Recovery of Stolen Assets; the Nigerian Experience BY Ibrahim Magu Chairman, EFCC, Nigeria Chatham House, London July 10,2017 7/11/2017
1
INTRODUCTION • Nigeria’s experience in the recovery of stolen national assets began with the with the death of General Sani Abacha and the immediate takeover by General Abdusalam Abubakar’s regime. • SIP (Special investigation Panel) led to recovery of large quantity of physical assets and cash seized in Nigeria or returned to Nigerian authorities. Several illegally acquired assets were identified. • The first litmus test in this complex and most times difficult area is the effort towards the recovery of national assets unlawfully stashed in foreign jurisdictions by the Abacha family. • These illicit assets generally referred to as the ‘Abacha loot’ were spread across various international jurisdictions including Jersey, France, Switzerland, and the USA among others. • Nigeria’s recovery effort is anchored on bilateral agreements and the provisions of Paragraph 5 Article 57 of the United Nations Convention Against Corruption (UNCAC). • The UNCAC provisions have been the basis of successful repatriations so far in the Nigerian experience. 7/11/2017 2
7/11/2017
3
INTRO CON’T • The Nigerian cases which have yielded successful recoveries and return from foreign jurisdictions are the following:
• The Abacha case (which is still a subject of ongoing recovery/return effort due the multi layered nature of the money laundering and the spread of funds in multiple jurisdictions); •
The Dieprieye Alamieseigha case; and
•
The Joshua Dariye case.
7/11/2017
4
7/11/2017
5
The Abacha Case • The Abacha case recovery effort has yielded the return of about Seven Hundred and Twenty One Million United States Dollars (USD721 million) from Switzerland within ten (10) years commencing from the year 1999. • The funds were used to finance specific projects captured in the national budget and tailored towards the achievement of the Millennium Development Goals (MDGs).
• However, there are other humongous sums involved in the Abacha case for which Nigeria is still struggling, sweating and requesting for their return from the following jurisdictions:
7/11/2017
6
7/11/2017
7
The Abacha Case Continued 1. Switzerland: Over Three Hundred Million United States of America Dollars (USD300 Million) awaiting repatriation. 2. United States of America: about Four Hundred and Sixty Five Million United States of America Dollars (USD465 Million) awaiting repatriation but mired in needless and opportunistic litigations. 3. Over $5bn USD is strongly suspected to be have been laundered by the looters over time in the US jurisdiction
4. France: Over 2bn USD are strongly suspected to have been laundered by past leaders including Dan Etete, Former Minister of Petroleum. 5. Jersey: Over Two Hundred and Ninety Nine Million United States of America Dollars (USD 299 Million) for which Nigeria, the USA and the UK are cooperating to ensure its return back to Nigeria. • However, the recovery process of the Abacha loot is being handled by the Nigerian Central Authority under the direct supervision of the Minister of Justice and Attorney General of the Federation of Nigeria. 7/11/2017 8
7/11/2017
9
The Abacha Case Continued • By September, 1999 Nigeria was involved in legal proceedings in ten (10) foreign jurisdictions in pursuit of the Abacha loot recovery. Appeals on a number of these cases are still pending till today. • The slow pace of the Abacha loot recovery highlights the slow and complex nature of international asset recovery processes which is costly and tedious to the frustration of victim countries such as Nigeria. • It is pertinent to state that these jurisdictions housing the illicit funds can do more by invoking legal state power to accelerate the repatriation of stolen assets back to Nigeria.
7/11/2017
10
7/11/2017
11
Dieprieye Alamiesiegha’s Case • The United Kingdom (UK) returned the sum of over Five Million GBP (£5 Million) back to Nigeria. • The funds belong to the Bayelsa State Government of Nigeria and were looted and stashed in the UK by the former Governor of the state, Dieprieye Alamiesiegha. • Dieprieye Alamiesiegha jumped Police bail in the UK and was later convicted in a corruption trial by a Nigerian court pursuant to a prosecution initiated by the Economic and Financial Crimes Commission (EFCC). • The funds were handed back to the Bayelsa State Government being the identified victim of the product of corruption. • It is instructive to note that this recovery was achieved on the basis of the provisions of UNCAC dealing with the provisions of recovery of stolen assets. 7/11/2017
12
7/11/2017
13
Joshua Dariye’s Case • Joshua Dariye, former Governor of Plateau State of Nigeria was also arrested in the UK on money laundering suspicion. • The UK investigation led to the tracing of assets belonging to Plateau State illegally hidden in the UK by the former Governor. • Pursuant to the investigation, the UK authorities returned the sum of Forty Eight Thousand GBP (£48,000) to Nigeria which was given back to the Plateau State Government, the victim of the corruption. • The UK returned the funds in fulfillment of its commitment under Chapter V of UNCAC. • It also underlines the strength of cooperation between the two countries, which continues to grow in strength case after case.
• Joshua Dariye, (who is a serving senator in Nigeria), is currently facing trial before the High Court of the Federal Capital Territory, Abuja as a result of the investigative cooperation between the EFCC and the relevant UK agencies. 7/11/2017
14
7/11/2017
15
Lessons to be Drawn from the Windward Trading Limited Case • The case has shown that the government of Jersey has the necessary legal mechanisms to (such as the Proceeds of Crime (Jersey) Law of 1999, Money Laundering (Jersey) Order, 2008, Proceeds of Crime (Supervisory Bodies) (Jersey) Law, 2008 etc) utilize in confiscation proceedings for the purposes of return of stolen funds to victims of transnational corruption such as Nigeria. • This means that the government of Jersey can utilize, in an accelerated way, these legal mechanisms towards the return of funds stolen by the Abacha family and others from Nigeria stashed in Jersey. • It also shows that these appropriate Jersey domestic legislations can be utilized to trace and confiscate illicit proceeds for the purpose of return to victim countries such as Nigeria irrespective of any Suspicious Activity Report or tracing by the victim country.
7/11/2017
16
7/11/2017
17
SUMMARY • Nigeria has over Two Hundred and Ninety Nine Million United States of America Dollars (USD 299 Million) stashed in the Island of Jersey by the Abacha family and its urgent return is of utmost importance to the country. • The Island of Jersey is urged to draw from the experience of the Windward Trading Limited case and assist in the return of the Abacha loot to Nigeria. • Burden of proof in grand corruption cases such as by Abacha family should be reduced. Demand in many confiscation proceedings that criminal origin of assets must be proven to the last cent is virtually impossible in many cases of grand corruption with complex diversion and dissipation of assets. 7/11/2017
18
7/11/2017
19
SUMMARY CON’T • International cooperation in the identification of stolen assets and asset recovery is generally more effective than actual return of recovered assets. Developed countries undermine UNCAC in asset return as opposed to asset recovery. • However, Nigeria also desires unconditional asset return as equal priority with management of returned assets. • Proactive action by receiving states to block proceeds of crime even before a request is made by victim country is important in winning war against corruption because the rogues may be the ones in power.
7/11/2017
20
7/11/2017
21
ACCEPT THE WARMEST ASSURANCES OF….
Muhammadu Buhari President, Federal Republic of Nigeria
Abubakar Malami (SAN) Minister for Justice and AttorneyGeneral of the Federation 7/11/2017
Mr. Ibrahim M. Magu Ag. Executive Chairman, EFCC, Nigeria
22