Home » Africa: How Jimoh Ibrahim transferred N35bn aviation funds to set up Energy Bank in Ghana

Africa: How Jimoh Ibrahim transferred N35bn aviation funds to set up Energy Bank in Ghana

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AMCON

By Friday Nwosu
Controversial Nigerian billionaire Jimoh Ibrahim is in the eye of the storm again following the transfer of N35 billion aviation fund alleged to have been used in setting up Energy Bank in Ghana.

Jimoh Ibrahim is alleged to be the owner of Energy Bank in Ghana. This comes as Asset Management Company of Nigeria (AMCON) has seized N50bn worth of assets belonging to him.

The companies affected by the seizure order include NICON Investment Limited and Global Fleet Oil and Gas Limited.

Also affected by the order were Ibrahim’s Nigeria Re-Insurance Company Plc, NICON Insurance Company Plc, Nigeria Stockbrokers Limited and NICON Trustees Limited.

The judge also restrained Ibrahim and the companies from making any withdrawal from all their known bank accounts pending the determination of the suit by AMCON.

AMCON claimed that NICON Investment Limited, Global Fleet Oil and Gas Limited and Ibrahim were indebted to it to the tune of over N50bn, resulting in “protracted negotiations and court battles.”
Also, the Joint Senate Committee on Aviation and Anti-corruption investigating the disbursement of N500 billion power and aviation fund has revealed that the N35 billion loan collected by the Chairman of the defunct Air Nigeria, Jimoh Ibrahim, was diverted to Ghana.

The Federal Government in 2011 released N120 billion through the Central Bank of Nigeria to the aviation sector as intervention fund to rescue the sector from total collapse.

At the investigative ‎hearing by the Joint Senate Committee on Aviation and Anti-corruption on Monday, the Deputy Leader of House and also Vice Chairman of Aviation Committee, Senator Ibn Bala’ Nallah, disclosed that the fund allocated to Virgin Nigeria was diverted to another project in Ghana by Ibrahim, who is the CEO of Energy Group.

Confirming the diversion of the funds, a former Director of Finance and Accounts of Air Nigeria, John Nnorom, said ‎Ibrahim worked with a Nigerian bank on the project.

Nnorom explained that prior to getting the funds, Ibrahim brought in the Bank as part of the Directors of Air Nigeria.

He, however, said surprisingly, the very day the N35 billion hit the account of Air Nigeria domiciled with the Bank, it was also paid out.

According to theeagleonline.com.ng , the Minister of Transportation, Rotimi Amaechi, while responding to questions, revealed that though the fund was released in the name of Aviation, it did not pass through the Ministry and there was no record anywhere to show the money was received by the Ministry.

Amaechi said: “Distinguished Committee Chairmen, members, my job here is to watch proceedings because I know nothing about it and there is no record showing how the funds was disbursed.”

The Committee also queried the Central Bank of Nigeria for its inability to provide the record of N120 billion loan disbursed to rescue airlines in Nigeria as the Committee mandated th‎e apex bank to provide the record within 24 hours.

According to the Committee Chairman, Senator Hope Uzodinma: “We want the report of the disbursed fund with 24 hours.

“If you are not able to account for it, we will hold you responsible for the fund.‎”
The Committee also asked for the ‎criteria used to shortlist airlines that benefited from the aviation intervention.

Earlier, Uzodinma, in his welcome address, made a shocking revelation that most of the airlines that benefited from the N120 billion intervention fund have become moribund.

He said: “That is why it is a very disturbing development to learn of allegations that monies were not properly utilized for the stated objectives.

“These allegations are just absurd, but shocking.

“We are here to ascertain the veracity or otherwise of such allegations of misappropriation or diversion of the said funds.

“As is normally the rule in any investigation, we hold nobody guilty unless it is proven beyond all reasonable doubts that he or she is guilty.
“Curiously however, from the list of beneficiaries ‎of funds, some of the airlines have long folded up.”

Also a report in businessdayonline, stated that the intervention funds were transferred to private accounts and diverted to purchase properties in Ghana.

The 10 airlines that benefited from the funds include: Arik Airlines, Dana Airlines, Aero Contractors, Kabo Air, Caverton Helicopter, Overland Airways, First Nation Airways, Chanchangi Airlines, Odenegene Air and Air Nigeria.

Although the CBN Governor Godwin Emefiele, explained that out of the 10 airlines that benefited from the fund, two of them: Air Nigeria and Chanchangi have become moribund, he failed to list how much each of the airlines collected.

Represented by an official of the apex bank, Mudashiru Olaitan, Emefiele pointed out that the bank of Industry (BoI), released N500billion in 2011, out of which N200billion and N300billion were disbursed to small and medium scale enterprises as well as power and aviation sectors respectively.
He said out of the amount, N120billion was disbursed to 10 airlines at 7 percent interest rate for 10 to 15 year tenor, adding that while N39.5billion had been recovered so far, N81billion is still outstanding.

The funds, he said, were approved by the Presidency, adding that: “If the funds hadn’t come, there won’t be any airline flying by now”.

While the chairman, Joint Committee on Aviation and Anti-Corruption, Hope Uzodinma, expressed concern that some of the airlines have become moribund, vice chairman of the aviation committee, Bala Na’Allah, said the funds were transferred to private accounts and diverted to purchase properties in Ghana.

Na’Allah wondered why an aircraft was grounded due to Emergency Locator Transmitter (ELT) that cost $4,000 after the airline collected N6billion loan.
He said: “The application of one of the airlines was made in 2010, they had access to it in 2011. As soon as they got access to the money, they transferred huge sums of money to a company in Ghana, apparently to acquire a business in Ghana with the money that is meant to develop aviation in Nigeria.

“There were other transfers that were non-aviation related in huge amount. What we are saying is that they have collected this money to enhance the growth and development of aviation. Wherein lies the wisdom of making this huge transfer to non-aviation related including transfers across the borders of Nigeria?”

In an interview, Minister of State for Aviation Hadi Sirika, expressed concern that funds were transferred to private accounts and used to purchase properties in other countries.

“It is a misnomer that the ministry was not involved because if they were meant to boost the aviation industry, the ministry ought to have been contacted or its parastatals, especially the NCAA who have the mandate of economic regulation and oversight over these airlines and aviation business”, he stated.

But other stakeholders at the session like John Nnorom who served as Finance Director of now defunct Air Nigeria, said diversion of N34.5billion loan to Air Nigeria to other ventures led to the collapse of the airline.

He said: “The N34.5 billion drawn from the fund by the airline was diverted to other personal business by the owner of the airline, Jimoh Ibrahim.
“The very moment the N34.5 billion intervention fund was paid into the Airline’s account with United Bank for Africa (UBA), it disappeared into one of the private accounts of the owner without any amount from the fund injected into the Airline, paving the way for its eventual collapse”.

The new application to seize the defendant’s assets in Abuja, Lagos, Dubai and London, AMCON said, followed its renewed efforts to recover the alleged debt.

The corporation claimed that it was being owed over N4.5tn by about 400 companies, which it said had become “recalcitrant despite obvious efforts of the corporation.”

“To deal with the situation, however, AMCON recently increased the tempo of its recovery activities using firmer negotiation strategies as well as utilising the special enforcement powers vested by the AMCON Act to compel some of its debtors, especially those that are politically exposed and business heavyweights, to repay their debts,” it said.

Jimoh Ibrahim ventured into the aviation sector when he bought over EAS airline and converted it to NICON airline which collapsed in its first year.

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