NGO drags EFFC to Federal High Court over refusal to investigate AFN over Premium Trust Bank sponsorship deal, wants Okowa suspended
The Federal High Court in Abuja has been asked by a nongovernmental organization, Incorporated Trustees of Athletics and Other Sports Development Initiative to compel the Economic and Financial Crimes Commission, EFCC, to investigate the misappropriation, diversion of funds and corruption in the Athletics Federation of Nigeria, AFN.
The Incorporated Trustees of Athletics and Other Sports Development Initiative is seeking the leave of the Federal High Court in Abuja to probe the Sponsorship deal between the AFN and Premium Trust Bank as well as the AFN President, Tonobok Okowa and two others.
In a report in the highly authoritative Sahara Reporters, the plaintiff is seeking a declaration by the Federal High Court that, pursuant to section 6 (b) and (h) of the EFCC (Establishment) Act, 2004, the EFCC (the first defendant) has a mandatory duty to investigate all reported cases of economic and financial crimes.
The plaintiff, according to the publication, is also seeking the leave of the court to declare that the EFCC’s failure to conduct and conclude investigations on his petition dated 15th April 2024 is a dereliction of EFCC’s statutory duty.
The plaintiff is, therefore, seeking an order compelling the EFCC to commence and conclude investigations on his Petition as well as an Order compelling the AFN (second defendant) to assist the EFCC in the investigation of its Petition.
The Incorporated Trustees of Athletics and Other Sports Development Initiative is seeking an order of the Federal High Court to suspend Okowa and two others from their offices during the period of the investigations
It also wants an order compelling the fifth defendant (Bukola Olopade) to step aside as Director General of NSC during the period of the investigations and ‘until such time the EFCC concludes its investigations on the Petition.
In its statement of claim, the Incorporated Trustees of Athletics and Other Sports Development Initiative, relying on the Audit Committee Report by the AFN and the Contractual Agreement between the AFN and Premium Trust Bank published in the Audit Committee Report, wants the EFCC to investigate why N70m was reportedly paid to AFN despite having a N100m a year contractual agreement with the AFN.
It claims this is contrary to the terms of agreement between the AFN and Premium Trust Bank which says the sponsorship money should be deposited in a special account set up for the purpose of the agreement and that it is from there payment of any of sort, including the N30m yearly commission to Nilayo Sports Management Company who acted as consultant to the AFN.
‘During the performance of this Agreement, the Sponsor (Premium Trust Bank) has no financial obligation to Broker. The Broker shall be entitled to a yearly fee/commission which shall be paid through the SPV account to the tune of agreed percentage between AFN and the broker (Nilayo),’ read article 4.11 of the Agreement.
The Incorporated Trustees of Athletics and Other Sports Development Initiative also wants the EFCC to investigate how AFN president, Okowa paid himself (as the approving authority as contained in the AFN Constitution, 2017 and 2023 as amended) N40m for a purported loan he gave to the Federation without any agreement signed to that effect and which Rita Mosindi, the (former) Secretary General confirmed in the Audit Report.
‘There was no written agreement, but it was discussed in one of the Board meetings, that since there was delay in starting the competitions for the year, the President could fund some of the competitions to kickstart the activities of the year and will be reimbursed,’ Mosindi wrote in response to the AFN Audit Committee query but failed to provide the Minutes of the Meeting where it was mentioned and discussed.
The purported loan was spent before the signing of the Agreement and article 3.1 was clear on what the sponsorship fee was meant for: ‘The events shall cover all AFN organized or participated programs as agreed and designated by the AFN and the Sponsor.
It wants the EFCC to investigate which bank account the N70m was paid into by the broker (Nilayo Sports Management) since the (former) Secretary General admitted in writing in the Audit Committee Report that the Special Bank Account as contained in the Agreement was yet to be opened.
‘An SPV account is still underway to warehouse the Premium Trust money, we are still working on it with the Consultant to finalize the opening of the account,’ Mosindi also wrote in another response to a query by the AFN Audit Committee after the N70m has been paid into an unknown account and spent.
Article 4.4 of the Agreement was clear on this: ‘During the performance of this Agreement, an SPV account must be opened with Broker (Nilayo) and AFN as signatories.’
The Plaintiff says it was forced to take this action in furtherance of one of its registered objectives, which is ‘to initiate actions in public interest and welfare of Sports men and women in Nigeria.’
