Court Acquits Ex-NHIS Boss of Money Laundering, Fines Him N10m for Cash Limit Violation

•EFCC ordered to return seized funds within 14 days

Wale Igbintade

Justice Ayokunle Faji of the Federal High Court, Lagos yesterday acquitted a former Executive Secretary of the National Health Insurance Scheme (NHIS), Dr. Femi Thomas of five out of six counts in a $2.1 million money laundering case filed by the Economic and Financial Crimes Commission (EFCC).

While discharging him on the major counts, the court convicted Thomas on a single count of making a cash transaction above the legally permitted threshold of N5 million, in violation of the Money Laundering (Prohibition) Act. He was fined N10 million in lieu of a custodial sentence.

The court also ordered the EFCC to return all funds previously seized from Thomas within 14 days, stating that the prosecution failed to establish that the money was the proceeds of crime.

Justice Faji ruled that the EFCC did not prove beyond reasonable doubt the allegations in counts 1, 2, 3, 4, and 7. 

The court observed that the prosecution admitted to not fully investigating several claims made by Thomas and failed to link the seized funds to any unlawful activity.

However, in count five, Thomas was found guilty of making a cash transaction exceeding the N5 million threshold applicable to individuals.

In his sentencing, Justice Faji noted that Thomas had no prior convictions, regularly attended court proceedings, and had served the nation in various capacities, including as a Commissioner and NHIS executive secretary.

The court affirmed that Thomas legitimately acquired his wealth, and emphasised that the only offence committed was exceeding the statutory cash limit.

He was thereafter given seven days to pay the fine and was barred from traveling outside Nigeria until payment is made.

Similarly, the second defendant, Kabiru Sidi, was found guilty on count six, the sole charge against him was  for falsely claiming ownership of the funds during the EFCC investigation. He was fined N1 million.

The judge acknowledged Sidi’s poor health and lack of a criminal record in considering the sentence.

Thomas and Sidi were arraigned on June 28, 2017, on a seven-count amended charge bordering on money laundering involving $2,198,900.  The charges included conspiracy, unlawful enrichment, and false statements.

One of the charges read: “That you, Dr. Martins Oluwafemi Thomas, a former Executive Secretary of the NHIS, and Mrs. Femi Thomas (still at large), on or about July 3, 2015, in Lagos, procured Bamidele Ibitoye to remove the sum of $2,198,900 from Lagos, being proceeds of your unlawful enrichment as a public officer…”

Another count accused Sidi of falsely claiming ownership of the said amount during an interview with EFCC investigator, Afeez Mustapha.

During allocutus, Thomas’ counsel, Mr. Collins Ogbonna, who led Mr. Kunle Gbolahan, urged the court to consider his client’s impeccable professional contributions, including his role in establishing the cardiology department at Lagos University Teaching Hospital (LUTH) and mentoring young cardiologists.

Sidi’s lawyer, Mr. O. Ajanaku, also pleaded for leniency, citing his client’s ill health.