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Auditor General Queries NPA’s N44bn Unremitted Tax, N88bn Admin Spending

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The Office of the Auditor General of the Federation has issued more queries on the finances of the Nigerian Ports Authority, alleging various irregularities in the accounts of the agency for 2018.

The alleged infractions run into hundreds of billions, including the failure by the NPA to remit about N44.21bn in taxes to the Federal Inland Revenue Services and spending N88.23bn as administrative expenses during the year.

The Auditor General of the Federation, Adolphus Aghughu, issued various queries on the NPA’s consolidated and separate financial statements for 2018 in an audit report forwarded to the National Assembly which was dated May 24.

The House of Representatives Committee on Public Accounts has invited the Minister of Transportation, Rotimi Amaechi, and the management of NPA to appear before it on July 8 over the queries by the OAUGF based on the audit carried out by Messrs Muhtari Dangana & Co and SIAO (Chartered Accountants).

TheAuditor-General said the management of the NPA spent N409.17bn on property, plant, and equipment in 2018 without sufficient and appropriate audit evidence to confirm the completeness, existence, and valuation of the assets.

Out of the money, the NPA was said to have made ‘provision for depreciation charged in the accounts that would appear to be understated by N12.49bn’.

The report read, “It was observed during vetting that the provisions made against four classes of property, plant and equipment, namely roads and sidings, wharves, vessels, and buoys, did not correspond to the rates of depreciation reported in the financial statements.

“The depreciation rates that were charged on the assets were smaller than the rates arrived at during vetting.

“The understatement of depreciation by N12,486,991,000 resulted in the apparent overstatement of the Net Book value of the fixed assets and understatement of the surplus for the year by the same amount. An explanation would be appreciated.”

Furthermore, the Auditor-General said wharves were disposed of by the management of the NPA at the cost of N254.83bn without evidence of remittance to the Consolidated Revenue Fund, while demanding that the number of wharves disposed of, the cost and evidence of remittance be provided.

Also, the auditor-general said the authority reduced N126.63bn in the period under review to arrive at the trade receivable of N43.51bn.

Aghughu said, “This showed very weak debt recovery efforts on the part of the management of Nigerian Ports Authority.

“The minutes of the meeting where the group decided that these debts should be impaired should be provided. Detailed explanations should be given for the inability of the authority to recover its huge outstanding receivables. The detailed schedule of all the parties involved should be furnished.”

The NPA is also to explain how the N1.88bn meant for Staff Home Ownership Scheme was administered because the authority severed the relationship with Aso Savings and Loans Plc, the company that served as an agent for the creation of mortgages and the subsequent collections of repayments on the same mortgages.

The management, which had made an advance payment of N4.65bn, was asked to provide a schedule showing the names of the individual contractor, nature of the contract, contract sum, the amount of advance granted, age analysis of each of the advance and the unconditional performance guaranty supplied by the contractors should be furnished.

The auditor-general also asked the NPA to pay into the Consolidated Revenue Fund, the sum of N2.33bn being money collected from the disputed cargo tracking note by the NPA, which had been kept in a dedicated account until July 2017 when the Economic and Financial Crime Commission directed First City Monument Bank that had been the custodian of the fund, to transfer the fund to an EFCC account.

BIG STORY

Appeal Court Nullifies Rape Conviction Of Lagos Doctor Femi Olaleye

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The Lagos appeal court has overturned the “rape” conviction of Femi Olaleye, managing director of Optimal Cancer Care Foundation. On Friday, the appellate court ruled that the lower court “erred” in its judgment.

Olaleye was arraigned in November 2022 on a two-count charge of “defilement of a child” and “sexual assault by penetration.”

He was convicted in October 2023 and sentenced to life imprisonment for “rape.”

However, the appeal court held that the lower court relied on “tainted” and “unreliable” evidence.

THE VERDICT

The three-member panel of the appeal court are Jimi Olukayode Bada, Mohammad Sirajo, and Folasade Ojo.

Bada read the lead judgment which was adopted by the two other justices.

The appeal court held that the lower court erred based on the “tainted” and “unreliable” evidence of Oluremi, the defendant’s wife, and the alleged survivor.

The appeal court stated that Oluremi’s conduct showed that she was motivated by greed and the desire to take over the appellant’s assets upon his incarceration.

The appellate court described Olaleye’s wife as a “tainted witness”.

The court also ruled that the lower court relied on the “hearsay evidence” of the other witnesses on the age of the alleged survivor.

The appellate court held that since none of the witnesses witnessed the birth of the alleged survivor, it was wrong for the lower court to rely on their testimonies.

The court ruled that the prosecution’s case that the alleged survivor was a 16-year-old child was bereft of evidence.

The court described the testimonies of the child forensic specialist, that of a medical doctor from the Mirabel Centre, and the investigating officer’s, as “worthless”.

The appellate court said the trial judge “interfered” in the proceedings by bridging the “yawning gaps” in the prosecution’s case.

