N12b Currency Scam: N3.9b Destroyed With Acid, Water, Court Told.

The prosecution in the N8 billion currency scam yesterday told the court how some of the accused persons allegedly destroyed boxes loaded with N3.96 billion with acid and water, making them inaccessible to investigators.

Mr. Rotimi Jacobs (SAN) was objecting to the applications for bail filed on behalf of the first accused person, Kolawole Babalola, at a Federal High Court, Ibadan, the Oyo State capital.

He also disclosed that 107 boxes from First Bank Ltd were opened before the accused persons during which N773 million was discovered to have been stolen.

Jacobs said another suspect, who had been on the run, had just been yielded to the Economic and Financial Crimes Commission (EFCC) by his family. But he refused to give the suspect’s name, saying he was still being investigated.

The lawyer also revealed that the cash involved in the scam is about N12 billion as against the N8 billion earlier stated. He said more revelations would be made when the trial begins.

Eight Central Bank of Nigeria (CBN) and First Bank Ltd officials are standing trial in the first of seven cases arising from the multi-billion naira mutilated currency scam.

The eight accused persons are among the 22 bankers being arraigned by the EFCC. They include six CBN officials and commercial banks.

They were arraigned on a 28-count charge bordering on forgery, misrepresentation and self-enrichment as part of the N8 billion mutilated currency fraud at the CBN.

The others are concealing of property, fraudulently acquiring assets in excess of their legitimate and provable income and causing economic adversity to the Federal Republic of Nigeria.

The accused, the court heard, acquired assets in Nigeria and Pretoria, South Africa.

In the first case, the CBN employees are Kolawole Babalola, Olaniran Adeola and Togun Kayode Phillips. Their alleged accomplices are Isiaq Akano, Ayodele Festus Adeyemi, Oyebamiji Hakeem, Ayodeji Alese and Ajiwe Adegoke.

The EFCC, in the charge, claimed that the CBN workers conspired with the First Bank employees to recycle N7 billion mutilated currency notes meant to be destroyed.

The accused, however, pleaded not guilty to the charge. A request for bail for the eight persons was brought to the court yesterday.

According to Jacobs (SAN), there was overwhelming evidence against the accused, which includes destruction of boxes of N10 million mutilated notes each but which could not be accessed due to the acid and water poured on them.

Urging the court to refuse applications for their bail, Jacobs, who read some of the statements made by the accused persons, argued that granting them bail in the face of the overwhelming evidence and the gravity of the offences allegedly committed would amount to patting them at the back. He argued that they could interfere with evidence and witnesses to be called during trial.

The senior advocate also faulted defence counsel’s further affidavit on the first accused, Babalola, describing it as “incurably defective”.

He said Babalola coordinated the activities, insisting that the tendency of the banker to abscond was high because he faces six other sister cases arising from the scam, adding that the weight of evidence could also spur him to jump bail.

“Incentive to jump bail is very high because of the weighty evidence gathered against them. He has six other cases pending against him. Therefore, the likelihood of jumping bail is high. I, therefore, urge your Lordship to refuse the application for bail and order accelerated trial.” Jacobs told Justice Olayinka Faj.

The senior lawyer also recalled that it was the CBN that blew the whistle on the scam. According to him, the apex bank discovered only one box of N10m, which was filled with only newspapers. It investigated the discovery and reported the case to the anti-graft commission.

He said some of the offences carry up to 21 years imprisonment, hence, bail should not be granted.



Jacobs also opposed bail applications for the seven other accused persons on the strength that the offences are weighty and that there was overwhelming evidence against them.

He also insisted that the evidence against the second accused person was strong and overwhelming, stressing that bail should not be granted lightly in corruption cases, particularly in view of other cases against some of them.

The lawyer said the sixth accused person, who is a member of the staff of First Bank, confessed in his statement that he received N8 million cash gift in several installments from the accused CBN staff in 2010, but said that he did not know that it was a profit from fraud. According to Jacobs, the accused said he could not report the case to his superior or CBN because he was afraid of being murdered. “Therefore, I urge your Lordship to put him in protective custody,” he said.

The seventh accused, according to the prosecutor, supplied wrappers and stickers belonging to First Bank to the accused CBN staff and received N300,000 to N400,000 weekly, talking about N60 million over a period of time.

“Should they then walk home with a pat at the back? We are ready for trial and other accelerated hearing. Our witnesses are ready and we won’t waste the time of the court. I urge your Lordship to refuse their application and order accelerated hearing,” Jacobs submitted.

But the defence counsel argued that the purported statements had not passed the test of admissability. They urged the judge to use his discretion to grant them bail.

They argued that the onus is on the prosecution to establish the facts of his materials for which he argues against bail as provided for in the Justice Act.

They reminded the court that bank accounts of some of the accused had been frozen and their property seized. Besides, they argued, the accused did not jump the administrative bail earlier granted them by the EFCC, adding that the prosecution had not sufficiently proved that the accused could jump bail or that they will interfere in evidence and with would-be witnesses.

They also pointed out that the accused do not have previous criminal record.

After both defence and prosecution counsel adopted their written addresses, replies on point of law, counter and further affidavits as well as oral adumbrations, Justice Faj reserved ruling on the applications for bail till June 19.

In the second and third cases, which also include Babalola, Olaniran, Toogun, Oni Ademola Dolapo, Afolabi Esther Olufunke and Ademola Adewale, the counsel adopted their processes and made oral submissions before the court adjourned ruling on their applications till the same date.

Jacobs (SAN) confirmed said admitted in his statement to the commission that he shortchanged the CBN of over N1.3 billion, which was allegedly stolen from 173 boxes from the apex bank’s vault.

According to Jacobs, Oni admitted that boxes containing N1.73 billion of N1,000 notes from a commercial bank were found with only N333 million.

The accused is said to own substantial property from the proceeds of the fraud. Some of the property include four plots of land at Eleyele, Ibadan, valued at N3 million, three acres of land at Ona-Ara, Ibadan, two acres of land at Ido Local Government, Ibadan, which he acquired in 2012, which he claimed were acquired with proceeds of the mutilated naira notes deal.

On the fifth accused applicant, Afolabi Olunike Esther, Jacobs said she confessed to have made N30 million form the deal, adding that she also owns property, such as filling stations, petrol tanker, borehole drilling machine, KIA Cerato, a house at No 15, Akuru, Oluyole extension, built before she was transfered to the section. She also revealed that she owns an old house around Faleke in Challenge, Ibadan, which she bought for N7million and renovated N4 million in 2012. She even confessed to having N10 million in a first generation account, according to the lawyer.



He urged the court to refuse their applications for bail.

The sixth accused applicant, Ademola Ebenezer Adewale, through his counsel, O.E Ige and D.G. Olufokunbi, urged the court to grant thier counsel, who they argued had minimal involvement in the deal.

The prosecution counsel only urged the court to use its discretion on the bail application because the accused took only N50,000 from the fraud.

Ruling on the applications was also adjourned till June 19.



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