Contrary to widespread reports in the Nigeria
media (PREMIUM TIMES not included) the
South African government has not returned
the $15 million seized from arms dealers
purportedly buying arms for the Nigerian
military.
PREMIUM TIMES can authoritatively report
that the money remains frozen in South Africa
and has not been returned to the Nigerian
government.
In October, several media articles quoting the
South African High Commissioner to Nigeria,
Lulu Mnguni, reported that the money seized
in connection with two dubious arms deal had
been released to the Nigerian government.
However, Mr. Mnguni has told PREMIUM
TIMES that the reports are false.
Apart from
the High Commissioner, the spokesperson of
the South African National Prosecuting
Authority, NPA, Nathi Mncube, and a South
African source that is knowledgeable about
the matter but requested not to be named,
told PREMIUM TIMES in separate
correspondences that the money was yet to be
released to the Nigeria government.
Rather than return the money, there is
possibility that the money may never be
returned to the Nigerian government again.
Responding to PREMIUM TIMES enquiry about
the extent of the investigation into the seized
arms money, Mr. Mncube, who declined to
give specific information because the NPA
does not respond to matters under
investigation, however, said the money may
be forfeited to the South African government.
“In terms of our law, proceeds of crime are
forfeited to the state,” he said.
On his part, Mr. Mnguni vehemently denied
the reports credited to him that the matter
has been resolved diplomatically and the
money returned to the Nigerian government.
He said it was not procedural for the South
African government to return frozen money in
the manner suggested in the reports quoting
him.
“We don’t refund money that way,” he said
during a telephone conversation. “I said the
matter would be resolved within the legal and
legitimate means. That was what I said. I did
not say the money has been refunded. And I
did not follow up since then on whether the
money has been refunded or not. It has to be
done through the legal and legitimate means.”
PREMIUM TIMES investigation also revealed
that instead of providing document that
validated its claim that the deals were legal,
the Nigerian government has been vigorously
pursuing a diplomatic resolution of the
matter.
Hard as it is trying, it appears the Nigerian
government is merely chasing the wind, as
the matter is no longer in the hands of
diplomats and politicians.
Unfazed by subtle threat of the National
Security Adviser, Sambo Dasuki, to come hard
of South African business interests such as
MTN and DSTV in Nigeria, NPA obtained court
orders freezing the money.
Now, Nigeria has to go through the full hog of
court processes to secure its release –
something the government, which claimed
ownership of the money, appears incapable of
doing following the backdoor manner the
deals were reached.
“The money was frozen by two court orders
and the court requires the documentations
before the money is released,” Mr. Mncube
said. “The money is still here and is not going
anywhere. We would not release it if we don’t
have a surety where the money is going. It is
a court process.”
Shady arms brokers
The inability of the Nigerian government to
recover the seized money is hinged on the fact
that the two South African companies it was
transacting the deal with may have lacked the
legal status and the prerequisite authorisation
to engage in such deals.
In fact, in addition to not having the legal
authorisation to deal with the sale of military
grade armaments, one of the companies,
Cerberus Risk Solution, was in 2013 indicted
for breaching a United Nations Security
Council Resolution unlawfully by exporting
controlled items to the Ivory Coast and is
facing a criminal investigation over the
matter.
With the first tranche of $9.3 million, the NPA
said, Tier One Service Group, which the
government wanted to procure the arms from,
does not have the authorisation to sell or rent
military equipment.
While casting doubt that the money was
meant for the procurement of arms as claimed
by the Nigerian government, South African
investigators said Tier One was not a
registered arms dealer.
“In court papers, the NPA submitted evidence
that Tier One is not registered with the
National Conventional Arms Control
Committee and is thus not authorised to enter
into any agreements regarding the sale and/or
rental of military equipment,” a statement by
NPA read.
An invoice obtained by the NPA showed an
order for drones, rocket and attack helicopter.
In the second deal worth $5.7 million, South
African investigators discovered that Cerberus
Risk Solution neither has a valid Registration
Certificate, valid Marketing Permit nor a
contracting Permit – statutory documents
stipulated by South African law before a
company can engage in brokering a deal
involving the sale of 50 units of M-75 20mm
cannons and 200,000 rounds of 20mm
ammunitions Societe D’Equipments
Internationaux was seeking to buy on behalf
of the Nigerian Military.
The NPA explained that though Cerberus Risk
Solution was registered by the South African
National Conventional Arms Control
Committee and issued a registration certificate
MS1-11-0001041 on May 30 2011 with legally
empowers it to act as an agent to deal with
“specialised military and law enforcement
equipment”, its Registration Certificate
expired on May 27, 2014 two weeks before it
received the $5.7 million paid into its
Standard Bank account.
The NPA also explained that though Cerberus
was granted a Marketing Permit
AMP2-12-0004803 on April 2 2012, the
expiration of its Certificate of Registration
automatically rendered that permit invalid.
On September 5, $9.3 million cash stashed in
two plastic suitcases and two pieces of hand
luggage was seized at the Lanseria
International Airport, Johannesburg from
three men, now identified as Israeli, Eyal
Mesika, and two Austrian nationals, R.
Wolfgang and M. Michael.
The private the jet that conveyed the money
belongs to the president of the Christian
Association of Nigeria, Ayo Oritsejafor,
although the cleric has said he had leased the
aircraft out and was ignorant of what it was
being used for.
The NPA said the suspect did not obtain the
necessary approval or documentation allowing
them to carry more than the $2,300 cash limit
allowed by South African law.
While the dust created by the confiscation of
the cash was yet to settle, South African
authorities seized another $5.7 million
transferred by Societe D’Equipments
Internationaux of Nigeria to a South African
arms company, Cerberus Risk Solutions, for
the procurement of another batch of arms.
The National Security Adviser, Sambo Dasuki,
who signed off on the first deal, said the arms
deal was conducted legally. He reminded the
South Africa government that Nigerian has
provided favourable environment for South
African companies such as MTN and DSTV to
thrive unhindered. He said he expected the
South African government to “reciprocate the
noble gesture” by releasing the money.
Premium times.
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