SENATE COMMITTEE ON AVIATION
FEDERAL REPUBLIC OF NIGERIA
NATIONAL ASSEMBLY COMPLEX, ABUJA.
ATT : SENATOR HOPE UZODINMA
DEAR MOST DISTINGUISHED SENATOR,
SUBMISSION ON “THE DISBURSEMENT AND UTILISATION OF $40MILLION AFRIXIM LOAN AND N86.6BILLION ALLEGED TO HAVE BEEN RELEASED BY THE FEDERAL GOVERNMENT IN 2011 FOR THE REHABILITATION AND DEVELOPMENT OF INFRASTRUCTURE IN THE AVIATION INDUSTRY” WITH RESPECT TO AIR NIGERIA DEVELOPMENT CO LIMITED.
You letter of invitation on the Senate Public Hearing based on the Resolution of the Senate at its Plenary Session on Wednesday, 13th January, 2016 refers. I comment as follows: Thank you the most distinguished senators for supporting, our life struggle, which I summarized below with all necessary documents. I do hope, your tight schedule will allow you read my submission.
ACQUISITION OF VIRGIN NIGERIA, N35.5B DIVERTED FOR PERSONAL USE
Virgin Nigeria was in debt of $237M (N35.5Billion) repayable over a period of 5years, when Jimoh Ibrahim, fraudulently acquired the National Carrier without paying a kobo. At the time of acquisition, the debt of N35.5B was transferred into Nicon Group Account with UBA PLC on the instruction of Jimoh Ibrahim by UBA PLC. The implication of this instruction is that the Air Nigeria account was credited in UBA with the sum of N35.5Billion, while the second leg of the accounting entry, was a debit into Nicon Group of Companies account by UBA PLC. With this accounting transaction done, Jimoh claimed that, he had acquired 49% of the Airline shares and now the new owner of the Airline. This transfer gave the Air line, a clean account, which was highly publicized, management team and directors were changed. (The documents are hereby attached). This is fraud, because paying back Bank loan alone by accounting entries without considering the other stakeholders in the company is not a complete acquisition. The acquisition which was a simple accounting entry, secured by some documents, provided by Jimoh Ibrahim as the new investor of the Airline.
DIVERSION OF N35.5BILLION
Immediately Air Nigeria took the Aviation Intervention Loan of N35.5Billion from Bank of Industry guaranteed by UBA, the accounting entries were revised by having Air Nigeria account debited and Nicon Group of companies account was credited. The security documents pledged by Jimoh Ibrahim were returned to him by UBA . The implication of this arrangement, is that Jimoh Ibrahim acquired the Airline on credit but was paid cash on the day that the loan was released by Bank of Industry. On that day, that, this money was credited into Air Nigeria Account, it was immediately moved out. The loan was never used for the purpose that it was granted but Air Nigeria was under the obligation to pay back the loan. I gave a copy of the bank statement to Friday, the IPO that handle this case in EFCC, although the former Chairman Larmode sat on the case and claimed, it is still under investigation.
HOW THIS FRAUD WAS DISCOVERED
When I was promoted from “Executive Director”, International Operation to Finance Director, Air Nigeria, the available cash to run the Airline handed over to me was Five Million Naira but on the average due to aviation fuel cost, we spent Twenty-Five million Naira daily. I did due diligence on Air Nigeria Financial position starting from the time that Virgin Nigeria commenced operations. The due diligence was a normal task for any Finance Director, so as to know the actual financial position of the company that you were assigned to manage. It was in the process that I discovered that the loan was granted to Air Nigeria and on the day it was released, that the loan was taken out of Air Nigeria, the “National carrier” into Nicon Group of Companies account, while Air Nigeria was under the pressure of paying back the loan. I searched for the board minutes of Air Nigeria accepting and approving the facilities ( a copy is hereby attached) and was shocked again that the N35.5Billion was diverted into Nicon Group of Companies account.
APPLICATION TO BANK OF INDUSTRY WITH FRAUDULENT DOCUMENT
I saw in the application document that the Airline was in serious financial crisis as at the time that the loan was taken from Bank of Industry. I was worried, that despite the serious financial situation of the Airline, that the only loan made available by Bank of Industry was diverted into Nicon Group Of Companies account with UBA. It was on record that, Jimoh Ibrahim lied on oath before this most distinguished house, the last time that we appeared before you, that, he was begged to take the loan and that the Airline did not need the loan at that period. The unanswered question is : why did Air Nigeria take the loan, if there was no need for the loan. It also means that the application was supported by fraudulent claims on cashflow, documents etc to obtain the loan from the Bank of Industry.
INVESTMENT OF THE DIVERTERED N35.5BILLION
I was trained from 1982-1986 by KPMG as External Auditor and having worked with FCMB as Assistant Internal Auditor, the audit nature in me, made me to probe further and I discovered that Jimoh Ibrahim represents a fraudulent institution and is the new face of corruption in Nigeria. I discovered that this loan was diverted into the part payment and or purchase of the land, where the largest oil well in the world was deposited in SAO TOME, including acres of land for the building of a university, acquisition/payment for Energy bank of Sao Tome and the purchase of choice properties in Dubai, USA and UK.
