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N7.74bn Alleged Fraud: Kenny Martins, Three Others Get June 30 Date.



The trial of Kenny Martins who is being prosecuted by the Economic and Financial Crimes Commission, EFCC, for alleged N7.74bn Police Equipment Fund, PEF, fraud has been rescheduled till June 30, 2020.

Justice Modupe Adebiyi of the High Court of the Federal Capital Territory, Abuja, had earlier scheduled Tuesday, April 28, 2020 for the trial.

But the April 28 date was not feasible in the light of the shutdown of courts by the Chief Justice of Nigeria, Justice Tanko Muhammad, following the lockdown in force in Abuja and many other parts of the country to curb the spread of COVID-19 pandemic.

The EFCC is prosecuting Martins, as the coordinator of the Police Equipment Fund, for allegedly conniving with three others to perpetrate the alleged fraud.

It would be recalled that Justice Mohammed Talba, then of FCT High Court, Gudu, Abuja, now elevated to the Court of Appeal bench, had on November 24, 2009, discharged Martins and his co-defendants in his judgment on the no-case submission filed by them.

But the EFCC appealed against the judgment.

The Court of Appeal in Abuja on June 28, 2012, upheld EFCC’s appeal. The court, in its lead judgment read by Justice Regina Nwodo, held that Justice Talba of the FCT High Court erred by discharging the defendants.

The court ordered the Chief Judge of the FCT High Court to reassign the case to another judge for re-trial.

Not satisfied, the defendants appealed to the Supreme Court. The apex court, in its judgment on March 23, 2018 affirmed the Court of Appeal’s verdict and ordered the re-trial of the case.

The EFCC subsequently amended and filed three count charge in Charge No: CR/267/18 at the FCT High Court. Three others charged along with Martins are: Ibrahim Dumuje, Yero Gella and Nigerstalg Limited.

One of counts filed on behalf of the Commission by John Ainetor of Festus Keyamo’s Chambers reads: “That you, Kenny Martins, “M”; Ibrahim Dumuje, “M”; Yero Gella “M”, and Nigerstalg Limited on or about 18th of May, 2007 in Abuja within the jurisdiction of the High Court of the Federal Capital Territory, being entrusted with the sum of N7, 740, 000, 000. 00 (seven billion, seven hundred and forty million naira) property of the Association of Local Governments of Nigeria, and the Federal Government, dishonestly converted to your own use the sum of N59, 000, 000 (Fifty nine million naira) of the said sum of N7, 740, 000, 000. 00 in violation of the agreement between you on one hand and the said Association of Local Government of Nigeria, and Federal Government of Nigeria on the other, that the entire said sum of N7, 740, 000, 000. 00 should be used to procure equipment for to the Nigerian Police Force, and thereby committed an offence punishable under Section 312 of the Penal Code Act Cap. 532 Laws of the Federation of Nigeria (Abuja) 1990”.

News and Report

Photos: Orji Kalu Released From Prison…



Orji Kalu, former governor of Abia state, has been released from prison.

Awa Kalu, his senior counsel, confirmed Kalu’s release to TheCable on Wednesday night.

The Economic and Financial Crimes Commission (EFCC) had arraigned Kalu and Ude Jones Udeogu, a former director of finance and account of Abia state on 36 counts of money laundering to the tune of N7.1 billion and they were jailed in December.

On May 8, the supreme court nullified the trial of Kalu’s co-convict.

The apex court held that Mohammed Idris, the trial judge who had been elevated to the court of appeal at the time of the case, ought not to have presided over the matter while he was an appeal court judge.

On Tuesday, a federal high court in Lagos ordered the release of Kalu.

Below are photos of Kalu leaving the prison:

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AfDB crisis: Surprises ahead in boardroom voting power



—Africa shoots self in the foot

—Only thing worse than being ignored by the US is being noticed by the US‭ ‬

A fresh angle emerged over the weekend about a possible loophole that exists in the voting power arrangement at the African Development Bank (AfDB) that could easily play regional shareholders into the hands of non-regional members should the current United States push actually means Washington wants the bank President, Akinwumi Adesina, out of office.

Many in diplomatic circles, who told Business A.M. they were following developments, think this may be the ultimate goal. But how the United States succeeds in achieving this goal can be seen in how, over the time, the voting power between regional and non-regional shareholders has closed up.

As at December 31, 2019, the distribution of voting power among the regional and non-regional executive directors of the bank was in the ratio of 3 to 2. Regional executive directors had 3,836,605 votes, representing 58.784 per cent, while the non-regional executive directors had 2,689,959 votes or 41.216 per cent.

