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MTN To Forfeit N8bn To Nigeria Govt Over Money Laundering – Court

Nigeria Federal High Court in Lagos has ordered the temporary forfeiture of the sum of N8 billion allegedly belonging to MTN Communications Limited to the Federal Government.
Justice Abdulaziz Anka gave the order that the sum, suspected to be proceeds of unlawful activity, which are stashed in account number 0012005379 domicile in Ecobank, be temporarily forfeited following an ex-parte application to that effect filed before the court by the federal government of Nigeria, Today reports.
Also affected by the order of the court is another account number 1013607079 containing billions of Naira domicile in Skye Bank Plc, whose owner has not file any application before the court to contest ownership.
Justice Anka further gave an order directing the publication of a notice in two National Daily newspapers inviting any person(s) who may have interest in the subject funds to, within 14 days of the publication of the order, show cause why a final order should not be made forfeiting the said funds to the government of Nigeria.
The judge also directed that the order should be served on the respective branch managers of the respondents banks and to stop forthwith all outward payments from the subject accounts and to immediately deliver to the court the respective statements of account with certificate of authentication and other relevant documents as at the date and time of service of the court order on them.
The suit, in which the government obtained the order, was marked FHC/L/CS/1676/2016 and filed by an Abuja-based lawyer, Barrister John Opeyemi, on behalf of Attorney-General of the Federation (AGF), and an asset recovery agent of the federal government, Algaita Group Nigeria Limited.
In an affidavit sworn to by the Managing Director of Algaita Group Limited, Abdullahi Mohammed Maiturare, he averred that the AGF appointed his company as an Asset Recovery Agent of the Federal Government of Nigeria to track, freeze and recover funds and ensure it is remitted to the designated bank account of the Federal Government of Nigeria through legally permissible means as may be directed by the Attorney General of the Federation.
Maiturare, a former operative of the Economic and Financial Crimes Commission (EFCC), also claimed that his company has credible information at its disposal which reveals that funds which are strongly believed to be Federal Government of Nigeria’s funds stolen, diverted and laundered are hidden in some coded accounts in the two banks Ecobank and Skye bank.
He further maintained that credible information at his disposal, from reliable sources, indicates that there is an account maintained at Ecobank Nigeria Limited in the name of MTN Nigeria Communications operating account number 0012005379 that has a credit balance of N8 billion.
Maiturare also alleged that “from the totality of the credible information at our disposal, the applicants reasonably believe and satisfied that the funds in the possession of the two banks are unclaimed properties or proceeds of unlawful activity of stealing, diversion and money laundering of some public officials and their cronies in the private sector.
“Consequently if urgent steps are not taken to obtain certified documents of the accounts and statements thereof as well as stop outward transactions on the accounts, the funds may be dissipated and the account documentation or statements may be tampered with,” he insisted.
But in a preliminary objection, MTN Communications Limited has urged the court to discharge and set aside the orders made on it, as it relates to its account held with Ecobank Limited.
The telecommunications company, in an affidavit sworn to by a legal practitioner, Mrs. Ibukunoluwa Owa on behalf of MTN communication and filed before the court by Adeniyi Adegbonmire (SAN), the deponent averred that from information delivered to him by Babatunde Adewumi, the Manager, Banking and Treasury in the employment of MTN communication limited, the applicants did not comply with the order of the court.
He specifically pointed out that the order of the court directing the applicant to publish the ex-parte order was not obeyed, therefore the respondent was not aware of the order of the court until, Ecobank wrote a letter to the company to intimate it of the said order.
Mrs Owa also averred that the subject account was opened by Ecobank Nigeria upon instructions given by MTN on October 9, 2007 and that MTN has operated the account since then till date in accordance with banking practice applicable to current account held by corporate bodies in Nigeria.
She also claimed that the order has adversely affected the smooth running of the business of MTN as it finds it difficult to utilize the funds held in the account in pursuit of its lawful business.
She further maintained that the funds are not suspected proceeds of unlawful activity; therefore urge the court to discharge the order.
MTN’s application to discharge the order was accompanied with affidavit of urgency and application urging the court to hear the case during Christmas vacation, consequently no further date has been fixed for hearing.

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