According to new court documents obtained by The Nation from United States State Department in the District and Bankruptcy Courts for the District of Columbia, late former Head of State, Sani Abacha, his son Mohammed and other cronies used ‘security votes’ with shocking headings to funnel hundreds of millions of dollars out of the country and into foreign banks.
The document reads in part, “Abacha together with Mohammed Sani Abacha, Bagudu and others, systematically embezzled public funds worth billions of dollars from the CBN on the pretext that the funds were necessary for national security.
“After causing the CBN to release the funds, often in cash, Gen. Abacha and Bagudu then moved the funds overseas, including through US financial institutions (the Security Votes Fraud).
“Over 60 false security votes letters were addressed to and endorsed by Gen. Abacha, each of which resulted in the withdrawal of Nigeria’s public funds from the CBN.
“Subsequently, the funds were deposited into accounts controlled by, or used to purchase assets for the benefit of, Gen. Abacha, Bagudu or other members of the conspiracy.”
The court files, quoted some of the security documents as exhibit. The documents were prepared by former National Security Adviser, Aliyu Ismaila Gwarzo.
They read, “By letter, dated June 2, 1994, Gwarzo falsely stated: “In view of the ongoing negative campaign against this country, a small international operation has been mounted to cover it. Please approve as a matter of urgency, the sum of $5million for this operation
“By letter dated November 30, 1994, Gwarzo falsely stated:$100m requested to combat an economy that was deflected and distorted through the black market.
“By letter, dated August 20, 1996, Gwarzo falsely stated: “In light of the current political situation in the country, coupled with the increase in security operations, there is need for a lot of funds to handle the challenges outlined above such that I require N350million plus $30million and 15million pounds. Please consider the desperate need and approve.
“Each of these letters and others like them were endorsed by Gen. Abacha.”
On how the funds were transported from Nigeria, the documents revealed, “Shortly after Gen. Abacha’s death, the government of Nigeria established a Special Investigation Panel(SIP), which found that Gen. Abacha and his co-conspirators had used false security votes letters to steal and defraud more than $2billion in public funds, including: (1) at least $1.1billion and £ 413 million (GBP) in cash(2) at least $50,465,450 and £ 3,500,000 GBP in traveller’s cheques; and (3) at least $386, 290, 169 through wire transfers.
“The conspirators transported the proceeds of the Security Votes Fraud out of Nigeria to accounts in Europe that were under the conspirators’ private control, including the Rayville and Standard Alliance accounts at Banque SBA, the Eagle Alliance and Mecosta accounts at ANZ (London) and the Mecosta account at Standard Bank as described below.
“The CBN staff and other individuals known and unknown to the United States generally would deliver the currency stolen with the security votes letters to Gwarzo at his residence.
“Gwarzo and others acting at his discretion would repackage the currency in secure bags and then deliver it to Gen. Abacha at his residence in Abuja, Nigeria.
“Gen. Abacha or those acting at his direction, delivered more than $700million of these funds to Mohammed Abacha in bags or boxes full of cash.
“Mohammed Abacha gave the cash he received to Bagudu, who later arranged for the money to be transferred to accounts controlled by Bagudu and Mohammed Abacha in foreign countries.
“Transfers included deposits into accounts in the name of defendants Mecosta, Doraville, Standard Alliance, and Rayville, as well as Eagle Alliance and Harbour Engineering.
“In order to move the money overseas, Bagudu deposited the cash proceeds of the Security Votes Fraud into at least one of two Nigerian commercial banks, Union Bank of Nigeria and/ or Inland Bank of Nigeria.”
Bagudu referred to the money deposited into Union Bank and Inland Bank as his “cash swaps.”
“Bagudu and/or Mohammed Abacha then instructed Union Bank or Inland Bank to transfer the stolen funds to other accounts under Bagudu or Mohammed Abacha’s control, such as accounts in the name of Mecosta, Rayville and Eagle Alliance.
“Inland Bank or Union Bank made the necessary arrangements to transfer the money overseas. The funds were transferred from Union Bank or Inland Bank back to the CBN to an account held by Union Bank or Inland Bank at the CBN.