People familiar with the situation told Business A.M. that even when there are no misgivings, when a powerful shareholder like the United States has an agenda to pursue the diplomatic horse-trading is often fierce.

One source in London put it bluntly: “Would you want to be on the wrong side of President Trump?” He asked, in reference to how such a diplomatic horse trading could play out should the US press some regional shareholders to take its position.

The fact that the US has taken an interest in the matter at the AfDB is something that Business A.M. learnt makes the situation bad as it is. “I’ve always thought the only thing worse than being ignored by the US is being noticed by the US,” the source said.

But the real battle that lies ahead will be in the boardroom, given the voting power equation. As someone said, “the fate of Akinwumi Adesina is not in the hand of African countries but foreign investors.”

But while the ordeals of the President Adesina evokes sympathy, it appears a lot of voices in his support, either from his home country Nigeria, or from other African countries, as shown in media reports over the weekend, have dwelled more on African sentiments than looking at more potent issues that could ultimately determine the direction of events after the moment when the frenzy of supports gets to saturation point.

“In corporate governance, noise is different from facts. Whether the defenders of the embattled AfDB President know it or not, the real battle is more in the boardroom and the ultimate determinants are numbers. In this case, the numbers will play up in a number of ways, one of which is the voting powers of countries,” explained a Lagos-based diplomat.

Nigeria as the largest shareholder has 9.3 per cent voting power. It is followed by the United States which has 6.6 per cent voting power. Others with significant voting powers are Japan (5.4%); Germany (4.2%); Canada (4%); France (3.7%); Italy (2.4%); U.K (1.7%); Sweden (1.5%); Switzerland (1.5%);

Apart from Egypt with 5.4%, South Africa with 4.9%, Algeria with 4.2%, the rest of 8 African nations from Cote d’Ivoire to Kenya have nominal status from 3%-1% voting power.

The vulnerability of most African regional member countries can thus be seen from the table. And when it comes to wielding powers, guess where the pendulum would swing and what factors would sway the vulnerable and the weak to the side of the strong.

And if the US, rightly or wrongly accused of orchestrating the crisis, decides to exit the AfDB, might there be an exodus of other non-regional members? In the unlikely event that this happens, what is the future of the bank? Will it remain afloat or go bankrupt? What will be history of the bank in ten years’ time, should this happen: that the bank ran into financial crisis while regional members try to save one helmsman?

There are insinuations that, post-COVID-19, China might step up its regional interests in Africa. If those interests extend to financial institutions, it will be one of the most egregious mistakes to give China any greater leverage in AfDB than it currently has, even if the motive is to spite the US. The experiences of countries in Europe recently should be a good guide as they are insisting that the stakes of China in their businesses must be kept to the barest minimum.

The question that comes to the fore is this: Is Africa now trying to have it both ways? So, if any of them raise any objection, would they be heard?

How did Africa get here after setting up a bank, then they gifted it to Asia, Middle East, Europe and America? And, what would other countries think of Africa’s reactions to the US?

One analyst said: “I really don’t know enough of the details. But, big picture, especially at this moment, financing in Africa in general and the ADB in particular needs this kind of on-going controversy over governance and transparency like a hole in the head. An internal inquiry, however exhaustive, was never going to have the credibility of an independent probe.”

The future image and credibility of the bank is very important. And external inquest would help in burnishing, not tarnishing, that image. If disallowed, a dark cloud of aspersion may hang precariously and dangerously on the bank for a long term as a bank where public confidence doesn’t matter so much as insiders’ judgment. It may affect the ratings of the bank henceforth and the prospects of getting more funds raised from countries outside Africa. The desperately needed development may therefore suffer needless setback.

So where is this heading to right now? “Well… three weeks is a long time in ADB politics. But it’s not good for Adesina, if only to have failed to prevent it reaching this point,” said one diplomatic source.


