10 years on, EFCC reopens Erastus Akingbola’s trial | Nairalaw

The Economic and Financial Crimes Commission has reopened before
the Federal High Court in Lagos, the 10-year fraud trial of a
former Managing Director of the defunct Intercontinental Bank Plc,
Dr. Erastus Akingbola.

The trial, in the charge marked FHC/L/CS/443c/09, reopened on
Monday before Justice Mojisola Olatoregun.

In the 26 counts filed before the court, the prosecution alleged
that while he was MD and Chief Executive Officer of
Intercontinental Bank, Akingbola, between November 2007 and July
2008, was involved in reckless approval of credit facilities,
without adequate security for a number of firms.

The prosecution alleged that for instance, Akingbola recklessly
approved a credit facility of N8bn each to Soo-Kok Holding Limited;
Tofa General Enterprises; Cinca Nigeria Limited; Harmony Trust and
Investment Limited; Stanzus Investment Limited.

The EFCC said the illegal transactions were carried out between
May 2008 and May 2009 in contravention of “accepted practice or
Intercontinental Bank Plc’s regulations.”

It said Akingbola violated Section 15(1)(a)(i) of the Failed
Banks (Recovery of Debts) and Financial Malpractices in Banks Act,
Cap F2, Laws of the Federation of Nigeria, 2004 and was liable to
be punished under Section 16(1)(a) of the same Act.

In another instance, the prosecution alleged that under
Akingbola’s watch as MD/CEO, Intercontinental Bank Plc had N87.6bn
non-performing credit burden.

It said Akingbola failed to take all reasonable steps to ensure
compliance with the requirement to maintain, at all times, the
minimum capital adequacy ratio specified by the Central Bank of
Nigeria in compliance with Section 13(1) of the Banks and Other
Financial Institutions Act, Cap B3 Laws of the Federation 2004.

The ex-bank chief has, however, pleaded not guilty to the 26
counts.

At the Tuesday proceedings, the second prosecution witness,
Abdulraheem Jimoh, an investigator, told the court how he
uncovered, among others, an alleged fraudulent transaction of N10bn
by Akingbola.

Jimoh, who was led in evidence by the prosecuting counsel for
the EFCC, Mr. Rotimi Jacobs (SAN), said, “The management of the
bank gave me a letter dated May 8, 2009, from Tropics Securities
Nigeria Limited, a company owned by Dr Erastus Akingbola, his wife
and some other shareholders.

“The letter was addressed to the Group Managing Director, Dr
Erastus Akingbola, and the letter was signed by one Mr Bayo Dada
and one Jackson.

“The letter was claiming payment amounting to N10bn for shares
purported to have been bought by the bank.”

The investigator said based on the letter, Intercontinental Bank
issued three cheques amounting to N10bn in favour of Tropics
Securities Nigeria Limited.

He said, “Upon further investigation, I discovered that the
cheques were cleared in Access Bank for Tropics Securities Nigeria
Limited and Tropics Properties Limited. Dr Akingbola has
substantial interests in these firms.

“Further investigations revealed that the money was used to
clear Dr Akingbola’s indebtedness to Access Bank.”

When asked by the prosecutor, Jacobs, whether the N10bn was a
loan from Intercontinental Bank to Akingbola, the witness said,
“There was no loan granted to any of the companies or Dr Akingbola
but they claimed it was for shares.”

Justice Olatoregun adjourned further proceedings till
Wednesday.

Suspended CJN Onnoghen Sick, Hospitalised- Trial
Adjourned

The trial of the suspended Chief Justice of Nigeria (CJN),
Justice Walter Samuel Nkanu Onnoghen on failure to declare assets
brought against him by the federal government was stalled at the
Code of Conduct Tribunal, in Jabi, Abuja, due to sudden sickness he
developed.

Onnoghen is standing trial on a six count charge bordering on
failure to declare some of his assets as required by law for public
office holders.

He pleaded not guilty to the charges and has been admitted to
bail on self recognizance.

However at the resumed hearing, Onnoghen was absence in court
for the trial as required by law.

His lead counsel, Chief Adegboyega Awomolo SAN, explained to the
tribunal that Onnoghen’s absence was occasioned by a tooth-ache and
high blood pressure which was said to be around 410/121.