“The CBN then transferred the funds from the account of Union Bank or Inland Bank to their respective overseas domiciliary accounts held at banks in either London or New York.
“The specific London or New York account varied depending on which Nigerian commercial bank had been used in the first instance.
“Through these “cash swaps,” at least $137million was transported into and out of the United States, and into accounts held in the name of the defendant corporations.”
The Department of Justice added: “On November 18, 2013, the prosecutor filed a forfeiture action in the U.S District Court for the District of Columbia seeking to forfeit the proceeds of money laundering and corruption offences related to the investigation of General Abacha and his associates.
“The properties sought to be forfeited by U.S. authorities include the following assets (collectively, the Defendant Properties):
•All assets held in account number 80020796, in the name of Doraville Properties Corporation, located at Deutsche Bank International Limited in the Bailwick of Jersey, and all interests, benefits, or assets traceable thereto;
•All assets held in account number S-104460, in the name of Mohammed Sani, at HSBC Fund Administration (Jersey) Limited in the Bailwick of Jersey, and all interest benefits, or assets traceable thereto;
•All assets held in account number 223405880IUSD, in the name of Rayville International, S.A, at Banque SBA in Paris, France and all interest benefits or assets traceable thereto;
•All assets held in account number 223406510PUSD, in the name of Standard Alliance Financial Services Limited located at Banque SBA in Paris, France and all interest benefits, or assets traceable thereto;
•All assets held in account numbers 10030688 and 100138409, in the name of Mecosta Securities, at Standard Bank in the United Kingdom, and all interests, benefits or assets traceable thereto;
•All assets held in HSBC Life (Europe) formerly held in account number 37060762 in the name of Mohammed Sani at Midland Life International Limited, and all interests, benefits or asset traceable thereto;
•All assets in account number 38175076, in the name of Mohammed Sani, at HSBC Bank Plc, and all interests, benefits or assets traceable thereto;
•All assets held in the name of Blue Holding (1) Pte. Ltd., on behalf of or traceable to Ridley Group Limited and/or the Ridley Trust, at J.O Hambro Investment Management Limited in the United Kingdom and all interests, benefits, or assets traceable thereto;
•All assets held in the name of Blue Holding (2) Pte. Ltd., on behalf of or traceable to Ridley Group Limited and/or the Ridley Trust, at J.O Hambro Investment Management Limited in the United Kingdom and all interests, benefits or assets traceable thereto;
•All assets held in the name of Blue Holding (1) Pte. Ltd., on behalf of or traceable to Ridley Group Limited and/or the Ridley Trust, at James Hambro and Partners LLP, in the United Kingdom, and all interests, benefits or assets traceable thereto;
•All assets held in the name of Blue Holding (2) Pte. Ltd., on behalf of or traceable to Ridley Group Limited and/or the Ridley Trust, at James Hambro and Partners LLP, in the United Kingdom and all interests, benefits or assets traceable thereto;
•Doraville Properties Corporation, a corporate entity registered in the British Virgin Islands, together with all its assets and all property traceable thereto;
•Mecosta Securities, Inc., a corporate entity registered in the British Virgin Islands, together with all its assets and all property traceable thereto;
•Rayville International, S.A, a corporate entity registered in the British Virgin Islands, together with all its assets and all property traceable thereto;
•Ridley Group Limited, a corporate entity registered in the British Virgin Islands, together with all its assets and all property traceable thereto; and
•Standard Alliance Financial Services Limited, a corporate entity registered in the British Virgin Islands, together with all its assets and all property traceable thereto;
“Following the filing of the Verified Complaints, the United States District Court for the District of Columbia issued sixteen warrants of arrest in rem, ordering the restraint of each of the Defendant Properties.
“The prosecutor has sought the enforcement of the warrants of arrest in rem in France, Jersey, British Virgin Islands and the United Kingdom.
“The prosecutor is now required to provide notice of the U.S. forfeiture proceedings to Mohammed Sani Abacha, Abubakar Atiku Bagudu and Dumez Nigeria Plc.
“Additionally, in order to enforce the warrants of arrest in rem for property located in the United Kingdom, the prosecutor must provide record of the U.K proceedings to Mohammed Sani Abacha and Abubakar Atiku Bagudu.”
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