Some few weeks ago, Nigerians applauded what seemed like a hard knock case to win in the fight against corruption when a Federal High Court in Lagos found a PDP Chieftain, Chief Olabode George and five others guilty of corrupt practices and handed down a sentence of two and a half years on Boy George.
When it seemed like at last the Judiciary was waking up to achieve it's role as one important arm of government, corruption, like Nuhu Ribadu said in his address to the U.S Congress, is fighting back viciously and violently to make sure that the convicted felons are granted bail and released to serve the remaining time of their conviction in the opulence and affluence they got from misappropriating public funds while holding office.
Nigerians both home and abroad have lamented how biased the Nigerian Laws is towards the poor masses as they are the only one that feel the full weight of the law while the so called sacred cows now perform their criminal acts brazenly and dares the court not to try them. The prison is now meant for the masses while stealing and looting of the nation’s treasury goes on. The Nigeria Judiciary tactically allows the enemies of the state called Elders who are personifications of corruption that have looted the country dry to go free even when it is evident that they are as guilty as hell.
While we wait for the expected outcome in the Bode George’s bail application at the Appeal court, corruption once more made a caricature of our judicial system recently when an Abuja High Court set Kenny Martins and his accomplices free.
Martins, infamously known for not only embezzling over N10billion raised via fraudulent activities through the Police Equipment Fund (PEF) scheme that he later changed to a foundation, got reprieve from the court which upheld the no case submission by Johnny Ucheaga, counsel to the accused persons, that none of the witnesses from the EFCC established ingredients of conspiracy, breach of trust and mis-appropriation as contained in the criminal charges against the accused persons.
It is no doubt that again, the judiciary has again made many Nigerians start wondering if justice is for sale and goes to the highest bidder. In this case, Kenny Martins who is one of the faces of corruption in the country has proven that indeed crime pays in Nigeria.
It is no doubt that the judiciary has again made many Nigerians start wondering if justice is for sale and goes to the highest bidder. In this case, Kenny Martins who is one of the faces of corruption in the country has proven that the Yar’Adua administration’s handling of corruption with kid’s gloves.
For the avoidance of doubt and to show that Kenny Martins came to Equity with unclean hands and got his temporary controversial relief against charges of corruption, a clinical examination of some of the dirty deals that Kenny Martins has been involved in within a period of two years is necessary. Also, his modus operandi that has not only put the country in the Black books of some countries, it has also set the FG on a collision course in a suit filed against them in the United States (U.S).
Kenny Martins is a name that appears conspicuously in the Nigerian Corruption dictionary but what marvels anti-corruption minded Nigerians is the technicality and dexterity with which this man who have caused the deaths of many police officers till this day always escape justice.
Not only is Kenny Martins pitted against the law for fraud and allegations in Nigeria, he has brazenly taken criminal initiative abroad to the U.S where he recently messed Nigeria up. It is no longer news that Kenny Martins and his cohorts hijacked the PEF project from its original initiators, he has gone further to show he is bereft on nothing but fraud. He has been in and out of Police and EFCC custody over the misappropriation of over N10billion belonging to PEF and has been arraigned a number of times. So foul smelling of fraud was he that the Sultan of Sokoto, Mahammed Sa’ad Abubakar III, who was the former Chairman of the Board of Trustees of PEF, resigned and did a handwritten petition to the President to investigate Martins over the handling of PEF when he learnt that Martins forged his (Sultan’s) signature to register a company, PEF Security and Communications Ltd with registration number, RC 18689. Using the Sultan’s name as front, they started soliciting for funds and got a $10million grant from an European-based company which felt convinced when they saw the Traditional ruler’s name as Chairman of the company. The Sultan petitioned the Police and EFCC and the presidency started up a probe led by Ahmadu Ali, a commissioner of police. Since then, just as all cases against Kenny Martins, nothing seems to be happening making one wonder if the man is a magician.
Emerging facts are revealing that even as hundreds of policemen lose their lives to armed robbery attacks due to the inferior fire power and lack of safety combat gears like bullet proof vests, effective communication gadgets which PEF was supposed to acquire for them from the monies donated, Martins still enjoy police coverage because he has a fraternity with the present Inspector General of Police, Mr. Ogbonnaya Onovo and has him at his beck and call.
