After 12-year Legal Battle, Kalu Bags 12 Years Imprisonment for Fraud

Forfeits assets to FG 19 other former govs await fate SERAP, CDHR, CUPP hail conviction

After 12 years of legal battle, the trial of former Abia State Governor, Senator Orji Uzor Kalu, over N7.65 billion fraud and money laundering preferred against him by the Economic and Financial Crimes Commission (EFCC) ended yesterday in his conviction.

Justice Mohammed Idris of the Federal High Court sitting in Lagos, sentenced the former governor, who is now Senate Chief Whip, to 12 years imprisonment.

Kalu, who was accused of committing the offences while he was governor, becomes the fifth former governor to be jailed for diversion of public

funds since the return of democratic rule in 1999.

Among Kalu's colleagues convicted for similar crimes are Chief Lucky Igbinedion (Edo), Chief James Ibori (Delta), Rev. Jolly Nyame (Taraba) and Senator Joshua Dariye (Plateau).

A former governor of Adamawa State, Mr. James Bala Ngilari, who was sentenced to five years in prison by a Yola High Court for fraud he committed while in office, was later acquitted by the Court of Appeal.

There are, however, 19 other former governors who are under probe or on trial for alleged corruption while in office.

Civil society organisations, including the Socio-Economic Rights and Accountability Project (SERAP) and Committee for the Defence of Human Rights (CDHR) as well as the Coalition of United Political Parties (CUPP) yesterday hailed Kalu's conviction with CUPP calling for his removal as Senate chief whip.

In his judgment, Justice Idris declared the former governor guilty of all the charges preferred against him.

Kalu, who is the serving senator representing Abia North in the Senate, was tried alongside his company, Slok Nigeria Limited, and Mr. Udeh Udeogu, who was Director of Finance and Accounts at the Abia State Government House during his tenure as governor.

They were first arraigned before a Federal High Court in Abuja in 2007.

Kalu challenged the jurisdiction of the court to hear the case and the case dragged to the Supreme Court, which in 2017 ordered the Federal High Court to hear the case afresh.

In an amended 39-count charge, the EFCC accused them of conspiring and diverting over N7.65billion from the coffers of the state.

In one of the counts, the EFCC alleged that Kalu, who was governor between 1999 and 2007, “did procure Slok Nigeria Limited– a company solely owned by you and members of your family– to retain in its account, domiciled with the then Inland Bank Plc, Apapa branch, Lagos, an aggregate sum of N7,197,871,208.7 on your behalf.”

The prosecution claimed that the N7.1 billion “formed part of the funds illegally derived from the treasury of the Abia State Government and which was converted into several bank drafts before they were paid into the said company’s account.”

The prosecuting counsel, Mr. Rotimi Jacobs, said the ex-governor violated Section 17(c) of the Money Laundering (Prohibition) Act, 2004 and was liable to be punished under Section 16 of the same Act.

Apart from the N7.1 billion, which he was accused of laundering, the ex-governor and the other defendants were also accused of receiving a total of N460 million allegedly stolen from the Abia State Government treasury between July and December 2002.

The prosecutor said they breached Section 427 of the Criminal Code Act, Cap 77, Laws of the Federation of Nigeria, 1990.

The defendants had pleaded not guilty to all counts.

During the trial, the prosecution called 19 witnesses while the defendants testified on behalf of themselves.

Delivering his judgment yesterday, Justice Idris found the defendants guilty on all counts.

He held that the prosecution had established its case against the defendants.

The judge further held: “The case was conclusively investigated as the prosecution conducted thorough investigations.

“No gaps were left unfilled; this is the acceptable practice.

The first defendant failed in his obligations under the law. He acted contrary to his codes of conduct and will be dealt with accordingly.

“No evil deed will go unpunished. The offences are anti-human; it is condemned worldwide because it is a crime against humanity.”

In his allocutus, counsel to the first convict, said his client “is a first-time offender and has no criminal record.

“He has thousands of employees depending on him for survival. He also has health issues. We, therefore, want the court to take this into consideration in giving out the sentence.”

Counsel to the second convict also asked the court to temper justice with mercy, saying his client had no criminal record. “He was a public servant, who diligently served Abia State. He acted in the moment of indiscretion and this should not be the only basis to adjudge his career,” he said.

In his response, the prosecution counsel, Jacobs, said: “Though there is no record to show any criminal records involving the defendants, the court has sent a message to the world not to allow their personal interest to conflict with the interests of Nigerians because no matter how long it takes, they will not escape the wrath of the law.

“This case started in 2007 and the convicts filed series of applications to stall this case. For 12 years, the people of Abia have waited for this day and it is here; they can reclaim all that was taken from them.”

