The Federal High Court in Abuja has ordered the final forfeiture of N150 million linked to serving House of Representatives member Nicholas Mutu to the Federal Government, ruling that the funds constituted proceeds of unlawful activities.
Justice J.O. Abdulmalik, sitting in Maitama, delivered the judgment on Thursday after 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 legal team led by Senior Advocate of Nigeria, Ekele Iheanacho, was brought pursuant to Section 44(2) of the 1999 Constitution and Section 17 of the Advance Fee Fraud and Other Fraud Related Offences Act, 2006.
The court had earlier issued an interim forfeiture order and directed that the order be published in a national newspaper to allow any interested party to challenge the application. However, no sufficient cause was shown to prevent the funds from being permanently forfeited.
In her judgment, Justice Abdulmalik held that the EFCC had established a credible case warranting the final forfeiture of the money after considering the commission’s application, objections filed by Mutu and his company, Airworld Technologies Ltd, as well as the affidavits presented by both parties.
According to the EFCC, investigations revealed that Mutu allegedly received kickbacks amounting to N400.16 million from Starline Consultancy Services, a consultant to the Niger Delta Development Commission (NDDC), while serving as Chairman of the House of Representatives Committee on the NDDC.
The anti-graft agency alleged that the funds were channelled through the Heritage Bank accounts of companies linked to the lawmaker, including Airworld Technologies Ltd and Oyien Homes Ltd, where Mutu reportedly holds controlling interests alongside members of his immediate family.
The commission told the court that the consultant had sought the intervention of the House committee to facilitate the recovery of debts owed to the NDDC by oil and gas companies operating in the Niger Delta.
Following the committee’s intervention, the companies were invited to meetings with the consultant, reconciliation of outstanding liabilities was carried out, and payment demand notices were subsequently issued, leading to the recovery of more than N100 billion for the commission.
While the consultant received its contractual fees, the EFCC alleged that part of the proceeds was paid to companies linked to Mutu as kickbacks.
The commission further alleged that during its investigation, Mutu procured the consultant to issue a backdated subcontract award to Airworld Technologies Ltd in an attempt to legitimise the payments and obstruct the investigation.
According to the EFCC, the consultant later admitted that the purported subcontract was merely a cover, confirming that no 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 payments received by his companies were based on legitimate business transactions.
Justice Abdulmalik rejected those arguments, holding that the refunded sum represented proceeds of unlawful activities and was therefore liable to final forfeiture.
The EFCC also recalled that it has appealed the earlier discharge and acquittal of Mutu in a money laundering case arising from the same set of facts by Justice F.O.G. Ogunbanjo.
According to the commission, after the notice of appeal was served, senior lawyers P.I.N. Ikwueto, SAN, who represented Mutu during the criminal trial, and J.O. Asoluka, SAN, counsel to Airworld Technologies Ltd, each claimed they had not been instructed to receive the appeal processes on behalf of their respective clients.
With Thursday’s ruling, the court ordered that the N150 million be permanently forfeited to the Federal Government.
