EFCC Files Fraud Charges against Jimoh Ibrahim
By Davidson Iriekpen and Akintunde Akinwale, 07.23.2008
The inability of the Economic and Financial Crimes Commission (EFCC) to produce the Chairman of Global Fleet Oil and Gas Limited and Group Managing Director of NICON Insurance, Mr. Jimoh Ibrahim , before an Ikeja High Court yesterday stalled his arraignment.
Had Ibrahim appeared, he would have been arraigned on a six-count charge of fraud, forgery and impersonation, contrary to section 467(1)(a) of the criminal Code Law Cap. C17, Vol.2, Laws of Lagos State 2003 and section 1(3) of the Advanced Fee Fraud and Other Related Offences Act Cap. A6, Vol. 1 Laws of the Federation of Nigeria, 2004.
Counsel to the EFCC, Mr. Adetunji Adegboyega, told the court presided over by Justice Olubunmi Oyewole that the anti-graft agency could not produce Ibrahim in court yesterday because it could not re-arrest him after it granted him administrative bail recently.
However, an EFCC source said Ibrahim could not be produced in court yesterday because the anti-graft agency's new Head of Operations at the Lagos office resumed work yesterday, and needed time to be adequately briefed on the case.
Ibrahim has however dismissed the allegations, saying it was being orchestrated by the Minister of State for Finance, Remi Babalola, who incidentally was at the centre of the NICON Insurance crisis.
In a press statement yesterday, Ibrahim said: "My attention has been drawn to the charges of forgery of the board resolution of my company by the EFCC, without my knowledge.
"The EFCC is purported to be acting on the instruction of the Nigeria Deposit Insurance Corporation (NDIC), which in turn reports to the Minister of State for Finance, Remi Babalola, who incidentally was at the centre of the NICON Insurance crisis.
"I wish to inform the general public that Global Fleet Limited and VGC Communications is not in any way indebted to Trade Bank Plc (now in liquidation), for any amount whatsoever and that as at the time of exchanging a board resolution between the bank and VGC Communications, we were in possession of the company, VGC Comm, having made part payment of $32 million to the seller, Globe International Holdings Limited.
"It is of note that the transaction cut-off date was 31st January 2006, while the said board resolution was written and dated September 26, 2005, this was still within the period that we were in possession of the company. It is on record that the company borrowed money from Trade Bank, but this was paid within the period in the terms of the agreement of the facility.
"It is in view of this development that an owner of a company cannot be charged for forging the board resolution of his own company, this is rather absurd.
"Under the sales and purchase agreement, the board was directed to name the board of directors for the time being, nevertheless, as a law abiding citizen of Nigeria, we have the EFCC to withdraw the case, in the event that they fail to do so and they lose, we shall sue for unlawful prosecution."
THISDAY checks revealed that the EFCC may have decided to arraign Ibrahim based on a petition sent to it last year by the National Deposit Insurance Corporation (NDIC) over what it called the "outstanding indebtedness of Mr. Jimoh Ibrahim and his related companies to the defunct Trade Bank (in liquidation) to the tune of N255,370,949.86".
In the three-page petition addressed to the then chairman of the anti-graft agency, Mallam Nuhu Ribadu, NDIC is alleging that Global Fleet Oil and Gas Limited was against the then market price of N1.35K, allotted 150 million units of Trade Bank's shares at 80K each which translated to the sum of N120million, adding that the amount was debited to the company's account and the shares duly allotted.
It added that Global Fleet later paid the N51million leaving the a balance of N69million, adding that what this meant was that the bank granted a loan for the acquisition of its shares by Global Fleet Oil & Gas.
It stated further: "The bank, curiously and without basis, credited this account with the sum of N25 million, said to be interest payment on a net sum of N1 billion received as inflow from its transaction with this company. After careful examination of this transaction , the crediting of the account with N25 million was found to be unjustifiable and has thus been reversed. The outstanding debit on this account is therefore N68,943,600 .”
"In its bid to meet with CBN's re-capitalisation requirement, Trade Bank Plc floated a N7.5 billion offer. Global Fleet subscribed to this offer to the tune of N2 billion. Because the offer was unsuccessful, the company's subscription of N2 billion was refunded to it by the CBN. But before the refund, the failed bank had made the following questionable payments totaling N49,326,712.32 to Mr. Jimoh Ibrahim in respect of the N2 billion equity subscription.
"In its bid to meet with CBN's re-capitalisation requirement, Trade Bank Plc floated a N7.5 billion offer. Global Fleet subscribed to this offer to the tune of N2 billion. Because the offer was unsuccessful, the company's subscription of N2 billion was refunded to it by the CBN.
"But before the refund, the failed bank had made the following questionable payments totaling N49,326,712.32 to Mr. Jimoh Ibrahim in respect of the N2 billion equity subscription: N40 million, being two per cent commission for sourcing the N2 billion equity subscription by Global Fleet Oil & Gas, his own company; refund of charges totaling N8 million to Mr. Ibrahim's account by Oceanic Bank which issued the cheque of N2 billion for the equity subscription.
"The sum of N1,326,712.32 to defray the cost of Mr. Ibrahim's journey to Nigeria from United Kingdom for the purpose of ensuring that value was received for the N2 billion cheque issued for the equity subscription.
"An application for a term loan of N1 billion was made by VGC Communications Ltd to Trade Bank on September 26, 2005. The application was supported by a resolution purportedly made by its Board at a meeting held on September 22, 2005. Trade Bank approved the loan believing that Mr. Ibrahim who was held out as having acquired the company, was the sole signatory to the account it was dealing with.
"It turned out that Mr. Ibrahim's bid to acquire the company failed. The letter and Board resolution submitted to the bank by the company was alleged to have been forged. The outstanding balance on this account as at January 16, 2006 (date of revocation of Trade Bank's licence) was N1,059,610,869.54. The indebtedness subsequently reduced to N137,100,637.54 (made up of principal and accrued interest) as a result of payment of N922,510,232.00 by the debtor after the revocation of the bank's licence.
"Upon revocation of the bank's licence and appointment of an interim Management Committee (IMC) for the bank, several overtures were made to Mr. Ibrahim to repay the debt, but they were rebuffed by him."