He also urged the court to wind up the company as provided by the law and all its assets forfeited to the federal government.

Consequently, Justice Idris sentenced Kalu to five years imprisonment on counts 1, 2, 3, 4, 6, 7, 8, 9, 10 and 11; three years on counts 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33; 12 years on counts 34, 35, 36, 37 and 38 and five years on count 39.

All the sentences are to run concurrently meaning he would be in prison for 12 years from the day of conviction.

The second defendant was convicted and sentenced to three years imprisonment on counts 24, 25, 27, 28, 30, 31, 32 and 10 years on counts 34, 37, 38 and 39.

The sentences will run concurrently meaning he would be in jail for 10 years.

Justice Idris further held that Kalu’s company, Slok Nigeria Limited, the third defendant, be wounded up and all assets forfeited to the federal government.

Prior to Kalu's conviction, some of his other colleagues had been convicted for similar offences.

On May 30, 2018, Nyame was convicted by Justice Adebukola Banjoko of the Federal High Court, sitting in Abuja, for charges bordering on misappropriation and fraud preferred against him. He was sentenced to 14 years in prison.

The High Court of the Federal Capital Territory, Gudu, Abuja, had on June 12, 2018, sentenced Dariye to 14 years imprisonment for criminal breach of trust and misappropriation of funds (N1.6 billion) while he was the governor of Plateau State.

Both former governors are serving their jail terms at the Kuje Correctional Centre, Abuja.

However, 19 other former governors, according to data obtained from the EFCC, are either on trial or being investigated for corruption while in office.

They are: Bukola Saraki (Kwara), Ali Modu Sheriff (Borno), Godswill Akpabio (Akwa Ibom), Chimaroke Nnamani (Enugu), Saminu Turaki (Jigawa), Sule Lamido (Jigawa), Ahmed Yerima (Zamfara), Gabriel Suswam (Benue), Martin Elechi (Ebonyi), Danjuma Goje (Gombe; but the AGF took over the matter under “nolle prosequi”), Murtala Nyako (Adamawa), Ikedi Ohakim (Imo), Peter Odili (Rivers), Boni Haruna (Adamawa), Gbenga Daniel (Ogun), Rashidi Ladoja (Oyo), Adebayo Alao- Akala (Oyo), Adams Oshiomhole (Edo) and Akinwunmi Ambode (Lagos).

SERAP, CUPP, Others Hail Judgment

Reacting to Kalu's conviction, CUPP lauded the judgment and called on the former governor to resign his position as the chief whip of the Senate.

CUPP in a statement by its spokesman, Mr. Ikenga Ugochinyere, said the conviction had made Kalu ineligible to continue to function in that capacity.

The opposition coalition described Kalu's conviction as a "test case" for President Muhammadu Buhari and his All Progressives Congress’ (APC) anti-corruption fight.

It said: "As Orji Kalu goes to prison today (yesterday), will he take the office with him to prison under a government that claims to be morally upright or will be getting injunction pending appeal etc?

"President Buhari-led APC government wanted Senator Bukola Saraki and Justice Walter Onnoghen to resign from their positions of Senate President and Chief Justice of Nigeria respectively even when there was no conviction.

"The government based its demand then on the grounds that there were allegations levelled against these two former top government officials and charges instituted against them in different courts."

SERAP also welcomed the conviction of Kalu as its Executive Director, Mr. Adetokunbo Mumuni, hailed the judiciary for justice delivery.

Mumuni said the judiciary was playing its part in the anti-graft war.

“What we see now is that the judiciary is trying to live up to expectations; what must be done has to be done.

“The facts of the case have been properly reviewed, evidence thoroughly analysed; there is no basis for querying the judgment; however, let us see the reaction of Orji Uzor Kalu’s counsel to the verdict.

“If his counsel wants to appeal, they have the right to do so, but if the allegations and evidence are anything to go by, I believe justice has been properly served irrespective of whoever is involved,” he said.

CDHR National President, Mr. Malachy Ugwummadu, noted the role the Administration of Criminal Justice Act played in the speedy trial of the case.

Ugwummadu hailed the provisions ACJA, which prevented the trial from starting de novo (from the beginning) when the trial judge was elevated to the Court of Appeal.

“The speed with which this case was adjudicated has everything to do with the ACJA that now allows that a trial judge, though elevated, can return to conclude an ongoing criminal proceeding.

“The ACJA is explicit, it is proactive, it is definitive, it allows a judge, who started a trial and got elevated to a superior court, to return to conclude proceedings.

“This is exactly what happened here. Orji Uzor Kalu was arraigned before Justice Mohammed Idris, who within the period of the trial was elevated to the Court of Appeal. Today, he delivered that judgment," he said.