The court held that the prosecution failed to present material witnesses such as two family members who witnessed Olaleye’s alleged confession.

The court said a trial within trial ought to have been conducted to ascertain the voluntariness of the appellant’s confessional statements while in police custody.

The court of appeal resolved all five issues in favour of the appellant.

The appeal court thereafter discharged and acquitted Olaleye.

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US-Based Nigerian May Get 20-Year Jail Term Over Money Laundry

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A United States-based Nigerian, Samson Omoniyi, who was arrested alongside eight others for alleged money laundering and fraud, may be sentenced to 20 years in prison if found guilty by US authorities.

This was contained in a press statement signed by the Office of Public Affairs of the US Department of Justice late Wednesday.

The statement noted that Omoniyi, alongside his accomplices, was indicted on Tuesday on allegations of conspiracy to engage in money laundering following their arrest across three jurisdictions in the US.

It further indicated that the defendants, who remain innocent until proven guilty by the court, operated a money laundering organisation to launder proceeds from fraud amounting to millions of US dollars, allegedly obtained from defrauding multiple citizens.

The statement read, “An indictment was unsealed yesterday (Tuesday) in Nashville, Tennessee. It charges nine members of a multi-state money laundering organisation with laundering millions of dollars derived from internet fraud, including business email compromise schemes. The nine defendants were arrested in a coordinated takedown across three jurisdictions.

“According to court documents, Samson A. Omoniyi, 43, of Houston; Misha L. Cooper, 50, of Murfreesboro, Tennessee; Robert A. Cooper, 66, of Murfreesboro; Carlesha L. Perry, 36, of Houston; Whitney D. Bardley, 30, of Florissant, Missouri; Lauren O. Guidry, 32, of Houston; Caira Y. Osby, 44, of Houston; Dazai S. Harris, 34, of Murfreesboro; and Edward D. Peebles, 35, of Murfreesboro, were charged with conspiracy to engage in money laundering.

“As alleged in the indictment, the defendants were members of a long-running money laundering organisation operating since approximately November 2016 in and around Tennessee, Texas, and across the country.”

The statement further stressed that the defendants used the structured organisation as a guise to launder the proceeds of their fraud and to enrich members of the syndicate.

“The conspirators allegedly structured the organisation so that recruiters or ‘herders’ recruited and directed participants or ‘money mules’ to launder money obtained from Internet frauds that targeted businesses and individuals in the United States and abroad.

“The defendants allegedly used sham and front companies to conceal the fraud proceeds and enrich the conspiracy members. The conspiracy allegedly agreed to launder more than $20 million in fraud proceeds,” it stated.

According to the statement, each of the defendants could be sentenced to 20 years in prison under the US Sentencing Guidelines as the maximum penalty for their offence.

“The defendants each face a maximum penalty of 20 years in prison if convicted. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

“An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law,” the statement concluded.

Earlier reports had it that two Nigerians, Anthony Ibekie and Samuel Aniukwu, were sentenced by a US federal jury to 30 years combined jail time for defrauding some US citizens of $3,500,000.

According to the US Justice Department, the duo had deceived their victims by telling them that they had received substantial inheritances that required some money to claim.

The duo was said to have requested their victims send money with a promise to refund them once the inheritances were claimed.

It was also noted that the duo carried out romance scams by establishing romantic relationships with their victims and demanding that they send money after building trust with them.

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Australia Bans Social Media Use For Children Under-16

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Australia’s parliament on Thursday passed a world-first law banning social media for children under 16, putting tech companies on notice to tighten security before a cut-off date that’s yet to be set.

The ban came following the passage of a groundbreaking law in parliament.

The new law was drafted in response to what the Labor Prime Minister, Anthony Albanese, described as a “clear, causal link between the rise of social media and the harm [to] the mental health of young Australians.”

“We want our kids to have a childhood and parents to know we have their backs,” Albanese told reporters afterwards.

The new law, passed by the Senate with 34 votes to 19, prohibits platforms like TikTok, Snapchat, Instagram, Facebook, X, and Reddit from allowing users under 16.

Companies found in violation could face fines of up to AU$50 million (US$32 million). YouTube has been excluded from the ban due to its educational content.

While the law has been hailed by some as a bold move to protect children, it has drawn criticism from academics, advocacy groups, and tech experts.

Concerns have been raised that the legislation could drive teenagers to unsafe spaces like the dark web or lead to increased isolation.

Questions about enforcement have also surfaced, with critics warning that rushed implementation could create privacy risks if companies require extensive personal data for age verification.

Amnesty International has recommended that the bill be reconsidered, arguing “ban that isolates young people will not meet the government’s objective of improving young people’s lives.”

The bill received over 15,000 public submissions in a single day, many opposing the measure, after tech billionaire Elon Musk drew attention to the proposal on X.

The law will take effect in 12 months, allowing time for the government to trial age-verification technologies.

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