Justice Mohammed Liman of a Federal High Court in Lagos on Thursday ordered the remand of four directors of Petro Union Oil and Gas Limited in the custody of the Economic and Financial Crimes Commission (EFCC) over an alleged £2.6 billion fraud.
The order was sequel to the arraignment of the directors alongside the firm, Petro Union Oil and Gas Limited, on a 7-count charge bordering on the alleged offence by the anti-graft agency.
The four directors are Abayomi Kukoyi (trading under the name and style of Gladstone Kukoyi & Associates), Prince Kingsley Okpala, Prince Chidi Okpalaeze and Prince Emmanuel Okpalaeze.
The EFCC, in a charge marked FHC/L/46c/2020 brought against the four directors alongside the oil company and one Prince Isaac Okpala (now deceased), alleged that they committed the offences between 1994 and 2007.
They were alleged to have fraudulently procured a cheque from a foreign bank in the sum of £2.556 billion, under the pretext that it was meant to construct three petrochemical refinery complexes in Nigeria.
They were also alleged to have sometime in April 2007 forged a statement of account in the name of Goldmatic Limited, which was used to obtain the sum of £2.159 billion.
The four directors were also accused of altering a bank cheque dated December 29, 1994, in the sum of £2.556 billion, made payable to Gladstone Kukoyi & Associates for the purpose of constructing three petrochemical refineries in Nigeria.
Other charges include felony based on trickery to obtain money under false pretence, forgery of a statement of account, intent to defraud, altering a document, among others.
The defendants will remain in custody of the EFCC following the request of Rotimi Jacobs (SAN), EFCC prosecutor, to remand the suspects ahead of trial.
Justice Liman fixed February 19 for the trial and hearing of the bail applications for the four directors.
The case between Petro Union, on one hand, and mid-tier lender Union Bank of Nigeria and the Central Bank of Nigeria (CBN), on the other hand, can be traced to around June 1994, when Gladstone Kukoyi Associates submitted an application dated June 3, 1994 for approval to import foreign capital for Petro Union.
Documents later provided to support the application included, among others, a bill of exchange purportedly issued by Barclays Bank plc dated 29 December, 1994 for the sum of £2.556bn.
Union Bank of Nigeria then submitted the Gladstone application to the CBN for consideration but by a letter dated 2 November, 1994, the CBN advised Union Bank to withhold action pending investigation and further directives.
The CBN by a letter dated 21 March, 2002 advised PU that Union Bank’s London Branch had been contacted and it confirmed that the bank never accepted the bill of exchange for clearing.
The CBN similarly affirmed that Barclays Bank plc in the United Kingdom had confirmed that the account on which the bill was drawn was closed on 21 September, 1989 whereas the bill was issued on 29 December, 1994 – five years after the account was closed.
Barclays Bank also confirmed to the CBN that no account was maintained in the name of the drawers of the bill (Gazeaft Limited).
Gazeaft Limited was also confirmed by Barclays not to be on the list of registered companies in the UK by the Companies Registry in the UK.
A senior government source told BusinessDay that the alleged scam is similar to the Process and Industrial Development Ltd. (P&ID) bogus judgment against Nigeria.
“There are so many of such cases going on and it is frankly a threat to the system. That is why the Federal Government has decided to go after them hard,” the source said.
According to the EFCC prosecutor, Rotimi Jacobs (SAN), the offences are contrary to, and punishable under sections 1(2), 1(2)(a) of the Miscellaneous Offences Act, Law of the federation of Nigeria, 1990. The offences are also said to be contrary to and punishable under sections 509, 467(2)(I) and 468 of the Criminal Code Act, Laws of the Federation of Nigeria, 2004.
The four directors pleaded not guilty to the charges.
Some of the counts against the defendants read thus:
“That you Petro Union Oil and Gas Limited, Prince Isaac Okpala (now deceased), Abayomi Kukoyi, Prince Kingsley Okpala, Prince Chidi Okpalaeze, Prince Emmanuel Okpalaeze and Princess Gladys Okpalaeze (now at large) on or about 29th December, 1994 within the jurisdiction of this Honourable Court fraudulently procured a Barclays Bank cheque dated 29th December, 1994 in the sum of £2,556,000,000.00 made payable to Gladstone Kukoyi and Associates, purporting the said cheque to be meant for foreign investment in the construction of 3 refineries and petrochemical complex in Nigeria, when you knew that the said cheque to be false and you thereby committed an offence contrary to Section 1(2) (a) of the Miscellaneous Offences Act, Laws of the Federation of Nigeria, 1990 and punishable under same Section.
“That you Petro Union Oil and Gas Limited, Prince Isaac Okpala (now deceased), Abayomi Kukoyi, Prince Kingsley Okpala, Prince Chidi Okpalaeze, Prince Emmanuel Okpalaeze and Princess Gladys Okpalaeze (now at large) on or about the 10th April, 2007 within the jurisdiction of this Honourable Court with intent to defraud, forged a certain document to wit: statement of account in the name of Goldmatic Limited purportedly issued by the Central Bank of Nigeria with Account Number: 10382175 wherein you falsely claimed that the Central Bank had in its custody, the sum of £2,159, 221, 313. 54 in favour of Goldmatic Limited and you thereby committed an offence contrary to Section 467 (2) (I) of the Criminal Code Act, Laws of the Federation of Nigeria, 2004 and punishable under the same Section.”
SEGUN ADAMS & FIKAYO OWOEYE