THE VARIOUS ASSASSINATION ATTEMPT
It was at this time, that I resigned my job, especially as most Aircraft were FLYING COFFIN, since there was no money to maintain the Aircraft. It was clear to me, that the compromise on safety was a grave sign of an accident in waiting. So the fight was a battle to save souls of Nigeria from the plane dropping from the Air. Within this period, assassins started trailing me, especially after I said that Air Nigeria will be out of operational existence within ninety days of my exit. I wrote to the then IG of Police of the various plot and assassins trailing me but Jimoh was cautioned instead of prosecution. Jimoh Ibrahim has killed many people, which I have published in many media houses, this has been my cross in the last four years, I am alive today by the Mercies of God and as I make this submission, it is my prayer that this issue should be handle urgently. You cannot stand too long in front of a locomotive train, Jimoh Ibrahim is a locomotive train with billions of loan and he is heartless.
NIGERIA SENATE INTERVENTION IN 2012
I wrote to the then, Nigeria Senate President, David Mark, who directed my petition to the Senate Committee on Aviation, then chairman by Senator Hope Uzodinma and even our current minister of state aviation Hon Hadi Sirika was a member of that committee. At that time, four groups of assassins were trailing me but I thank the Nigeria Senate for quick intervention with the security agents. The then senate committee confirmed my submission and recommended in senate resolution dated 29th Nov, 2014 that, Central Bank Governor, Sanusi Lamido Sanusi, now the Emir of Kano should recover this money from Jimoh Ibrahim but we all know, how the Emir of Kano exited from CBN and to date THIS FEDERAL GOVERNMENT INTERVENTION FUND HAS NOT BEEN RECOVERED. (A copy of the Senate resolution is hereby attached). (The board resolution accepting the facility is hereby attached) .
MONEY LAUNDRY VIA AIR NIGERIA : N6B STOLEN BY JIMOH
The UBA loan of N35.5B was repayable over a period of 5years but Federal Government Aviation Intervention fund, was repayable over a period of 15years with lower interest rate, which resulted to an excess of N6Billion yearly cash inflow into the Air Nigeria from 2009 to 2013. These amounts were diverted by Jimoh Ibrahim into Nicon Investment Ltd, his family company, despite the fact, that there were many stakeholders in the airline, which includes the employee, other shareholders, the creditors and the Federal Government via Intervention fund, etc. Air Nigeria Development Limited was a public company and the National carrier while Nicon Investment Ltd, is a 100% owned family business. In real life, transferring money from Air Nigeria to Nicon Investment Ltd is illegal and cannot be classified as inter-company transfers. Despite all these, Jimoh, claimed that he sold the Airline for N3Billion to UBA and pocketed the money. (Schedule of money laundry withdrawal is hereby attached)
AFRIXIM LOAN GRANTED AIR NIGERIA USED TO BUY ENERGY BANK OF GHANA
Afrixim loan was taken for Air Nigeria operational existence but Bar Jimoh Ibrahim used it to acquire Energy Bank of Ghana by Air Nigeria. It was a fraudulent diversion as this general purpose loan was used to buy Energy Bank of Ghana with the share ownership in the name of Jimoh Ibrahim instead of Air Nigeria. The truth is that Energy Bank of Ghana belongs to Air Nigeria and by extension Federal Government of Nigeria. To date, Energy bank of Ghana is not classified as Air Nigeria investment but the personal investment of Jimoh Ibrahim. This is fraud.
This investment into Energy Bank of Ghana was laundered through UBA account in the United States of America, via round tripping. UBA Nigeria has a branch in Ghana, why would such money be first transferred to UBA in United States of America in faviour of Energy Bank of Ghana. The purpose was to break audit trail and create the impression that the dollar transfer was from a legitimate source. (Please, find attached the board resolution and the transfer instruction.)
EMPLOYEE TAX FRAUD : EFCC REFUSED TO CHARGE JIMOH IBRAHIM TO COURT
In all the companies owned by jimoh, taxes are not remitted to the relevant tax authorities but were deducted from staff salaries. I am a victim and I petitioned Jimoh to EFCC, listing as witness the 790 Ex-staff of Air Nigeria. The same EFCC charged to court Steve Judd, the MD of Ascot Flowlines Limited for tax deduction not remitted to the board and pension fund deduction not remitted ON ONE STAFF NAMED, BAR AUSTIN AGUGUO. However to date, EFCC has refused, to charge Jimoh to court for refusal to remit tax deduction from my salary and 790 Ex-Staff of Air Nigeria. Please, help us sir. (Please, find attached supporting document).
