERAP by the Federal Government.

“The Federal Government had filed a 14 paragraph Counter Affidavit deposed to by Abah Sunday, Litigation Officer in the office of the Attorney General of the Federation argued that SERAP’s suit is frivolous, as it has not shown that the government denied it the information it seeks.

“The Federal Government has also stated that SERAP has not established sufficient interest in its application. The government urged the Court to dismiss the suit.

“For the sake of emphasis, possession of locus standi has been the bane of the citizens’ advocates, in the public interest litigation, to query transparency and accountability in governance in Nigeria.

“In a democratic dispensation, such as in Nigeria, the citizens have been proclaimed the owners of sovereignty and mandates that place leaders in the saddle.

“The requirement is a serious fracture of the citizens’ inalienable right to ventilate their grievances against poor governance vis-à-vis expenditure of public funds generated from their taxes.

“The sacrosanct provision of Section 1(2) of the Freedom of Information Act, which has ostracised this disturbing requirement, has, admirably, remedied the harmful mischief appurtenant to it.

“Clearly, section 1 gives a person the right to access any information from any public institution in Nigeria. SERAP is an organization registered in Nigeria and thus a juristic person. As a juristic person, SERAP need not show any specific interest in the spending details of about $5billion Abacha loot to be entitled to the same.

“I therefore hold that SERAP is entitled to the information on the spending details of about $5billion Abacha loot, and need not show any special interest in the information sought.

“The provision of Section 4 of the Freedom of Information Act is quite clear and mandates that public institution or public officer such as the Minister of Finance and the Attorney General of the Federation and Minister of Justice must make available the information requested within 7 days of the request.”

Hold Obasanjo, Yar’Adua, Jonathan, Buhari accountable — Falana

Renowned human rights lawyer, Mr Femi Falana (SAN) challenged the Tinubu led administration to hold the former President Obasanjo, Yar’Adua, Jonathan and Buhari accountable for the looted funds.

In a statement he signed, Falana said, “The judgment could not have come at a more opportune time than now. Because of the economic hardship to which the poor people of Nigeria have been subjected by a reckless ruling class, the question of public accountability is now on the front burner.”

The statement read further: “Having regard to the involvement of the World Bank in the mismanagement of the Nigerian economy, the order of the court directing disclosure of the details of specific roles played by the bank and other partners in the execution of any projects funded with Abacha loot since 1999 is very commendable.

“The judgment is an important step towards reversing a culture of secrecy and corruption that has meant that high-ranking government officials continue to look after themselves at the expense of the well-being of the majority of Nigerians, and development of the country.

“This is a crucial precedent that vindicates the right to a transparent and accountable government and affirms the human right of the Nigerian people to live a life free from want and fear.

“The Tinubu administration should obey the judgment and hold former presidents Olusegun Obasanjo, Umaru Musa Yar’Adua, Goodluck Jonathan and President Muhammadu Buhari to account without further delay.”

Comply with court order, prove you are different from Buahri – SERAP tells Tinubu

SERAP in a letter dated 8 July, 2023 signed by its Deputy director, Kolawole Oluwadare wrote to President Tinubu to comply with the judgement of the court and show that he is different from his predecessor, Muhammadu Buhari.

The civil organization urged the President to demonstrate his “expressed commitment to the rule of law by immediately obeying and respecting the judgment of the Court.”

By so doing, SERAP told Tinubu he would prove to Nigerians his government is different from that Buhari, which persistently and brazenly defied the Country’s judiciary,

The letter read in part: “We urge you to direct the Ministry of Finance and the office of the Attorney General of the Federation to immediately compile and release the spending details of recovered Abacha loot as ordered by the court.

“The immediate enforcement and implementation of the judgment by your government will be a victory for the rule of law, transparency and accountability in the governance processes and management of public resources including the $5bn Abacha loot.

“By immediately complying with the judgment, your government will be demonstrating to Nigerians that it is different from the Buhari government, which persistently and brazenly defied the country’s judiciary, and sending a powerful message to politicians and others that there will be no impunity for grand corruption.

“Immediately implementing the judgment will restore trust and confidence in the independence of Nigeria’s judiciary. SERAP urges you to make a clean break with the past and take clear and decisive steps that demonstrate your commitment to the rule of law, transparency and accountability in the governance processes.

“SERAP trusts that you will see compliance with this judgment as a central aspect of the rule of law; an essential stepping stone to constructing a basic institutional framework for legality and constitutionality. We therefore look forward to your positive response and action on the judgment.”

Joined as defendants in the suit are the Minister of Finance and the Attorney General of the Federation and the Minister of Justice.

