Court awards N5m against EFCC for freezing firm’s account

The Federal High Court in Lagos Tuesday awarded N5million damages against the Economic and Financial Crimes Commission (EFCC) for sealing up a company and freezing its accounts without a court’s order.

Justice Ibrahim Buba held that the commission acted irrationally. He delivered judgment in a suit by Rana Prestige Industries Nigeria Limited and its director Gnanhoue Nazaire against the EFCC, Mrs Alice Bulus and Mrs Rachadatou Abdou.

Through their lawyer Chief Rickey

Tarfa (SAN), they filed a fundamental rights enforcement suit and prayed the court to order the unsealing of the company’s business premises.

They also prayed for an order unfreezing its accounts with Diamond Bank, Ecobank, and Access Bank, as well as an order of perpetual injunction restraining EFCC from violating their rights.

Rana Prestige and Nazaire sought N100million damages, and N10million as cost of the action.

Justice Yunusa granted all the reliefs sought, except the damages and cost. He awarded N5million to the applicants and made no order as to cost.

The judge said the EFCC wrongly exercised its prosecutorial discretion in sealing up the company.

“There is no evidence that the order of court was obtained prior to sealing the company,” the judge held.

Besides, he said the commission did not do a preliminary investigation before it moved against the company after receiving a petition against it and the director.

“It is clear that the first (EFCC) and second respondents did not exercise their discretion properly.

“There is nothing in the record that they did any preliminary investigation. The first and second respondents acted irrationally,” the judge held.

The EFCC had earlier filed criminal charges against the applicants, which is still pending before the court.

Also charged with forgery and “uttering” of forged documents (presenting a forged document as genuine) are the company’s General Manager, Senou Modeste and a staff Ferdinand Egede.

EFCC said they allegedly conspired amongst themselves on May 28, 2007 to forge Rana Prestige’s ordinary resolution which they purported to have been signed by Mrs Rachadatou Abdou, who co-owns the company.

The commission said they allegedly forged a Corporate Affairs Commission (CAC) Form 7 dated November 22, 2005, claiming it was signed by Mrs Abdou.

The four-count charge includes conspiracy to commit a felony, forgery and uttering of false document, which violate section 516, 467 and 468 of the Criminal Code, Cap C17, Laws of Lagos State of Nigeria 2003. They are yet to be arraigned.

In a supporting affidavit, an EFCC investigating officer said the board resolution was purportedly signed and passed by the directors appointing Egede as the Company Secretary while Mrs Abdou was out of the country.

The commission said Nazaire fraudulently converted the company’s share to his use and to Mrs. Abdou’s prejudice, as well as “converted huge sums of money” belonging to the company “to his own use.”