Ex-AGoF, Nwabuoku, to Spend 8 Years in Jail for N868m Fraud

Alex Enumah in Abuja

A former acting Accountant-General of the Federation (AGoF), Chukwunyere Nwabuoku, has been handed down a jail term of eight years, over offences bordering on fraud and corruption.

He was sentenced on Monday by Justice James Omotosho of the Federal High Court, Abuja, who found him guilty in all the nine count criminal charge filed against him by the Economic and Financial Crimes Commission (EFCC).

Meanwhile, Omotosho in his judgment delivered on Monday held that the prison term is without an option of fine.

The former acting Accountant-General was arraigned on January 15, 2025, on a nine-count amended charge, bordering on money laundering to the tune of N868 million.

He was in the charge marked: FHC/ABJ/CR/240/2024, accused of conniving with some companies and others at large to convert the funds belonging to the federal government into personal use.

Nwabuoku pleaded not guilty to the charge and was subsequently admitted to bail in the sum of N500 million with two sureties in the like sum.

However, after over one year of trial the court came to the conclusion that the prosecution led by Ekele Iheanacho, SAN, was able to prove the nine-count money laundering charge beyond reasonable doubt.

Jutsice Omotosho, who convicted Nwabuoku in all the nine counts, sentenced him to eight years imprisonment in each of the counts, making a total of 72 years.

The judge, however, ordered that the counts shall run concurrently beginning from Monday, March 23.

“The defendant as the Director of Finance at the Federal Ministry of Defence had monies entrusted to him.

“Monies meant for the security and defence of the nation. Instead, the defendant converted the monies to his use.

“The defendant expertly put the money through proxy into his portfolio account with Quantum Zenith Securities to buy and trade securities.

“This is a classic example of what money laundering does. It is the putting of dirty money into legitimate business which helps to clean the money.

“The idea behind proving a predicate offence comes from what money laundering itself means.

“As a global phenomenon, money laundering means cleaning money from unlawful source to make it look clean and legal.

“Money laundering is a global scourge that affects countries worldwide, Nigeria not being an exception.

“It has been described as the washing of illegitimate money in a bid to make it appear clean or legitimate.

“It involves the process of transforming the proceeds of crime into ostensibly legitimate money or other assets.

“Hence, any action or transaction emanating from legally obtained money cannot ground a charge of money laundering, let alone result in conviction for the offence,” he said.

Justice Omotosho observed that Nwabuoku, in Exhibit DW1, had earlier stated that the monies paid into the four corporate accounts were for secret operations.

“However, the evidence before the court all show that they were rather used for the personal use of the defendant”, he said.

The judge also observed that prior to 2019, the balance in the defendant’s account from Exhibit PWG was less than N3 million but suddenly from August 2019, his portfolio grew and it began being credited with tens of millions of naira to purchase more securities.

“The timing is quite curious as it coincides with the timeline of the alleged offences.

“From the accounts of MDavi Limited (PW3), the sum of about N160 million was credited to the account of the defendant with Quantum Zenith Securities for the purchase of securities.

“All these evidence clearly proves the guilt of the defendant.

“Consequently, the defendant is convicted of count 9 of the charge,” he ruled.

The judge further observed that the evidence of the 9th prosecution witness that Nwabuoku voluntarily refunded N220 million during investigation was not controverted by the defence.

According to the judge, the defendant’s act of diverting funds meant for other purposes to his own use is quite appalling and revealing.

“This is even more concerning as it involves a very critical ministry such as the Ministry of Defence.

“These monies were probably meant to improve the security situation in the country. Unfortunately, they were siphoned into private pockets.

“I must say the defendant was ingenious in trying to hide the source of these funds by using shell companies and using friends and associates.

“However, the diligent investigation of the prosecution was able to link him to the said funds.

“This court must commend the prosecution for being detailed in its investigation and for presenting a coherent and cogent case against the defendant.

“The defendant on the other hand is condemned for greedily converting public funds to his own use.

“In final analysis, the prosecution has successfully established the nine counts charge against the defendant beyond reasonable doubt.

“The defendant is hereby convicted as charged,” he declared.

Earlier, the court dismissed the argument of Nwabuoku’s lawyer, Norrison Quakers, SAN, on inadmissibility of his client’s three confessional statements.

Quakers had argued that the defendant’s statements were not voluntarily made and did not comply with the law.

But Justice Omotosho held that in challenging the admissibility of a confessional statement on the ground of involuntariness, the best time to raise the issue is at the stage of it being tendered in evidence by the prosecution, and not on appeal by way of counsel’s submissions.

“At the point of tendering these statements, Exhibits PWT, PWV2 and Exhibit DWI were not objected to by defence counsel.

“This failure to raise the objections is deemed to be an admission that the statements were made voluntarily and thus raising same at this stage amounts to an afterthought.

“Consequently, this court is entitled to rely on the statements in the determination of this charge,” the judge held.

In count one of the charge filed on November 27, 2024, the EFCC alleged that Nwabuoku, alongside Temeeo Synergy Concept Limited (at large), Turge Global Investment Limited (at large), Laptev Bridge Limited, Arafura Transnational Afro Limited (at large), and other persons (all at large), conspired to convert funds.

The funds were said to be proceeds of unlawful activities.

The anti-graft agency said the offence was contrary to Section 18 of the Money Laundering Prohibition Act, 2011, as amended by Act No. 1 of 2012, and punishable under Section 15(3) of the same Act.

According to the charge, the defendant committed the said act while serving as the director of Finance and Accounts in the Ministry of Defence between 2019 and 2021.

He was later appointed acting AGoF on May 20, 2022, under ex-President Muhammadu Buhari after Ahmed Idris was suspended as AGoF over alleged N80 billion fraud.

Nwabuoku, however, was removed in July 2022, a few weeks after assuming office.

Sylva Okolieaboh, a director at the Treasury Single Account (TSA) Department, replaced Nwabuoku as acting AGoF.

Okolieaboh’s appointment followed a report that Nwabuoku was under the EFCC’s radar over corruption allegations.