High profile corruption: How Saraki got enmeshed in N3.5b fraud thru his aide—Makanjuola

In our review of high profile corruption trials today, former Senate President, Dr. Abubakar Bukola Saraki got enmeshed in N3.5 billion fraud involving his aide, Gbenga Makanjuola.

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Gbenga Makanjuola – N3.5 billion fraud

The EFCC arraigned Mr. Gbenga Makanjuola, Deputy Chief of Staff to the former Senate President, Dr. Bukola Saraki, on eleven count charges of N3.5 billion fraud.

He was remanded in prison custody by Justice Babs Kuewumi of a Federal High Court in Lagos in response to EFCC’s request that the accused should be remanded in prison until trial begins.

He was later granted N250 million bail with two sureties in like sum.

In 2018, Makanjuola was re-arraigned before the Federal High Court in Lagos for an alleged fraud of N3.5 billion. He was re-arraigned alongside Kolawole Shittu, Obiorah Amobi and a firm, Melrose General Services Limited.

The four defendants were re-arraigned before Justice Maureen Onyetenu on eleven (11) counts.

The re-arraignment followed the transfer of the criminal case from Justice Babs Kuewumi to Justuce Onyetenu, following Justice Kuewumi’s transfer from the Lagos Division of the Federal High Court.

The EFCC alleged that the defendants “took control of N3.5 billion, transferred from the Nigeria Governors Forum’s account into an Access Bank Plc account number:0005892453, operated by Melrose General Services Limited when they reasonably ought to have known that the said fund represented the proceeds of unlawful activities, to wit: conspiracy, stealing and fraud.”

Melrose General Services Limited, a company linked to former Senate President Bukola Saraki finally forfeited N1.4 billion seized by the Economic and Financial Crimes Commission as initially ordered by a Lagos High Court in April.

The money was part of the N3.5 billion obtained from the Nigeria Governors Forum (NGF) through false claims. The Court of Appeal in Abuja on Friday endorsed the request of the Economic and Financial Crimes Commission (EFCC) for the final forfeiture of the money. Saraki’s connection to Melrose is by proxy: two of his aides- Gbenga Makanjuola and Kolawole Shittu are being prosecuted by the EFCC in respect of the scam.

Justice Cecilia Olatoregun of the Federal High Court in Lagos on April 27, 2018, ordered the final forfeiture of the said N1.4 billion to the Federal Government.

Dissatisfied with the verdict, Melrose General Services approached the appellate court for redress, asking it to set aside the pronouncement of the lower court.

But in its judgment, the Court of Appeal dismissed the appeal of Melrose and resolved the four issues in favour of the EFCC. It further held that Melrose appeal lacked merit and ordered the firm to pay N100,000 cost to the EFCC.

The appellate court also held that Melrose could not show that the said funds were lawfully earned by it. It added that Section 17 of the Advance Fee Fraud Act, 2006, which the EFCC relied on to seek for the forfeiture of the said funds was constitutional.

According to the Court of Appeal, Melrose was not denied fair hearing in the matter. Justice Tijjani Abubakar wrote the lead judgement. Justice E. Tobi delivered the judgment while Justice O. A. Obaseki Adejumo concurred with the verdict.

Lawyer to Melrose, Mr Olawale Akoni (SAN), argued the appeal while Mr. Ekele Iheanacho appeared for EFCC.

EFCC had claimed that Melrose obtained N3.5 billion from the Nigeria Governors’ Forum by making false claims. Listed as defendants in the final forfeiture application filed before the Federal High Court were Melrose General Services Limited, WASP Networks Limited and Thebe Wellness Services.

The firms were accused of impersonating a consortium of consulting firms engaged by the NGF for the “verification, reconciliation and recovery of over-deductions on Paris and London Club Loans on the accounts of states and local governments between 1995 and 2002.”

But the EFCC insisted that the original firms engaged by the Governors’ Forum were GSCL Consulting and Bizplus Consulting Services Limited. Usman Zakari of Melrose General Services Limited, Robert Mbonu made a false representation to the Governors Forum, causing the forum to pay N3.5 billion to his company on December 14, 2016.

Zakari said the money was credited into the Access Bank account of Melrose General Services Limited, adding that Melrose and others dissipated and laundered about N2.3 billion out of the money between December 15, 2016, and January 20, 2017, leaving a balance of N1.2 billion.

Zakari said the anti-graft agency had also recovered N220 million out of the laundered sum from WASP Networks Limited and Thebe Wellness Services.

The EFCC had on October 13, 2017 obtained an interim order from Justice Mojisola Olatoregun, placing a “Post No Debit” order on the accounts containing the N1.2 billion and N220 million.

The Judge had made the order following a plea by the lawyer to the EFCC, Mr Ekene Iheanacho, that it would best serve the interest of justice for Melrose and others to forfeit the N1.4 billion temporarily to prevent them from dissipating same.

The Judge, after granting the interim freezing order in 2018, directed the EFCC to publish the order in a national daily giving anyone interested in the funds 14 days to appear before the court to show cause why the funds should not be forfeited permanently.

Subsequently, one Prince Godwin Maduka and Linas International Limited showed up before the court, praying separately that the funds should be forfeited to them.

Maduka claimed that his firm, Udemgaba Maduka & Associates, had been engaged in 2011 as a consultant by Zamfara State Government to help the state recover some hanging funds with an agreement that it would be paid 20 per cent of the recovered funds.

He urged the court to forfeit the N1.4bn to his company to cover Zamfara State’s alleged indebtedness to him. But the EFCC opposed Maduka, contending that the suit was not a debt recovery suit and that Zamfara State was not a party to the suit.

In her verdict on the matter, Justice Olatoregun upheld the EFCC’s argument and dismissed Maduka’s claims. On its own part, Linas International Limited said it was entitled to the payment of $6m from Nigeria Governors Forum.

But Justice Olatoregun also dismissed its claim, holding that the suit was not a debt recovery suit. Having dismissed both claims, the judge ordered the permanent forfeiture of the N1.4 billion to the Federal Government.

The case is closed.

Read also:

High profile corruption: How ex-PDP chair, Mu’azu, ex-IGP Balogun allegedly stole N33b

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[This Publication includes part of a compendium by Human and Environmental Development Agenda (HEDA) covering corruption cases as at 22nd of November, 2019.