Paris refund: Court orders forfeiture of N1.4bn govs paid to consultants

A federal high court in Lagos on Friday issued an order directing Access Bank Plc and Guaranty Trust Ltd to surrender N1.4 billion Paris and London Club loans in their custody.

Mojisola Olatoregun, a judge, ordered the banks to temporarily forfeit the loans.

Olatoregun made the order while granting an ex-parte application filed and argued before her court by the Economic and Financial Crimes Commission (EFCC) through its lawyer, Ekene Iheanacho.

Listed as respondents in the suit were Melrose General Services Limited: WASP Networks Ltd and Thebe Wellness Services.

The court also ordered the EFCC to notify whoever is interested in the said money to appear before it and show cause why same should not be finally forfeited.

The judge directed the EFCC to publish the temporary forfeiture order in a national newspaper for the respondents or anyone who is interested in the money to appear before the court and show cause within 14 days why final forfeiture order will not be made.

The EFCC in an affidavit deposed to by one of its investigators, Usman Zakari, said on May 26, 2016, the 36 governors through the Nigerian Governors Forum (NGF) engaged the services of consortium of consultants.

He said it was for the purpose of verification, reconciliation and recovery of over-deductions on Paris and London Club loans on the account of states and local government between 1995 to 2002.

The deponent said the consortium carried out the said assignment of verification, reconciliation and recovery of the said Paris and London Club loans on the states and local government between 1995 and 2002.

He said it came up with a total sum of $6.483,282,424. 61, as due for refund to the states.

He said the report of the consortium dated August 31, 2016, showing a breakdown of the debt profile state by state and over-deductions was addressed to the minister of finance, and that the report was submitted to the NGF.

He added that following the report, the president approved an initial payment of $1.7 million for the benefit of the various states.

He also said in line with the request of the governors, the ministry of finance through the Central Bank of Nigeria (CBN), paid  $86 million and N19 billion, respectively into the GTB and Access Bank accounts of NGF purportedly to defray incidental expenses.

He also said the money was paid into the Access Bank account of NGF on December 8, 2016; and on December 14, 2016. The NGF paid the sum of N4. 3 billion to the Consortium as part of agreed consultancy fee.

He said between December 15, 2016, and January 20, 2017, the first respondent moved out about N2 billion “in order to launder the money”, leaving a balance of N1.2 billion before the intervention of the EFCC.

According to the lawyer, N220 million was voluntarily returned by the first and second respondents, whose representatives also made extrajudicial statements.

He said the interim order of the court was necessary to forfeit to the federal government the N1.2 billion in Access Bank Plc account of the first respondent and the sum of N220million recovered from both second and third respondents.

The matter has been adjourned till October 30 for hearing.