Court Orders Final Forfeiture of N150m Linked to Rep Nicholas Mutu Over Alleged NDDC Kickback Scheme

A Federal High Court in Maitama, Abuja, has ordered the final forfeiture of N150 million linked to the member representing Bomadi/Patani Federal Constituency in the House of Representatives, Nicholas Mutu, to the Federal Government after ruling that the money constituted proceeds of unlawful activities.

Justice J.O. Abdulmalik delivered the judgment on Thursday, granting an application filed by the Economic and Financial Crimes Commission (EFCC) seeking the permanent forfeiture of the funds.

The application, argued by the EFCC’s lead counsel, Ekele Iheanacho (SAN), was brought under Section 44(2) of the 1999 Constitution and Section 17 of the Advance Fee Fraud and Other Related Offences Act, 2006.

The court held that the anti-graft agency had established sufficient grounds for the forfeiture after investigations allegedly revealed that Mutu received kickbacks amounting to N400.16 million from Starline Consultancy Services, an NDDC consultant, while serving as Chairman of the House of Representatives Committee on the Niger Delta Development Commission (NDDC).

Justice Abdulmalik noted that the court had earlier granted an interim forfeiture order and directed its publication in a national newspaper to enable any interested party challenge the application. However, no convincing evidence was presented to justify why the funds should not be permanently forfeited.

After considering the EFCC’s application, objections raised by counsel to Mutu and his company, Airworld Technologies Ltd, as well as the various affidavits before the court, the judge ruled that the application had merit and ordered the final forfeiture of the N150 million to the Federal Government.

According to the EFCC, the kickbacks were allegedly paid through the Heritage Bank accounts of Mutu’s companies, Airworld Technologies Ltd and Oyien Homes Ltd, which investigators said were controlled by the lawmaker and members of his immediate family.

The anti-graft agency told the court that the payments stemmed from the recovery of over N100 billion owed to the NDDC by oil and gas companies.

It said Starline Consultancy Services had approached Mutu’s House committee to assist in compelling the debtor companies to settle outstanding obligations to the intervention agency. Following the committee’s intervention, the oil firms were invited for reconciliation meetings, after which payment demand notices were issued, leading to the recovery of more than N100 billion for the NDDC.

While the consultant received its professional fees, the EFCC alleged that part of the money was diverted to Mutu’s companies as kickbacks.

The commission further alleged that after investigations commenced, Mutu procured the consultant to issue a backdated subcontract award to Airworld Technologies Ltd in an attempt to disguise the payments as legitimate business transactions.

According to the EFCC, the consultant later admitted that the subcontract arrangement was merely a cover-up and that no actual work was executed by Mutu’s company.

The commission also informed the court that although Mutu refunded N150 million during the investigation, he later claimed the repayment was not voluntary and maintained that the money represented payment for lawful contracts based on the disputed subcontract documents.

Justice Abdulmalik, however, rejected that position and held that the refunded N150 million represented proceeds of unlawful activities, thereby warranting its permanent forfeiture.

The ruling comes as the EFCC continues its appeal against the earlier discharge and acquittal of Mutu in a separate money laundering trial arising from the same set of facts before Justice F.O.G. Ogunbanjo.

According to the commission, after the notice of appeal was served, counsel who represented Mutu and Airworld Technologies Ltd during the criminal trial informed the court that they had not been briefed to receive the appeal processes on behalf of their clients.