CBN Deputy Director Admits Responsibility for $6.2 Million Theft in Emefiele Trial

A senior Central Bank of Nigeria (CBN) official has confessed to being responsible for the theft of $6.2 million from the institution, contradicting the prosecution's case against former CBN governor Godwin Emefiele, who is currently standing trial for the same funds.

Bashirudeen Maishanu, a Deputy Director in Banking Supervision at the CBN, stunned the High Court of the Federal Capital Territory in Abuja on Thursday when he admitted his complicity in the movement of funds from the bank's Garki branch. The witness also revealed that he and associates received $2.5 million as a 'gift' for facilitating the transaction.

Background and Context

Emefiele faces 20 amended charges brought by Nigeria's Economic and Financial Crimes Commission (EFCC) in 2023, including criminal breach of trust, forgery, abuse of office, conspiracy to obtain money by false pretense, and obtaining money by false pretense while serving as CBN governor. The case, marked CR/577/2023, centers on allegations that Emefiele knowingly obtained $6,230,000 meant for international election observers during the 2023 general elections under false pretenses.

The former governor, who was suspended by President Bola Tinubu in June 2023 shortly after the new administration took office, has pleaded not guilty to all charges. The trial is part of a broader investigation into CBN activities during Emefiele's nine-year tenure, which spanned both the Jonathan and Buhari administrations.

Key Figures and Entities

Maishanu, who testified as the eleventh prosecution witness (PW11), described how he became involved in the controversial transaction through Eric Ocheme, Emefiele's personal assistant. According to court testimony, Ocheme sent a representative named Ahmed to meet with Maishanu regarding a transaction supposedly authorized by then-President Muhammadu Buhari.

The EFCC also accuses Emefiele of awarding vehicle supply contracts worth N1,210,600,000 (approximately $2.6 million) to April 1616 Investment Limited between 2018 and 2022. Sa'adatu Ramalan Yaro, a CBN staff member, serves as director and shareholder of the company, suggesting a potential conflict of interest.

Legal and Financial Mechanisms

Maishanu explained that he was shown what appeared to be legitimate authorization documents, including what he believed were authentic signatures from President Buhari and former Secretary to the Government of the Federation Boss Mustapha. Only later, when confronted by investigators, did he learn these signatures were forged.

The transaction occurred on February 8, 2023, when Ahmed and Maishanu's friend collected $6.2 million in cash from the CBN's Garki branch. Following the withdrawal, Ahmed distributed $2.5 million among Maishanu, his friend, and another person as a 'gift.' Maishanu testified that he found the payment 'outrageous' as they had never negotiated any compensation.

Maishanu told the court he deposited $1.9 million of his share with a developer, concerned about the legitimacy of the funds. He has since returned most of the money through the special investigator appointed by President Tinubu to investigate CBN activities under Emefiele's leadership.

International Implications and Policy Response

The case highlights ongoing challenges with financial governance and oversight in Nigeria's central banking system. The alleged theft of funds designated for international election observers also raises questions about the integrity of Nigeria's electoral processes, which face scrutiny from both domestic and international observers.

This trial follows other high-profile corruption cases involving Nigerian financial institutions and government officials. It also occurs within the context of broader reforms promised by the Tinubu administration regarding transparency and accountability in public finance management.

Justice Muazu has adjourned further hearing in the case to Friday, as the court continues to unravel the complex web of transactions and authorizations that led to the disappearance of the $6.2 million from Nigeria's apex bank.

Sources

This report draws on court proceedings at the High Court of the Federal Capital Territory, Abuja, reporting by Arise News, and publicly available documents from Nigeria's Economic and Financial Crimes Commission regarding case CR/577/2023.