Fraud rocks FIRS, court orders final forfeiture of Abuja, Kano houses linked to official

A Federal High Court in Abuja has ruled that two properties linked to a Federal Inland Revenue Service (FIRS) official, Aminu Garunbaba, be permanently forfeited to the Nigerian government over allegations of financial misconduct.

The properties include a four-bedroom terrace maisonette with a boys’ quarters at Barumark Groove Estate, Plot 667, Cadastral Zone, BO3, Wuye District, Abuja, which was acquired under the name MYZ Venture. The second property, located at No. 5, Lodge Road in Kano, was also allegedly purchased by Garunbaba.

Justice Obiora Egwuatu, in a judgment, held that Garunbaba failed to show the instrument he used to purchase the property.

Justice Egwuatu held that the respondent also failed to show any reasonable cause that the funds used in purchasing the property is from his legitimate earnings.

“A person cannot be allowed to benefit from illegitimate acts,” he said.

The judge earlier dismissed the preliminary objection filed by Garunbaba on the grounds that the objector did not discharge the burden to proof that the particular paragraphs in the EFCC’s application offended the Evidence Act.

He  agreed with counsel to the Economic and Financial Crimes Commission (EFCC), Martha Babatunde, that a public officer can be investigated and prosecuted before an administrative disciplinary action is taken.

It will be recalled that the EFCC had, in the suit marked: FHC/ABJ/CS/876/2021 filed by Ekele Iheanacho, SAN, sued Aminu Sidi Garunbaba as sole respondent.

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In the motion on notice dated March 16, 2022 but filed on March 21, 2022, the anti-graft agency prayed for final order of the court “forfeiting the properties described in Schedule 1 which were found by the commission on the respondent as properties reasonably suspected to be proceeds of unlawful activities.”

Giving four grounds, the commission  argued that the court had the statutory powers under the provision of Section 17 of the Advance Fee Fraud and Other Fraud Related Offences Act, 2006 to grant the reliefs being sought.

It said: “The properties sought to be attached and forfeited are reasonably suspected to be proceeds of unlawful activities.

“The interim order of this honourable court has been published in two national dailies namely: THISDAY and PUNCH Newspapers.

“No cause or sufficient cause has been shown why the properties under the interim forfeiture should not be finally forfeited to the Federal Government of Nigeria.”

In the affidavit in support of the motion deposed to by an operative of the EFCC, Apagu Wudah, the officer said several investigations were carried out regarding the assets.

He said as an investigating officer with the Economic Governance Section of the agency, he was assigned to investigate an intelligence report bordering on criminal conspiracy, stealing, abuse of office and money laundering among some FIRS

Wudah said the investigation revealed that between 2017 and 2018, Garunbaba and some of the staff of the FIRS conspired amongst themselves and obtained millions of Naira from the FIRS under the guise of Duty Tour Allowances (DTA) which they never travelled for.

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He said in the execution of the fraud, the staff involved applied for DTA in respect of a non-existing trip.

According to him, upon being paid the DTA, the staff would deduct 10% to 15 per cent  of the amount paid as his/her share, while the rest amount was withdrawn and transmitted to other senior officials of the agency who in turn also retained some while passing the rest up to the former Director of Finance and the Coordinating Director.

“The respondent (Garunbaba) not only directly applied and received DTA payment for none existing trips from FIRS, other staff who received these fraudulent payments also handed over to him part of their own money.”

The investigator said between 2017 and 2018, Garunbaba received the sum of N341, 971,960.00 (three hundred and forty one million, nine hundred and seventy-one thousand, nine hundred and fifty naira) from the misappropriated DTA payments.

He said Garunbaba also personally converted to his use the sum of N148, 079,450.00 (one hundred and forty eight million, seventy nine thousand, four hundred and fifty naira).

“The respondent gave details of the various funds he received in the fraudulent scheme and how he utilised some of them in his extra l-judicial statements to the applicant,” he averred

Wudah said Garunbaba, in explaining how he shared part of the entire funds, wrote in his extra-judicial statement made in the presence of his legal representative on May 23, 2019  some startling revelations.

He said the respondent revealed that the total sum of N269, 335, 750 was giving as follows: Peter Hena, 145,000,000; Bello Auta, N95, 000,000; and Aminu Sidi, N29, 336,750.

He said Garunbaba confessed that the money was giving in cash at the FIRS office.

The investigator said Garunbaba received part of the above diverted funds through his Stanbic IBTC Bank account while the rest were in cash from other staff.

He said Garunbaba also converted most of these funds into US dollars through a Bureau De Change Operator , Wan Shehu.

“According to Mr. Shehu, between 2017 and 2019, the respondent gave him a total sum of about N216, 000, 000 at different occasions for him to exchange into United States Dollars which he did” Wudah said.

The EFCC operative said in 2018, Garunbaba purchased the four bedroom terrace maisonette from Barumark Investment and Development Company Ltd (Barumark) at the rate of N65,000,000.00 (sixty five million naira).

He said the money was paid through his First Bank account number: 3040986059 to Barumark’s First Bank account.

He said Garunbaba equally purchased the property situated at No.5 Lodge Road in Kano State at the sum of N39, 000,000.00 (thirty nine million naira) from one Alakhillau Enterprises which is operated by Adamu Muhammed.

Wudah said Garunbaba is a public servant on fixed annual salary whose lawful income was not used to purchase the property described.

He said the assets were purchased at the time Garunbaba was receiving and diverting funds paid as DTA by the FIRS to him and his colleagues.

Fraud rocks FIRS, court orders final forfeiture of Abuja, Kano houses linked to official