MTN , Stanbic IBTC in $8Billion Money Laundering Scam

MTN , Stanbic IBTC in $8bn money laundering scam
    (Agency Report)
TELECOMS giant MTN Nigeria has been accused of engaging in large scale money laundering which has helped in not only depleting Nigeria's Foreign Exchange (Forex) reserves but also has negatively affected the country's economy over the last five years, National Daily can authoritatively reveal.
Presidency sources who did not want to be mentioned disclosed to this newspaper that an anonymous petition sent to President Goodluck Jonathan by someone who claims to be in the know of the transactions, had triggered what they described as a special investigation into humongous economic sabotage activities embarked upon by the actors. Accordingly, the telecom company has allegedly since February 7, 2008 engaged in practices that clearly constitute economic sabotage against the Federal Republic of Nigeria.
Our sources highlighted that all the transactions were done in collusion with top officials of the Central Bank of Nigeria and that petitions sent to the Central Bank Governor over this fraudulent transfer of funds from Nigeria to safe havens abroad were ignored by the Governor because he has interest to protect.
In the said petition a copy of which National Daily obtained with supporting documents that exposed the monumental act of money laundering, it was noted that MTN Nigeria in concert with Standard Chartered Bank and Stanbic IBTC Bank illegally remitted the sum of USD 936,017,265.89 to the Cayman Island, British Virgin Island and Mauritius. He also explained how MTN fraudulently used 20 copies of forged Certificates of Capital Importation allegedly used by a foreign investors who brought in foreign capital investment on February 7,2008 through Standard Chartered Bank and on February 8,2008 the said Capital had yielded proceeds that were repatriated to the tune of USD936,017,265.89.
The petitioner carefully itemized all the transactions starting with the one made on behalf of N-Cell Limited with office address at Geneva Water Front Drive, British Virgin Islands. This company had the sum of $31,057,339.23 remitted on their behalf to Barclays Private Bank, Hans Crescent, London (account number withheld). The second remittance was made on behalf of SASPV limited located at Port Louis, Mauritius  (account number withheld), domiciled at the same Barclays Private Bank London. The next transfer was the sum of $590,574,488.17 made on behalf Of MTN International Mauritius Limited with office address at Suite 525 Barley Wharf, Port Louis Mauritius. Our sources equally provided evidence with account numbers, names of banks and transaction details of other similar numerous transactions made on behalf of MTN Nigeria by Stanbic IBTC and Standard Chartered Bank.
The highlighted that these transactions were funds generated in Nigeria from MTN operations in Nigeria and the sum of $314,420,108.60 being proceeds generated from Nigeria through private placements of MTN shares.
On the role played by both Standard Chartered Bank and Stanbic IBTC in all these, our sources noted that it is disturbing that Stanbic IBTC which facilitated all these illegal transfers had between October, 1, 2007 and May 31, 2009 carried out similar questionable capital repatriation through its invincible transactions for the sum of $7,705,890,581.13 out of Nigeria. This fraudulent transaction was made known to both Central Bank and Nigeria Deposit Insurance Corporation (NDIC) examiners when they visited Stanbic IBTC in 2009 and 2010 but they did nothing about this huge infringement.
Standard Chartered Bank according to the petition that is said to be giving President Jonathan sleepless nights had in its MTR202 for the period ended May 2009, understated the balance in its Capital Importation Inflows for which Certificate were used to the tune of $314,420,108.60 representing acquisition of MTNs link units by Nigerians for which the Bank issued CCIs. The said inflows were classified as over the counter transactions by IBTC.
The investors and beneficiaries of the CCIs were all nonresident in Nigeria and resides in the following countries, Mauritius, British Virgin Islands, Cayman Island, thus the need for Nigeria Investment Promotion Council registration certificates. These certificates were not provided by IBTC on request. There was no evidence that the CCI's were transferred to IBTC by Standard Chartered Bank. Stanbic IBTC did not obtain any indemnity from Standard Chattered Bank before transferring the said proceeds to private placements. Stanbic IBTC did not indemnify CBN before embarking on the forex transfer as requested by the forex manual. Moreso, the beneficiaries of these capital repatriation proceeds communicated their bank account details to Stanbic IBTC, same day their respective CCI's were issued which was on February 7, 2008.
It was discovered that MTN Nigeria had transferred various sums to its shareholders both individuals and organisations, who bought MTN shares through its private offer. Investigation revealed that these sums in some cases represent the actual investments into the telecom giant by these individuals and organisations numbering about 35. They include but not limited to the Oba of Lagos, HRM Oba Rilwan Akiolu (203,500 units of shares for which $5m was illegally transferred to an offshore account for him), Mr. Reginald Ihejiahi of Fidelity Bank (203,500 units of shares for which $5m was illegally transferred to an offshore account for him), Governor-elect of Anambra State Chief Willie Obiano (203,583 units of shares for which $5m was illegally transferred to an offshore account for him), Mrs Olufunke Osibodu (203,500 units of shares for which $5m was illegally transferred to an offshore account for her) and Cherroots Nigeria Ltd (2,035,830 units of shares for which $50m was illegally transferred to an offshore account for it).
FUSL Nominees Ltd got $30m for its 1,221,498 units, Mr. Olusola Adeeyo got $10m for his 407,000 units of shares, Tele SPV Ltd got $20.5m for its 834,690 units, Yoram Ltd ((407,166 units of shares for which $10m was illegally transferred to an offshore account for it), Sterling asset Mgt and Trust Ltd for its 407,166 units got $9,995,920.00, Mr Bismarck J. Rewane for his 203,583 units got $5m, Mr Adebayo Olawale Edun for his 610,500 shares got $15m among others.
It was gathered from some the named shareholders that the said amounts actually represent the value of the shares as at the time of investment but deny receiving such funds in their accounts as payment from MTN.
According to some of them, they have received between 10 to 15 per cent dividends from MTN in the last four to five years but denied that it amounted to the amount captured against their names. This is one of the many puzzles that the investigators will need to answer – how did these figures come up against the supposed beneficiaries when in actual fact most of them are not aware of such transfers. Who did these transfers eventually get to?
“It is however believed that between MTN, Stanbic IBTC and CBN, these particulars were simply used to provide for these funds to shipped by the telecom giant out of Nigeria. If this is true, then it means that the funds invested by these individuals and organisations were immediately laundered out of Nigeria, and that without their knowledge. Therefore, MTN Nigeria has been using funds generated from its Nigerian operations to both run the network and pay dividends to supposed shareholders who are not even aware that their funds were never used for the company but laundered abroad,” one of our sources added.
National Daily can also authoritatively reveal that the Presidency will also look into the role of Bureau de Change registered by Mallam Sanusi Lamido Sanusi as they were part of this scam. The petitioner expressed assurance that if this issues raised are adequately investigated, Nigerians will be shocked as to the level of rot in the system, especially how those employed to watch over the nations resources are also colluding with foreign interests to defraud this country by engaging in acts of economic sabotage.
Finance Minister, Dr. Ngozi Okonjo-Iweala, has already distanced her ministry from the transactions as there are no corresponding records to date.
Efforts to get an official reaction from the CBN, MTN and Stanbic IBTC proved abortive. Calls text messages to CBN Governor Mallam Sanusi Lamido Sanusi, Mr. Ugo Okoroafor Director of CBN Corporate Communications, were not returned. After series of calls and text messages to MTN Senior officials, one of them responded with a call and asked that we sent a mail to the relevant head of corporate communications for an official response, which we promptly did. But as at the time of going to the press no response was received.
Presidency sources told this newspaper that a thorough investigation has been ordered into the allegations. It therefore remains to be seen how the already embattled CBN Governor, Stanbic IBTC and MTN will exonerate themselves from this allegations of monumental fraudulent depletion of Nigeria's External Reserves in the light of the available documented evidences.
According to the whistle blower, our sources revealed, Nigerians are in for a grave shock by the time this investigation is concluded and details made public.

