Urhobo Historical Society
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Friday, November
23, 2007
TELL Magazine Details
Allegations of
Corruption
Against Ex-Governor James Ibori
After
spirited efforts to escape justice, the law is catching up with James Ibori, former governor of Delta State
accused of stealing billions of state funds and laundering most of it
abroad
Ex-Governor James Ibori of Delta State
If all had worked according to plan,
James Ibori, former governor of oil-rich
Delta State, would have
become one of the most powerful and influential men in Nigeria today.
Having
generously oiled the wheels of the presidential campaign machinery of Umaru Yar�Adua, Ibori saw himself as a kingmaker who should call
some shots
in the new government. The former governor, it was gathered, demanded
to be
made minister in the lucrative petroleum resources ministry. He is also
believed, at one point, to have considered being minister of the
strategic
federal capital territory ministry. But apart from the need to be paid
back for
his substantial investment in the President�s campaign, Ibori�s
desire to be a powerful member of the new administration was also for
the
simple but strategic reason of self-preservation.
The handsome and fabulously wealthy ex-governor knew that he had been
under
investigation for corruption by the Economic and Financial Crimes
Commission,
EFCC. For more than two years, the anti-corruption agency had
investigated Ibori for allegedly looting Delta State
treasury. Becoming a powerful minister in the government would have, at
least
for some time, secured his freedom from prosecution. So Ibori
thought.
However, immediately he learnt of moves by the former governor to
become a
minister, Nuhu Ribadu,
EFCC
chairman, put paid to the scheme by placing before President Yar�Adua evidence of Ibori�s
monumental looting of his state�s treasury.
Today, Ibori is neither a minister nor is
he anywhere
near the corridors of power. Rather, he is virtually a fugitive from
the law. Ibori and some members of his
family and associates are
currently being embraced by the long arms of the law not only in Nigeria but also in Britain
and the United
States,
US.
At the time when the EFCC began the clampdown on former governors, Ibori found it convenient to flee to the US.
Ordinarily,
Britain,
where he has investments, houses, luxury cars and fat bank accounts,
would have
been the natural place to go. But he would most likely have been
arrested in
that country as the London Metropolitan Police has a strong case of
money
laundering against him. However, even America, his initial place
of succour, has become too hot for him to
stay. The magazine
has learned that he had to quickly take off from the US
and return to Nigeria
a few
weeks ago after he got wind of the fact that authorities in Florida had
also commenced investigations on
him in a money laundering case.
As Ibori made his way back home, he was
believed to
have instructed Theresa, his wife, and former first lady of Delta State,
to also return home from Britain
where she was staying. However, Theresa was arrested October 1, 2007 as
she was
waiting to board a plane to Nigeria.
Her arrest was in connection with the Metropolitan Police�s money
laundering
investigations against Ibori. Already,
three persons
related to and used by Ibori in laundering
money have
been arrested in London
and are currently under restraining orders. These are Adebimpe
Pogoson, the ex�governor�s personal
assistant,
Christine Ibori�Ibie,
his
sister, and Udoamaka Okoronkwo,
a female associate believed to have had a son for him. Theresa, a
British
citizen, was arrested by men of the Proceeds of Corruption Unit of the
Metropolitan Police but was granted bail. However, she is expected to
report
back to the police in London
in January 2008 for further questioning.
The investigations into alleged corruption and money laundering against
Ibori have been long drawn, involving
security authorities
in Nigeria, South Africa and Britain.
And the magazine�s own
investigations have revealed that the Metropolitan Police has virtually
concluded its probe of the former governor. It not only has a
watertight case
against him, but is in a position to arrest and prosecute him.
A glimpse into the money laundering case against Ibori
in London is provided in a witness�
statement
supporting an application for a restraining order on Ibori�s
investments and assets in Britain
and other countries. Written by Paul Gardiner, a financial investigator
employed by the Metropolitan Police to unravel the web of the
ex�governor�s
money laundering schemes, the statement, which was actually presented
to the Southwark Crown Court in order to
obtain a restraining
order on Ibori�s assets, reveals not only
persons and
companies used by Ibori to launder monies
amounting
to over N35 billion, but also the circuitous route that the funds were
made to
pass through to disguise their sources.
Specifically, Ibori, who is being
investigated for
committing offences under the Proceeds of Crime Act under British law,
allegedly criminally stole billions of naira when he was in government
and
laundered some of same in Britain
�thereby committing offences under section 327 and 328 of the Proceeds
of Crime
Act 2002�.
