A Federal High Court in Abuja has ordered the final forfeiture of ₦150 million linked to the member representing Bomadi/Patani Federal Constituency in the House of Representatives, Nicholas Mutu, ruling that the funds were proceeds of unlawful activities and should be forfeited to the Federal Government.
The order was made by Justice J. O. Abdulmalik following an application by the Economic and Financial Crimes Commission (EFCC), led by its counsel, Ekele Iheanacho, SAN. The commission argued that the money formed part of kickbacks allegedly received in connection with contracts and debt recovery interventions involving the Niger Delta Development Commission (NDDC).
The application was brought pursuant to Section 44(2) of the Constitution of the Federal Republic of Nigeria, 1999, and Section 17 of the Advance Fee Fraud and Other Fraud Related Offences Act, 2006.
The court had earlier granted an interim forfeiture order and directed its publication in a national newspaper to allow any interested party to show cause why the funds should not be permanently forfeited. However, no sufficient cause was shown to prevent the final forfeiture.
In his judgment on Friday, Justice Abdulmalik considered the EFCC’s application alongside the counter-affidavits and objections filed by Mutu and his company, Airworld Technologies Ltd, before holding that the commission had established its case.
The EFCC told the court that its investigation revealed that Mutu, while serving as Chairman of the House of Representatives Committee on the NDDC, allegedly received kickbacks totalling ₦400,159,689.63 from an NDDC consultant, Starline Consultancy Services.
According to the commission, the payments were channelled through the Heritage Bank accounts of Mutu’s companies, Airworld Technologies Ltd and Oyien Homes Ltd. It further alleged that Mutu was the principal shareholder in both companies, while the remaining shareholders and directors were his wife and other immediate family members.
The anti-graft agency said Starline Consultancy Services had approached the House committee chaired by Mutu to facilitate the recovery of debts owed to the NDDC by oil and gas companies operating in the Niger Delta.
It said the committee subsequently invited the oil companies to meetings at the National Assembly, where outstanding liabilities were reconciled before payment demand notices were issued, resulting in the recovery of more than ₦100 billion for the NDDC.
The EFCC alleged that after receiving its consultancy fees, Starline Consultancy Services transferred part of the proceeds to companies linked to Mutu as kickbacks.
The commission further claimed that while investigations were ongoing, Mutu procured the consultant to issue a subcontract award to Airworld Technologies Ltd in an attempt to disguise the payments as legitimate business transactions and frustrate the investigation.
Although Mutu refunded ₦150 million during the investigation, he later argued that the refund was not voluntary and maintained that the payments received by his companies arose from lawful contractual transactions.
However, the EFCC contended that the purported subcontract was created only after investigations had commenced and that the consultant admitted it merely served as a cover, confirming that no work was carried out by Mutu’s companies under the arrangement.
The commission also informed the court that it had appealed Mutu’s earlier discharge and acquittal in a money laundering trial before Justice F. O. G. Ogunbanjo, arguing that the appeal arose from the same facts and evidence.
According to the EFCC, counsel who represented Mutu and Airworld Technologies Ltd during the criminal trial later informed the Court of Appeal that they had not been instructed to receive the notice of appeal on behalf of their clients.
In his decision, Justice Abdulmalik held that the ₦150 million refunded by Mutu constituted proceeds of unlawful activities and ordered its final forfeiture to the Federal Government.