Others allocations include: Office of the Secretary to the Government of the Federation, N25,188,940,930; Special Duties and Inter-Governmental Affairs, N2,158,620,395; Federal Ministry of Agriculture and Rural Development, N124,395,096,917; Federal Ministry of Finance, Budget and National Planning, N4,976,199,925; Federal Ministry of Industry, Trade and Investment, N38,583,331,761; Federal Ministry of Labour and Employment, N24,445,756,678; Federal Ministry of Science and Technology, N62,882,531,566; Federal Ministry of Transport, N121,366,932,571; and Federal Ministry of Aviation, N52,061,533,122.

Also, for the 2020 fiscal year, the Ministry of Power has an allocation of N129,082,499,363; Ministry of Petroleum Resources, N3,337,444,887; Ministry of Mines and Steel Development, N10,431,563,177; Ministry of Works and Housing, N315,563,564,269; Ministry of Water Resources, N91,679,927,042; Ministry of Justice, N3,853,600,220; Federal Capital Territory Administration, N62,407,154,360; and Ministry of Niger Delta Affairs, N23,120,350,399.

Others include: Ministry of Youths and Sports Development, N3,735,486,210; Ministry of Women Affairs, N6,650,300,966; Federal Ministry of Education, N84,728,529,572; Ministry of Health, N59,909,430,837; Federal Ministry of Environment, N12,350,140,731; and Federal

Ministry of Humanitarian Affairs, Disaster Management and Social Development, N61,085,146,003.

In his comments after the budget passage, President of the Senate, Dr. Ahmad Lawan, said: “When we came in, all of us approved our legislative agenda, and one of the key pillars of this agenda is to take back our budget cycle from the very undesirable cycle that can not be defined to something that can be defined and bought into by our country and business partners living in and outside the country.

“Today, we have been able to achieve this. It means where there is will, there is always a way. This is something that we have been able to achieve together with the House of Representatives.

“I must give members of the Ninth National Assembly the credit, because we thought it was going to be impossible.”

He also commended the executive arm of government for buying in into the legislature’s desire, saying it was not easy for the it to present its estimates before the end of September.

“I know they (Executive) worked day and night. So, it was presented to us on the 8th of October. We have been able to work harmoniously. There is no way we can achieve this without all of us working together.

“I want to commend our colleagues from the opposition. This Senate from the beginning, we said, will be bi-partisan. You have given us all the support that we require, and indeed, this is the way it should be,” Lawan added.

He also noted that with the recent passage of landmark legislations such as the Production Sharing Contract (PSC) Act, Finance Bills and Public Procurement Bills by the National Assembly, the executive arm of government is sufficiently empowered to ensure the successful implementation of the 2020 budget.

The House of Representatives also passed the sum of N10.59 trillion as the total budget for 2020 fiscal year.

The approved budget according to Section 318 of the 1999 Constitution is expected to run for a course of 12 months starting January 1, 2020 if assented to by the president.

At the plenary presided by the Speaker of the House, Hon. Femi Gbajabiamila, the House passed the same estimates.

Specifically, the statutory transfers it approved included; National Judicial Council N110,000,000,000; Niger-Delta Development Commission N80,881,610,074; Universal Basic Education; N111,789,185,895; National Assembly N128,000,000,000; Independent National Electoral Commission (INEC), N40,000,000,000; North East Development Commission N38,101,783,432; Basic Health Care Fund N44,498,247,834, among others.

The House, however, added a corrigendum to the approved budget which states that, “any error in the schedule to this Act that may hinder the implementation of projects and programmes in MDAs may be corrected through a corrigendum issued by the National Assembly: provided that the total sum for the project or programme is not affected.”

Meanwhile, the spokesman of the House, Hon. Ben Kalu, while briefing journalists after the plenary yesterday said that the ability of the National Assembly to pass the budget on time showed that from now on, Nigerians would believe that the ninth assembly is working the talk especially after returning the country to January to December budget cycle.

According to him, “The ball is no longer in our court, the ball is now in the court of the executive to implement what we have passed today (yesterday).”

Asked why the budget was increased, Kalu noted that the increase in the budget was to show that the National Assembly was not a rubber stamp as some Nigerians believed, adding that where the House thought the money budgetted was not enough, it was increased and was equally reduced where necessary.

He added that the analysis and the increment done was as a result of the interaction the lawmakers had with various MDAs during the budget defence.

On the transmission of the budget, Kalu noted that while there was no time frame for the transmission of the budget passed by the House, he assured that the House would follow up with the Clerk to ensure that nothing slows the wheel of the progress the House had started.

