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Alleged N868.4m Fraud: How Former Acting AGF Diverted Defence Ministry’s Funds – Witness

The Economic and Financial Crimes Commission, EFCC, is prosecuting Nwabuoku on a nine-count amended charge, bordering on money laundering to the tune of N868, 465,000 (Eight Hundred and Sixty-eight Million, Four Hundred and Sixty-five Thousand Naira)

Newsroom Nigeria by Newsroom Nigeria
May 13, 2025
in Across the Nation
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The Ninth Prosecution Witness, PW9, Gudi Daniel Johnson in the trial of a former Acting Accountant General of the Federation, Chukwunyere Anamekwe Nwabuoku has narrated before Justice James Omotosho of the Federal High Court, Maitama, Abuja how the defendant as former Director, Finance and Account in the Federal Ministry of Defence allegedly diverted the ministry’s funds using cash withdrawals and deposited the funds into multiple company accounts.

The Economic and Financial Crimes Commission, EFCC, is prosecuting Nwabuoku on a nine-count amended charge, bordering on money laundering to the tune of N868, 465,000 (Eight Hundred and Sixty-eight Million, Four Hundred and Sixty-five Thousand Naira).

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The witness, an investigator with the Independent Corrupt Practices and other Related Offences Commission, ICPC while being led in evidence by prosecution counsel, Ekele Iheanacho, SAN stated that ICPC received intelligence report from the Ministry of Defence on transactions involving Trans Afro Limited, Torch Global Limited, Teemell Limited etc. His team, which investigated the matter wrote to the Corporate Affairs Commission, CAC and the banks involved. The analysis of the CAC report and bank statements he said, showed that there were inflows of money from the Ministry of Defence to the companies.

“We discovered that one Gideon Joseph was registered as a director in these companies. His address was Louis Street, Maitama and Kubwa. We invited him to answer as to what business he carried out. All the letters could not be delivered so we resorted to the Ministry of Defence where we invited the Director of Accounts, one Mr Felix to throw more light. He told us that he acted on the directives of the Director of Finance (the defendant).

“Other persons were called and they said they were instructed to withdraw the monies they received into the accounts of Teemell, Touch Global and Transactional Afro Nig. Ltd. It was on this note that we invited the Director of Finance and Accounts (the defendant). We then asked him the source of the funds and purpose and he told us that they were all payments for security operations which he said could not disclose because they were classified information. On that note we wrote to the Office of the National Security Adviser, ONSA. We submitted all the documents to ONSA telling them our findings and a committee was set up including Gen. Monguno, Professor Bolagi Orasanye, me, Bellozi Adama from EFCC etc. We were told to investigate the matter,” he said.

Speaking further, he said, “We commenced an interview with him and he was cautioned and his statement taken virtually and physically. We showed him all the payments we saw, he said it was from quarterly release from the federal government into the Ministry’s accounts for security. Analysis showed that as soon as funds were deposited into the accounts, it was diverted and withdrawn by Gideon Joseph. The cash withdrawn would be deposited by Gideon into the account of M. Daddy`s Ltd. One Jerry Nwachukwu was called who came and told the committee that the money was deposited at the instance of the defendant and N355miilion was deposited. The defendant told us earlier that N100million was his only interest in the funds. One hundred and fifty million naira was also identified to be moved from M. Daddy`s account to Quantum Zenith Ltd.”

According to the witness, further analysis showed that the sum of N13mmillion was transferred to El Salen Ltd for property purchase and N10million for the purchase of a power generating set.

“On this, we obtained records from City Gate Homes, showing a property of N65million linked to the defendant which we told him that these are proceeds of crime which must be recovered. We inspected the house at City Gates homes and seized the keys, the defendant also said he had investment prior to his involvement. We wrote to the Code of Conduct Bureau and they said there was no information on his assets,” he said.

Letters from ONSA, dated January 18 and 20th, 2022 were marked and admitted as “Exhibit PwJ” and “K” respectively. The Remita response was marked “Exhibit L”, the Code of Conduct Bureau response was marked as “Exhibit M”, EFCC letter to the Code of Conduct was marked “Exhibit N” and the CAC response was marked “Exhibit O.” The letter dated April 10, 2025 from Zenith Bank to EFCC was marked “PW R”, and lastly the letter from Access was marked was marked “PW S.”

The matter was adjourned till May 22 and 23 for continuation of hearing.

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