The Federal High Court in Abuja has ordered the final forfeiture of $7 million recovered from the vault of Providus Bank Limited to the Federal Government of Nigeria.
The ruling,
delivered on Monday by Justice Emeka Nwite, followed an application filed by
the Economic and Financial Crimes Commission (EFCC), which argued that the
funds were suspected to be proceeds of unlawful activity.
Senior
Advocate of Nigeria (SAN) Rotimi Oyedepo, counsel to the EFCC, informed the
court that the commission had complied with all procedural requirements
following the interim forfeiture order granted on August 27.
The EFCC
published the order, inviting any interested parties to show cause why the
funds should not be permanently forfeited.
“My lord,
since August 27 that your lordship granted the order, till date, we have not
received any opposition to our application. Hence, we filed a motion for final
forfeiture,” Oyedepo stated.
No
Opposition Received
Although a
lawyer, Mr. Gbenga Akande, had previously appeared in court claiming to
represent an interested party, he declined to disclose the identity of his
client and failed to file any documents to support their claim. On the
adjourned date, Akande was absent, and another lawyer, Darlington Ozurumba,
appeared in court but did not oppose the EFCC’s application.
“In view of
the fact that there is no opposition, we apply for final forfeiture of the
seven million U.S. dollars,” Oyedepo submitted.
Justice
Nwite, after reviewing the application and supporting affidavits, ruled in
favor of the EFCC. “I am of the view that the application is meritorious.
Consequently, the application is granted,” he declared.
Suspicious
Circumstances Surrounding the Funds
According to
an affidavit filed by EFCC investigator Emmanuel Okeibunor, the commission
received credible intelligence indicating that $7 million had been transported
under suspicious circumstances to Providus Bank’s Victoria Island branch in
Lagos between March 25 and 26.
Okeibunor
stated, “My team confirmed that seven million dollars was taken, in suspicious
circumstances, to the Providus Bank Limited located at No.114 Adeola Odeku
Street, Victoria Island Lagos.”
The
investigation revealed that the funds were not credited to any known customer
account but were instead kept in the bank’s vault without proper documentation.
Interviews with bank staff suggested that the money was brought in on behalf of
the Managing Director of Oceangate Engineering Oil and Gas Limited.
Denial and
Failure to Report
However, the
company’s Managing Director denied depositing any funds and claimed instead
that she had taken a $7 million loan from Providus Bank, which remained unpaid.
The bank
reportedly failed to file a Suspicious Transaction Report (STR) with the
Nigerian Financial Intelligence Unit (NFIU), raising further concerns about the
legitimacy of the transaction.
“The funds
sought to be forfeited are reasonably suspected to be proceeds of unlawful
activity, as they did not represent known, provable, and legitimate income of
either Oceangate Engineering Oil and Gas Limited, the couriers, or officials of
Providus Bank Limited,” Okeibunor stated.
The EFCC
recovered the funds in raw cash and transferred them to the Central Bank of
Nigeria for safekeeping. Given the absence of any legitimate claimants and the
suspicious nature of the transaction, the commission sought and secured the
final forfeiture.
Implications
for Financial Transparency
The ruling
underscores the judiciary’s role in supporting anti-corruption efforts and
financial transparency. It also highlights the importance of regulatory
compliance by financial institutions, particularly in reporting suspicious
transactions.
With the
final forfeiture now granted, the $7 million will be transferred to the Federal
Government, marking a significant win for the EFCC in its ongoing campaign
against financial crimes.
What You
Should Know
The judgment
comes barely 11 days before a shareholder meeting scheduled for September 26,
where Unity Bank shareholders will review and vote on the proposed payouts,
transfer of assets and liabilities, and other key elements ahead of the merger
scheme.
Under the
proposed merger with Providus Bank Limited, Unity Bank shareholders are set to
receive either N3.18 per share or 18 Providus Bank shares for every 17 Unity
Bank shares they currently hold.
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