Sunday Ejike Benjamin, Boco Edet and Idris Ahmed
23 July 2008
Abuja — The Presidential Committee that investigated the affairs of the Africa Finance Corporation (AFC) yesterday submitted its report to government and recommended sanctions against officials who participated in the setting up and funding of the AFC.
Although the content of the report was not made public, a reliable source told Daily Trust the panel recommended the prosecution of some officials and the scrapping of the AFC.
It was not clear last light to what extent CBN Governor Professor Charles Soludo, who has been in the centre of the AFC affair, was affected by the report.
A source at the CBN said they are aware of the panel report. "Part of the recommendations is the removal of the MD, Austine Ometoruwa and already a Ghanaian has been appointed to act as the MD," the source said.
Other recommendations contained in the report are that three big banks be sanctioned by the Federal Government for their involvement in the AFC affair and that the CBN pays $11m as interest on the money invested in the AFC.
The chairman of the presidential probe panel, Mr. Tunde Ogunsakin said while presenting the report of the committee to the Attorney General of the Federation (AGF) and the Minister of Justice, Chief Michael Aondoakaa (SAN) that the committee in the course of its investigations had identified mistakes relating to statutory and procedural issues in Nigeria's participation in the AFC project.
"We have also had to apportion blame to individuals for their actions/inactions that led to what we consider as certain avoidable steps in the formation and funding of the AFC," he said adding that the Central Bank of Nigeria (CBN) invested the sum of $462, 923, million and not the $480 million originally reflected in the committee's terms of reference.
Ogunsakin said the amount invested was recovered and deposited at the JP Morgan Chase Bank in New York in an interest yielding account pending a final determination by the Federal Government of whether Nigeria will continue to participate in the AFC project.
The chairman said the report contains exclusive and comprehensive answers to all the myths that characterised the formation as well as the participation of the CBN in the AFC. The report, he said, will assist government in resolving other contending issues, and that it states the facts as accurately as possible devoid of sensationalism and undue emotions.
Receiving the report, Aondoakaa praised the committee for its detailed investigations and report in spite of the undue pressure mounted upon the members.
"There is no doubt that there will be a great pressure on you in the course of carrying out the assignment and yet, your committee was able to come out with a detailed report on the role of the Central Bank of Nigeria in the formation, funding and operation of the Africa Finance Corporation," the AGF said. He added that the report would be forwarded to President Umaru Yar'adua with a promise that the recommendations of the committee will be carefully looked into with a view to implementing them.
Aondoakaa inaugurated the committee on April 14, 2008 to investigate the AFC, particularly with respect to the role of the CBN in its formation, funding and operation.
The committee's terms of reference include the determination of the laws and procedures relating to the setting up of the AFC, ascertaining its ownership structure and carrying out other relevant functions that would help in the realisation of the committee's objectives.
The five-man committee was headed by Ogunsakin, a former Director of Operations at the Independent Corrupt Practices Commission (ICPC), now at the Economic and Financial Crimes Commission (EFCC).
The committee was mandated to ascertain the source of authority for the withdrawal of the sum of $480 million in respect of the purchase of equity in ACF by the CBN and determine whether there was relevant authorization by the National Assembly or the President for the investment.
The committee was to also determine the percentage equity holding of each investor and determine the representation of Nigerians on the board of the corporation. An interim report by the panel had earlier alleged that Soludo illegally printed N58 billion to purchase the $463 million equity investment in the AFC.
During the probe, Soludo told the panel that N58 billion was withdrawn from the Foreign Operations Department Naira Deposit Account to purchase the dollar equivalent.
But the panel report stated that in debiting the AFC Equity Investment Account with N58 billion, CBN governor illegally created or printed the N58 billion used.
In June, the United States of America anti-corruption and money laundering body linked UBA into the AFC scandal. It was reported that AFC opened two accounts with the New York branch of United Bank of Africa, and Soludo soon remitted AFC funds in the accounts in November last year and March this year.
In all, Soludo was alleged to have deposited over $300 million directly from the Central Bank of Nigeria into the AFC two accounts-numbers 68959001 and 68959013. The deposits came in two tranches, and the cash came from the more than $500 million Soludo had created for ostensible investment purposes of the AFC.
US regulators had slammed a $15 million fine on UBA in April 2008 as a sanction for the bank's violations of the Bank Secrecy Act (BSA). The board of Directors of the AFC include Soludo as Chairman and Ometoruwa as Managing Director.
Other directors include Alhaji Aliko Dangote, who resigned in the heat of the AFC scandal, Barth Ebong, the Managing Director of the Union Bank of Nigeria; Cecilia Ibru, the Managing Director/ CEO, Oceanic International Bank PLC; Erastus Akingbola, Managing Director, Intercontinental Bank Plc; Jim Ovia, Managing Director, Zenith Bank PLC; Mr.Tony Elumelu, Managing Director, United Bank For Africa Plc; and Tunde Lemo Deputy Governor, CBN among others.
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