In fact, it seems the fraternity between Martins and this IGP is legendary that the police are tactically dropping all charges against Martins.
Informed sources revealed to the Coalition for a Corrupt-Free Nigeria (CCN) that Martin’s endless fraudulent schemes on the PEF has taken a new dimension with the IGP acting the scripts of Kenny Martins.
On assuming office as the IGP, Onovo pledged his loyalty to Martins with a promise to help him in his many travails as Martins had done him endless favours in the past. The police chief and the rogue met and perfected a plan on how the IGP will use his influence as the police boss to drop all the charges against Martins by the police as well as order for the release of all the PEF vehicles confiscated by the police and EFCC.
Pronto, Onovo in September 2009, wrote memos to the AGF and Minister of Justice, Mike Aondokaa , requesting the withdrawal of all criminal charges against Martins and his accomplices pending in over two courts of the federation claiming that the charges were hurriedly sent to court by his predecessor, Mr. Mike Okiro.
Onovo in his memos also claimed that the police lacked evidence to prosecute the cases even when the police helicopter brought in by Kenny Martins and paraded at the Louis Edet Force HQ in Abuja which later disappeared into thin air till today is not evident enough.
Furthermore, Onovo is also being controlled by Kenny Martins to also use his influence as the IGP to resign the fraudulent contract between the Calvary Group and PEF which is no a legal tussle in the U.S. It apparent that the wishes of Kenny Martins is being granted as the AGF, known for soliciting for corrupt office holders, has heeded the call by Onovo and hence the charade we witnessed in the courts this week.
One issue the CCN will monitor closely is the Calvary Group scam perpetuated by Kenny martins using PEF for which Nigeria and the FG is facing trial.
The scam is among the many that Kenny Martins will soon be involved with as he clears the way for his international fraud dynasty. The scam he is planning to take to many countries using PEF as a federal government agency is known as High Yield scam and is perfected by using an agency to represent the FG to obtain a loan amounting to millions of dollars in conjunction with some suspicious banks in the U.S; this scam is done through the internet.
What they do is to target third world countries which they (the banks or group) will go into a loan agreement and pen down the contract with the full knowledge that some of the clauses in the agreement can never be agreed to by the country’s agency but that is the game plan. After these contracts are signed, the agency suddenly realizes that there are some clauses that may not be favourable to them and then opt out of the contract leaving the group with no other alternative than to file suits against the government of the country and not the individual. Meanwhile, the individual that perfected the job from that country is paid off for bringing in the big fish while the country goes to court.
This is Kenny Martin’s newest scheme and he has recruited Onovo to perfect the plans. That was exactly what transpired in the Calvary Group scam that is accusing the FG of breech of contract. The Calvary Group scam was exclusive covered by Newswatch Magazine.
According to Newswatch magazine investigations, Martins' latest con game involved Calvary Security Group, a US-based company, which claimed that he defrauded it of $97.5 million (N14.13 billion) by presenting PEF as a federal government agency. Newswatch exclusively got the court document in US, which accused Martins and some Nigerian banks of colluding to defraud the company. They are Oceanic Bank, Afribank and FCMB Capital.
According to the document from the United States District Court, Southern District of New York, dated October 7, 2008, Calvary Security Group, LLC, listed PEF as an agency of the Federal Republic of Nigeria, and the banks as defendants. The document said that, “the basis of plaintiff’s claim against the defendants and each of them arises out of a series of agreements. The first was an agreement between the plaintiff, Calvary Security Group, LLC (“CSG”) and the Federal Republic of Nigeria (“Nigeria”), the Police Equipment Foundation, an agency of the Federal Republic of Nigeria dated November 2, 2007, wherein the defendant PEF for itself and for the benefit of the Defendant, Nigeria, agreed to purchase from the plaintiff certain police and Homeland Security equipment at an agreed price of ninety seven million, five hundred dollars ($97,500.000).
