Lagos — Three banks and two companies were yesterday named as active participants in a $242 million Advance Fee Fraud a.k.a. 419 scam, involving Mrs. Amaka Anajemba, Chief Emmanuel Nwude, and Mr. Nzeribe Edeh Okoli, which took place over a three-year period.

Following examination of the 1st Prosecution Witness (PW1), Mr. John Babatunde Soares in the de novo (fresh) trial before Ikeja High Court judge, Justice Olubunmi Oyewole, Chief Emmanuel Nwude (1st accused person), Nigerian Intercontinental Merchant Bank (now Inter-continental Bank), Industrial Bank (now City Express Bank), Equatorial Trust Bank (ETB), Union Trust Building Society Limited, and an Indian company, Royal Crest Nig. Limited, were named in several money laundering deals.

The accused persons, who were re-arraigned in Lagos on Friday, July 23, by the Economic and Financial Crimes Commission (EFCC) following an Abuja High Court dismissal of the former 86 - count charge brought against them in July, are to face a fresh 98-count charge, in accordance with Sections 1(1)(a) and (3) of the Advance Fee Fraud Act of 1995 as amended by Act 62 of 1998. The trial is expected to last till October 6.

In a packed courtroom yesterday, Soares, a chartered banker, in response to questions during the evidence-in-chief by Mr. Rotimi Jacobs (EFCC counsel), revealed how he carried out several foreign exchange transactions between the above-mentioned banks and companies, on behalf of Nwude and the late Ikechukwu Anajemba.

Soares, formerly a suspect arrested by EFCC who later turned prosecution witness, confessed to having moved foreign currencies totalling $10.1m in forex deals on behalf of Nwude, who had allegedly told him he was into spare parts, tyres, and crude oil businesses.

Below is Soare's evidence which lasted for about 2 hours 20 minutes (9.50 am to 12.10 pm).

Prosecution: Throughout your banking career (1971 - 2003), do you know any of the accused persons?

Witness: I knew only Chief Emmanuel Nwude (proceeded to identify him among the three accused persons in the dock).

How do you know him?

In 1991, there was a problem in Ikeja Branch of ETB, and I was sent to normalise things there since the Manager moved out, and to restore customer confidence in the bank. I gave instructions to my officers that any person withdrawing above N500,000 should see me in person. Chief Nwude came to withdraw N500,000 during that time, and after pleasantries, I asked him the nature of his business. He told me he was a distributor of tyres and vehicle spare parts. That was how the relationship started. Anytime he came to the bank, he calls on me to say hello.

What was the nature of the account?

He had four accounts. One as Ezenwa Madu; 2nd a personal account as Emmanuel Nwude; 3rd account as Emma; and the 4th one African Shelter Nigerian Limited. Those are the four accounts.

Those four accounts, can you tell the court the kind of currency the accounts deal with? Naira, dollar?

They were all naira accounts.

Can you cast your mind back to 1995 and tell the court what you know about the 1st accused?

Witness: Around 1994, I moved in Ikeja Branch of ETB. By 1995, Chief Nwude came to me. He told me since I left the branch, he is now into oil business and he has some foreign exchange to sell to ETB.

He requested for a correspondent bank account of ETB abroad, a request which was handled by the Head Office, who asked Chief Nwude to come down to Victoria Island to collect the particulars.

After sometime, he brought ETB cheques and he told me the bank had been assisting him to change his foreign exchange into naira.

What did you do with the cheques?

Some he collected cash over the counter, others he paid into his account.

The money he paid into his accounts, what did he do with it?

He issued cheques through 3rd parties to collect money. I cannot remember the 3rd parties now. I visited the Head Office in V.I. and on two occasions, I saw Nwude sitting outside the General Manager's office, looking dejected. When I asked him the problem, he told me he had been experiencing delay in getting the naira equivalent of the foreign exchange amount that he brought into the bank.

He said he had been coming for the past one week to no avail. He expressed disappointment over the treatment and asked me to get him a good and responsible customer who needs forex. At that time in my branch, ETB had an Indian customer. The name of the account is Royal Crest Nigeria Limited. The account belonged to the owner Naresh Asnani (Jnr) and was supervised by the company GM, Mr. Damindra. The company deals in household products and electronics.

Soares gave a detailed description of how $1m was lodged into Royal Crest account and Nwude had met Asnani Snr. before the naira equivalent was paid to the 1st accused in cheques, which he (Soares) collected on his behalf. He spoke about a delay in the payment of the naira value of a second tranche of forex involving the sums of $1.25m and $850,000 paid by Nwude into Royal Crest account which had led to the accused asking for an alternative forex buyer.