Operating like an international crook versed in the art of money
laundering,
and using the likes of Pogoson, Okoronkwo,
Ibori-Ibie and a host of other associates
as well as
offshore companies and fronts, the former governor allegedly stole
funds
through the award of often bogus or often inflated contracts, paid
monies into
the accounts of these people who then transferred the funds into
designated
accounts abroad. Following a circuitous route, a lot of the monies were
then
routed to accounts and companies owned or controlled by Ibori.
To disguise the sources of the funds, Ibori,
through
a firm of attorneys in London, also
created
shell companies in Gibraltar, British Virgin
Islands,
Switzerland, Mauritius, Panama
and other remote parts of
the world, to which monies were paid so that they could be legitimised
through purchase of properties and other assets. These companies
include Haleway Properties Limited,
registered in Gibraltar, Teleton Quays
Limited (in British Virgin Islands), Erin
Aviation Limited (Mauritius), Stanhope Investment Limited (Polynesia), Julex Foundation (Panama) and Parabola
International Corp.
(Mauritius).
Documents at the Southwark Crown Court, London,
showed that Ibori devised a simple method
to launder
the money he allegedly stole from Delta State
coffers. For
example, during his eight-year rule, cash and drafts worth about �2
million
were paid to Pogoson from Delta State
accounts. Money was paid into her account in Asaba
and Lagos, from where it was
electronically
transferred into the United Kingdom,
UK,
accounts of MER Engineering, a company owned by the former governor. Ibori was a director in the company before he
became
governor. However, since 1999, Pogoson has
been the
sole signatory to the company�s accounts. From MER�s
UK account, nearly
$1.5 million was then
electronically transferred into the account of a front company for the
ex-governor, Stanhope Investment, held at Private Bank AG Geneva and
other
accounts held by him in Switzerland.
Police forensic investigators from London
discovered that because of the law in Nigeria
which barred him from having foreign accounts, Ibori
opened the account in the name of Stanhope in Switzerland,
and through it, he
paid for the purchase of an armour-plated
Mercedes MayBach in April 2005. He is
known to have several such
foreign accounts. Ibori coughed out
�406,600 and had
the vintage car shipped to his home in South Africa. It was also
from this
account that the ex�governor paid the initial deposit of $4.7 million
for the
purchase of a Bombardier Challenger jet, total cost of which is put at
$20
million. He transferred the money in June 2005 to the account of
Parabola
International Corp held in Zurich.
The money was then transferred into the accounts of Arlington Shamas, Solicitor, London,
Ibori�s representatives, for onward
transfer to the
aircraft manufacturers.
Pogoson, who resides in London in a house owned by Ibori�s sister, was arrested in April 2006 for
money
laundering charges but was released. She was further interrogated
February this
year, accused of holding many accounts in Nigeria with which she
helped her
boss launder money.
In the same dubious manner, Ibori, in the
guise of
awarding contracts to some companies, used his sister and Okoronkwo
to loot Delta
State funds and
launder same abroad.
Court documents in London and Nigeria show that in February 2005,
acting as a
purchasing representative to Onovin
Nigeria Limited,
a Nigerian company owned by Vincent Uduaghan,
younger
brother to Emmanuel Uduaghan, current
governor of
Delta State, Ibori�Ibie,
the ex�governor�s sister, received over N38 million ostensibly for the
procurement of running tracks for stadia
in the state
from a German firm. A total of �300,000 meant for the purchase of the
tracks
was transferred into Ibori-Ibie�s account
with
Barclays Bank, London.
However, an inspection of her Barclays account showed that only a total
of
�123,717.72 was paid to BSW, the German suppliers. The shortfall of
�176,182.26
is believed to have been laundered for the former governor.
In the case of Okoronkwo, between May 26,
2005 and
June 8, 2005, she received about N105.5 million of Delta State
government funds. The monies were then transferred into her HSBC
account in London
in three tranches � �200,000 on June I,
2005, �150,000 on June 14,
2005 and �200,000 on June 20, 2005. An inspection of the account showed
that
some of the monies were transferred to Ibori
and
Terry Waya, a Nigerian businessman
currently serving
a jail term in Britain
for money laundering, while there is also evidence that properties and
other
assets had been bought for Ibori from
funds in Okoronkwo�s HSBC account. For
example, on July 20, 2005, Okoronkwo
issued a cheque of
�311,000 to Arlington Sharmas Solicitors
which was
used to purchase a house at 42, Great Ground, Shaftsbury, Dorset. The
property
was registered in the name of Teleton
Quays but is
used by Ibori and his wife.