The senior counsel tendered a medical report from Ideal Medical
Services, Abuja where the defendant was said to have been
treated.

The medical report signed by one Dr Francis Uche, the Medical
Director of the hospital recommended among others that Onnoghen
must observe 72 hours bed rest for his high blood pressure to be
properly monitored.

Reacting to the development, counsel to the Federal government,
Alhaji Aliyu Umar SAN, admitted been copied with the letter and
informed the tribunal that the issue of health is paramount in any
human endeavors.

He however applied that the trial be adjourned till March 18 to
enable Onnoghen have sufficient rest as recommended by his
doctor.

The prosecution counsel said although his witnesses were in
court and that he was ready to proceed with the trial, he however
said that he had to concede to an adjournment because of the
importance of the health of the defendant.

In his short ruling, the tribunal chairman, Danladi Yakubu Umar
agreed with the position of the prosecution and the medical report
and shifted the trial till next Monday.

The Tribunal had on Monday deferred rulings in the two motions
of Onnoghen, challenging the jurisdiction of the tribunal to hear
the criminal charges brought against him by the Federal
government.

Also deferred is ruling in another motion in which Onnoghen
prayed for the disqualification of the tribunal Chairman, Danladi
Umar, from participating in the trial on account of demonstrated
bias.

Delivering ruling in the two motions, argued by Chief Adegboyega
Awomolo SAN on behalf of Onnoghen, the CCT chairman announced that
rulings has been reserved and shall be delivered along with the
substantive suit.

Umar, also in the short ruling, invoked section 296(2) of the
Administration of Criminal Justice Act to arrive at his conclusion,
adding that in line with the provisions of the law, ruling in all
motions shall not be delivered until the final judgment of the main
matter.

Besides, Umar ordered that proceedings against Onnoghen shall be
conducted on a day-to-day so as to ensure speedy trial of the
charges.

Earlier, had Onnoghen insisted that the Code of Conduct Tribunal
(CCT) has no jurisdiction to proceed with the six count charge
brought against him by the Federal government.

Onnoghen told the tribunal that as a serving judicial officer,
it is the National Judicial Council (NJC) that is vested with
powers to entertain any misconduct against him.

In a motion dated January 14, 2019, Onnoghen through his
counsel, Chief Adegboyega Awomolo SAN, prayed the tribunal to
strike out or dismiss the entire charges against him for want of
jurisdiction.

Awomolo, cited sections 34 and 292 of the 3rd scheduled of the
1999 constitution as grounds that the CCT has no requisite power to
deal with erring judicial officer without first resorting to the
NJC.

He said the powers of the National Judicial Council are superior
to that of the Code Conduct Bureau when it comes to the issue of
judicial Officer, adding that in line with section 292, the NJC
must first indict a judicial Officer before any Judiciary measure
can be taken.

The senior lawyer, reminded the tribunal that it had earlier
recognized this position last year, when it declined to assume
jurisdiction in the case of Federal government against Justice
Sylvester Ngwuta a Supreme Court Justice, based on the Court of
Appeal decision that ordered that serving judicial officers must
first be referred to the NJC in matters of misconduct before
prosecution in any other court.

Awomolo, accordingly urged the tribunal to maintain his earlier
decision by striking out the charges against Onnoghen.

In the second application dated January 31, 2019 and predicated
on section 36 of the 1999 constitution, Onnoghen demanded that the
chairman of the tribunal recuses or disqualify himself from further
participating in the trial on the grounds that of fair hearing and
likelihood of bias.

The defendant claimed that Umar had demonstrated sufficient bias
against him in the conduct of proceedings and that it would be in
the best interest of Justice for the CCT boss to step aside from
the proceedings.

Onnoghen stated that in the instant case, the executive arm of
government where Umar belongs to is the complainant, investigator,
prosecution and the judge contrary to the provisions of the
law.

Responding, counsel to the Federal government, Aliyu Umar SAN,
however urged the tribunal to dismiss Onnoghen’s application on the
grounds that the application lacked merit.

He said there is a difference between a judicial misconduct and
failure of a public Officer not complying with the provisions of
the Code of Conduct Bureau, adding that in the case of Ngajiwa
cited by the defendant, Ngajiwa was accused of bribe taking, while
the defendant in this case is charged with violating constitution
provisions.

By PRNigeria