Chief Nwude told me to look for an alternative and Union Trust Building Society Limited readily came to mind. Union Trust happened to be the beneficiaries and they gave the particulars of their account in London. Union Trust is a customer of ETB. $1m was credited into the account and confirmed by the Managing Director, Union Trust.

I received payment instruction from Chief Nwude for the naira equivalent of the $1m. I collected the cheques and handed them over to Nwude. Second tranche of $1.25m was also paid into Union Trust correspondent account, but there was delay when the naira equivalent was to be paid. Later the MD, Mr. Ajayi called me and said Chief had paid in another $3m into the account.

The prosecution witness also revealed how he approached former Industrial Bank (now City Express Bank) for another transaction, with a delay of almost weeks in payment of the naira equivalent of some forex paid into their correspondent account. Nwude had again asked for another buyer and Soares contacted Nigerian Inter-continental Merchant Bank (now Intercontinental Bank).

I contacted NIMB. The first transaction was $2m after they gave me their particulars of name and account of correspondent bank abroad and I passed them (particulars) to Chief Nwude.

At six other times, there were transactions, while the whole thing totalled $10.1m. Payment instructions of the naira equivalent was given to me and I passed them on to Intercontinental Bank, and they issued cheques to me. Various cheques were issued in various names.

According to the witness, a demand by the Bank GM that Nwude open an account with them, which was refused, had led to the termination of the forex transaction.

Between 1995 and 1996, did you meet Nwude in his house?

Myself and Ajayi (Union Trust MD) visited him when the late Anajemba was around, at N0. 4, Olaiya Close, off Opebi Road, Ikeja, Lagos.

Is he still living there?

He has left for Ikoyi.

Can you remember the names on the various cheques you collected on behalf of the 1st accused?

The names I could identify with Chief and the other ones I do not know, are about fifty (50).

Do you know where these sums of money were coming from?

From Cayman Islands (West Indies)

How did you know?

I checked with Union Trust and also with Intercontinental Bank.

Do you know any company known as Stanton Development Corporation, in the course of your transactions?

Alex Izinyon, SAN (Nwude's counsel) interrupting: Milord, that is a leading question. I don't like the evidence the witness is giving.

I have heard them (Stanton) before but I cannot remember in what context.

What of Banco Noreste SA?

No.

That is all, Milord.

Justice Oyewole ordered a one-hour stand-down, after which the defence counsel cross-examined Soares. They tried to establish that the witness was formerly a suspect held by EFCC in the matter before he agreed to turn prosecution witness; that he gave four (not two) statements to the police between October 27 - 31 under caution.

They also got Soares to admit that the forex transactions he carried out during his tenure at ETB was illegal, without the consent of his employers, and that he also profited from the deals.

Excerpts: Izinyon: You are a very good agent to facilitate forex on behalf of many parties. You are good at sourcing currency for many customers like Royal Crest, Union Trust, Industrial Bank, NIMB, 1st accused person. How much was your commission?

PW1: I did not ask for commission. In all I got N2million.

Two million dollars?

Two million naira.

When you gave your first statement, you were a suspect with EFCC then, but now you are a free man today, right?

Yes.

On 30/10/04, you refunded some money to EFCC, how much?

N2.4million

On the whole, how many days did you spend with EFCC before you were finally released?

I spent five days.

Apart from N2m commission and N2.4million you refunded to EFCC, you have a house in Lekki. What is the worth?

Roughly N4million at the time of construction.

You also had one in Ikeja?

I sold the one in Ikeja off.

What about the one in Alagbado?

I am not conversant with Alagbado. I do not even know Alagbado.

What about the one in Ibadan? You have a fine estate in Ibadan?

I have a house in Ibadan.

Are the Asnanis still in Nigeria?

It is a long time since I saw him.

You have come to this court to give evidence to save your own neck from this problem?

I am being held by EFCC as one of the accused. They (EFCC) asked me to come and say what I knew about this matter by giving evidence.

Chief Chris Uche, SAN, Anajemba's counsel also cross-examined the witness, and tried to establish the illegality of the whole forex transactions. Proceedings could not go on because Jacobs told other witnesses to go and come back today for continuation of trial, a move which the judge decried as there are 28 prosecution witnesses, and that speed was very essential in the trial.

Justice Oyewole thereafter adjourned continuation in the trial till today, to enable witnesses give evidence.

First arraigned in Abuja on February 4, 2004, the accused persons, were alleged to have defrauded a Brazilian banker, Mr. Nelson Sakaguchi of $242million.

The amount was said to represent payment due to the Federal Government on the alleged contract No. FMA/132/019/82 for the construction of Abuja International Airport, Nigeria. Penalties for each of the counts range between seven and 10 years.