PARIS CLUB REFUND: EFCC secures court order to seize N1.2bn govs paid to ‘consultant’

A firm, Melrose General Services Company Limited, has temporarily forfeited to the Federal Government N1.2 billion which the Nigerian Governors Forum paid it.

The order for the firm to forfeit the fund was given on Friday by a Federal High Court in Lagos presided over by Justice Oguntoyinbo.

He said that anyone who has interest in the money should approach the court within 14 days to show cause why the money must not be permanently forfeited to the Federal Government.

The court order followed the prayer of the Economic and Financial Crimes Commission (EFCC) that the court should order the forfeiture of N1.2 billion (N1, 222, 384, 857.84), which the commission said it recovered from the account of Melrose General Services Company Limited, which was described as a consultant by the NGF.

Recall that the EFCC said it has been investigating what happened to part of the Paris Club refund which the Federal Government paid to the 36 states of the country.

While the NGF has continuously claimed that there has been no wrongdoing in the disbursement of the fund, the EFCC said the N1.2 billion was part of N3.5 billion NGF paid to Melrose General Services Company Limited, which did no service to the body but later commenced a distribution spree of the money.

In a statement released by the EFCC spokesperson, Wilson Uwujaren, on the court ruling on Friday, it explained that Melrose General Services Company Limited account was in red before the NGF paid the largesse into it.

Part of the statement read, “Justice O. Oguntoyinbo of the Federal High Court sitting in Ikoyi, Lagos, on Friday ordered an interim forfeiture of N1.2 billion (N1, 222, 384, 857.84) recovered by the Economic and Financial Crimes Commission, EFCC, from the account of Melrose General Services Company Limited.

“Justice Oguntoyinbo also ordered the temporary forfeiture of the sum of N220 million recovered from two other companies, namely Wasp Networks Limited and Thebe Wellness Services.

“The order came following a motion ex – parte filed by E. E. Iheanacho, a prosecutor with the EFCC, pursuant to Section 44 (2) of the Constitution of the Federal Republic of Nigeria, 1999 as amended and Section 17 of the Advance Fee Fraud and Other Fraud Related Offences Act No. 14, 2006.

“In granting the EFCC prayers, Justice Oguntoyinbo ordered anyone interested in the money to appear before the court within 14 days to show cause why the money should not be permanently forfeited to the Federal Government.

“The judge also directed the commission to publish in any national newspaper for anyone who is interested in the money to appear before the court to show cause why the order for the final forfeiture should not be granted.

“On May 26, 2016, the 36 states’ governors, through the Nigeria Governor Forum, NGF, had engaged the services of a consortium of consultants made up of GSCL Consulting and Bizplus Consulting Services Limited (“Messrs GSCL Biz Plus Consortium”) for the purpose of verification, reconciliation and recovery of over – deductions on Paris and London Club Loans on the accounts of states and local governments between 1995 and 2002.

“The company had carried out the said assignment and declared a total sum of $6.4 billion (US$ 6, 483, 282, 424. 61) as due for refund to the states. Following this, the Federal Government had approved an initial payment of the sum of $1, 730, 930.53 for the benefit of the various states.

“The Minister of Finance, Kemi Adeosun, had through the Central Bank of Nigeria, CBN, paid the sums of $86 million ($86,546, 526.65) and N19 billion (N19, 439, 225, 871.11) representing 5 per cent of the approved initial Paris and London Club refunds.

“On December 14, 2016, the NGF had paid the sum of N4.4 billion (N4, 389, 207,099.05) to the Consortium of GSCL BizPlus as part of the agreed consultancy fee.

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“Melrose General Services Limited, who was the first respondent, was never engaged by the NGF to carry out any consultancy services in relation to the said Paris and London Club refund.

“However, in order to obtain public funds, the first respondent had allegedly re-copied and misrepresented the work of GSCL BizPlus Consortium to the Nigeria Governors Forum (NGF) for payment. As a result, the first respondent was allegedly paid the sum of N3.5 billion by the NGF on December 14, 2016, even when it did not execute any consultancy job for the forum.

“The first respondent’s Access Bank Plc account No. 0005892453 was said to be in red at the time the sum of N3.5 billion was paid into it.”

 

 

 

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