Falana Seeks EFCC’s Prosecution of Soludo

Human rights lawyer and Senior Advocate of Nigeria, Mr Femi Falana, has requested the Economic and Financial Crimes Commission (EFCC) to “investigate the criminal diversion of funds” in a case involving a former Governor of the Central Bank of Nigeria (CBN), Professor Charles Soludo. In a letter dated 23rd of September, 2016, Falana urged the Acting Chairman of EFCC, Mallam Magu to investigate the former apex bank boss for the diversion of “$7 billion from the nation’s external reserves and doled it out to 14 Nigerian banks.” The lawyer also recalled that the Federal Government successfully recovered over $4 billion from the Abacha loot which he claimed has been illegally diverted. Below is the unabridged version of Femi Falana’s letter to the EFCC: September 23, 2016 The Acting Chairman,Economic and Financial Crimes Commission,15A Awolowo Road,Ikoyi, Lagos. REQUEST TO INVESTIGATE ALLEGATION OF CRIMINAL DIVERSION OF PUBLIC FUNDS AND ILLEGAL WITHHOLDING OF FUNDS FROM THE FEDERATION ACCOUNT In our letter dated 8th April, 2016 we prayed the Minister of Finance to take urgent steps to recover billions of dollars either criminally diverted or illegally withheld from the Federation Account. Apart from informing us that the letter was receiving attention no step has been taken to accede to our request. Since then the peripheral capitalist economy of the country has slumped into recession. However, since the actions of the few corporate bodies and individuals who engaged in the criminal diversion of the nation’s wealth border on serious economic and financial crimes we are compelled to request the  the Economic and Financial Crimes Commission  to embark on the investigation of the following allegations: 

1. By a letter dated January 27, 2016 the National Extractive Industries Transparency Initiative (NEITI) disclosed to us that from five cycles of independent audit reports covering 1999-2012 it had confirmed that the Nigerian National Petroleum Corporation, some oil companies and certain agencies of the Federal Government had withheld $20.2 billion from the Federation Account. Despite repeated requests of some civil society organizations  the Federal Government has refused to recover the said sum of  $20.2 billion.

 

2. Sometime in 2006, former Central Bank Governor, Profesor Chukwuma Soludo removed $7 billion from  the nation’s external reserves and doled it out  to 14 Nigerian banks. Two years later, the Central Bank Governor, Mallam Sanusi Lamido Sanusi (the current Emir of Kano) also gave a bailout of N600 billion  to the same  banks. The request of some civil society organisations for the recovery  of the huge  loan of $7 billion and N600 billion from the commercial banks  has been ignored by the  management of the Central Bank.

 

3. On September 6, 2016, the Nigerian National Petroleum Corporation (NNPC) announced that arrangements had been concluded to recover the sum of $9.6 billion in over-deducted tax benefits from joint venture partners on major capital projects and oil swap contracts. Although the NNPC has  recovered the said sum of $9.6 billion, it has failed to remit same to the Federation Account without any legal justification.

 

4. In 2009, Mobil Oil Producing Nigeria Unlimited applied to the Federal Government for the renewal of three oil blocks. Upon granting the application, the NNPC asked Mobil to pay the sum of $2.5 billion for the renewal of the licenses. While Mobil made a part payment of $600 million it undertook to invest the outstanding sum of $1.9 billion in the energy sector. But as Mobil did not invest the said sum in the energy sector  the Civil Society Network Against Corruption has requested the EFCC to investigate the fraudulent transaction.

 

5. From 1998-2014, the Federal Government successfully recovered over $4 billion from the Abacha loot. Howeved, based on the refusal of the office of the Accountant-General of the Federation to account for the recovered loot the Socio Economic Rights and Accountability Project (SERAP) applied to  the Federal High Court for an order of mandamus. Even though the Court granted the order  the Federal Government has failed to account for the recovered loot. In the circumstances, we have submitted a petition to the EFCC to investigate the alleged criminal diversion of the recovered loot.

 

6. In the Appropriation Act, 2011, the sum of N245 billion was earmarked for fuel subsidy. In violation of the Act, the Central Bank of Nigeria headed by Mallam Sanusi Lamido Sanusi paid the sum of N2.5 trillion to a cabal of fuel importers. Following our petition the EFCC conducted an investigation into the fraud but the exercise was compromised due to pressure from the former Jonathan administration. Even though  the EFCC has charged some of the suspects to court the investigation ought to be reopened with a view to getting to the root of the monumental fraud.

 In view of the foregoing we are compelled to request you to use your good offices to recover the aforesaid sums of money and proceed to prosecute the corporate bodies and individuals involved in the economic  sabotage which has contributed to the nation’s economic recession. Be rest assured that we are prepared to provide all relevant documents to facilitate your  investigation of the serious economic and financial crimes disclosed in this petition. It is hoped that you will not hesitate to accede to our request in view of the increasing  pressures being mounted on the Federal Government by the parasitic faction of the ruling class to auction  the remaining assets  of the nation. Yours Sincerely,  FEMI FALANA, SAN.