In the statement of claim, Calvary Security Group said in accordance with the terms of contract and prior discussions and negotiations and contacts with the Export Import Bank of the United States, EX-IM Bank, the defendant, PEF agreed to make an application to the EX-IM bank for a loan guarantee for the approval for the financing of the contract between the parties. It said that pursuant to the requirements of EX-IM Bank, the PEF agreed to create a consortium of banks to act as the legal agent for the PEF in order to secure the loan approval from the EX-IM Bank. The document said, “that as the result of the agreement between the parties aforesaid, the banks agreed to act as lending agents for PEF with Oceanic acting as the lead bank.
The statement of claim signed by Burt J. Blusten, attorney for plaintiff, said in furtherance of this agreement to create consortium of banks led by Oceanic, the defendant banks entered into an agreement with the plaintiff’s bank, Societe Generale, to co-operate with one another for the purpose of making the necessary submission to the EX-IM Bank for the loan in order to fund the purchases provided for in the contract between the plaintiff and PEF and Nigeria. The document also said the defendants entered into a written agreement with Societe Generale as agent of the plaintiff for the purpose of making appropriate and proper application to the EX-IM Bank in order to further the purpose of funding the purchases represented in the contract between the plaintiff and the defendant, PEF.
Calvary claimed that the implementation of the contract between it and the PEF, as agent of Nigeria, was conditioned upon the approval of the EX-IM Bank, with a purchase contract and the issuance by the EX-IM Bank of guarantees of the loan to be provided by Societe Generale and PEF’s banks. According to the document, pursuant to the provisions of the contract of November 2, 2007, between Calvary and the PEF, PEF, as agent for Nigeria, agreed to use its best efforts to comply with and satisfy all requirements of the EX-IM Bank in order to secure a loan guaranty from EX-IM Bank.
The document also said that upon information and belief, the aforementioned EX-IM Bank had issued a Letter of Interest demonstrating their initial consideration and interest in participating in the financing of the purchase of the goods and services contemplated by the contract between Calvary and the PEF, dated November 2, 2007. It said that in accordance with the understandings among the parties, the plaintiff’s banking agent, Societe Generale, delivered to the EX-IM Bank on or about December 18, 2007, a formal application and request for EX-IM Bank's approval of the loan and guaranty facility.
The report also said that upon information and belief, after the submission of the aforementioned application by Societe Generale on behalf of Calvary and the defendants, the EX-IM Bank issued a short list of informational requirements in order to complete the application and paperworks necessary to finalize the loan and guaranty of the EX-IM Bank. Blusten said the open item list from the EX-IM Bank was dated February 7, 2008. Thereafter, Calvary as well as its agent Societe Generale, made available to the defendants and each of them, the open item list for the defendants to provide the information necessary to complete the EX-IM Bank application.
Blusten said: “In spite of the obligation of the defendants to use their best efforts to complete the loan application for the purposes of securing the loan and guaranty in order to fulfill the contract, the defendants and each of them failed and refused to provide the information requested by the EX-IM Bank in order to complete the loan application.” He also said that “PEF, as an agent of the defendant - Nigeria and their agents, the banks, have deliberately failed and refused to provide the information required by the EX-IM Bank and that this failure to act terminated the loan application process.” “As a result of the actions of the defendants, PEF and Nigeria and their agents, the defendants have breached their contract and agreement with the plaintiff and the plaintiff has suffered damages through the loss of profit on the contract of November 2, 2007, which will be not less than Thirty million ($30 million) dollars,” the statement of claim said.
Blusten said that “in reliance upon the contract between the parties, the plaintiff expended sums of money in order to bring the defendants to the point of the contract. Such expenses include but are not limited to various transportation costs, personnel costs, overhead costs, all of which were expended by the plaintiff in order to provide the defendant with a list of its needed equipment and service for fulfillment.”
