The Federal High Court in Abuja has ordered the final forfeiture of ₦150 million linked to serving House of Representatives member Nicholas Mutu to the Federal Government after ruling that the money constituted proceeds of unlawful activities.
Justice J.O. Abdulmalik delivered the judgment on Thursday, granting the application filed by the Economic and Financial Crimes Commission (EFCC), which sought the permanent forfeiture of the funds under the provisions of Section 44(2) of the 1999 Constitution and Section 17 of the Advance Fee Fraud and Other Related Offences Act, 2006.
The court held that the anti-graft agency had established sufficient grounds for the forfeiture after no convincing explanation was provided to justify why the funds should not permanently vest in the Federal Government.
Justice Abdulmalik had earlier granted an interim forfeiture order and directed that it be published in a national newspaper to allow any interested party to challenge the application. However, the court found that no sufficient cause was shown to prevent the final forfeiture.
After reviewing the EFCC’s application, objections filed by Mutu and his company, Airworld Technologies Limited, as well as supporting affidavits, the judge ruled in favour of the Commission.
According to the EFCC, investigations revealed that Mutu allegedly received kickbacks amounting to ₦400,159,689.63 from Starline Consultancy Services, a consultant to the Niger Delta Development Commission (NDDC), while serving as Chairman of the House of Representatives Committee on the NDDC.
The Commission alleged that the payments were laundered through the Heritage Bank accounts of Airworld Technologies Limited and Oyien Homes Limited, companies in which Mutu reportedly holds the majority shareholding alongside members of his immediate family.
The EFCC told the court that the consultant had approached the House committee headed by Mutu to facilitate the recovery of debts owed to the NDDC by oil and gas companies operating in the Niger Delta.
Following the committee’s intervention, the oil firms were invited before the House, where reconciliation meetings were held and payment demands issued, leading to the recovery of more than ₦100 billion for the NDDC.
While the consultant received its contractual fees, the EFCC alleged that Mutu’s companies also received part of the proceeds as kickbacks.
The anti-corruption agency further claimed that while investigations were ongoing, Mutu allegedly procured the consultant to issue a subcontract award to Airworld Technologies Limited in an attempt to legitimise the payments.
According to the EFCC, the purported subcontract was designed “to cover up the kickback payments” and “deceive investigators and pervert the course of justice.”
The Commission also told the court that Mutu refunded ₦150 million during the investigation but later argued that the refund was not voluntary. He also maintained that the payments received by his companies arose from legitimate business transactions based on the subcontract documents.
However, the EFCC said the consultant had admitted that the subcontract arrangement was merely “a ruse” and confirmed that Mutu’s companies carried out no work under the alleged contract.
Justice Abdulmalik agreed with the Commission’s position, holding that the refunded ₦150 million represented proceeds of unlawful activities.
“The said sum of ₦150 million refunded by Mutu constituted proceeds of unlawful activities,” the court held before ordering its final forfeiture to the Federal Government.
The forfeiture proceedings are separate from Mutu’s criminal money laundering case, in which the EFCC has already appealed his earlier discharge and acquittal by the Federal High Court, arguing that the decision should be set aside.
