While still enjoying immunity from prosecution and unrestrained access to taxpayers’ fund as the executive governor of Kebbi State, the United States and Jersey authorities have repatriated N112.05 billion ($308 million) reportedly stolen and laundered by Alhaji Abubakar Bagudu on behalf of late military dictator and Head of State, General Sani Abacha.
Before he emerged as governor, Alhaji Bagudu, was a horrific money courier for late General Abacha allegedly helping the late military dictator and Head of State who died in 1998 to launder a large chunk of the estimated $2.2 billion stolen from Nigeria’s coffers during his reign.
The amount which has been described as the “largest single asset repatriation the Island (Jersey) has ever undertaken, and among the largest in the world,” in a joint press statement on Monday by the Nigerian government, US Department of Justice, and the government of Jersey had read.
This latest repatriation is the highest in a slew of funds stolen by late General which has Abacha and his family, which has been repatriated from Europe and the United States.
However, this latest amount to be repatriated to Nigeria following a tripartite arrangement entered into on Monday “does not include the more than N59.3 billion ($163 million) Alhaji Bagudu agreed to return to Nigeria in 2003 in exchange for Jersey’s withdrawal of an extradition request to the United States for him to face criminal prosecution in the island nation.”
Sources had further hinted that a ruling had been given in January 2019 at the US District Court of Columbia in a suit brought by one Ibrahim, Alhaji Bagudu’s elder brother, who was laying claim to $287 million deposited in one account owned by Doraville Properties, a shell company reportedly set up Alhaji Bagudu for the primary aim of laundering funds stolen from Nigeria’s territory.
Reports had it that Ahaji Bagudu spent six months in a detention cell on the orders of the federal authorities in Texas while awaiting extradition to Jersey. However, before he was handed over to commence his criminal trial in Jersey, he hurriedly agreed to return a staggering sum of about $163 million to the Nigerian government and was accordingly released on bond to Nigeria where he was meant to be prosecuted for money laundering and related criminal charges. Curiously, upon his return to Nigeria, he was let go as he was never charged nor put on trial. On the contrary, he was given a clean bill of health to contest as a senator and later as governor of Kebbi State. In all those elections, he won.
Battle to repatriate laundered funds
According to reports, the tripartite statement revealed details of how the funds were stolen and laundered through the US banking system before being held in bank accounts in the name of Doraville Properties in Jersey. Based on the statement, Doraville was registered in British Virgin Island, a notorious tax haven, in the name of the elder son of General Abacha, Mohammed.
“In 2014 a U.S. Federal Court in Washington DC forfeited the money as property involved in the illicit laundering of the proceeds of corruption arising in Nigeria during the period from 1993 to 1998 when General Abacha was Head of State,” the statement revealed.
“This case is a result of extensive co-operation between the Jersey authorities, the Money Laundering and Asset Recovery Section of the United States Department of Justice and the Federal Bureau of Investigation, and the Federal Republic of Nigeria, with crucial assistance from other governments around the world.
“At the time the case was filed as part of the U.S. Department of Justice’s Kleptocracy Asset Recovery Initiative in 2013, it was the largest U.S. kleptocracy forfeiture action ever commenced. In 2014 the Attorney General of Jersey applied for and was granted, a Property Restraint Order over the Jersey bank account balance of Doraville.
“This was challenged in the Royal Court of Jersey and Court of Appeal, and an application for permission to appeal to the Privy Council by Doraville was refused. France and the United Kingdom restrained additional funds at U.S. request,” it noted.
The Negotiations to repatriate the Stolen funds
The statement also detailed how that negotiation to repatriate the stolen funds commenced in 2018. According to the statement, “it was agreed that the funds would be used for projects administered by the Sovereign Investment Authority of Nigeria and would be independently audited. The Nigerian government was also required to set up a Monitoring team to oversee the implementation of the projects and to provide regular progress reports.”
The statement detailed: “The Nigerian government, in consultation with the other Parties, will also engage Civil Society Organisations, who have expertise in substantial infrastructure projects, civil engineering, anti-corruption compliance, anti-human trafficking compliance, and procurement to provide additional monitoring and oversight,” the statement explained.
“This Agreement represents the culmination of two decades of intensive work by Law Officers in Jersey, the United States and Nigeria. The return of the assets to Nigeria had been delayed by a number of hard-fought challenges by third parties which were defeated in the Courts in Jersey and the United States, said Mark Temple, The Solicitor General and Attorney General designate of Jersey.
“The Agreement establishes a framework based on fruitful co-operation, trust and respect so that the forfeited funds can be repatriated to benefit the people of Nigeria, from whom they had been taken. The use of the funds will be subject to monitoring and reporting obligations.
“This is a very significant achievement, and, once again, demonstrates Jersey’s commitment to tackling international financial crime and money laundering,” it added.
Mr Abubakar Malami, Attorney General of the Federation (AGF) and Minister of Justice, Nigeria who signed on behalf of the Nigerian government indicated that the agreement has “culminated in a major victory, for Nigeria and other African countries as it recognizes that crime does not pay and that it is important for the international community to seek for ways to support sustainable development through the recovery and repatriation of stolen assets.”
Additional funds being expected
According to the statement, an additional $18 million could be repatriated to Nigeria after a subsisting resolution of Jersey’s Royal Court.
This sum of money is said to be withheld following a claim by an unnamed third party, believed to be one Ibrahim, Alhaji Bagudu’s elder brother whose court documents revealed is the only party still challenging the repatriation of some of the funds.
In the meantime, both the Jersey and the United States governments will keep $5 million each to cover the operational costs and expenses involved in the recovery of process. According to the agreement, the repatriated funds would be spent on the Lagos – Ibadan Expressway, Abuja – Kano Road and the Second Niger Bridge.