The orders of mandamus the court issued against the Nigerian government states: “AN ORDER OF MANDAMUS is hereby made directing and compelling the Federal Government [through the Ministry of Finance and the office of the Attorney General of the Federation and Minister of Justice to provide and disclose the following information to SERAP:

“[a] Exact amount of money stolen by General Sani Abacha from Nigeria, and the total amount of Abacha loot recovered and all agreements signed on same since the return of democracy in 1999 till date

“[b] Details of the projects executed with the recovered funds, locations of any such projects and the names of companies and contractors that carried or carrying out the projects

“[c] Details of specific roles played by the World Bank and other partners in the execution of any projects funded with Abacha loot since 1999

“AN ORDER OF MANDAMUS is hereby made directing and compelling the Federal Government to:

“[a] Refer any allegations of corruption involving the execution of projects with Abacha loot to the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) for investigation

“[b] Ensure that anyone involved in alleged corruption in projects executed with Abacha loot is brought to justice if there is relevant and sufficient admissible evidence.”

Related Topics:Abacha loot Falana SERAP Tinubu

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Account enrollment: Court validates CBN’s regulation, permits collection of customers’ social media handles

Published

1 hour ago

May 17, 2024

NewsDirect

…Dismisses concerns, says social media handles not protected by privacy rights

…Financial institutions cleared to collect social media handles for KYC

By Sodiq Adelakun

The Federal High Court in Lagos has ruled in favour of the Central Bank of Nigeria (CBN) in a case challenging the regulation that requires financial institutions to collect their customers’ social media handles as part of the Know-Your-Customer (KYC) procedure.

Recall that the Socio-Economic Rights and Accountability Project (SERAP) had urged the court to compel CBN to withdraw its directive to banks and other financial institutions.

However, in the ruling, Justice Nnamdi Dimgba struck out the suit filed by Lagos-based lawyer, Chris Eke, who argued that the regulation violates the right to privacy of bank customers.

Eke had sought a declaration that the regulation contained in Section 6(a) (iv) of the Central Bank of Nigeria (Customer Due Diligence) Regulations, 2023, is undemocratic, unconstitutional, null, and void, as it contradicts Section 37 of the 1999 Constitution of the Federal Republic of Nigeria (as amended). However, Justice Dimgba ruled that the regulation does not breach the right to privacy of bank customers.

The CBN regulation is targeted to enhance customer due diligence and anti-money laundering measures, and requires banks to collect social media handles, among other personal information, from their customers.

The applicant had asked the court to grant an order of perpetual injunction, restraining CB from enforcing the regulation which requires financial institutions to request customers’ social media handles as part of normal bank customer due diligence requirements.

The CBN in its response to the suit, filed a notice of preliminary objection, challenging the competence of the suit. The apex bank also disagreed that the said regulation constitutes any interference with the private life of the applicant, as claimed.

The judgment came as Justice Dimgba dismissed a suit, stating that the notice of preliminary objection held merit and consequently struck out the case.

During the proceedings, Justice Dimgba emphasised that providing a social media handle is akin to furnishing email addresses, phone numbers, and other contact details for banking purposes.

He argued that such information aids in conducting due diligence to ascertain if an individual is suitable for conducting business with a bank.

Justice Dimgba further explained that the essence of having a social media account implies a willingness to engage in public communication, thus rendering privacy concerns unfounded.

According to him, “First, the Applicant claims that the requirements on the CBN Regulations for financial institutions to request and collect the social media handle of its customers as part of KYC infringes on his right to privacy.”

“This claim is very ambitious and amounts to a very far throw. The said Regulations are directed to and apply to financial institutions. It does not apply to private individuals such as the Applicant.

“Even if, as appears to be argued, that the Regulations itself would inevitably affect the Applicant, this claim is speculative for the simple reason that in nowhere in the affidavit in support was it stated that the Applicant operates an account with a financial institution and that the said institution had demanded his social media handle. So the suggestion that he would be affected by this Regulation, albeit negatively, is very speculative and at large.

“Secondly, there is also no deposition to the effect that any financial institution had begun to implement this Regulation and that its implementation had begun to create disruptions and inconvenience against the general population, in which case one could infer that the suit should be legitimated as a public interest litigation.

“Thirdly, assuming even that the banks had begun to implement these regulations, the applicant assuming he maintained any bank accounts or sought to open one, but is being hindered or irritated by the requirement of the Regulation to avail his social media handle as part of KYC, the Applicant still had a choice, which is to refuse to do business with any bank insisting on the information as part of its social media handle, but to seek other alternatives.

“Fourthly, and for all it is worth, I do not see how asking a banking or potential banking customer to provide his social media handle can ever amount to a breach of privacy.

“Granted that Section 37 of the Constitution of the Federal Republic of Nigeria 1999 (as amended) provides inter alia: The privacy of citizens, their homes, correspondence, telephone conversations and telegraphic communications is hereby guaranteed and protected.

“My view is that the provision of a social media handle is of the same genre as the provision of email address, phone numbers and other means by which a potential customer of a bank can be contacted.

“Thus, it is clear from the face of the Regulations as set out above that email addresses, phone numbers and social media handles are all provided for under clause 6iv just to show that the aim was not to pry on anyone but rather to provide alternative ways by which a customer of the bank can be contacted, and or due diligence conducted on the person to determine if the person is a fit and proper person to extend banking services to.

