On Tuesday, Justice Ramon Oshodi at the Lagos State Special Offences Court in Ikeja made a significant ruling ordering the forfeiture of 6.3 billion units of ordinary shares in Keystone Bank, each valued at N1.00, to the Federal Government. The order came after Sigma Golf Nigeria Limited, represented by its Chairman Umaru Modibbo, admitted to charges of fraudulent conversion of N20 billion belonging to the Asset Management Corporation of Nigeria (AMCON).
Legal Proceedings and Plea Bargain
The company was arraigned alongside former AMCON Managing Director Ahmed Kuru. While Sigma Golf Nigeria Limited entered into a plea bargain agreement with the Economic and Financial Crimes Commission (EFCC), pleading guilty to all six charges, Kuru pleaded not guilty.
The EFCC, under the leadership of Olanipekun Olukoyede, accused the defendants and Ifie Sekibo, a former MD of the now-defunct Heritage Bank (currently at large), of misappropriating AMCON funds through Heritage Bank for the benefit of Sigma Golf Nigeria Limited. This facilitated the acquisition of Keystone Bank.
Charges and Legal Basis
The charges included dishonest conversion of AMCON’s property and transferring funds derived from theft, actions which contravene Section 332(1) of the Criminal Law of Lagos State 2011, punishable under Section 332(3) of the same law.
Plea Bargain Details
During the court proceedings, EFCC counsel Rotimi Oyedepo, SAN, explained that the plea bargain was agreed upon to resolve the matter amicably. The agreement stipulated that Sigma Golf Nigeria Limited would be wound up, and all rights, titles, and interests in the 6,250,000,000 units of Keystone Bank shares would be forfeited to the Federal Government via the EFCC. Additionally, one share unit held by Umaru Hamidu Modibbo would also be seized.
Court’s Decision
Justice Oshodi convicted Sigma Golf Nigeria Limited based on the plea bargain terms. The agreement also included that no further criminal charges would be pursued against Modibbo. Both the convict and its legal representative confirmed the voluntariness of the plea bargain.
Kuru’s Bail Conditions
Despite his not guilty plea, Ahmed Kuru was granted bail by the court at N50 million, with conditions including two sureties who must swear to an affidavit of means and provide evidence of tax payments for the last three years. The court also ordered the EFCC to notify the Nigerian Immigration Service of the seizure of Kuru’s passport.
Next Court Date
The case was adjourned to March 7 for the commencement of Kuru’s trial, with Kuru temporarily released to his lawyer until his bail terms are met.
This ruling marks a significant step in addressing financial misconduct in Nigeria’s banking sector, highlighting the judiciary’s role in enforcing accountability.