It was discovered that Ibori had
instructed Bhadresh Gohil,
a partner in
Arlington Sharmas, who was central to the
incorporation of front companies and legitimising
laundered funds for the ex-governor, to register Teleton
Quays and purchase the property in the company�s name. Okoronkwo
is also known to have purchased another house in London at a cost of �388,077.62 for Ibori in the name of Boyd Properties. In all,
over �2
million have passed through Okoronkwo�s
HSBC account,
most of it paid directly into a London Barclays account number 00115916
in the
name of James Ibori.
For the role they played in laundering money for Ibori,
the trio of Pogoson, Ibori-Ibie
and Okoronkwo are currently subject to
restraint
proceedings in London
and, if found guilty of money laundering charges, face jail sentences
of many
years.
Yet, the British investigations have revealed even more startling
discoveries. Ibori, in late 2005, hatched
a plot to legitimise
some of his allegedly stolen and laundered money through the purchase
of a
Challenger jet from Bombardier. Since he knew that he could not
directly send
money to the aircraft manufacturers, as that would have immediately
raised
questions in many quarters, Ibori got Gohil to register companies to use for the
transaction and
to make payments for the jet. In December 2005, Gohil,
on behalf of Ibori, brokered a purchase
deal for the
Challenger at the cost of $20 million between Teleton
Quays and Bombardier. Gohil also
incorporated another
company, Erin Aviation, in Mauritius,
which later took over as the buyer from Teleton
Quays. In July 2005, four payments totalling
�4,788,176.92 were made from Ibori�s
account held in
the name of Stanhope into a Schrader Bank, Zurich account in the name of Edward Shemutete for Parabola International Corp. Shemutete is a known international expert in
money
laundering and legitimising corruptly
gotten funds.
He is currently under investigation in Zambia, his home country,
for
allegedly helping former President Frederick Chiluba
launder money abroad.
Investigators say that Shemutete was most
likely
fronting for Ibori as he was introduced to
the bank
by Gohil, the same man who acted for the
ex�governor
in many other businesses. On September 29, 2005, the money was
transferred from
the Parabola account into a Barclays Bank, London account, which turned out to
be a
client�s account held by Gohil�s law firm,
Arlington Shamas. The firm later made the
payment to Bombardier.
But there were more intriguing disclosures from the examination of the Teleton/Bombardier deal. By July 2006, a total
of
$9,856,685.22 had been paid for the jet. A breakdown of the payment
shows that
apart from the $4.788 million paid by Stanhope/Parabola, Bombardier
also
received $599,963.98 from Wings Aviation Limited; $899,805.96
from Erin
Aviation; $249,007.72 from Pamaron Oil and
Gas
Limited; another $899,896.68 from Wings Aviation and a last transfer of
$951,178.07 from Erin Aviation. The entry of Wings Aviation makes the
jet
purchase more intriguing. Wings Aviation is registered in Nigeria
as a charter services
provider.
Interestingly, investigators found out through a letter written by Gohil that Stanhope Investment and Parabola
International
Corp, both believed to be owned by Ibori,
were
principal shareholders in Aviation Development Corporation, the parent
company
of Wings Aviation. The investigators in London
have inferred that Ibori, through his
offshore companies,
owns Wings Aviation and that he also provided the monies paid by the
company
for the Bombardier jet. The investigators equally believe that the
agreement
between Erin Aviation and Bombardier is to be terminated and the
purchase price
of $20 million returned. The investigators have moved to place a
restraining
order on the jet or monies returned by the manufacturers and are also
asking
for a restraining order on houses, cars and accounts believed to be
held by Ibori or his proxies.
These include three houses in London
and Dorset, four vintage cars (a
Bentley Continental GT,
Mercedes MayBach, a Chrysler and a Jaguar)
as well as
several accounts held in his name and those of his front companies such
as
Stanhope Investments and Teleton Quays.
The London money laundering
investigations on Ibori tell only one side
of the story of this young man�s
mindless looting of the funds kept in his trust when he was governor of
Delta State.