“I do not see how this infringes on the right to privacy. I should even say that the essence of having a social media account was for one to be publicly visible communication-wise. It, therefore, appears quite ironic, though wryly, that one can suggest that asking for information about a social media handle with which the individual exposes and immerses himself or herself in the public, can amount to a violation of privacy rights, which rights itself is all about isolation of one from public glare.

“It is also to my knowledge that even in filling some business applications, personal information of this sort, is sometimes requested, and parties generally oblige. If it does not constitute a breach of privacy, why should it now?

“A social media handle is left at large for the world to see, being in the public space, everyone enjoys the liberty to have access to it whether or not consent was obtained. It would be highly unreasonable to hold the Respondent in breach of privacy for what other persons have access to.

“The apprehension of the Applicant of his social interactions being monitored is manifestly speculative in itself and rather incredulous to believe that the financial institutions have the luxury of time to concern itself with such frivolities.

“On the whole, if I did not sustain the NPO, I would have dismissed the suit for the reasons stated. But the NPO having been sustained, the suit is therefore hereby struck out.”

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N1.3trn power debt: Tinubu approves payment, unveils plan to liquidate gas debts

Published

1 hour ago

May 17, 2024

NewsDirect

President Bola Ahmed Tinubu has given approval for the payment of N1.3trn legacy debts owed power generation companies.

Minister of Power, Chief Adebayo Adelabu speaking at the 8th Africa Energy Market Place 2024 in Abuja said that President Bola Tinubu has approved a plan to liquidate the debts.

According to him, “Mr. President has approved the submission made by the Minister of State Petroleum (Gas) to defray the outstanding debts owed to the gas supply companies to power generation companies. The payments are in two parts, the legacy debts and the current debts. For the current debt, approval has been given to pay about N130 billion from the gas stabilisation fund which the Federal Ministry of Finance will pay.”

“The payment of the legacy debt will be made from future royalties in exchange for incomes in the gas subsector which is quite satisfactory to the gas suppliers. This will allow the companies to enter into firm contracts with power generation companies.

“For the power generation companies, the debt is about N1.3 trillion and I can also tell you that we have the consent of the President to pay, on the condition that the actual figures are reconciled between the government and the companies. This we have successfully done and it is being signed off by both parties now. Majority has signed off and we are engaging to ensure that we have 100 percent sign off.

“The debt will be paid in two ways, immediate cash injection and through a guaranteed debt instrument, preferably a promissory note. This assures the companies that in the next three to five years, the government is ready to defray these debts.”

The Minister further stated that the government was working to get the distribution companies solvent and effective by unbundling their operations along state boundaries.

He insisted that the areas covered by the current DisCos were too large for them to deliver effective services to consumers.

In the same vein, the Chairman of the Nigerian Electricity Regulatory Commission (NERC), Engr. Sanusi Garba lamented the poor financial state of the DisCos, noting that it is difficult for them to raise the needed capital to invest.

Engr. Garba pointed out that the challenges facing the sector were a culmination of all past inactions and missteps by those saddled with the responsibilities of managing the sector both at policy and operational levels.

According to him, “Today when you look at distribution companies they are clearly and technically insolvent, and you also want them to raise capital in terms of debt or equity. It’s a Herculean task. I also want to mention that implementing the power sector reform requires very strong political will to implement decisions that impact on the wider public.”

However, the African Development Bank (AfDB) disclosed that it has so far spent over $450 million to support various power sector projects and programmes with another $1 billion planned to support the power sector reform effort by the government.

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Emirates Airline to resume Lagos-Dubai flights October 1

Published

1 hour ago

May 17, 2024

NewsDirect

Emirates Airline has disclosed that it will resume services to Nigeria from October 1, 2024, operating a daily service between Lagos and Dubai.

This development was announced in a statement on Thursday by the airline, which has its hub in the United Arab Emirates (UAE).

The airline disclosed that flight services will be operated using a Boeing 777-300ER.

“We are excited to resume our services to Nigeria. The Lagos-Dubai service has traditionally been popular with customers in Nigeria and we hope to reconnect leisure and business travellers to Dubai and onwards to our network of over 140 destinations.

“We thank the Nigerian government for their partnership and support in re-establishing this route and we look forward to welcoming passengers back onboard,” Emirates’ Deputy President and Chief Commercial Officer, Adnan Kazim, said.

Recall that Emirates Airlines had suspended its Dubai-Lagos flights in 2022 over its inability to repatriate trapped funds in Nigeria in the heat of the diplomatic row between the two countries.

This comes after Festus Keyamo, Minister Of Aviation And Aerospace Development in a post on his X (formerly Twitter) page had disclosed that he got correspondence from Emirates Airline when he visited Salem Saeed Al-Shamsi, ambassador of the United Arab Emirates (UAE) in Abuja.

”Yesterday, I paid a working visit to the Ambassador of the UAE to Nigeria, His Excellency, Salem Saeed Al-Shamsi at the UAE Embassy in Abuja. He handed me a correspondence from the Emirates Airline indicating a definite date for their resumption of flights to Nigeria,” Keyamo said.