EFCC arraigns Abuja socialite, NEDC official over alleged ₦2.28b fraud

The Economic and Financial Crimes Commission (EFCC) on Tuesday arraigned Danjuma Mohammed, National Coordinator of the Multi-Sectoral Crisis Recovery Project (MCRP) at the North East Development Commission (NEDC), alongside Chibuike Echem, a popular Abuja socialite, over an alleged multi-billion naira contract fraud.

The defendants were brought before the High Court of the Federal Capital Territory sitting in Zuba, Abuja, where they were docked on a 55-count charge bordering on conspiracy, obtaining by false pretence, advance fee fraud and forgery. Both men pleaded not guilty to all the counts.

According to the EFCC, Mohammed and Echem allegedly defrauded an indigenous construction and equipment supply firm, Diamond Leeds Limited, of several billions of naira by posing as contract facilitators with links to key government agencies.

Court documents revealed that the alleged fraud began in 2023 when Echem, said to be close to Kenneth Ifekudu, Chairman of Diamond Leeds Limited, introduced him to Mohammed, who allegedly presented himself as a powerful figure capable of securing major government contracts in the North-East.

Investigators alleged that Echem, who previously acted as a consultant to Diamond Leeds, abused his relationship with the company’s chairman and, in collaboration with Mohammed and Aminu Alhaji, another suspect still at large, convinced the firm to part with large sums of money for purported contracts.

“Although Diamond Leeds was reportedly issued with several contract award letters, the company was allegedly never permitted to deploy engineers or equipment to any project site in the North-East.

“Mohammed was said to have repeatedly cited insecurity in the region as justification for the delays”, EFCC said.

One of the charges read in court stated that the defendants conspired between May 2022 and February 2024 to fraudulently obtain the sum of ₦2.28 billion from Kenneth Ifekudu and Diamond Leeds Limited, an offence contrary to Section 8(a) of the Advance Fee Fraud and Other Fraud Related Offences Act, 2006, and punishable under Section 1(3) of the same Act.

Following their plea, Olarenwaju Adeola,  EFCC prosecuting counsel, requested that the defendants be remanded in custody pending the determination of the case.

In her ruling,  Keziah Ogbonnaya (Justice)
ordered that both defendants be remanded at the Suleja Correctional Centre, citing its proximity to the court, and adjourned the matter to between March 25 and April 7 for hearing of bail applications by defence counsel.

Speaking to journalists after the adjournment, Beth Igwilo, lead counsel to the nominal complainant, disclosed that the prosecution intends to call at least seven witnesses and appealed for objective and balanced media coverage of the trial.

The court was also told that internal investigations conducted by Diamond Leeds prior to the arraignment allegedly revealed that all the contract documents presented to the company for execution were forged.

The company further expressed disappointment that despite what it described as personal goodwill and gestures extended by its chairman to Echem, he allegedly conspired with others to defraud the firm of huge sums of money.

It was further alleged that following persistent demands by Diamond Leeds for payment for equipment supplied, the suspects opened a Guaranty Trust Bank account bearing the acronym “NEDC,” from which part of the funds was returned to the company and presented as payment for supplied equipment.

EFCC investigators are said to have uncovered additional fraudulent transactions allegedly linked to Mohammed during the course of their investigation, developments which reportedly contributed to his removal from the NEDC.