In the ongoing trial of James Nolan, an Irish national and director of Process and Industrial Development (P&ID) Ltd., Mr. Umar Babangida, an investigator from the Economic and Financial Crimes Commission (EFCC), provided detailed testimony on Tuesday regarding the alleged $9.6 billion scam against Nigeria. Babangida, who is the second prosecution witness in the case, appeared before Justice Obiora Egwuatu of the Federal High Court in Abuja.
The EFCC had filed charges against Micad Project City Services Ltd. and Mr. Nolan as the first and second defendants, respectively. Nolan, who holds both British and Irish citizenship, was arraigned and granted bail in the amount of N100 million after pleading not guilty to the 20-count charge.
However, he failed to appear in court for trial after meeting the bail conditions. Consequently, on September 28, 2022, Justice Ahmed Mohammed of another court revoked Nolan’s bail and issued a bench warrant for his arrest due to his failure to appear. The EFCC’s request to continue the trial in absentia was also granted by Justice Mohammed. Nolan is currently facing trial in multiple cases related to the controversial $9.6 billion contract awarded to P&ID Ltd. He is alleged to be at large and is wanted by the authorities.
During his testimony, Babangida revealed that former President Muhammadu Buhari had directed the EFCC to investigate the gas supply and processing agreement signed between the Federal Ministry of Petroleum Resources and P&ID Ltd.
on January 11, 2010. The investigation was initiated following a letter from the Office of the Attorney-General of the Federation and Minister of Justice, conveying the directives of the President.
The gas supply and processing agreement between P&ID and the late Mr. Michael Quinn, an Irish citizen, was witnessed by Alhaji Muhammed Kuchazi.
This agreement was also signed by the same individuals in the Memorandum of Understanding (MOU). Upon investigation, it was discovered that Michael Quinn was the owner and operator of P&ID Ltd, which was incorporated in the British Virgin Islands along with his partner, Brendan Cahill, who is also an Irish citizen. Additionally, it was found that they had incorporated approximately 30 companies registered by the Corporate Affairs Commission (CAC) in Nigeria, as well as 20 offshore companies that they promoted and operated. One of these Nigerian companies is Micad Project City Services Ltd, which is represented by James Richard Nolan, an Irish citizen, Adam Quinn, also an Irish citizen, Lloyd Quinn, who is now deceased, Neil Christopher Murray, who is currently at large, and Gerald Patrick Gallagher, also known as Gerry Gallagher, who is also at large.
These individuals are responsible for running and operating Micad Project City Services Ltd. The PW2 stated that they had requested the incorporation documents of the company from the CAC, and according to their response, the company was incorporated in 2005 with two shareholders and directors, James Nolan and Adam Quinn, each holding 50% equity. In March 2007, Nolan resigned as a director and returned his shares to the company, while Lloyd Quinn and Gerry Gallagher were appointed as directors. In April 2007, Adam Quinn also resigned as a director and returned his shares, leaving Lloyd Quinn with 99% equity and Gerry Gallagher with 1% equity in the company.
The witness stated that his team had sent a letter to Guarantee Trust Bank (GTB) to request the account opening package and statement of account for Micad Project.
During their investigation, they found out that Lloyd Quinn was the sole signatory to the company’s account. However, upon further investigation, they discovered that the company also had another account with Diamond Access Bank (formerly Diamond Bank).
They then wrote to Access Bank Plc to request the account opening package and statement of the account for Micad Project City Services Ltd. Upon reviewing the responses and documents from Access Bank, they discovered that James Nolan, who had resigned as director and shareholder of the company in 2007, was a signatory to the Access Bank account. Additionally, they found Neil Murray as another signatory to the Access Bank account. Further examination of the statement of account with Access Bank revealed that the Federal Capital Development Authority (FCDA) had deposited over N151 million into the account on May 22, 2017.
They also discovered a single transaction payment of N50 million from the account to Avory Chambers on May 24, 2017.
The witness mentioned that they confirmed through the Special Control Unit against Money Laundering (SCUML) that the company had failed to comply with the Money Laundering and Prohibition Act, 2011 (as amended). According to SCUML’s response, Micad Project had described itself as a real estate development company in its account opening package with GTB, which confirmed its status as a designated non-financial institution. The report further revealed that the company had not declared its business activities to the Federal Ministry of Industry and Trade Investment and had also failed to file records of its compliance officers and management structure.
Additionally, the company had not provided training to its staff on money laundering and combating illegal activities.
The company’s failure to provide adequate training on money laundering and illegal activities to its staff was also noted.
Additionally, it was found that the company did not establish an internal audit unit in accordance with the Money Laundering and Prohibition Act, and failed to report any transactions above N5 million to individuals and N10 million to corporate entities. The investigation further revealed that payments totaling over N151 million into the company’s account and N50 million out of the account were not reported in compliance with the Money Laundering and Prohibition Act. The witness also stated that the company failed to comply with tax laws, as confirmed by the Federal Inland Revenue Service.
The company was found to have a tax liability of over N39 million for the years 2008, 2009, and 2010. The witness also mentioned that they contacted the Federal Capital Territory Administration to confirm the payment of N151 million and obtained copies of the terms of settlement filed as a consent judgment between Micad Project and other parties. The documents related to the investigation were subsequently sent to the EFCC Forensic Department for analysis by a forensic expert.
During the cross examination by the defense lawyer, Mr. Michael Ajara, Erinomo disclosed that the off-site and on-site examinations were conducted at the company’s business addresses, but they were not present at the addresses in Abuja and Lagos.
Erinomo clarified that in his testimony, he mentioned receiving a letter from the EFCC, which requested information regarding the compliant status of Micad Project with the Money Laundering and Prohibition Act, as well as other relevant information for their ongoing investigation. The trial was adjourned by Justice Egwuatu until Wednesday for further proceedings.
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