The investigations actually derived from investigations in Nigeria
on Ibori spanning over two years by the
EFCC. Although the
EFCC had kept its investigations close to its chest, it was forced to
come out
with its findings after the Delta State
government took the
commission to court to restrain it, among other things, from arresting
or
prosecuting Ibori. In an affidavit deposed
by Yahaya Bello, the head of the team that
investigated the Ibori case, the EFCC
finally opened a can of worms on the
ex�governor�s looting ways. Many of the EFCC findings better explain
some of
the missing links in the British authorities� investigations. The EFCC
investigations uncovered several questionable payments to companies,
associates
and aides of Ibori, running into billions
of naira.
For example, it was discovered that there were monthly lodgments of Delta State
cheques of between five and seven million
naira into
the accounts of Onovin Nigeria Limited.
Vincent Uduaghan, owner of the company,
told investigators that the
payments which totalled N350 million in
five years
were for the supply of fuel from Total Nigeria Limited in Benin, Edo State.
But Total, which did have a fuel supply contract, denied having any
dealings
with Onovin Nigeria Limited.
Furthermore, it was discovered that lodgments of up to N400 million
were made
from state accounts into the accounts of Ede Ogoro,
private secretary to Ibori, and Charles Isiayei, chief accountant to Delta State
Government House.
It was also revealed that these two men also made several cash
lodgments
running into billions of naira from �security votes� of the state into
the
accounts of companies controlled by or connected with Ibori.
These include Koln Nigeria Limited, Silhouette Travels, Prime Chambers,
MER
Engineering Limited and Bainenox.
Another interesting discovery was that part of the money paid from Nigeria
for the purchase of the Challenger jet was one million dollars by Pamaron Oil and Gas through Fidelity Bank.
The EFCC investigations also showed how Ibori
bought
into several companies in Nigeria,
including recently privatised state ones
using
proxies to disguise the source of funds. For example, the National Fertiliser Company, NAFCON, was acquired in 2005
by O-Secul Nigeria Limited owned by Mike Orugbo
for $152 million. Orugbo was able to raise
only $2
million but, curiously, the company was able to raise the balance from
Oceanic
Bank with which it had no prior relationship. The bank later received a
total
of $46 million to acquire 39 per cent of NAFCON from Copex
Management Service, the same company that paid money to Arlington Sharmas on behalf of Erin Aviation for the
purchase of the
Bombardier jet. This time, Copex paid the
money on
behalf of Nortore Mauritius.
This company has been
found to belong to a group of foreign investors two of who were brought
into
the deal by Arlington Sharmas, Ibori�s
UK
solicitor friend.
Oceanic Bank received a further N4.418 billion from Brisbane Limited,
owned by
Henry Imasekha, a known friend and
associate of Ibori, for 13 per cent of the
fertiliser
company. Probes into the money paid by Brisbane
only opened a new vista of Ibori�s
thievery. It was
discovered that, in 2001, Imasekha had
secured a N2.2
billion loan from New Nigeria Bank to buy 10 per cent shares in Econet Nigeria Limited. There was no evidence
that he had a
relationship with the bank. Curiously, a few weeks later, the Delta State
government bought off five per cent of Imasekha�s
shares for N2.5 billion. This money was used by the businessman to pay
off the
bank loan. But he still had N300 million as well as five per cent of Econet shares. The money used in paying for Brisbane�s 13
per cent
shares in NAFCON came from the proceeds of the sale of Imasekha�s
remaining shares in Econet.
Imasekha is believed to be a front for Ibori. The EFCC also alleged that Ibori
used several companies to divert N5 billion from Delta State
coffers into the purchase of shares from Afribank.
The commission claims that the entire money had been recovered and
returned to
the state government. Ibori is also
alleged to have
similarly invested in high net worth portfolios, including Wilbros
Nigeria Limited, among others.
The accusations against Ibori are, indeed,
grave.
They constitute the most brazen and monumental case of looting by any
former
state chief executive. And there is not one of these allegations that
the
ex-governor is unaware of. There is proof obtained from some of his
arrested
associates that he has actually made efforts to suppress potentially
incriminating evidence. Beyond this, Ibori
has also
played a game of survival by using his understanding of the nation�s
political
system to escape the law. Many believe he has an ally in Michael Aondoakaa, the attorney-general and minister of
justice. Aondoakaa�s attitude towards the
fight against corruption
is, perhaps, better understood against the background of his having
crossed the
path of the commission in the past. As one of the counsel to the Benue
State
government in its action against the EFCC, the state government was
asking the
court to declare the commission an illegal body and that it had no
right to investigate
corruption cases against any official of the state. That case was
recently
decided in favour of the EFCC. Ibori�s
first strategy was to buy time from prosecution by orchestrating the
removal of
Ribadu.
