Court Orders Detention Of Dalori For Alleging Diverting $2.8m, N6.5bn, Investors’ Funds

The Federal High Court in Nyanya, Abuja has ordered the
detention of the Managing Director/Chief Executive Officer of
Galaxy Transportation and Construction Services Limited, Babagana
Abba Dalori, in the custody of the Economic and Financial Crimes
Commission (EFCC).

Justice Muawiyah Idris gave the order while ruling on a bail
application brought before the court by his (Dalori’s) counsel,
Joe-Kyari Gadzama (SAN), following his arraignment by the EFCC for
criminal charges.

According to a statement by the Commission, Dalori is being
detained for allegedly diverting $2.8million and N6.5billion of
investors’ funds.

The EFCC had on September 2, 2019, arraigned him and his
company, before Justice Idris on three separate charges – two
counts bordering on a N95,530,000 fraud; two counts bordering on
obtaining N4million by false pretence; and eight counts bordering
N30,908,000 fraud.

Dalori is also being prosecuted by the EFCC before Justice
Venchak Gaba of the FCT High Court, Kwali, for an alleged
N10million fraud.

Following his arraignment before Justice Idris, Gadazama had
moved the application for his bail arguing that the case against
him was civil.

He also urged the court to release him on health grounds. The
bail application was, however, vehemently opposed by counsel for
the EFCC, Maryam Ahmed, who urged the court to deny the application
for bail in the interest of justice.

In arguing against the application, the EFCC had also attached
145 petitions in the counter-affidavit, stressing that the EFCC
needed more time to investigate the allegations.

Citing Section 162 of the Administration of Criminal Justice Act
2015, Justice Idris dismissed the bail application and held that
the charges against Dalori, were criminal in nature and which he
must answer for, noting that the charges bordered on criminal
diversion, and obtaining money under false pretence, and criminal
breach of trust.

The trial judge also dismissed the argument for bail based on
health grounds, noting that there were no medical documents
attached in the application.

According to the court, the EFCC was able to prove beyond
reasonable doubts that Dalori used investors’ money to trade in
Forex, as indicated in the confessional statement by a
representative of Forextime Limited (the Forex company he used for
the transaction), which was attached in the EFCC’s
counter-affidavit.

Consequently, Justice Idris ordered that he should be detained
in the custody of the EFCC for the next two months, allowing time
for the anti-graft agency to carry out more investigations into
shady dealings linked to him, even as more petitions against him
continue to pour in.

Specifically, Dalori is alleged to be running a Ponzi scheme,
which he has allegedly used to defraud unsuspecting investors to
the tune of N6.5billion. So far, the EFCC has received a total of
146 petitions, with 128 petitions already established against him
involving the N6.5billion fraud.

“Investigations into his shady dealings also revealed that he
traded with investors’ fund to the tune of $2.8million in Forex at
a loss, and also gave a N500million tip in order to secure a
contract, which, however, flopped.

“Further investigations into the petitions, also exposed his
fraudulent activities, which involved diverting investors funds to
personal use, to acquire properties, including four filling
stations, one hospital, supermarket, watermelon farm, fish and
poultry farm, a sachet water factory, houses and estates, and three
quarries in Kano, Ogun and Abuja.

“Findings by the EFCC also showed that Dalori’s claim of
investing funds in transportation through Galaxy Transportation was
false as investigators could not trace any existing bus used for
transport by his Transportation company,” the statement read.

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