UK detectives shun Diamond Bank N6b bad loan case

UK detectives shun Diamond Bank N6b bad loan case

…As contractors move to sue Bank, liquidators for criminal confiscation
By Kelechi Mgboji
The Serious Fraud Office (SFO) United Kingdom (UK) has distanced itself from the N6 billion fraud case in which Allan Dick West Africa (ADWA) Limited (now liquidated) made away with the unsecured loan granted to them by Diamond Bank Plc.

Joint liquidators of the UK firm, Akinwunmi & Busari and Ihegwoazu & Co had pocketed N200 million out of the N850 million paid by MTN Nigeria to settle debts owed local contractors by Allan Dick, claiming that they would use the money to pursue the case in the UK against the parent company, Allan Dick Company Limited, UK.

But in exclusive interview, Principal Partners of the two law firms, Akinwunmi and Ihegwoazu, told ExclusiveNews that the cost of prosecuting a law suit in the UK is costlier than they could afford with N200million and decided on the option to work with the Serious Fraud Office (SFO) UK believed to be the Nigerian equivalent of Economic and Financial Crimes Commission (EFCC).

When ExclusiveNews contacted the SFO UK, the financial crime busters said they could not confirm having any interest in the so called fraud case which the Nigerian lawyers claimed they had reported soliciting for their expert assistance.

In an emailed inquiry to the SFO UK, our reporter had written to Nilima Fox, Head of the Media Department thus: “Joint liquidators of Allan Dick West Africa, Akinwunmi & Busari and Ihegwoazu & Co, both legal practitioners in Nigeria, said they have since applied to your office for assistance to bring the suspects to book.

“Please kindly oblige us with information on the progress you have made in your investigation. We requests for facts, figures and statements on the case. Or is the case closed?”

But Fox quickly replied that he was out of the office until much later date in December and advised that we contact his colleague Susan Givens, a member of the SFO press office.

