Anti-graft agency challenges court's decision to clear Omatsuli and companies of N3.6bn laundry charges

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EFCC

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By Innocent Anaba

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The Economic and Financial Crimes Commission ,EFCC, has filed a comprehensive appeal at the Court of Appeal, Lagos Division, challenging the acquittal of former Niger Delta Development Commission, NDDC, Executive Director, Touyo Omatsuli, and three others over an alleged N3.645 billion money laundering scheme.

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Also listed as respondents in the appeal are Don Parker Properties Limited, Francis Momoh, and Building Associates Limited.

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The EFCC is represented by a team of counsel led by E.E. Iheanacho, SAN, alongside Bilikisu Bala Buhari, Emenike Mgbenmele, O. Ujam, Famen Anum, M.A. Babatunde, and Lydia Ebenezer.

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The appeal follows a judgment by the Federal High Court in Lagos, presided over by Justice Daniel Osiagor, which discharged and acquitted the defendants on all 46 counts in an amended charge relating to money laundering, conspiracy, and failure to comply with statutory reporting obligations.

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In its Notice of Appeal, the EFCC contended that the trial court erred in law and failed to properly evaluate the extensive evidence presented during the trial, including testimonies from 16 witnesses and multiple documentary exhibits.

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The anti-graft agency argued that the lower court disregarded binding decisions of the Court of Appeal delivered in earlier interlocutory rulings arising from the same case, particularly on the issue of no-case submissions, where the appellate court had held that a prima facie case had been established against the defendants.

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According to the EFCC, the trial judge wrongly concluded that there was no evidence linking the respondents to the alleged offences, despite prior appellate findings affirming the credibility and sufficiency of the prosecution’s evidence.

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The Commission further maintained that the trial court mischaracterized the nature of the funds traced to the first respondent, insisting that the N3.645 billion paid by a contractor, identified as PW4, constituted unlawful gratification rather than legitimate transactions.

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The EFCC argued that evidence before the court showed that the funds were paid as “appreciation” to members of the NDDC board and were subsequently laundered through proxies and corporate entities. Payments were funneled through Building Associates Limited and other accounts before being used to acquire high-value properties, thereby disguising their origin.

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In challenging the judgment, the Commission outlined what it described as a coordinated laundering scheme involving the respondents. It alleged that the first respondent nominated accounts for the receipt of the funds, while the third and fourth respondents facilitated transfers and conversions. Some funds were also converted into foreign currency to conceal their origin.

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The EFCC also claimed that the respondents engaged in cover-up actions after investigations commenced, including restructuring company ownership, relinquishing shares, and creating backdated documents to justify the transactions.

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The Commission faulted the trial court for relying heavily on selected portions of cross-examination while ignoring the totality of the prosecution’s case. It argued that there were no material contradictions in the testimonies of key witnesses, including PW1 and PW4, and that their evidence was corroborated by documentary exhibits.

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The EFCC further maintained that the lower court failed to properly interpret anti-corruption laws, including provisions of the Corrupt Practices and Other Related Offences Act and the Code of Conduct Bureau and Tribunal Act, which prohibit public officers from receiving benefits linked to official duties.

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On the issue of criminal intent, the EFCC argued that the trial court adopted an unduly narrow approach by insisting on direct proof of knowledge. It maintained that under the Money Laundering (Prohibition) Act, knowledge can be inferred from surrounding circumstances and patterns of conduct. Evidence of unusual financial flows, absence of legitimate business relationships, and subsequent concealment efforts, the Commission argued, clearly established that the respondents knew or ought to have known the funds were proceeds of unlawful activity.

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The EFCC also challenged the trial court’s finding that conspiracy was not proved, arguing that the law does not require direct evidence of an agreement. The coordinated actions of the respondents, as revealed through witness testimonies and financial records, were sufficient to infer a common unlawful design.

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The Commission further insisted that the companies involved qualified as Designated Non-Financial Institutions under the Money Laundering Act and were therefore obligated to report suspicious transactions—obligations which it said were breached.

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The EFCC is urging the Court of Appeal to set aside the Federal High Court’s judgment in its entirety, allow the appeal, and enter convictions against the respondents. It also requested the appellate court to make any further orders deemed appropriate in the circumstances of the case.

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