The Federal High Court in Abuja has set aside an interim forfeiture order earlier granted against properties linked to businessman, Alhaji Abubakar Ismaila Isa Funtua, ruling that the Economic and Financial Crimes Commission (EFCC) acted beyond its powers. Justice Emeka Nwite, in a judgement in Suit No: FHC/ABJ/CS/1197/2024, faulted the EFCC for concealing material facts and failing to prove that the properties were proceeds of crime.
The interim order, issued on August 27, 2024, had followed an ex-parte application by the EFCC, seeking forfeiture of three Abuja properties in Durumi and Maitama districts. Funtua, through his Counsel, Femi Atteh, SAN, filed an affidavit showing cause and an application to vacate the order. Justice Nwite agreed that, the anti-graft agency failed to establish any unlawful source of funds.
The Judge ruled that the properties were not acquired from proceeds of crime, refusing the EFCC’s request for a final forfeiture. He described the Commission’s attempt to treat a commercial loan dispute as a criminal matter, as “a desperate attempt at making an act a crime where none exists”.
According to the court, “It is not the duty of the EFCC to enforce a loan transaction that went sour, or to act as a commercial midwife rescuing a bank from its negligence”. Justice Nwite held that, money loaned by a bank belongs to the bank, not depositors, and that the EFCC was not a party to the loan agreements it sought to enforce.
He further faulted the EFCC for failing to disclose the existence of related suits already before the courts, describing the omission as a concealment of material facts.
This ruling comes months after another court, presided by Justice Aminu Abdullahi, awarded ₦2 million damages against the EFCC, for violating Funtua’s fundamental rights during a previous arrest and interrogation.
During the interrogation, he demanded to know the petition or allegation against him, but the officers refused to inform him, only telling him they were acting on “orders from above”.
In another judgement by Justice M.O. Olajuwon, the Federal High Court in Abuja on July 3, 2024, discharged an ex-parte order made on May 7, 2024 empowering the EFCC to instruct the Managing Directors of banks to stop all outward payment, operation or transactions on accounts linked to Isa.