April 3, 2020
  • April 3, 2020

US Rejects President Buhari Plans To Transfer $100 Mln Abacha Loot To Kebbi Governor

By on February 21, 2020 0 189 Views

A looming diplomatic disagreement between Nigeria and the United States is brewing over plans by President Mohammadu Buhari to transfer $100 million part of the recovered Sani Abacha loot to the Kebbi State Governor, Abubakar Bagudu.
Nigeria recently signed a tripartite agreement for the recovery of a fresh $308 million in looted fund traced to the country’s late head of state Sani Abacha and promised to utilise the money to finance Lagos-Ibadan and two other road projects.
Nigeria signed the Asset Recovery Agreement to repatriate over $308 million of forfeited assets to Nigeria with the Government of Jersey, Nigeria and the United States of America early in the month.
However, a twist to the agreement was the plans by Nigeria to hand over a portion of the recovered loot to Bagudu who was fingered in the corruption case against the ex-head of state Abacha.
The federal government is said to have claimed that there exists a 17-year-old agreement which entitles Bagudu to the money and prevents Nigeria from assisting the U.S. from prosecuting him on the corruption charges, according to recent filings from the District Court for the District of Columbia in Washington, a Bloomberg report showed on Friday.
“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.”
The disagreement may hamper future cooperation between the two nations to recover state money moved offshore by Abacha, who Transparency International estimates may have looted as much as $5 billion during his 1993-98 rule.
A commitment by Nigeria to transfer the funds to Kebbi state Governor Abubakar Bagudu appears to undermine Nigerian President Muhammadu Buhari’s pledge to quell rampant graft in Africa’s top oil producer.
The U.S. Department of Justice says Bagudu was involved in corruption with Abacha. The DoJ also contends that the Nigerian government is hindering U.S. efforts to recover allegedly laundered money it says it’s traced to Bagudu.
Buhari’s administration says a 17-year-old agreement entitles Bagudu to the funds and prevents Nigeria from assisting the U.S., according to recent filings from the District Court for the District of Columbia in Washington.
“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 the case involving Bagudu, the U.S. in 2013 initiated a forfeiture action against a host of assets, including four investment portfolios held in London in trust for him and his family, according to the district court filings.
The DoJ said in a Feb. 3 statement that Bagudu, 58, was part of a network controlled by Abacha that “embezzled, misappropriated and extorted billions from the government of Nigeria.”
Bagudu is currently the chairman of the All Progressive Congress (APC) Governors’ Forum and is seen as a major influential person in the Buhari administration.
Despite the forfeiture action being initiated following a Nigerian state request in 2012, Buhari’s government now says it can’t assist the U.S. because it’s bound by a settlement Bagudu reached with the administration of then-President Olusegun Obasanjo in 2003, according to the court filings.
Under the terms of that accord, which was approved by a U.K. court, Bagudu returned $163 million of allegedly laundered money to the Nigerian authorities, which in exchange 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.
That meant “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.
Bagudu was able to return to Nigeria after concluding the settlement and was elected as a senator in 2009. Six years later, he was voted in as Kebbi’s governor in elections that brought Buhari and his party to power.
Neither Bagudu nor a spokesman for Attorney General Abubakar Malami responded to requests for comment. A spokesman for Buhari said the settlement and the litigation were matters for Malami. A spokesman for the DoJ declined to comment.
Successive Nigerian governments have sought to recoup the money looted by Abacha, who died in office, and have so far repatriated more than $2 billion with the cooperation of other countries, according to U.S. court filings.
After Bagudu successfully sued Nigeria for violating the 2003 settlement, Buhari’s administration reached a new agreement with him in October 2018, according to the court filings. That would result in the transfer of ownership of the investment portfolios, worth 141 million euros ($155 million) to the Nigerian state, which would then pay 98.5 million euros to Bagudu and his affiliates, according to Bates’ Dec. 23 opinion. The funds are currently restrained by the U.K. at the request of the U.S.
Nigeria’s government claims the updated 2018 agreement with the Kebbi governor, which requires court approval in the U.K., will “curtail and mitigate its looming exposure” from the judgment in Bagudu’s favor.
The full texts of neither settlement was published in the court filings.
Buhari’s administration submitted the 2018 deal to the U.K. court in September to support its application to unfreeze the assets so they can be sent to Nigeria, according to the opinion. The court has yet to make a decision.

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