EFCC freezes Galaxy boss’ 16 accounts – TheNigerialawyer

The Economic and Financial Crimes Commission (EFCC) has blocked
16 accounts traced to the Chief Executive Officer (CEO) of Galaxy
Transportation and Construction Services Limited, Babagana Dalori,
who has been accused of defrauding 27,400 Nigerians of about N7
billion.

Dalori is being detained by the EFCC for interrogation by the
agency’s operatives.

The suspect has allegedly agreed to part with some of his
properties.

But Dalori, who insisted that he is not a fraudulent
businessman, blamed his company’s fortunes on economic
recession.

According to a top source, the EFCC decided to investigate
Dalori and his company, following the receipt of a petition by 63
Nigerians who complained of being defrauded by the suspects.

The source said: “The 63 petitioners alleged that they invested
in a company named Galaxy Transportation & Construction
Services Ltd for a period of one year with fixed percentage of
return on investment. It was further alleged that at the end of the
investment period, the company neither paid the interest nor the
capital.

“On receipt of the petition, the following actions were carried
out: all the 16 accounts linked to the suspects were traced and
blocked; and 22 documents of various properties were recovered.

“Investigation into this case is still at preliminary stage as
the team is intensifying efforts to trace all assets that belong to
the 1st suspect (Galaxy Transportation and Construction Services
Limited) and the 2nd suspect (Dalori).

“So far, twenty two (22) properties have been traced to the
suspects including Six (6) filing stations and five quarries across
different states.

“Also, responses from banks and Corporate Affairs COmmission
(CAC) are being awaited. Preliminary investigation has so far
revealed the possibility of the suspects to have diverted the funds
of various investors to other business rather than the businesses
they invested in.

“At the end of the investigation, we may have a case of criminal
breach of trust and obtaining money under false pretence.

”Furthermore, the suspect express willingness to part with his
properties to settle settlement with the petitioners.”

A document gave insight into the business activities of the
suspects.

It said: ”Due to the trust reposed in him, investors keep on
investing in his Galaxy scheme. He used flyers, advertisements in
the television and radio stations in order to convince the
investors.

“He even went to the extent of organising Nollywood to act a
movie for him over the scheme. He specifically organised some
actors and actresses in Kannywood to act in a movie called “Zero
Hour” to show the need for people to invest in Galaxy.

“Unfortunately, his gimmicks paid off as different people took
their hard earned savings, inheritance, pensions and other source
of income and invested in Galaxy.

“Now, the scheme has crashed and investors can no longer get
their money.

“Though the agreement signed by the investors with Galaxy was
specific- transportation and construction services. But he has now
diversified into other areas in contrast to the agreement.

“At the moment, he has used the investors’ money to incorporate
different entities without getting their consent. He now has Galaxy
Global Energy Concept Ltd, Galaxy Miners Concept Ltd, Galaxy Global
Farms, Galaxy Computers, Galaxy Block Making Factory, Galaxy
Hospital and Galaxy Hotel.”

Contrary to the claim of Galaxy spokesman that the matter was
civil and not criminal, the business of deposits taking under
Nigerian legislation can only be undertaken by a licensed deposit-
taking financial institutions as enshrined in Banks and Other
Financial Institutions Act (BOFIA), CBN Act and the NDIC

But a statement by the spokesperson of the company, Mr. Cletus
Onoja, said the arrest of Dalori was not based on fraud.

Onoja said Dalori was merely taken for investigation by the EFCC
following a petition by the company’s clients.

He said what was at stake was that the company could no longer
meet its obligations to its clients within the time expected of it
for reasons beyond its control.

“As such, some investors who were not satisfied with our
explanation and efforts currently put at recovering the loss
petitioned the EFCC even though the matter was civil and not
criminal.

“As an obedient citizen of the country, the MD/CEO turned in and
gave himself to the Commission’s interrogations,’’ he added.

”It is on record that even when the country was in recession in
2016 and 2017, our company did not fail to meet its obligations to
pay its clients and business partners.

He said the company runs a legitimate transportation and
construction services business in over five states in the country
with its headquarters in Abuja for the last nine years.

.”The company’s management is working round the clock to
overcome the challenges; it is sad that it has already caused
serious worries in the minds of our clients and affected our
cordial relationship.’’