  • Business AM

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The leadership of New Nigeria Collective (NNC), a non- government, non-profit making organisation, yesterday, at its National Executive Council (NEC) meeting, reviewed the state of the nation, coming at a time the federal government marked its fifth year in office and the first of the second term of the President Muhammadu Buhari administration.
The NNC noted without biases, the weight of the challenges that are currently besetting governments at all levels in the country and concluded that while the room for improvements and inexcusable delivery of promises palpably points to itself, it has not been a poor journey after all, especially, if the situations in other climes are factored into account side-by-side with the current global health challenge, the Covid-19 pandemic.
It was against this backdrop and the growing malcontents amongst a majority of Nigerians, that the NNC objectively dissected the Buhari administration and clearly pointed out THE GOOD, THE BAD and THE UGLY markers that have become the talking points in the last five years.
The NNC also noted without reservation that its resolve to look at the last five years of the administration in totality as against the last one year was borne out of the reality that countries have been challenged significantly by Covid-19 in the last few months, some dating back to late last year.
To that extent, no genuine assessment could be based on the last one year of the administration, when evidently something else had taken attention away from the familiar good governance and the development of the nation. It’s therefore safe for both the government and the people to look at the administration holistically.
Thus, the NNC, at its NEC observed the following:
1. That the response of the Government to the Covid-19 pandemic has been commendable, particularly its successful handling of the same contrary to some of the predictions of doom and gloom by both the local and international observers/experts. The NNC alo noted with a sense of appreciation and motivation, the dedication, commitment and honesty of the Secretary to the Government of the Federation, Mr. Boss Mustapha, who as the chairman of the Presidential Task Force on Covid-19, has led the nation thus far and successfully so. Mr. Mustapha is a positive example of a public servant.
2. That the recent reductions in the pump prices of petroleum products by the administration three times in a row following the slump in the global price of crude oil was a good move, which spoke to the sensitivity of the government to the plight of the people. The NNC equally commended the recent removal of subsidy from petroleum products as a result of the changing global indices, despite its dwindling fortunes.
4. That the NNC recalled that upon resumption of office of the administration, the economy was plunged into recession but that through conscious, critical and tough choices, as well as positive thinking, the administration survived and crawled out of recession and consequently, stabilised the economy.
5. That the NNC collectively stated that whilst the administration might not have achieved much in terms of economic gains, it sure has put the nation on a better pedestal as far as infrastructure development is concerned in spite of earning less compared to the previous administrations. The NNC
alluded to the nationwide railway construction, the 2nd Niger Bridge, repairs and conspicuous rehabilitation of major expressways in the six geopolitical zones as well as the evident developments in the aviation sector.
6. That the NNC commended the recent financial autonomy granted state Houses of Assemblies and the Judiciary. This, the NNC, contended would go a long way in charting a completely different path, not only for the present crop of office holders, but for democracy to thrive better.
7. That the NNC applauded the synergy amongst the three arms of government. Unlike what obtained in the past, the three arms of government not only work together now, they are consistently looking in the same directions in nation’s interest, notwithstanding some of the misgivings that have attended this rare camaraderie.
8. That the NNC further noted the recent financial autonomy granted local government administrations in the country, thus liberating them from the claws and undue interference from state governments
9. That the NNC took judicial notice of the repeated bailouts of states in financial distress. That the Ministry of Budget and Planning, with the cooperation of the National Assembly, has successfully returned the budget to the January to December cycle is worthy of note, as it now allows for prompt response and planning by those whose activities are directly and indirectly affected by the budget.
10. That the NNC described the developments in the Agriculture sector as mind-blowing, noting also that the school feeding programme of the government is a plus that cannot be shoved aside. That for the first time in the history of the nation, people now consume locally produced goods, while local farmers now have gains through government initiatives in agriculture.
However, while pondering some of the downsides of the administration in the last five years, the NNC noted as follow:
1. That the government must address the allegation of lack of transparency in the Ministry of Humanitarian Affairs. That it would be irresponsible to let it slide.
2. That the government should be wary of its constant borrowings for projects that do not have commercial values or that can adequately guarantee a smooth repayment plan, including the cost of servicing the loans.
3. That the NNC noted with disappointment, the constant rivalry amongst some of the inter-governmental agencies, citing the recent drama that attended a disagreement between the Minister of Communications and Digital Economy, Isa Pantami and the Chief Executive Officer of the Nigerians in Diaspora Commission, Hon. Abike Dabiri-Erewa. The development, it said, was reprehensible.
4. That the NNC noted the unceasing insecurity, particularly, the unabated killings in the northern part of the country. While noting the efforts of the security agencies to stem the tide, NNC noted that the situation requires more deliberate actions to stamp the scourge out of the system.
5. That the NNC observed as a low point in the life of the administration, the seeming redundancy of Vice President Yemi Osibajo. The NNC is of the view that the vice-president has a lot to offer and should be deployed to better use. The group also alluded to the alleged nepotism of the administration and advised an appointment spread that typifies Nigeria’s differences as a social entity.
6. That the NNC recognised some of the frustrations and disappointments of the people on some of the actions and inactions of the administration. It, however, solicited support for the government since its failure or success is a brunt that all would bear at the end of the day.

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