Eventually, it was Jina Roe who responded to our enquiry. The tacit response reads: “Without wishing to be unhelpful, I can neither confirm nor deny SFO interest in this matter”.

When we pressed further for more precise information in the classic case of cross border fraud where the UK based firm transferred huge sums of money into personal accounts of individuals as well as corporate accounts at a time when it claimed to be insolvent, the SFO office stated “We have no further comment.” 

Against this backdrop, the managing director and chief executive officer, West and Gate (W&G) Limited, Chief Paul Okogbule, and other local contractors in the telecommunication sector, whose firms are at receiving end of the fraud decided on a legal action against the joint liquidators,  Akinwunmi & Busari and Ihegwoazu & Co and the Diamond Bank and all those involved in a web of the fraud controversy.

A letter to the Joint Liquidators of ADWA, Akinwunmi and Ihegwoazu, by Citi Lawyers, solicitors to West and Gate and the distraught contractors of Allan Dick, the local subcontractors demanded for a refund of N200m only to subcontractors of distressed Allan Dick and Company West Africa Limited.

In similar letter to Diamond Bank, the contractors also demanded for a refund of N150m only to the subcontractors.

Both letters dated December 19th 2013 and obtained exclusively by ExclusiveNews, read in part: “We hereby unequivocally demand from You on behalf of our clients, the refund of said sum of N200 million being the amount illegally deducted by Yourself and Mr. Victor Ihekweazu of the firm of Akinwunmi & Busari and Ihekweazu and Co respectively from the amount paid by MTN to our clients.

“Your failure to comply with the above demand within seven clear days of your receipt of this letter will leave us with the options of taking the appropriate legal steps in a competent court of law.”

The letter to Diamond Bank partly reads: “We hereby unequivocally demand from your bank on behalf of our clients, the refund of said sum of N150 million being the amount illegally deducted by your bank officials from the amount paid by MTN to our clients.

“Your bank’s failure to comply with the above demand within seven clear days of your receipt of this letter will leave us with the options of forwarding our petitions to the appropriate authorities and instituting legal action in a competent court of law.”

The contractors detailed how Diamond Bank Plc lost N6 billion (or 18.1 per cent above its Profit after Tax in its last financial year) to Allan Dick West Africa Limited, a telecommunications services firm promoted by its parent company in United Kingdom (UK) known as ADC.
Chief Paul Okogbule who earlier briefed select newsmen in Lagos on the issue recounted how the portfolio investors obtained an unsecured loan amounting to N6 billion from Diamond Bank Plc in 2007, which the bank also helped the expatriates to launder back to the United Kingdom.
ADWA also known as ADC eventually commenced a process of liquidation without repaying the loan to the bank and some subcontractors it contracted to work on MTN Communications Limited base stations.
The aggrieved local contractor said that Diamond Bank and its appointed liquidators connived to short-change the subcontractors of ADWA that executed work for MTN, whom they paid about N4 million each no matter how much they were being owed.
The contractors alleged that contrary to bank rules, Diamond Bank instead of going after its N6billion loan took a lion share from the N850 million paid by MTN to local subcontractors of ADWA, after it claimed to have written off the loan or sold it to AMCON.
ExclusiveNews gathered that the liquidators of ADC gave Diamond Bank N150 million out of the N850 million payout, and concealed the recovered N150million without declaring it the bank's financial statement of 2011 and 2012.

Mindful of its consequences, the bank had earlier in 2009 during the banking industry audit concealed the unsecured loan from the Central Bank of Nigeria (CBN) and as a result failed to sell same to the Assets Management Corporation of Nigeria (AMCON).
A look at Diamond bank's last financial result showed that no mention was made in respect of the loan as it neither wrote it off nor sold it to AMCON at the wake of CBN reforms initiated by Sanusi Lamido Sanusi.
The bank's financial results for 2011 and 2012, indicates that there was nowhere in its books where the N150 million recovery was also reported, an act which some financial experts said can only be possible if there is a practice of creative accounting.
Despite appropriating N200 million of the N850 million paid by MTN Nigeria, the liquidators of Allan Dick  never initiated any legal proceedings against ADC in the UK who are promoters of ADWA.
The joint liquidators who met in April last year with creditors of ADWA told ExclusiveNews in an interview that they could not initiate legal proceedings in the UK against British directors of Allan Dick because it would require huge sums of money to do so.
Okogbule whose contract sum is valued above N17million said that Diamond Bank may have decided to let the sleeping dog lie as it lost interest in the recovery of the loan, a reason why it did not fund the legal cost to initiate a suit for recovery proceedings in the UK.
He disclosed that two of the local contractors have since died due to their inability to repay loans they secured in executing the contracts for MTN on behalf of ADWA who refused to pay them for work done.
Efforts to get Diamond Bank to respond to our inquiries yielded no result. The bank after a meeting between select group of journalists and a team of corporate communication executives of the bank as well as  TPT, the Bank’s media consultants, late  December 2013, said it will give official response which it never did till date.