The magazine learnt that as soon as Yar A�dua came into office, Ibori
and
others recruited by him put pressure on the President to remove the
EFCC boss.
Their story was that Ribadu had thoroughly
messed up
and lost respect among Nigerians for allowing former President Olusegun Obasanjo
to use him for political
battles. If he is to be taken seriously about fighting corruption, then
Ribadu would have to go, the President was
told.
Having failed in this mission, Ibori and
others who
were afraid of Ribadu reportedly banded
with Aondoakaa whom they knew had a grouse
against the EFCC and
its helmsman. To incapacitate the commission, a plot was hatched to
remove its
prosecutorial powers. Aondoakaa briefed Yar�Adua and soon presented a formal letter
requesting to
direct all prosecutions by the EFCC, Independent Corrupt Practices and
Other
Related Offences Commission, ICPC, and the Code of Conduct Bureau, CCB.
It was curious that the attorney-general was interested in only these
three
agencies connected with the prosecution of corrupt governors. However,
the fallacy
of his action was soon exposed when the President reportedly got
superior legal
advice from respected legal icons. Aondoakaa
was
forced by a thoroughly embarrassed President to reverse a decision he
had
announced to the whole world.
But Aondoakaa has not stopped acting on
behalf of the
same people that his office should be willing to prosecute if there is
a case
against them. The attorney-general forcefully took over the prosecution
of the EFCC�s case against Orji Kalu,
former governor of Abia State,
based on a purported restraining order on the EFCC. However, Femi Falana, a Lagos-based lawyer, speaking to TELL
in Lagos
last week, said
there was no such court order. Aondoakaa
has also
incurred the wrath of many Nigerians, particularly lawyers, for
attempting to
extricate Ibori from the restraint
proceedings in a London
court. The Southwark Crown Court in London had on
August 2, 2007 frozen Ibori�s assets
around the world estimated at about $35
million. But the freeze order was lifted on October 2, 2007 after Speechly Bircham, Ibori�s lawyer, presented to the court a letter
written by Aondoakaa stating that the
former governor was under no
investigation in Nigeria.
It was gathered that Bircham had written
to the
attorney-general to inquire if Ibori was
under
investigation. Without reference to the EFCC, ICPC, CCB or any other
investigating agency in the country, Aondoakaa
wrote
back to the lawyer saying Ibori was not
under any
investigation. Significantly, as pointed out by a lawyer, Aondoakaa
also said in his letter that as attorney-general, he had not requested
for
assistance in investigating Ibori as
required under
the mutual legal assistance programme
between Nigeria and
Britain.
This, more than any other
factor, let Ibori off the hook. But that
victory was
only temporary for the former governor as another court has reinstated
the
freeze order on his assets. Aondoakaa was
said to
have initially denied writing any letter to Ibori�s
lawyer until the controversial letter was published on the Internet.
Perhaps, embarrassed by the seeming tardiness with which his government
is
prosecuting the war against corruption, President Yar�Adua
directed the attorney-general to cooperate with the British
investigating
authority. Again, curiously, at a lawyers� conference in Singapore,
he announced the setting
up of a special anti-corruption unit in his office.
In a related development, Aondoakaa, the
magazine
learnt, has also been putting pressure on the CCB to withdraw from his
office
about 18 case files submitted in relation to corruption cases against
former
governors. Many Nigerians have blamed President Yar�Adua
for attempting to protect Ibori and other
former
governors from prosecution. But the President�s attitude to his former
colleagues is said to be that he did not tell anybody to steal state
funds to
fund his campaign and that, in any case, he personally received no
money from
any of them; so there are no entanglements for him. Even sources in the
anti-corruption agencies confirm that the President has never
interfered with
their investigations of the former state chief executives. What has
happened,
it is said, is that some people have exploited the President�s natural
disposition to do things by the book � to follow due process � to sell
the new
mantra of �rule of law� to him in order to slow down the momentum of
the
anti-corruption campaign.
As it is now, none of these strategies has worked for Ibori
who is now on the run from the law in Britain
and America.
Soon, with the setting aside of the restraining order on the EFCC to do
its
job, Ibori�s days as a free man may be
numbered.