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Ambassador-designate Kema Chikwe Named in Fraud Scandal

October 4, 2007
Ambassador-designate Kema Chikwe Named in Fraud Scandal

 
Saharareporters, New York

Former Aviation Minister and current ambassadorial nominee, Dr. Kemafo Nonyerem “Kema" Chikwe, is embroiled in a scandal involving fraud, threat to life and criminal breach of trust.

 In a petition dated September 10, 2007 and addressed to the Director General, Department of State Services, in Abuja, a U.S.-based businessman, Sam Iheanacho of Catoline Engineering Services Ltd, alleged that Chikwe defrauded his company of more than N100 million naira.

 Chikwe’s son, Ahamdi Chikwe, is also named as a participant in the alleged fraud scheme.

 
Iheanacho, who is the Managing Director of Catoline Engineering Services, alleged in the petition that the Chikwes approached him in mid-2006 with a business proposal that was calculated to defraud him. According to the petition, the Chikwes claimed that their company, South East Mercantile (SEM), had won a lucrative contract from the Department of Petroleum Resources. The said contract was for SEM to produce a hardcopy directory of all registered oil and gas companies in Nigeria; to develop a computerized database and access platform for the hardcopy directory; to automate the licensing and permits business processes for

all oil and gas companies in Nigeria, and to design, develop and implement an employment facilitation system to harness job opportunities in the oil and gas industry for the benefit of recruiters and applicants at large.

 

According to Iheanacho, Kema Chikwe and her son told him that the contract terms called for SEM to provide all funding and to recoup investment costs—in addition to profit sharing—when the venture began to earn income. Accordingly, the Chikwes asked that Iheanacho become involved in the project as sole financier, with the undertaking that he would recoup his costs in addition to an interest charge of 30% on invested capital every six months.

 According to Iheanacho’s petition, other terms for his participation included that the software to be developed would be licensed in the name

of Catoline Engineering Services Limited, and that he take a 20% equity stake in SEM.

 Iheanacho alleged that the Chikwes told him that time was critical and persuaded him to start investing in the venture even before a formal contract was signed between his company and SEM. His petition claimed that he was given firm pledges that the investment details would be formalized expeditiously. He consented, he wrote, because he was under the impression that, as a former minister, Dr. Chikwe was a person of integrity.

 Iheanacho said that, in the belief that he was dealing with business partners, he transferred to Ahamdi Chikwe two Honda cars, a brand new Toshiba laptop and two high-end Sony Ericsson mobile phones. In addition, he gave a personal loan of N13.5 million to the ambassador-designate’s son.

 Iheanacho said he was also made to advance a loan of N15 million to Dr. Chikwe in addition to providing her with two Hiace buses.

He said the ambassadorial nominee secured the loan and buses with a contract document for a borehole she alleged was awarded to her by the Niger Delta Development Commission (NDDC). The borehole contract was to be executed in Nkwere, Imo State, to “empower her campaign.”

The petitioner alleged that the borehole contract never materialized.

 Iheanacho said that, on discovering that the Chikwes were out to defraud him, he petitioned the Economic and Financial Crimes Commission (EFCC). After carrying out an investigation, the anti-corruption agency prevailed on Chikwe to refund Iheanacho’s money.

 Through the EFCC, the ex-minister subsequently issued Iheanacho’s company a Zenith Bank draft (Number 02931770).

 Iheanacho said he had invested more than N100 million in the project, including over N23 million he paid as office rent in Lagos. His petition alleged that the Chikwes “have sworn to prevent me from using since I did not allow them further access.”

 He said the Chikwes have rebuffed his efforts to recover the money, cars and other assets he invested in their controversial venture. Instead, he alleged that he has received numerous threats over the telephone.

 In his petition, Iheanacho pleaded that the Yar’adua administration help prevail on Chikwe and her son to return all his properties in their possession, to refund all outstanding monies they fraudulently obtained from him using the ruse of a contract, and to desist from threatening his life and or any member of his family.

 The petitioner indicated that his allegations could be verified with the EFCC, the Inspector General of Police, and the Federal Capital Territory Police Command.

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