Boco Edet
28 December 2008
The Economic and Financial Crimes Commission (EFCC) is on the trail of the controversial Vaswani brothers, who are enmeshed in a N40billion scam allegedly obtained under false pretence from Globe Motors, Daily Trust learnt at the weekend.
The three brothers, Suril, Maresh and Haresh who were said to have been evading the anti-graft agency, are being probed for allegedly cheating Globe Motors of N40 billion in a sub-dealership deal.
EFCC summoned the brothers who were signatories to the deal, including the Chairman of Globe Motors, Williams Anumudu, for questioning. A source at the commission said EFCC has sealed up their office in Lagos for failure to appear before investigators to answer questions. According to the source, other Vaswami offices in Kano and Abuja will be shut down this week if they refuse to show up at the commission.
Daily Trust gathered that the investigation started six weeks ago after Barrister Ifeanyi Maduabuchi, acting on behalf of Global Motors, petitioned against the brothers.
The petition alleged that in 1993, Honda Place owned by the brothers approached Globe Motors with a business deal to allow the company import 45% of Honda vehicles, which they reneged on.
The petition said, "before December 1993 Honda Motor Company Limited of Japan, the manufacturers of Honda Vehicles had a backlog of out moded Honda vehicles as a result of the inability of dealers to take them up after placing order for them. In order to put an end to similar occurrence the manufacturers made a policy to have only one exclusive dealer in each country."
"As a result, Honda Place approached our client (Globe Motors) that they will give them a sub-dealership which will enable them to be importing for 45 per cent of Honda vehicles earmarked for Nigeria by Honda Motors Japan if our client (Globe Motors) would enable Honda Place to succeed as sole dealer by sharing the backlog burden with them."
"Moreover, our client (Globe Motors) agreed and went ahead to clear the bulk of over 50 per cent of the said backlog and Honda Place was made a sole dealer in 1993. Upon being made the sole dealer, Honda Place reneged from the original agreement of allowing our client (Globe Motors) to import 45 per cent of the Honda vehicles earmarked for Nigeria and took over same in addition to their 55 per cent."
"Furthermore, in their quest to render the representation they made to our client (Globe Motors) ineffective, Mr. Suril Vaswani, Mr. Mahesh Vaswani, Mr. Haresh Vaswani, Mrs. Rita Vaswani, Mr. Gopal Kritishina and other principal agents of Honda Place alleged that the Honda dealership had been given to another company, THP Limited and that Honda Place was incapable of giving Globe Motors 45 per cent."
"In their bid to convince our client (Globe Motors), they presented a forged dealership agreement between THP Limited and Honda Japan; our client (Globe Motors) discovered that the date on the said dealership agreement was altered by Mr. Suril Vaswani and other directors earlier on mentioned herein to suit their purpose of defrauding our client (Globe Motors)."
"Incidentally, Suril Vaswani who signed the agreement between our client (Globe Motors) and Honda Place also signed the one between Honda Japan and THP Limited, which is an abbreviation of The Honda Place.
It may interest you to know that THP Limited was not registered in the Corporate Affairs Commission when our client (Globe Motors) was fraudulently tricked to sign the sub-dealership agreement."
The petition claimed that Honda Place has benefited by selling their 55 per cent and Globe Motors 45 per cent of Honda vehicles earmarked for Nigeria thereby taking over N40 billion that ought to accrue to Globe Motors.
This is not the first time the Vaswani brothers are making news. On May 29, 2003 they were deported from the country by the Federal Government for evading tax to the tune of N40 billion.
Also another charge against the brothers was that the Central Bank of Nigeria gave them hundreds of millions of dollars to import fertilizers for farmers under the Poverty Alleviation prog-ramme but they allegedly sold the money on the black market.
The Vaswani family owns the Honda place, Hyundai Place, Volkswagen Centre, Audi Place and Skoda World, among others.
EFCC's Spokesperson, Femi Babafemi confirmed that the commission sealed up their office in Lagos in relation with on-going investigations surrounding an alleged N40 billion fraud but declined further comments.
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