MTN Loses N8Billion Illegal Proceed to FG

Telecommunications giant, MTN, has been ordered to kiss goodbye to N8billion that was allegedly made through unlawful activities.
The order was obtained by the Federal Government of Nigeria (FG) at the Federal High Court in Lagos.
According to Court papers obtained by Newsmakers, Mr Justice Abdulaziz Anka ordered MTN to temporarily forfeit to the government the N8billion in its ECOBANK account 0012005379, which was suspected to be proceeds of unlawful activity.
Also affected by the order is another account number 1013607079 containing billions of Naira at Skye Bank, whose owner has not filed any paper before the Court to contest ownership.
An Abuja based lawyer, Barrister John Samuel Opeyemi, had filed the suit marked FHC/L/CS/1676/2016 at the Federal High Court, in Lagos, on behalf of the FG, Attorney General of the Federation and an Asset Recovery Agent of the FG, Algaita Group Nigeria Limited.
In an affidavit sworn to by the Managing Director of Algaita Group Limited, Abdullahi Mohammed Maiturare, a former operative of the Economic and Financial Crimes Commission (EFCC) that was filed and argued before the court, Mr Maiturare averred that Attorney General of the Federation appointed his company Algaita Group Nigeria Limited as “Asset Recovery Agent of the Federal Government of Nigeria to track, freeze and recover funds and ensure it is remitted to the designated bank account of the Federal Government of Nigeria through legally permissible means as may be directed by the Attorney General of the Federation”.
Opeyemi argued: “Consequently his company has credible information at its disposal which reveals that funds which are strongly believed to be Federal Government of Nigeria’s funds stolen, diverted and laundered are hidden in some coded accounts in the two banks ECOBANK and SKYE Bank.
“Further credible information at our disposal from reliable sources indicates that there is an account maintained at ECOBANK Nigeria Limited in the name of MTN Nigeria Communications operating account number 0012005379 that has a credit balance of N8, 000,000,000 billion.
“From the totality of the credible information at our disposal, the applicants reasonably believe and satisfied that the funds in the possession of the two banks are unclaimed properties or proceeds of unlawful activity of stealing, diversion and money laundering of some public officials and their cronies in the private sector.
“Consequently, if urgent steps are not taken to obtain certified documents of the accounts and statements thereof as well as stop outward transactions on the accounts, the funds may be dissipated and the account documentation or statements may be tampered with.”
In his ruling, Justice Anka ordered as follows:
That an order be made granting interim forfeiture to the Federal Government of Nigeria of the funds lying in the accounts listed in the schedule in the custody of the two banks.
That an order be further granted directing the publication of a notice in two National Daily newspapers inviting any Person(s) who may have interest in the subject funds to, within 14 days of the publication of the order, show cause why a final order should not be made forfeiting the said funds to the Federal Government of Nigeria.
That an order be made directing the service of the order on the respective branch managers of the respondents banks and to stop forthwith all outward payments from the subject accounts, and to immediately deliver to the court the respective statements of account with certificate of authentication and other relevant documents as at the date and time of service of the court order on them.
MTN Communications Limited has, however, filed an application, urging the court to discharge and set aside the orders made as it relates to its account held with ECOBANK Limited.
In an affidavit sworn to by a lawyer, Mrs Ibukunoluwa Owa, on behalf of MTN and filed before the court by Mr Adeniyi Adegbonmire SAN, the deponent averred that information delivered to him by Babatunde Adewumi, the Manager, Banking and Treasury in the employment of MTN Communications Limited, contended that the applicants did not comply with the order of the court as the order of the Court was not published as directed by the Court, therefore they were not aware of the order of the Court until, ECOBANK wrote a letter to the company to intimate it of the said order.
Mrs Owa further averred that the account was “opened by ECOBANK Nigeria PLC upon instructions given by MTN on October 9, 2007 and MTN has operated the account since then till date in accordance with banking practice applicable to current account held by corporate bodies in Nigeria; therefore the order has adversely affected the smooth running of the business of MTN as it finds it difficult to utilize the funds held in the account in pursuit of its lawful business, as the funds are not suspected proceeds of unlawful activity”. She urged the court to discharge the order.
MTN application to discharge the order was accompanied with affidavit of urgency and application urging the court to hear the case quickly, but no further date has been fixed for hearing.