DYING PENSIONER MONEY USED TO BUY JET WITH REG NO: NG605GF
In the last few years, the Accountant –General of Nigeria paid over N13Billion to Nicon Insurance Plc, for the purposes of paying pensioners. Out of this money; Jimoh bought the challenger 625 jet with Reg No: NG605GF, while pensioners are dying every day. I reported this case to EFCC and it was investigated. EFCC confirmed my submission that Jimoh Ibrahim diverted this money but refused to charge him to court and the IPO, was warned by former Chairman of EFCC. Larmorde. They refused to charge Jimoh Ibrahim to court on the basis that, I was not one of the pensioner and do not have legal right over this issue. However, this money represents fraudulent withdrawal from corporate institution owned by Federal Government, of which I am a Nigerian by birth. It should be noted that Federal Government still holds 30% of Nicon Insurance Plc shares. (Please, find attached some documents).
BAR JIMOH IBRAHIM TAX EVASION SUIT OF N6. 4B/FIRS IN COOLER
The Federal Inland Revenue Services after thorough investigation of my submission on the N6.4Billion owed FIRS, made several efforts to recover this money despite the threat by the then Attorney- General Bar Adoke. Jimoh Ibrahim was arrested and charged to court. The first case was a criminal suit on tax clearance certificate forgeries in Abuja and the second suit was recovery of the debt. I followed this up with several visits to FIRS office and various publications but for the civil case, Jimoh Ibrahim paid back only N150Million to FIRS, the balance of this money has not been recovered, for which Jimoh wrote an undertaking to pay in FIRS office. In addition to the above, the criminal case in Abuja on tax certificate forgeries is now in the cooler. Dear most Distinguished Senators, please help FIRS to recover this money, which belongs to Federal Government.
RESIGNATION FROM AIR NIGERIA
I resigned my job on 2nd April, 2012 stating financial crisis as the ground for my exit. The MD, Mr. Kinfe accepted my letter of resignation but Jimoh Ibrahim converted my resignation to dismissal on the pages of his newspapers. For fighting corruption, I was arrested on false allegation by the institution represented by Jimoh Ibrahim, charged to court and was discharged. (Copies of supporting documents are attached)
Since the court discharged me, there has been several assassination attempts on my life, I appeal to this distinguish house for protection, I am fighting a corrupt institution represented by Jimoh Ibrahim.
In addition to my resignation, Jimoh Ibrahim sacked 790 staff of Air Nigeria on the pages of newspapers and many are dead to date without any pension. We went to court and won Suit No ; NICN/LA/481/2012 but we cannot carry out execution, please most distinguished, we need your help. (Copies of supporting documents are hereby attached). Thank you .
JOHN I NNOROM (FCA, ACTI, MBA)
COPY: 15 MEMBERS
SUPPORTING DOCUMENTS – ON N35.5B DIVERTED FOR PERSONAL USE
SUPPORTING DOCUMENTS – MONEY LAUNDRY VIA NICON INVESTMENT LTD : N6B BY JIMOH
SUPPORTING DOCUMENTS -AIR NIGERIA, AFRIXIM LOAN USED TO BUY ENERGY BANK OF GHANA
SUPPORTING DOCUMENTS –LETTER OF MY RESIGNATION AND OTHERS.
SUPPORTING DOCUMENTS -EMPLOYEE TAX FRAUD : EFCC REFUSED TO CHARGE JIMOH IBRAHIM TO COURT
SUPPORTING DOCUMENTS- DYING PENSIONER MONEY USED TO BUY JET WITH REG NO: NG605GF
PAYMENT MADE BY AIR NIGERIA DEVELOPMENT LIMITED TO NICON INVESTMENT ON CHAIRMAN REQUEST
DATE AMOUNT PAID(NGN) DESCRIPTION
10/11/2010 2,880,000,000.00 Transfer of $18M to Energy Bank of Ghana from $40M inflow from Afexim
12/2/2010 300,000,000.00 Transfer to Nicon Investment
6/12/2010 12,000,000.00 Shortfall on N200M transfer NICON INSURANCE on N170 transfer from Nicon Luxury
12/8/2010 18,000,000.00 Shortfall on N200M transfer NICON INSURANCE on N170 transfer from Nicon Luxury
12/17/2010 400,000,000.00 Transfer to Nicon Investment
1/7/2011 400,000,000.00 Transfer to Nicon Investment
1/11/2011 6,000,000.00 Shortfall on N156M fxhase for the transfer of $1M to GMD account
1/24/2011 13,500,000.00 Transfer to Bode Olajumoke
1/31/2011 150,000,000.00 Transfer to Ecobank Project account
2/10/2011 400,000,000.00 Transfer to Nicon Investment
3/8/2011 300,000,000.00 Transfer to Ecobank Project account from UBA NGN Disbursement
4/27/2011 300,000,000.00 Transfer to NICON Investment-(N250M from UBA and N50M from Ecobank)
7/19/2011 8,000,000.00 JOEMEG VIKIPECUO
7/20/2011 7,000,000.00 Transfer to Francis Adeghe
7/20/2011 10,000,000.00 Transfer to Oborlondon Oil and Gas Nig
7/21/2011 8,000,000.00 Tahib int’l NIGERIA LTD
8/2/2011 300,000,000.00 Transfer to NICON Investment
22/08/2011 300,000,000.00 Transfer to NICON Investment
10/10/2011 100,000,000.00 Transfer to National Mirror
16/11/2011 100,000,000.00 Transfer to NICON Investment