Court orders forfeiture of N1.37 billion allegedly diverted during El-Rufai administration

The Federal High Court in Kaduna has ordered an interim forfeiture of N1.37 billion allegedly diverted from the coffers of the Kaduna State Government into a private account.

The money, a part of the funds released for a failed light rail project in Kaduna State, was allegedly diverted during the administration of former Governor El-Rufai, who governed the state between 2015 and 2023.

The judge, H. Buhari, issued the forfeiture order on 28 February, following an ex parte application by the Independent Corrupt Practices and Other Related Offences (ICPC), which traced the money to a private account.

On 14 February, the anti-graft agency filed the ex parte application seeking the recovery of the money ICPC said the El-Rufai administration never executed the project, depriving the people of Kaduna State of the benefits of the rail transportation system, which the money was meant for.

The commission said Kaduna State officials diverted the money through the Indo Kaduna MRTS JV Nig. Ltd, a joint venture entity set up in 2016 by the state government and Indian businesspeople.

ICPC’s lawyer, E.O Akponimisingha, moved the application on 28 February. Being an ex parte hearing, the proceedings excluded the adverse parties who might want to oppose the forfeiture application.

Therefore, while granting the ICPC’s application, the judge not only ordered the interim forfeiture of the money, he also directed the anti-graft agency to publish a notice in any two national newspapers requesting any person with interest in the money to present their claim and show cause in court why the asset should not be permanently forfeited to the federal government.

The judge then adjourned further proceedings till 8 April for such interested people who may want to claim the money to make their case before the court.

Background

The Kaduna State Government under Mr El-Rufai entered into a joint venture agreement in October 2016 with Indo Kaduna MRTS JV Nig. Ltd. for a light rail transport system.

Before Mrts JV Nigeria was incorporated by the Corporate Affairs Commission (CAC), ICPC said, Mr El-Rufai began approving payments to the entity in December 2016.

In the end, between December 2016 and January 2017, the then-governor approved the payment of N11.1 billion to the entity, which was not formally incorporated by the CAC until 10 May 2017.

From the N11.1 billion paid to Mrts JV Nigeria’s account domiciled with Sterling Bank, N1.373 billion was allegedly diverted into a private account tracked down by ICPC.

ICPC‘s ex parte application filed in court on 14 February sought an interim forfeiture of the discovered money.

Justifying the forfeiture request, ICPC argued in the application signed by its chairman, Musa Aliyu, that redirecting the money into public-use projects aligns with the broader public interest.

The commission also said that granting the forfeiture order would not infringe on constitutional rights but would serve the greater public interest in governance and accountability.

ICPC launched an investigation into the matter after receiving a petition from M. Yahaya, a lawyer from NUS’ AB Chambers, Abuja.

The petition, dated 27 June 2024 and received by the commission on 1 July 2024, alleged a disturbing level of criminal misappropriation of Kaduna State’s funds by officials of the past administration of Governor El-Rufai.

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Some of Mr El-Rufai’s officials are facing charges in the state or before the Code of Conduct Tribunal, the Economic and Financial Crimes Commission (EFCC), ICPC, and the Code of Conduct Bureau over alleged fraud.

The Kaduna State Government is also investigating some of Mr El-Rufai’s aides for corruption and mismanagement of public funds, allegations the former governor has described as a witch hunt targeted at him and his administration.

Mr El-Rufai and the group of his former appointees have consistently maintained their innocence.

They said the move by ICPC to confiscate the light rail project funds, which they described as private assets, “is sheer oppression and abuse of power”. They added that the move could discourage foreign direct investments.