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The furore over the $9.3 million that was seized by South Africa, and which the Nigerian government said was meant for arms, is yet to die down. Now another $5.7 million belonging to Nigeria and meant for the same purpose has been seized.
The report of the new seizure broke Monday, October 6, with the Asset Forfeiture Unit of the National Prosecuting Authority of South Africa claiming the amount seized was the proceeds of what they termed ‘illegal transactions’.
The report of the new seizure, in South African newspaper City Press, indicates that a Cape Town-based arms broker, Cerberus Risk Solutions, and an allegedly Nigerian company, Societe D’Equipments International, were involved in the new deal.
The report indicated that Cerberus, which was registered with South Africa’s National Conventional Arms Control Committee (NCACC) as an arms broker, had tried to repay R60 million ($6 million) that the Nigerians paid into its bank account after its re-registration formalities fell through. It was the move to return the money that raised the suspicion of Standard Bank, which then contacted the authorities.
"Nigeria has provided a stable environment for SA companies to do business and the hope is that SA would reciprocate"
The Asset Forfeiture Unit obtained a court order in the South Gauteng High Court to seize the money. However, according to the paper, 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 said.
Meanwhile, the Nigerian government has come out to defend its actions, as well as condemn what many here are seeing as a South African bid to scuttle the ongoing battle against the rabid Boko Haram insurgents.
Reacting to the seizure, Nigeria’s National Security Adviser, Sambo Dasuki, said Nigeria has provided a beneficial environment for South African companies to dobusiness and that the hope is that South Africa would reciprocate.
Mr. Dasuki admitted that the Nigerian government wired the money to the South African company, but insists the transaction was legal.
Speaking through a spokesman, Karounwi Adekunle, Mr. Dasuki said; “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,”
“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?” Mr. Dasuki asked.
In the past, there has been reports that Nigeria had to resort to desperate measures to procure arms for its battle with Boko Haram because of the United States, which blocked its attempt to procure some item in the open market. The U.S. has denied the claims.
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 NPA’s Asset Forfeiture Unit subsequently obtained a court order in the South Gauteng High Court to seize the money.
Cerberus’ attorney, Martin Hood, this week declined to comment on the matter.
NPA spokesperson Nathi Mncube said there were no indications that the two transactions were related.
“However, both are now the subject of a criminal investigation and all possible information and connections are being investigated,” said Mncube.