New Telegraph

Fraud: Firm loses bid to stop EFCC’s probe

Justice Ayokunle Faji of a Federal High Court in Lagos has dismissed a suit filed by a firm, Aquila Leasing Limited, seeking a court’s order to stop the Economic and Financial Crimes Commission (EFCC) from investigating it over alleged financial fraud. In his judgement, the judge noted that there was no iota of instigation or overbearing conduct on the part of the EFCC because the anti-graft agency acted within its statutory powers.

 

“I am also of the view that going by the definition of investigation supra, the applicant (Aquila Ltd) seems to be trying to prevent the EFCC from carrying out its functions of investigating and prosecuting financial crime.

 

“It also seems that for as long as the investigation continues, the EFCC is within its rights to require the presence of the applicant and its officials. It also seems that the EFCC at no time harassed or intimidated the company.

 

The actions of the EFCC in this matter were clearly within the purview of its powers and the court will not interfere therewith. “The instant claim thus lacks merit. The applicant has thus not made out a claim for the enforcement of its fundamental rights. The matter is hereby dismissed”, Justice Faji held.

 

The firm had in a fundamental rights enforcement suit challenged EFCC’s powers to probe fraud allegations against it. Aside the EFCC, other respondents in the suit are; Responsibility Management Company, Symbiotics SICAC(LUX) and Belgian Investment Company for Developing countries SA/NV.

The respondents had filed a petition with the EFCC to recover alleged outstanding sums from a loan advanced to Aquila Ltd after default  in repaying the facility.

 

Aquila consequently filed a suit to stop any enquiry into the allegations by the EFCC. In the suit, the firm argued that the step taken by the respondents is not only crass an abuse of legal cum administrative process but also a flagrant disregard to the rule of law enforcement into pure civil maters between parties.

 

It sought an order of perpetual injunction jointly and severally against the respondents, their privies or agents from harassing, oppressing, detaining, arresting the the company, its officers and staff or interfering in any way with the smooth running of the company’s business in any manner whatsoever that will breach its fundamental rights.

 

However, in its counter- affidavit, EFCC submitted that the proper test for determining whether an allegation is criminal in nature or not is to look at the charge or allegation itself and not the explanation offered by the company.

 

“By virtue of Sections 6, 7, 13 and 41 of EFCC Act, EFCC is empowered to investigate all cases of economic and fi-nancial    crimes reported to it and could possibly arrest, detain and prosecute where a prima facie case is established against any culprit. It was based on this that the company was invited to explain his involvement in the petition against it.

 

“Upon receiving a petition bordering on financial fraud against the company, EFCC invited the company which made voluntary statement and was allowed to go back the same day. There is no place in the originating processes that the applicant alleged arrest or that it was violently forced to do anything when it visited EFCC’s office.

 

It was submitted that the company is not immune from investigation by the EFCC”, the anti-graft agency argued.

 

It was further submitted that contrary to the arguments that respondents reported pure civil matter to EFCC, the funds obtained by way of loan by the company was utilized for different purposes other than the purpose the company represented to induce the grant of the loans and that it appeared that the funds have been diverted to the company’s sister companies.

 

EFCC added that these suspected activities suggested the offence of obtaining by false pretense contrary to Section 419 of the Criminal Code and obtaining credit by false pretense contrary to Section 313 of the Criminal Law of Lagos State 2011.

 

The EFCC maintained that it acted within the purview of its powers and cannot be questioned for carrying out its functions.

Read Previous

Abduction: National Industrial Court, Owerri Division, closed indefinitely

Read Next

2023: Obi, LP and the Igbo quest for presidency

Leave a Reply

Your email address will not be published. Required fields are marked *