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Alleged N4bn Fraud: Obiano Used Unlicensed Companies for Fraud – Witness

The trial of Willie Obiano, former governor of Anambra State, continued on Monday, February 24, 2025, before Justice Inyang Ekwo of the Federal High Court, Abuja, with the Economic and Financial Crimes Commission (EFCC) presenting its 9th witness. Obiano is facing prosecution by the EFCC on nine-count charges of embezzlement and money laundering, amounting to a staggering N4 billion. The court proceedings have garnered significant attention due to the gravity of the charges and the high-profile nature of the case, involving a former state governor.

On this particular day of the trial, the EFCC called Andrew Ali, a staff member of the Central Bank of Nigeria (CBN) and the Head of the License office at the bank. Ali’s testimony played a crucial role in shedding light on the operations of certain companies allegedly involved in the fraudulent activities, which are at the heart of the accusations against Obiano. His evidence provided significant insights into how unlicensed companies were allegedly used to facilitate fraudulent transactions and activities, which form part of the evidence the EFCC is using in its case against the former governor.

Andrew Ali’s testimony was an important development in the ongoing case. As a staff of the Central Bank of Nigeria (CBN) and someone with knowledge of the CBN’s operations concerning licensing of financial institutions, Ali’s role was to confirm whether the companies allegedly involved in the fraudulent activities were properly licensed by the CBN to carry out Bureau de Change (BDC) business.

According to Ali, three of the 23 company accounts associated with the alleged N4 billion fraud were not duly licensed to carry out BDC business by the Central Bank of Nigeria. The companies in question were Connaught International Service, SY Panda Enterprise, and Zirga Zirga Trading Company. Ali confirmed that these companies were not registered with the CBN to engage in BDC operations. Furthermore, he disclosed that Zirga Zirga Trading Company had been delisted from the CBN’s list of licensed companies before 2014 due to failing to meet the necessary licensing requirements.

The EFCC had earlier sent two letters to the Central Bank of Nigeria in April 2023, requesting information about the 23 financial institutions involved in the alleged fraudulent transactions. In his testimony, Ali explained that the CBN received these letters from the EFCC, and after reviewing them, the bank responded in a comprehensive letter dated May 21, 2023. The response, which was admitted in evidence, indicated that, out of the 23 companies investigated, three of them were not licensed to operate as Bureau de Change operators.

The eight-page letter from the EFCC, along with the CBN’s response, was marked as Exhibit A1-A8 and admitted into evidence by the court. This document played a pivotal role in supporting the EFCC’s allegations that the companies involved in the fraud were not properly licensed to engage in BDC business and, therefore, were operating illegally. This assertion was crucial to establishing that the financial transactions conducted by these companies, some of which were allegedly used by Obiano, were unlawful and outside the regulations governing BDC operations.

In the course of his testimony, Andrew Ali elaborated on the requirements for companies to be licensed as Bureau de Change operators in Nigeria. According to him, the Central Bank of Nigeria, in line with its mandate, is responsible for regulating and supervising Bureau de Change operators in the country. He noted that the licensing process is rigorous, with specific criteria that must be met in order for a company to be granted a license to operate as a Bureau de Change.

Ali emphasized that once a company fails to meet the licensing requirements, it is delisted from the CBN’s list of approved institutions. He explained that, as per the CBN’s Revised Operational Guidelines (2015), Bureau de Change operators must comply with certain standards to ensure transparency, security, and proper regulatory oversight. This includes having operational accounts with licensed banks and the necessary financial infrastructure to facilitate foreign exchange transactions.

The CBN’s supervision of licensed companies is critical, as it helps to ensure that the foreign exchange market in Nigeria remains legitimate and free from manipulation. Ali stated that, once a company is delisted from the list of approved BDCs, the CBN loses the authority to supervise or regulate its activities. He also pointed out that the CBN makes such information public through a valedictory list, which is published on the bank’s website to inform the public about companies that no longer meet the licensing requirements. This public notice serves as a safeguard to prevent individuals and institutions from dealing with unlicensed and potentially fraudulent entities.

Ali further explained that the CBN runs a public awareness campaign to ensure that people are aware of the importance of dealing only with licensed Bureau de Change operators. The CBN’s website and public notices serve as tools to ensure that individuals and businesses can verify the status of any BDC before engaging in financial transactions with them.

One of the key functions of the Central Bank of Nigeria in regulating Bureau de Change operators is to prevent money laundering and other financial crimes. Ali reiterated that, under the CBN’s regulations, BDCs are not allowed to operate without maintaining operational accounts with licensed financial institutions. These operational accounts are a critical component in ensuring that foreign exchange transactions are conducted in a lawful manner and are traceable by relevant authorities, such as the EFCC.

In the context of Obiano’s trial, the testimony of Andrew Ali helped to establish that the companies involved in the fraud were operating outside of the CBN’s regulatory framework. This was significant in proving that the financial transactions conducted by these companies were illegal and part of the broader web of fraudulent activities that allegedly involved Obiano.

During the cross-examination by defense counsel Onyechi Ikpeazu, SAN, Ali maintained that Zirga Zirga Trading Company had failed to meet the necessary licensing requirements before 2014, leading to its delisting from the CBN’s approved list of BDC operators. He explained that, once a company is delisted, it is no longer subject to the CBN’s supervision, and the public is duly informed through official notices. Ikpeazu, however, sought to challenge some aspects of the testimony, aiming to discredit the notion that the companies involved in the fraud were operating without proper licensing. He also questioned the CBN’s role in oversight and monitoring the activities of these companies.

Ali, however, remained firm in his position, affirming that the CBN had consistently followed due process in its licensing and delisting procedures. He reiterated that the bank had made public the status of all licensed Bureau de Change operators and that the public was well-informed about which companies were authorized to engage in such operations.

The Legal and Financial Implications

The testimony of Andrew Ali adds significant weight to the EFCC’s case against Obiano, as it directly links the unlicensed companies to the fraudulent activities that are at the core of the charges against the former governor. By demonstrating that these companies were operating without the necessary CBN licenses, the prosecution is laying the groundwork for proving that Obiano was complicit in using these unlicensed entities to carry out illegal financial transactions.

The alleged N4 billion fraud is a serious matter, as it involves significant sums of money and touches on crucial issues of financial integrity, money laundering, and the abuse of office by a public official. The EFCC’s strategy in presenting this evidence appears to be designed to show that Obiano engaged in fraudulent activities by facilitating and utilizing unlicensed companies to carry out money laundering and embezzlement.

Following Ali’s testimony and cross-examination, Justice Ekwo adjourned the matter to February 26, 2025, for the continuation of the trial. The case is expected to progress with the presentation of more evidence, and the defense is likely to continue challenging the allegations brought against Obiano. The EFCC is expected to call additional witnesses and present more documents to support its case.

The ongoing trial of Willie Obiano is a high-stakes legal battle that has captured the attention of the Nigerian public, as it involves allegations of massive corruption and financial misconduct by a former state governor. The testimony of Andrew Ali, a key witness from the Central Bank of Nigeria, has added significant depth to the prosecution’s case, particularly by highlighting the role of unlicensed companies in facilitating fraudulent financial activities.

As the trial continues, it is clear that the EFCC will pursue a vigorous case to hold Obiano accountable for the alleged N4 billion fraud, while the defense will continue to challenge the evidence presented. The outcome of this trial will have far-reaching implications, not only for Obiano but for the broader fight against corruption and financial crimes in Nigeria.

EXCEPRT