Meanwhile, the Presidency has reacted to the passage of the 2020 budget by the National Assembly saying it will properly study the document.

Reacting to the budget passage, Senior Special Assistant to the President on National Assembly Matters (Senate), Senator Babajide Omoworare, told THISDAY that he required some time to get details of the passed budget “because I have been out of National Assembly premises all day.”

The Presidential Liaison Officer promised to study the budget after which he would comment on the matter.

He said: “I’m aware the budget was laid at plenary on Wednesday and learnt that it has been passed on Thursday but I don’t have the details of the differential in what the president proposed and what was passed.

“I will need to carefully study the final budget passage. So, for now I won’t be able to talk about it but definitely we will react to the issue very shortly.” APC Commends Early Passage

Meanwhile, the All Progressives Congress (APC) has commended the National Assembly over the early passage of the 2020 budget.

The National Publicity Secretary of the party, Mallam Lanre Issa-Onilu, in a statement issued yesterday described it as another solid milestone by the President Muhammadu Buhari-led APC administration.

He said that Nigerians would be the ultimate beneficiaries of the early budget passage as it would guarantee full implementation of many of the economic, infrastructural, social investments and other developmental programmes contained in the budget.

Issa-Onilu said: “The party commends both chambers of the National Assembly, Senate and House of Representatives, for putting National Interest before any other interest, a clean departure from the eighth National Assembly, which used filibustering, political manipulation and other devious practices in their failed attempt to sabotage the APC government.”

The party also commended the president for showing leadership in the prompt submission of the 2020 budget proposals and his clear directive to heads of MDAs to suspend international travels to defend their respective budgets and provide the required cooperation to the National Assembly in order to ensure timely passage of the 2020 budget.

He stressed that the early budget passage would allow for proper and better planning

for both the government and the private sector.

Issa-Onilu said that the entire financial architecture of the country would benefit from it, which he said included; project financing, contract execution timeline, project implementation and performance monitoring.

He stressed that it would also make public procurement predictable, business climate stable, and give confidence to investors.

The party therefore urged the executive and legislature to take full advantage of this new dawn of cordial relations, stressing that it would translate to better governance for the benefit of Nigerians. Analysts Upbeat on Implementation

Analysts yesterday expressed optimism that the early passage would lead to an improved budget performance.

The analysts, who spoke in separate interviews with THISDAY, said the passage of the annual budget before the end of the 2019 fiscal year by the legislature signalled the country’s return to a January – December budget cycle after decades of its disruption.

The Director of Lagos Chamber of Commerce and Industry (LCCI), Mr. Muda Yusuf, commended the timely passage of the budget, even as he expressed optimism that it will impact positively on implementation.

He said: “The timely passage of the budget by the Senate is laudable. It will impact positively on budget implementation and the timely delivery of the expected outcomes from the budget. Secondly, it will reduce the uncertainty which in the past has been experienced by the stakeholders impacted directly by the budget.

“Thirdly, it makes planning easier for relevant private sector and public sector stakeholders in the budget process. It is hoped that the return to January-December budget cycle will be sustained.”

Also, a Professor of Finance at the University of Lagos, Dr. Wilifred Iyiegbuniwe, described the early passage of the budget as a good development, “because budget is meant for a specified period. And it does not make sense to pass it when the period it is meant for has virtually run out.

“The return of JanuaryDecember budget circle will give the ministries, department and agencies enough time to implement the budget. It would also help to improve the implementation of capital budgets. So, the early passage is a good development and a step in the right direction.”

Iyiegbuniwe, however, said the early passage was not a guarantee that the budget would be adequately implemented as there are other variables that could hinder effective implementation of a budget.

These, according to him, include corruption and unavailability of fund, among others.

“Early passage is not the only issue. Corruption is there and can make nonsense of the whole process of implementation of a budget. And we are all aware that corruption is still very much around us. However, the early passage has deprived the executive arm any excuse that they do not have enough time due to delayed passage. That excuse is gone for now,” he said.

Similarly, the Chief Executive

Officer of BIC Consultancy Services Limited, Dr. Boniface Chizea, said the early passage of the budget meant that Nigeria was re-aligning its budget period to January-December calendar months, which is the practice in most of the developed world.

Chizea noted that the current development would allow the executive enough time to implement the budget and enable them also to improve on the implementation of the capital budget whose poor implementation accounted for the under developed nature of our economy.

“It will be important, having broken the jinx of late passage of the appropriation bill, for the country to return back to the concept of rolling plan in the implementation of capital budgets captured in an annual budget, which could not be completely executed in a single budget year.”

He also said that the variation in the budget sum would not be an issue as long as it did not mutilate the proposal submitted by the president.