The Court of Appeal in Lagos has affirmed the final forfeiture of over N293.97 million, landed properties and investment assets linked to retired Major General Emmanuel Jebe Atewe, dismissing his appeal against an earlier judgment of the Federal High Court.
In a unanimous judgment delivered on Wednesday, Justice Boloukuromo Moses Ugo upheld the decision of Justice Chukwujekwu Aneke of the Federal High Court, Lagos, which granted the Economic and Financial Crimes Commission’s (EFCC) application for the final forfeiture of the assets to the Federal Government.
The forfeited assets include N293.97 million, 30,000 MTN-linked units in Stanbic IBTC Asset Management Limited, and several properties located in Abuja, including plots at the Outer Northern Expressway, Jahi, Sabon Lugbe, Kuje, Gaube Farmland Extension II Layout and Sector Centre B Layout in Kuje. A commercial property in Yenagoa, Bayelsa State, was also forfeited.
According to the EFCC, investigations revealed that the assets were reasonably suspected to have been acquired with proceeds of unlawful activities linked to the diversion of funds meant for the operations of the Joint Task Force, Operation Pulo Shield.
The anti-graft agency said about N8.537 billion released to the task force was allegedly diverted through a network of companies and individuals acting as proxies. Investigators further alleged that billions of naira were paid to companies for services that were never rendered, with part of the funds used to acquire assets allegedly connected to Atewe through associated companies.
The EFCC also disclosed that N297 million traced to Cisco Nobots Limited was used in a property transaction in Port Harcourt, from which N290 million was eventually recovered.
The Federal High Court had initially granted an interim forfeiture order before making it final, ruling that Atewe failed to provide a satisfactory explanation for the legitimate source of the assets.
Challenging the decision, Atewe argued before the Court of Appeal that the forfeiture proceedings were incompetent, citing protections under Section 123 of the Armed Forces Act. He also contended that the proceedings should not have been initiated while criminal charges against him were pending and questioned the jurisdiction of the trial court.
However, the appellate court rejected all the grounds of appeal and ruled in favour of the EFCC.
The court held that Section 123 of the Armed Forces Act and the Supreme Court decision in General Jafaru Mohammed v. EFCC did not apply to Atewe because he had retired from military service before the forfeiture proceedings commenced.
The justices noted that Atewe had admitted his retirement in an affidavit before the lower court and ruled that the statutory protection under the Armed Forces Act applies only to serving military personnel.
The court further held that Atewe failed to sufficiently establish the legitimate acquisition of the assets, noting that his explanations centred on honoraria without demonstrating a lawful source of funds.
On the argument that the forfeiture proceedings amounted to an abuse of court process because his money laundering trial was still ongoing, the court ruled that civil forfeiture proceedings can lawfully run alongside criminal proceedings.
Consequently, the Court of Appeal dismissed the appeal for lacking merit and affirmed the Federal High Court’s order forfeiting the assets to the Federal Government.
