Cecilia Ibru Jailed 18 Months....forfeits N190bn

Cecilia Ibru

Former Chief Executive Officer of Oceanic Bank Plc, Cecilia Ibru, was yesterday convicted and sentenced to a cumulative imprisonment term of 18 months by a Federal High Court in Lagos for pleading guilty to charges bordering on economic crimes.

Ibru, under a plea bargaining arrangement with the Economic and Financial Crimes Commission (EFCC), pleaded guilty to an amended three count-charge in which she was accused of exceeding her approval limit by approving the grant of $20million to a company – Waves Project Nigeria Limited.

Other counts were that she failed to take all necessary steps to ensure that her bank’s balance sheet as at May, last year, gave a true and fair view of the state of affairs of the bank and that she granted N2 billion loan to a company – Petosan Farms Limited – without adequate security.

In a judgment, Justice Daniel Abutu convicted her as per her plea and sentenced her to six months’ imprisonment per count. The sentence is to run concurrently.
The court also ordered that the convict would forfeit all assets and property estimated at N191billion, listed in a settlement agreement signed by parties and filed before the court.

The forfeited assets are to be managed by a company owned by the Federal Government– Assets Management Corporation of Nigeria (AMCON).

Assets to be forfeited include about 82 houses (scattered across Nigeria, the United Kingdom and Dubai, United Arab Emirate), shares in 19 companies not listed in the Nigerian Stock Exchange and shares in 199 listed companies.

The judge held that although the maximum penalty for the offences committed by the convict was five years imprisonment, the court would, within its powers and in line with the term of agreement by parties, sentence the convict to a reduced term.

Justice Abutu also ordered the prison authorities to, within two hours of receiving the convict in prison custody, take her to a private hospital - Reddington Hospital, Victoria Island, Lagos, from where she was brought to court yesterday.

Prior to her conviction, the EFCC, represented by a team of lawyers, led by Kola Awodein (SAN), said the parties had entered into  an agreement to, among others, withdraw 23 of the 25 counts in an earlier charge brought against Ibru.

He said consequent to the said agreement, the prosecution has filed an amended charge of three counts, to which the accused person has agreed to plead guilty.

He added that the new charge and additional applications were filed under Section 17 of the Federal High Courts Act which enjoins the court to “promote reconciliation among parties, encourage and facilitate amicable settlement in respect of criminal and civil matters.”

He urged the court, in exercising its powers under Section 6 (6) (a) of the Constitution, to give effect to the sad agreement by parties.

He said it was also agreed among parties that the convict would forfeit her identified assets to AMCON and that she would be sentenced to a reduced term of imprisonment upon pleading guilty.

Defence lawyer, Taiwo Osipitan (SAN), agreed to Awodein’s submissions. Parties, however, disagreed on where the accused persons would be immediately kept after being sentenced.

While Awodein urged the court to send the convict to jail, Osipitan urged the court to return his client, who looked frail, to the hospital where she had been on admission.
Osipitan said it was imperative that his client be returned to hospital because she had a critical health condition and was taken to court from the hospital bed.

He said his prayer was informed by the need to avert the possible death of the accused person and to prevent a repetition of a case he earlier handled where his client, Chief Maurice Ibekwe, then a member of the House of Representatives, died in custody despite indications that his health was failing.

Other members of the  prosecution team at the session were: Mr. D. Dodo (SAN); Dr. Konyinsola Ajayi (SAN); Mr. Godwin Obla and Rotimi Jacobs.
Head of Media and Publicity of the EFCC, Mr. Femi Babafemi, later issued a statement regarding the development.

The statement said: “The former bank chief, who had pleaded not guilty to a 25-count amended charge filed against her by the EFCC in February, however, pleaded guilty to counts 14, 17, and 23 of the amended charges before Justice Abutu of the Federal High Court, Ikoyi Count 14 of the three count charges Mrs Ibru pleaded guilty to reads:

“That you, Cecillia Ibru whilst being the Managing Director/Chief Executive Officer of Oceanic Bank International Plc on or about 2 August 2007 within the jurisdiction of this Honourable Court approved the grant of a credit facility in the sum of US$20,000,000.00 (Twenty Million United States Dollars) by the bank to WAVES Project Nigeria Limited which sum was above your credit approval limit as laid down by the regulations of Oceanic Bank International Plc and you thereby committed an offence contrary to Section 15(1)(b) of the Failed Bank (Recovery of Debts ) and Financial Malpractices in Banks Act Cap F2 Laws of the Federation of Nigeria, 2004 and punishable under Section 16(1) (a) of the same Act.”

Reacting to the judgement yesterday, EFCC chairman, Mrs. Farida Waziri, added: “I wish to commend the teams that handled the investigation and prosecution of Mrs. Ibru’s case.

“I wish to charge every stakeholder involved in the war against graft in the country to reinforce their commitment so that there can be greater results.”
“This is the biggest single recovery in the history of the commission,”a source at the EFCC told The Nation yesterday.

The EFCC had on August 26, 2009 arrested Mrs. Cecilia Ibru. The convict was first arraigned on a 23-counnt charge on August 31, 2009 and remanded in EFCC custody till September 14, 2009 when she was granted bail by the court.