- US Says No as Nigeria Plans to Hand Over Abacha Loot to Gov
The United States of America has opposed plans by the Federal Government to hand over $100 million recovered as part of the money stolen by former military president Sani Abacha to Governor Abubakar Bagudu of Kebbi State.
The American authorities had accused Gov Bagudu of corruption during the Abacha regime. The U.S. Department of Justice says Bagudu was involved in corruption with Abacha and all efforts to unravel and recover allegedly laundered money by the governor has been frustrated by the Nigerian government.
This, the American authorities said may hinder further collaboration on stolen fund repatriation between the two nations.
“This case illustrates how complex and contentious repatriating stolen assets to Nigeria can be,” said Matthew Page, an associate fellow at London-based Chatham House and former Nigeria expert for U.S. intelligence agencies.
“Instead of welcoming U.S. efforts, Nigeria’s lawyers appear to be supporting the interests of one of the country’s most powerful families.”
In a February 3 statement, the DoJ said Bagudu, 58, was part of a powerful network controlled by Abacha that “embezzled, misappropriated and extorted billions from the government of Nigeria.”
In 2013, the United States had initiated a forfeiture action against a host of assets owned by Bagudu. However, efforts by the DoJ to go after the assets, including four investment portfolios held in London in trust for him and his family, were frustrated by the Nigerian government.
According to BoJ, the Buhari led administration said it can not assist the U.S because of a settlement agreement Nigeria reached with Bagudu under President Olusegun Obasanjo administration in 2003. Meaning, although Bagudu was fingered in corruption, an agreement created by the Nigerian government protects him from persecution.
Under the terms of the agreement reached with the governor, he returned $163 million of allegedly stolen funds to the Nigerian authorities. In exchange, the government dropped all outstanding civil and criminal claims against him “stemming from his involvement in government corruption,” according to a Dec. 23 memorandum opinion by District Judge John D. Bates in Washington D.C.
This means “Nigeria renounced any interest whatsoever” in Bagudu’s trust assets, including those the U.S. is attempting to recover for the West African nation, the opinion stated.
President Buhari administration has reached a new agreement with Bagudu after the governor successfully sued Nigeria for violating terms of the agreement signed in 2003, the government has since reached a new agreement with him in October 2018, according to court documents.
The new agreement includes the transfer of ownership of investment portfolios, valued at 141 million euros ($155 million) to the federal government, which would then pay Bagudu and his affiliates 98.5 million euros.
The US, however, restrained the U.K. from releasing the said fund to the Nigerian government to be passing on to Bagudu and his affiliates.
