In a startling revelation, a presidential panel investigating the activities of the Central Bank of Nigeria (CBN) under the tenure of former Governor Godwin Emefiele has uncovered unauthorised investments of Nigeria’s funds in 593 foreign bank accounts across the United States, China and the United Kingdom.
This was part of the final report that the special investigator appointed by President Bola Tinubu in July, Jim Obazee, submitted recently.
The findings suggest that Emefiele, during his term, allegedly directed substantial sums to these accounts without the necessary authorisations.
The investigative report submitted to President Bola Tinubu asserts that all the accounts involved in these transactions have been traced by the investigator. Notably, in the United Kingdom alone, Emefiele purportedly maintained £543,482,213 million in fixed deposits, a move allegedly undertaken without approval from the CBN board and the bank’s investment committee.
Obazee, also in his report, has recommended that Emefiele, along with some top management team members, face trial for the alleged illegal transactions and the purported misappropriation of funds for unauthorised purposes.
According to the report, which was obtained by LEADERSHIP Friday, several top officials at the apex bank and some high-ranking government officials implicated in the financial irregularities will also be charged alongside Emefiele.
Emefiele is already undergoing trial by the Economic and Financial Crimes Commission (EFCC) for an illegal contract award.
The investigation, part of a broader forensic examination into the operations of the CBN and related entities, including Nigerian Maritime Administration and Safety Agency (NIMASA), Nigeria Ports Authority (NPA), Bank of Industry (BoI) and Federal Inland Revenue Service (FIRS), has reportedly uncovered numerous financial misdeeds.
The first phase, a probe of the accounts and operations of the CBN, has been completed, with many financial misdeeds reportedly discovered.
Two reports have been submitted to the president, with one detailing the ‘chargeable’ offences committed by the former CBN governor and other officials, LEADERSHIP Friday learnt.
LEADERSHIP Friday exclusively gathered that the Naira redesign was not approved by the board of CBN and President Muhammadu Buhari “only tagged along.”
According to findings by the special investigative panel, it was Tunde Sabiu, a presidential aide, who told Mr Emefiele in September 2022 “to go and consider redesigning the Naira”.
On October 6, Emefiele wrote to Buhari seeking approval to redesign and reconfigure N1,000, N500, N200 and N100 notes. Buhari approved the proposal the same day.
He also approved the printing of the currency in Nigeria, but the investigation claims that Emefiele outsourced the redesigns, described as a mere change of colour, to De La Rue in the UK for a fee of £205,000. As of August 9, 2023, N769 billion of the new notes were reportedly in circulation, with printing costs totaling N61.5 billion of which N31,799,328,880.80 had been paid.
The report also exposed additional financial discrepancies, including N1.7 billion spent on ‘questionable’ legal fees, the fraudulent use of Ways and Means of the apex bank amounting to N26.627 billion, and the alleged misrepresentation of presidential approval for NES Stabilisation Strategy Ltd. The report suggests that N1.325 billion was stolen pre-incorporation, with funds funneled to four companies, including a legal firm that received N300 million.
Furthermore, Emefiele is accused of unlawfully paying N17.2 billion to 14 Deposit Money Banks under NESI, participating in the Nigerian Electricity Market Stabilisation Facility, and diverting money from public funds.
The investigator claims that CBN officers, even after Emefiele’s exit, were unable to produce presidential approval for most of the expenses categorised as “Ways and Means.”
The report reveals a partial breakdown of the presented N22, 719,703,774,306.90, with an unexplained non-negotiated/unadvised interest element of N6,678,874,321,541.97.
“The sum of N17.369 trillion remains unaccounted for as neither due appropriation nor approvals exist to support the diversion of public funds through this medium.
Emefiele’s administration is also alleged to have fraudulently implemented the e-Naira project, exempting three foreign firms from paying income tax.
The investigator’s findings further highlight a purported “cash withdrawal/theft of $6.23 million from CBN vault in Abuja on February 7 and February 8 for purported payment for foreign election observation missions.”
It was learned that those responsible for the alleged heist have reportedly been arrested, with investigations ongoing.
Additionally, the report notes suspiciously forged signatures, including that of President Buhari, on relevant documents.
“The sum of N1,727,500,000 was also spent on questionable legal fees on 19 cases that are directly traceable to the Naira redesign and reconfiguration agenda,” the report said.
It recommends that officials of the immediate past administration involved in the malfeasance be prosecuted while the court should be approached to nullify the approval that the 9th National Assembly gave to securitise the “Ways and Means” as it contravenes Section 38 of the CBN Act, 2007.
