Alleged Pension Fraud: EFCC to File Fresh Charges Against Chidi Duru

By Iyobosa Uwugiaren in Abuja

The Economic and Financial Crimes Commission (EFCC) may file fresh charges against a former House of Representatives member, Hon. Nze Chidi Duru, as a result of a fresh petition sent to the  agency by some shareholders of the First Guarantee Pension Limited, a pension fund administrator.

A senior operative official of the anti-corruption agency confirmed the fresh petition against  Duru.

The contentious role of Duru in the pension firm, recently took a treacherous and criminal dimension, when Duru along with his lawyer, Mr. Smart Iheazor, were recently arraigned before a Chief Magistrate’s Court in Tinubu, Lagos, by the Zone 2 Command, Nigeria Police Force, Onikan, for alleged stealing. They were charged with four-count bordering on ‘’conspiracy, stealing, breach of peace and impersonation.’’

The prosecutor, the Nigeria Police Force, said Duru and his gang were said to have conspired and committed the offences on January 11, 2017, when they, in company of ‘’other suspects still at large’’, invaded the head office of the First Guarantee Pension Limited (FGPL) with the intent to forcefully take over the management and assets of the pension fund administrator.

They were also alleged to have carted away some valuables belongings to the company.

The magistrate had granted the accused bail in the sum of N500, 000 each with one surety each in like sum. The matter was adjourned till March 9, 2017 for trial proper. Duru was arrested and detained by the police on January 13, 2017 for the alleged offences.

In the new petition against Duru, the shareholders of FGPL accused the ex-lawmaker of ‘’diverting millions of naira and the property’’ of the pension fund administrator for personal use against the law and code of governance of the company.

The ostensible current crisis enveloping FGPL started on August 12, 2011, when the regulatory agency of the pension fund administrator, the National Pension Commission (PenCom), took certain regulatory measures on FGPL, based on the findings of the various routine and special examinations undertaken by PenCom on the PFA in 2007, 2008, 2009, 2010 and 2011.

The examinations were said to have revealed persistent breaches and flawed corporate governance practices.

According to the petition: ‘’The report of the special examination carried out in March 2011, among other things, allegedly indicted Chief Orlando 0. Ojo, the erstwhile Chairman of the PFA; Chidi Duru, the erstwhile Vice Chairman of FGPL, and Mr. Derrick Roper, an erstwhile director of the company–representing the interest of Novare Holdings (Pty) Ltd of South Africa, for violations of the Code of Ethics and Business Practices, the Code of Corporate Governance for Licensed Operators issued by PenCom, the provisions of the Pension Reform Act (PRA) 2004 (which was in force at that time) and other laws of the land.

‘’In view of the grave implications of the above infractions and in order to protect the pension assets, which is currently worth over N160 billion being managed by the PFA on behalf of over 160,000 Retirement Savings Account holders, PenCom took regulatory actions on the three indicted directors by removing them from the Board of the PFA pursuant to the provision of Section 88(2) of the PRA 2004’’, the petition stated.

‘’Furthermore, pursuant to Sections 20(i) and 21(j) of the PRA 2004 and Framework for the Resolution of Failing Operators, PenCom set-up an Interim Management Committee (IMC) to superintend over the affairs of the PFA until the shareholders convene an Emergency General Meeting (EGM) and re-constitute the PFA’s Board.’’

The content of the petition further revealed that as at today, several cases instituted following—-the intervention in FGPL are still pending before different courts of law, and following this the shareholders of FGPL have not been able to reconstitute the PFA’s Board.

The Comrade Isa Aremu-led interim management committee set-up by PenCom still remains in charge of the management of the FGPL, and there appears to be a deadlock regarding the resolution of the disputes among the shareholders, and between a category of the shareholders and PenCom for now.

The petition further added, ‘’Arising from the regulatory intervention in FGPL, different suits are currently pending before the Federal High Court and the Court of Appeal respectively: an appeal filed by PenCom before the Court of Appeal against the judgement of the Federal High Court (FHC) in Derrick Roper & Anor vs. National Pension Commission & Anor.

It was learnt that a case instituted by some shareholders of FGPL led by Alhaji Kashim Imam, against other shareholders of the PFA and the Commission seeking an order to compel the commission to implement the report of the special examination of First Guarantee Pension Limited, is also pending in court.

A shareholder, Alhaji Kashim Imam, was said to have applied and obtained an order from the Federal High Court, Lagos for the PFA to hold an Extraordinary General Meeting (EGM), in a suit no. FHC/L/CS/145/2012—Alhaji Kashim Ibrahim-Iman vs First Guarantee Pension Limited. The order for the EGM was set aside upon the application of Chief Ojo and Chidi Duru. The Applicant had filed and served notice of appeal against the ruling.

Chidi Duru, BP Outsourcing Limited, Grand Towers Plc and Arthur Ogbulefu—representing Genoou Concept, have also filed an action against FGPL and the Corporate Affairs Commission (CAC).

The action seeks to challenge the implementation of the commission’s share verification and audit review on the basis that it was an outcome of the Target Examination Report on FGPL, the use of which had been restrained by the orders of Justice D.U. Okorowo in the suit filed by Derrick Roper against the Commission at the Federal High Court. The case is still pending.