According to Premium Times, Nigeria has finally won a protracted legal tussle, reclaiming over $6 million in arms funds seized by the United States government since 2014.
This ruling marks the end of a decade-long ordeal that left Nigeria grappling with both financial loss and an inability to procure critical military equipment during a turbulent period in its history.
In 2014, at the height of Boko Haram’s insurgency, Nigeria sought to bolster its military capabilities through an arms deal worth $6.02 million. The funds were channeled through Dolarian Capital Inc. (DCI), a U.S.-based arms brokering firm, and facilitated by Hima Aboubakar, an intermediary from Niger.
However, the deal hit a major snag when the U.S. government rejected DCI’s application for a license to export the arms, citing violations of the Arms Export Control Act. Consequently, the U.S. Customs and Border Protection seized the funds, deeming them proceeds of illegal activity.
The controversy surrounding this deal brought to light the murky practices often linked to Nigeria’s arms procurement processes. Aboubakar had already gained notoriety for securing questionable defense contracts, and the funds’ seizure underscored the widespread irregularities, secrecy, and misuse that plagued Nigeria’s defense spending during that era.
The U.S. District Court for Eastern California played a pivotal role in this saga. Initially, in February 2015, it issued warrants to seize the funds held in five bank accounts associated with DCI. By 2019, the court had granted a preliminary forfeiture order to the U.S. government, leaving Nigeria empty-handed.
In a parallel development, DCI’s owner, Mr. Ara Dolarian, faced criminal charges for brokering military equipment sales without a valid license. In January 2020, Dolarian pleaded guilty, prompting the court to modify the preliminary forfeiture order, which invited claims from any interested parties.
In 2021, the Nigerian government, led by U.S.-based attorney Jovi Usude, began a renewed effort to recover the seized funds. The process was fraught with challenges, as U.S. authorities initially resisted Nigeria’s claims. After over two years of back-and-forth negotiations, Nigeria filed a formal petition in June 2023, asserting its superior legal interest in the funds.
The petition clarified that Nigeria had no knowledge of Dolarian’s lack of authorization and emphasized its rightful ownership of the money. By December 2023, the U.S. government conceded, acknowledging Nigeria’s claim to the funds.
On December 23, 2023, Judge Jennifer Thurston of the U.S. District Court for Eastern California issued a permanent order of forfeiture in favor of Nigeria. The court directed the U.S. Customs and Border Protection to release the $6.02 million, along with any accrued interest, to Nigeria’s designated legal representative within 60 days.
The court order reads:
“Within sixty (60) days from entry of this Stipulation for Final Order of Forfeiture and Order Thereon, the U.S. Customs and Border Protection shall return the above-listed assets to Petitioner, along with any interest earned by the United States while on deposit in an interest-bearing account.”
This hard-fought legal victory casts a spotlight on the rampant irregularities in Nigeria’s arms procurement during the 2010s. The episode is reminiscent of another debacle from the same period, where South Africa seized $5.7 million from Nigeria under similar circumstances.
In 2015, an audit committee under then-President Muhammadu Buhari revealed staggering details of corruption in defense spending. The findings implicated Nigeria’s former National Security Adviser, Sambo Dasuki, who allegedly mismanaged $2 billion meant for arms purchases. Dasuki, along with other officials, faces ongoing trials over these misdeeds.
Further tarnishing Nigeria’s defense legacy, investigations by the Economic and Financial Crimes Commission (EFCC) uncovered funds being funneled to political allies and personal acquaintances. Internationally, similar scandals emerged, such as the recovery of $8.9 million by Jersey Island authorities linked to fraudulent Nigerian defense contracts.
SOURCE: Ifyafrica