Femi Ashekun/
The Court of Appeal in Lagos has overturned the conviction and nine-year prison sentence handed to businesswoman, Oluremi Ebun Phillips, over an alleged N57.6 million fraud, ruling that the dispute was purely a civil commercial transaction and not a criminal offence.
In a judgment delivered virtually on Thursday, the appellate court held that the prosecution of Phillips and her company, Omritas Energy Limited, was wrongly criminalised, despite arising from a business disagreement linked to the supply of Automotive Gas Oil, popularly known as diesel.
The ruling came after Phillips had already completed the jail term imposed on her by the Ikeja Special Offences Court, a development likely to trigger renewed debate over the criminalisation of commercial disputes and delays in the appellate process within Nigeria’s justice system.
Delivering the lead judgment, Justice Yargata Nimpar held that the transaction between Phillips and AYM Shafa Limited bore no criminal element capable of sustaining charges of stealing or issuance of dud cheques.
“This was essentially a civil transaction without any criminal element whatsoever,” the court held, adding that the complainant and prosecution authorities improperly converted a contractual dispute into a criminal matter.
The judgment, which was unanimously supported by Justices Senta and Kwaha, set aside the December 4, 2024 conviction entered by Justice Ismail Ijelu of the Lagos State High Court sitting in Ikeja.
Phillips had challenged the judgment through a Notice of Appeal, arguing that the trial court erred in convicting her despite the absence of evidence establishing criminal intent.
After reviewing the briefs and submissions of both parties, the Court of Appeal resolved all issues in her favour.
On the charge relating to the alleged issuance of a dud cheque, the appellate court held that prosecutors failed to establish the legal requirements necessary for conviction.
Justice Nimpar noted that there was no evidence showing Phillips had been formally notified that the cheque issued to the complainant had been dishonoured, a mandatory condition under the law governing dud cheque offences.
“The law is clear that the issuer must be informed or notified of the dishonour, and no such notification was placed before the court,” the court ruled.
The case originated from a diesel supply transaction involving AYM Shafa Limited and Omritas Energy Limited.
The Economic and Financial Crimes Commission had accused Phillips and her company of fraudulently converting N57,690,000 paid for the supply of diesel allegedly not delivered to the complainant.
The anti-graft agency also alleged that the company issued a Diamond Bank cheque worth N14,298,075 in April 2017 which was later dishonoured due to insufficient funds.
Phillips was first arraigned before Justice Sherifat Solebo on January 27, 2022. Following the judge’s retirement later that year, the matter was reassigned to Justice Ijelu.
She and her company were re-arraigned on May 22, 2023 on five counts bordering on stealing and issuance of dud cheques involving the N57.6 million transaction.
Although Phillips pleaded not guilty, the trial court convicted her after hearing evidence from three prosecution witnesses and three defence witnesses.
Justice Ijelu sentenced her to nine years imprisonment with an option of N2 million fine on count one, and two years imprisonment each on counts two to five, with the sentences to run concurrently.
The court also imposed fines on Omritas Energy Limited and ordered restitution of the N57.6 million to AYM Shafa Limited within 90 days, directing that the company be wound up if the payment was not made within the stipulated period.
However, the Court of Appeal has now nullified the entire conviction, effectively clearing Phillips and her company of all criminal liability in the matter.
The ruling is expected to intensify scrutiny of the increasing use of criminal proceedings in business and contractual disputes, especially in cases involving failed commercial transactions.
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