Nigeria responded with fury Monday after South African authorities
confiscated a second tranche of funds meant for arms purchase to fight
the extremist Boko Haram sect, denying the deal was unlawful and warning
South Africa of its investment in Nigeria.
The warning came after the South African government seized US$5.7
million wired by the Nigerian government through a bank to an arms
dealer in that country.
South Africa’s Asset Forfeiture Unit of the National Prosecuting
Authority said the money, about N952 million, was the proceed of illegal
transactions, according to local paper, City Press.
The seizure was the second in nearly three weeks, coming after
authorities there froze $9.3 million transported in cash by two
Nigerians and an Israeli for arms purchase. At the time, South Africa
said the transaction violated its laws on movement of cash.
In a terse reaction to what appears a potential diplomatic spat
between the two countries, the Nigerian government denied the second
transaction was illegal and reminded South Africa of how Nigeria has
provided a beneficial environment for South African companies like MTN,
DSTV and a host of others to do business unhindered.
“It is our hope that South Africa would reciprocate this noble
gesture,” the National Security Adviser, Sambo Dasuki, said Monday, with
a vow to eradicate Boko Haram regardless of the antics of “fifth
columnists”.
Mr. Dasuki, named by the South African newspaper as the official who
signed off the first controversial deal, confirmed late Monday the
second transaction occurred as reported but firmly denied it was
conducted illegally.
“We want to state clearly that a business transaction actually took
place between a legitimate company in Nigeria and another legitimate one
in South Africa through the bank,” said Mr. Dasuki through a
spokesperson, Karounwi Adekunle.
“In the course of events, the South African company could not perform
and decided to refund the money. What is illegitimate in this
transaction done through the bank?” he queried.
Details of the latest transaction came more than two weeks after two
Nigerians and an Israeli were arrested as they attempted to smuggle
US$9.3 million through Lanseria International Airport, Johannesburg, on
September 5 in a private jet from Abuja.
The money, stashed in three suitcases, raised suspicion when the passengers’ luggage were unloaded and put through the scanners.
The National Prosecuting Authority, NPA, in South Africa said there
was an invoice for helicopters and armaments intended to be used in
Nigeria.
Two black plastic suitcases, filled with 90 blocks each containing
US$100,000 in notes, with combination locks, were seized, as well as two
pieces of hand luggage also containing US currency, according to City
Press.
The Israeli national, Eyal Mesika, had the combination to open the locks.
Under South African laws, a person entering or leaving the country is
expected to carry cash not exceeding US$2,300, or the equivalent in
foreign currency notes.
The news of the first transaction angered Nigerians, particularly as
it became clear the private jet involved belonged to the head of the
Christian Association of Nigeria, CAN, Ayo Ortisejafor.
Mr. Oritsejafor, a close ally of President Goodluck Jonathan, said
the plane had been leased to a third party and he could not be blamed
for its schedules.
The Nigerian government later admitted it was behind the arms deal,
claiming it acted out of desperation for arms to defeat extremist sect,
Boko Haram.
South African paper, City Press, said it was the NSA, Mr. Dasuki, who
personally authorised the first arms contract by issuing an end-user
certificate, alongside a “shopping list” for helicopters, unmanned
aircraft, rockets and ammunition.
But Nigerian security officials said the report by the newspaper
indeed provided proof that the first transaction was not illegitimate as
well, since the end-user certificate and a shopping list were provided.
A security source was quoted as saying “in issuing end-user
certificate, the ONSA (Office of the National Security Adviser) ensures
that it carries all relevant agencies and stakeholders along. Therefore,
such a responsibility is not a unilateral development,” according to
PRNigeria, an agency frequently used by the Nigerian military to
disseminate official statements.
“For security reasons, the chains leading to the issuance of end-user certificate cannot be put in the public domain.
“The recent interest in arms purchase was informed by the challenges of
insurgency which our nation had been grappling with in the last few
years. This is why the understanding of all Nigerians is necessary.
“Nigeria is desperate to counter activities of terrorists no matter what
it takes even when some of our friends are not being fair to us,” the
agency said Monday.
The latest transaction was between Cerberus Risk Solutions, an arms
broker in Cape Town, and Societe D’Equipments Internationaux, said to be
a Nigerian company based in Abuja.
The paper said the deal fell apart after Cerberus, which had earlier
received from Nigeria R60 million (N1.02 billion) through its account at
Standard Bank, tried to repay the money as it could not resolve its
registration formalities with the South African authorities.
“Cerberus was previously registered as a broker with the National
Conventional Arms Control Committee (NCACC), but the registration
expired in May this year,” City Press said.
“The marketing and contracting permits also expired at the same time.
The company has since applied for re-registration, but the application
lay in the NCACC’s mailbox for more than two months.
“Sources told Rapport that Cerberus apparently tried to pay the money
back to the Nigerian company, after which the bank became suspicious,”
the paper reported.
The paper added that while the NPA’s Asset Forfeiture Unit
subsequently obtained a court order in the South Gauteng High Court to
seize the money, the NPA spokesperson Nathi Mncube, said there were no
indications the two transactions were related.
“However, both are now the subject of a criminal investigation and
all possible information and connections are being investigated,” Mr.
Mncube was quoted as saying.
The statement from Mr. Dasuki’s office confirmed the inability of the South African company to deliver and the attempt to refund
Source Premium Times
