The Federal High Court in Abuja has ordered the permanent forfeiture of a multi-billion naira expanse of land earmarked for the Goodluck Jonathan Legacy Model Housing Estate to the Federal Government.
Justice Mohammed Umar granted the application filed by the Independent Corrupt Practices and Other Related Offences Commission.
The application was moved by ICPC counsel, Osuobeni Akponimisingha, and was not opposed by defence counsel, Hassan Liman, a Senior Advocate of Nigeria (SAN).
In his ruling, Justice Umar directed the ICPC, acting on behalf of the Federal Government, to oversee the completion of the housing project, which comprises 962 housing units as originally proposed.
The judge ruled that the supervision should be carried out in collaboration with the Federal Mortgage Bank of Nigeria, the sole respondent in the matter, and ensure that the completed housing units are allocated to end users.
Justice Umar said, “An order is hereby made for the final forfeiture of Plot No. 5 in Cadastral Zone D12, Kaba District, Abuja measuring approximately 122015.80m2 and valued at N1,944,375,000.00 (one billion, nine hundred forty-four million, three hundred and seventy-five thousand naira.
“An order is hereby made for the final forfeiture of Plot No. 4 in Cadastral Zone D12, Kaba District, Abuja, measuring approximately 157198.30 metre square and valued at N3,340,500,000.00 (three billion, three Hundred Forty Million, five hundred thousand naira), suspected of being proceeds of unlawful activity.
“An order is hereby made directing the applicant, through the ICPC, to facilitate the hand-over of the forfeited properties to the respondent i.e. Federal Mortgage Bank of Nigeria, being the victim of the alleged unlawful activity.”
In the ruling delivered on December 11, but whose enrolled order was sighted by the News Agency of Nigeria on Tuesday, the court further directed the ICPC and FMBN to establish a joint committee drawn from both agencies to oversee the completion of the housing project.
It will be recalled that on July 9, Justice Umar had earlier granted the ICPC’s request for interim forfeiture of the lands after Akponimisingha filed a motion ex parte to that effect.
The judge had ruled that the temporary forfeiture of the multi-billion naira assets approved by the FMBN would remain in force pending the determination of the substantive suit.
The land was suspected to be proceeds of unlawful activity, and the ICPC had also sought an order allowing it to secure the property to prevent its conversion to private use or sale to unsuspecting members of the public.
The anti-corruption agency further requested an order mandating it to publish notices in national newspapers inviting interested parties to show cause why the assets should not be permanently forfeited to the Federal Government.
In outlining 14 grounds in support of the application, the ICPC said the lands were allocated free of charge by the Federal Capital Territory Administration (FCTA) for the construction of 962 residential housing units through the FMBN.
An affidavit sworn to by an ICPC officer, Iliya Marcus, stated that the commission received intelligence indicating that the FMBN had engaged a private developer to construct the housing units under the National Housing Fund Scheme.
According to Marcus, the ICPC initiated a discreet investigation into the intelligence report and uncovered several irregularities.
He said the FMBN sought and obtained approval to commence the construction of the “Goodluck Jonathan Legacy Model Housing Estate” on July 30, 2012.
He added that a framework agreement was subsequently signed between the FMBN and Good Earth Power Nigeria Limited on January 27, 2012.
Marcus stated that following the agreement, the bank appointed a consultant through a letter dated February 1, 2012, to monitor the project and report milestones that would guide payments to the developer.
The investigation, he said, revealed that the FMBN obtained a $65 million loan facility from Ecobank Limited for the construction of the housing units through Good Earth Power Nigeria Limited, a private firm, for the benefit of low-income earners.
He said the project was expected to be completed within 18 months.
Marcus disclosed that the FMBN, through its then managing director, paid Good Earth Power Nigeria Limited N3.785 billion as drawdown on November 22, 2012.
He said the payment was made without evidence that the developer was registered with the Real Estate Developers Association, which was a precondition for such disbursement.
“Investigation also revealed that the Federal Mortgage Bank of Nigeria has paid the full project amount of (65 million dollars to Good Earth Power Nigeria Limited without a single house on the project site,” he said.
Marcus further stated that intelligence available to the commission indicated that the developer was making secret attempts to sell the land to unsuspecting members of the public, a move that could make recovery difficult.
He warned that if the application had not been granted, “the way the $65 million was dissipated without anything to show for, the land will follow the same way.”
Earlier, Akponimisingha informed the court that the land formed part of a major housing initiative launched during the administration of former President Goodluck Jonathan.
He said the project was awarded to a developer that allegedly received $65 million, equivalent to over N14 billion at the time, from the FMBN, and that the estate was named in honour of the former president.
The ICPC lawyer told the court that despite the disbursement of funds, no construction had taken place on the site, adding that the property was now valued at over N200 billion and that the promoters of the company, including some American nationals, were allegedly on the run.
He explained that while Good Earth Power Nigeria Limited is already facing trial before Justice James Omotosho of another Federal High Court, the forfeiture application was aimed at securing the land for the benefit of Nigerians and the FMBN.
Justice Umar, in granting the interim forfeiture earlier, queried why the entire project sum was released upfront without any corresponding progress on the site.
