N868.4m fraud: How ex-AGF diverted defence ministry’s funds — Witness

The ninth prosecution witness, Gudi Johnson, in the trial of a former Acting Accountant General of the Federation (AGF), Chukwunyere Nwabuoku, has narrated before the Federal High Court sitting in the Maitama are of Abuja how the defendant as former Director, Finance and Account in the Federal Ministry of Defence allegedly diverted the ministry’s funds.

The witness disclosed that the former AGF allegedly used cash withdrawals and deposited the funds into multiple company accounts.

The Economic and Financial Crimes Commission (EFCC) is prosecuting Nwabuoku on a nine-count amended charge, bordering on money laundering to the tune of N868,465,000.

The witness, an investigator with the Independent Corrupt Practices and other Related Offences Commission (ICPC), while being led in evidence by prosecution counsel, Ekele Iheanacho (SAN), stated that the ICPC received intelligence report from the Ministry of Defence on transactionsinvolving Trans Afro Limited, Torch Global Limited, and Teemell Limited, among others.

He said his team, which investigated the matter, wrote to the Corporate Affairs Commission (CAC) and the banks involved.

According to him, the analysis of the CAC report and bank statements showed that there were inflows of money from the Ministry of Defence to the companies.

The witness said: “We discovered that one Gideon Joseph was registered as a director in these companies. His address was Louis Street, Maitama and Kubwa.

“We invited him to answer as to what business he carried out. All the letters could not be delivered so we resorted to the Ministry of Defence where we invited the Director of Accounts, one Mr Felix to throw more light. He told us that he acted on the directives of the Director of Finance (the defendant).

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“Other persons were called and they said they were instructed to withdraw the monies they received into the accounts of Teemell, Touch Global and Transactional Afro Nig. Ltd. It was on this note that we invited the Director of Finance and Accounts (the defendant).

“We then asked him the source of the funds and purpose and he told us that they were all payments for security operations which he said could not disclose because they were classified information.

“On that note we wrote to the Office of the National Security Adviser, ONSA. We submitted all the documents to ONSA telling them our findings and a committee was set up, including Gen. Monguno, Professor Bolagi Orasanye, me, Bellozi  Adama from EFCC etc. We were told toinvestigate the matter.

“We commenced an interview with him and he was cautioned and his statement taken virtually and physically. We showed him all the payments we saw, he said it was from quarterly release from the federal government into the Ministry’saccounts for security.

“Analysis showed that as soon as funds were deposited into the accounts, it was diverted and withdrawn by Gideon Joseph. The cash withdrawn would be deposited by Gideon into the account of M. Daddy`s Ltd.

“One Jerry Nwachukwu was called who came and told the committee that the money was deposited at the instance of the defendant and N355miilion was deposited.

“The defendant told us earlier that N100million was his only interest in the funds. One hundred and fifty million nairawas also identified to be moved from M. Daddy`s account to Quantum Zenith Ltd.”

Johnson said further analysis showed that N13 million was transferred to El Salen Limited for property purchase and N10million for the purchase of a power generating set.

The witness added: “On this, we obtained records from City Gate Homes,showing a property of N65million linked to the defendant which we told him that these are proceeds of crime which must be recovered.

“We inspected the house at City Gates homes and seized the keys, the defendant also said he had investment prior to his involvement. We wrote to the Code of Conduct Bureau and they said there was no information on his assets.”

Letters from the ONSA, dated January 18 and 20, 2022, the remita response, and the Code of Bureau response, among others were marked and admitted as exhibits.

The presiding judge, Justice James Omotosho, thereafter, adjourned the matter till May 22 and 23 for the continuation of hearing.

The Star