The matter was entered for initial pre-trial conference, on January 9, 2009, at 10.30 a.m, in courtroom number 23A. Neither Nigeria nor Martins made any representation. Thereafter, it was listed for trial on April 24, 2009, at 11.00 a.m. The case is being handled by Judge Sidney H. Stein. Based on the enormity of the case, the federal government reacted by sending Sabo Ibrahim Ringim, commissioner of Police and head of Legal Department, Force Criminal Investigation Department Chigozie Eruchalu, head of Legal Department; ministry of foreign affairs and Festus Keyamo, human rights lawyer, to assist Oluwole Afolabi, a New York-based Nigerian attorney, who has licence to practice law there. Calvary is being represented by Carol C. Pierce from the firm of Blustein, Shapiro, Rich and Barone, one of the foremost legal firms in the United States of America. The Nigerian team went to New York and briefed Afolabi to enter appearance. It was on that basis that the case was adjourned till July 23, 2009, to enable Nigeria prepare its defence.
Newswatch learnt that if Nigeria had not put up appearance, it would have been given a garnishee treatment. This means that the plaintiff would have had unhindered access to Nigeria’s foreign reserve or assets overseas. The imposing Nigerian House in New York which serves as the official headquarters of the Nigerian embassy in the US was said to be the target of the plaintiff. Afolabi was said to have charged one million dollars as legal fee. His charge was said to be the least among the proposals submitted by the eight legal firms contacted to defend the country.
President Umaru Yar’Adua, sources said, was not disposed to paying the one million dollars which he considers a huge amount. When the issue was mentioned to him, he was angry and said his government was not prepared to waste such amount on an irrelevant legal battle brought upon the country by the misdeed of one person.
But Yar’Adua was mindful of the consequences if Nigeria refused to respond to the suit. He was said to have mandated the Economic and Financial Crimes Commission, EFCC, the ministries of justice and foreign affairs and the inspector-general of Police to find a solution to the matter. Based on that, the police declared Martins wanted. Consequently, he was arrested at an Abuja magistrate court after a seven-hour siege. Last Tuesday, Martins was arraigned before a Federal High Court, Abuja, presided over by Adamu Bello. In a four-count charge prepared by Prisca Oguamalam of the legal/prosecution section of the Nigerian Police against him, Martins is alleged to have knowingly and falsely induced Calvary Security LLC, a United States company, to deliver to various persons including Export Import Bank, EX-IM Bank, various properties including the sum of at least 400,000 dollars, under false pretences that he was representing the Federal Republic of Nigeria. The offence is contrary to Section 1(1)b) and punishable under Sections 1(3) and 10 of the Advance Fee Fraud and Other Related offences Act, 2004.
He also allegedly induced the said company to confer on himself “the right of assessing a loan of 97.5 million dollars on the understanding that the loan will be repaid and therefore, committed an offence contrary to Section 1(2) and punishable under Section 1(3) and 10 of the Advanced Fee Fraud and Other Related Offences Act 2004. The other charge was that Martins and Police Equipment Foundation under the false pretence that he was representing the Federal Republic of Nigeria and by virtue of an agreement dated November 2, 2007, and series of other agreements, attempted to obtain by false pretence the sum of 97.5 million dollars and thereby committed an offence contrary to Section 5(2) and punishable under Sections 8 and 10 of Advance Fee Fraud and Other Related Offences Act, 2004.
He is also accused of inviting officers of the company with the intent to take further steps to access the loan from the EX-IM Bank, falsely claiming to be an agent of the Federal Republic of Nigeria and thereby committed an offence contrary to Section 4 and punishable under Sections 4 and 10 of the Advance Fee Fraud and Other Related Offences Act, 2004.
Kenny Martins, after trying to swindle some of the local banks during the Soludo’s N25billion recapitalization fee, took his game abroad as he still parades his Police Equipment Foundation as a federal agency. He has recruited the IGP into the game by letting him know of the money to be made from the scams and making him see that for their scams to work, Onovo should drop all criminal charges against him while he will in turn equip the police with the latest equipments; a gimmick he is used to playing with all the IGPs.
The courts freeing Kenny Martins and others of the charges against them is an indicator of Onovo’s readiness to benefit from the scam and what nobody knows is where else they would take their scam to, after all, the FG will always be held responsible.
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(Coalition for a Corrupt-Free Nigeria CCN)
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