A High Court of the Federal Capital Territory (FCT) in Abuja has again dismissed the N7.74 billion fraud charges against Lagos businessman Kenny Martins and three others, brought by the Economic and Financial Crimes Commission (EFCC).
The charges, initiated in 2018, were dismissed by Justice Modupe Osho-Adebiyi on Tuesday for being frivolous and without merit.
Delivering judgment on the 3-count charges prosecuted by the Chambers of Festus Keyamo, the Judge ruled that the prosecution failed to provide cogent and verifiable evidence that the N7.74 billion was misappropriated as alleged.
The Court noted that the EFCC failed to demonstrate how the N774 million and an additional N50 million, retained by the defendants as their 10 percent commission from the funds generated through the Police Equipment Foundation (PEF), constituted fraud, given a clear Memorandum of Understanding (MoU) with the federal government.
The Judge also stated that the EFCC did not establish how the removal of the ten percent commission from one of the PEF’s bank accounts amounted to a breach of trust, as there was no specific order in the MoU regarding which account the commission should be deducted from.
The EFCC, represented by John Anieto, had charged Kenny Martins, Ibrahim Dumuje, Yero Gella, and Nigerstalg with conspiracy, criminal breach of trust, criminal diversion of N7.74 billion, and forgery of documents.
The defendants denied the charges, leading to a full trial in which the EFCC called four witnesses and presented various documents as exhibits.
Through their lawyers, Joel Bankole Akomolafe SAN and Johnny Ucheaga, the defendants explained how they initiated the Police Equipment Fund, which later became the Police Equipment Foundation, and how they entered into an MoU with the federal government to raise an initial N100 billion donation to equip the police.
Akomolafe SAN detailed how several billions of naira were raised through the defendants’ efforts and used to purchase hundreds of vehicles from Coscharis Motors, following government directives. These vehicles were distributed to the Police, Nigerian Army, Civil Defence, Customs, and others at a public event in Abuja attended by then-Vice President Dr. Goodluck Jonathan and top security officials.
Akomolafe SAN also submitted letters of acknowledgment from the security agencies regarding the vehicles.
Justice Osho-Adebiyi held that the prosecution failed to counter the overwhelming evidence presented by the defendants, showing how the donated money was spent in accordance with the MoU. The prosecution’s case was further weakened by its failure to call the Inspector General of Police, Chief of Army Staff, or other beneficiaries of the vehicles to confirm or deny the defendants’ claims.
The Judge concluded that none of the prosecution’s four witnesses provided testimony indicating fraud. Justice Osho-Adebiyi upheld the defendants’ argument that none of the parties involved in setting up the PEF or the donors lodged complaints or petitions against the defendants, except for one from an anonymous group.
The Judge agreed with Akomolafe SAN that EFCC concealed the fact that the accounts of the Foundation were audited by a reputable account auditing firm and that a clean bill was issued out.
On the allegations by the prosecution that the life span of the MoU had expired at the time the N7.74bn was donated by the Association of Local Governments of Nigeria, (ALGON) and N774M removed as commission, the court held that the fact that the money was paid into PEF account had betrayed the allegations.
On another allegation that the vehicles were purchased and distributed after the expiration of the MOU, the Judge held that it was logical that the tenure of the document had been extended as the prosecution did not deny the public distribution of the vehicles and the attendance by the Vice President at the time it was done.
In all, the Judge upheld the submissions of the defendants that the EFCC intentionally criminalized civil matters on the grounds that they were not contradicted, controverted or challenged as required by law by the prosecution.
“Having considered the case of the prosecution and that of the defendants, I am of the firm opinion that the case of the prosecution is manifestly bad, unreliable and fell short of expectations.
“Given the above, I hereby discharge and acquit the defendants from the charges against them”, the Judge said.
It will be recalled that Justice Abubakar Talba of the FCT High Court now elevated to the Court of Appeal had on November 24, 2009, upheld the “no case submission’ of the four defendants and discharged and acquitted them.
The Court of Appeal and Supreme Court, however, in their respective judgments delivered on June 28, 2012, and March 23, 2018, set aside the high court decision and ordered that the trial be conducted afresh.
