Nigeria and South Africa may be heading the way of a major diplomatic spat as the two governments row over the seizure of money meant for purchase of arms by the Nigerian government from South Africa.
The Asset Forfeiture Unit of the National Prosecuting Authority (NPA) in South Africa has seized $5.7 million for yet another arms deal between South Africa and Nigeria, reported City Press, a Johannesburg-based newspaper.
South Africa had about a fortnight ago seized $9.3 million which the Nigerian government had freighted aboard a private jet, which is originally owned by the President of Christian Association of Nigeria (CAN), Pastor Ayo Oritserjafor, but is under lease to an airline operating firm.
But this time around, the Nigerian government did not mince words in claiming ownership of the money and asserting its legitimacy.
The Office of the National Security Adviser (ONSA), in a statement on Monday, while justifying the large movement of cash across borders for the purchase of arms, said the transactions were legitimate.
The money was seized in both cases for allegedly being the proceeds of illegal transactions.
City Press’ sister paper Rapport has learnt that the department for offences against the state in the Special Investigating Unit is also involved.
Documents in the newspaper’s possession showed that the earlier consignment was approved by the Nigerian government – that the country’s National Security Adviser, Col Sambo Dasuki (rtd), personally issued the end-user certificate for the transaction.
An entire “shopping list” was supplied with the certificate, which included everything from helicopters to unmanned aircraft, rockets and ammunition.
Sources close to the investigation said the latest transaction was between Cerberus Risk Solutions, an arms broker in Cape Town, and Societe D’Equipments Internationaux, a Nigerian company in Abuja.
An impeccable source said this company paid the R60 million (N1.2 billion) into Cerberus’ account at Standard Bank.
Cerberus was previously registered as a broker with the National Conventional Arms Control Committee (NCACC), but the registration expired in May this year.
The marketing and contracting permits also expired at the same time.
The company has since applied for re-registration, but the application was 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.
Last month, $9.3 million in $100 bills stashed in suitcases conveyed by two Nigerians and an Israeli, Eyal Mesika, in a private aircraft belonging to the President of the Christian Association of Nigeria (CAN), Pastor Ayo Oritsejafor, was seized at Lanseria Airport, north of Johannesburg.
Oritsejafor said the plane had been leased to a third party and that he could not be blamed for its schedules.
The federal government later admitted it was behind the arms deal, claiming it was trying to procure arms in a secret deal to defeat the terrorist sect, Boko Haram.
A probe planned by the Senate into the transaction is ongoing while the House of Representatives threw out a motion seeking a probe.
At the time, the South Africa Revenue Service (SARS) said customs officers became suspicious when the passengers’ luggage were unloaded and put through the scanners.
Under South African laws, a person entering or leaving the country is expected to carry cash not exceeding $2,300, or the equivalent in foreign currency notes.
According to a statement by its media adviser, PRNigeria, the Nigerian Secuirty Adviser said the transaction was legitimate.
It that the latest report by the South African media had vindicated the position that the cash-for-arms transaction was legitimate and was done with state approval.
ONSA however wondered why the South African authorities were blowing the issue out of proportion and making it look like an illegal deal.
“I don’t know why South Africa is doing this to us. What do they want to achieve and stand to gain? Surely, if one reads the story very well, it is not hard to see that the whole transaction was legitimate and was done with banks and companies involved,” PRNigeria quoted an ONSA source as stating.
Also speaking on the latest cash seizure, PRNigeria said though it looks like an old story being refreshed for impact, the South African media had published documents confirming the legitimacy of the botched arms deals between Nigeria and South Africa.
“The reports by Rapport and City Press appear to finally vindicate the federal government’s official position that the transactions were legitimate as they confirmed that the end user certificates and a ‘shopping list’ accompanied the transactions as well as a note from Nigerian government authenticating the deals,” the media adviser said.
Also, a top security source in the intelligence service disclosed that “in issuing an end-user certificate, ONSA ensured that it carried all relevant agencies and stakeholders along. Therefore, such an undertaking was not unilateral.
“For security reasons, the chains leading to the issuance of end-user certificate cannot be put in the public domain.
“The recent interest in arms purchase was informed by the challenges of the insurgency which our nation has been grappling with in the last few years. This is why the understanding of all Nigerians is necessary.
“Nigeria is desperate to counter the activities of the terrorists no matter what it takes even when some of our friends are not being fair to us.
“The government appeals to the media and all Nigerians, especially the opposition, to consider the overall national interest on security issues. They should not read negative meanings to every good intention of government in tackling the insecurity in the country.”
Speaking further, the intelligence source was of the view that the mounting interest in Nigeria’s arms deals in the past few weeks appear to suggest that some vested interests do not want the nation to win the war against the terrorists.
He said: “Some fifth columnists are certainly at work to achieve a clandestine purpose.
The government and some top intelligence officers in Nigeria are concerned about how some officials of South Africa decided to frustrate the efforts of Nigeria at containing the activities of terrorists operating in the North-eastern axis, especially since authoritative sources confirmed that there was official communication at the top level between the two governments.
“Some diplomats in Nigeria are also concerned that despite the leeway given to South African companies to thrive in Nigeria, there are still officials of the country who are determined to frustrate Nigeria, which in April this year overtook South Africa as Africa’s largest economy.
The intelligence official maintained that the current story might just be a re-harsh of the old story with a new twist.
Similarly, the Special Assistant to the NSA, Mr. Adekunle Karounwi told THISDAY that there was nothing illegal about the controversial $5.7m cash-for-arms deal seized by the South African authorities.
Karounwi said the two companies involved are duly registered both in Nigeria and South Africa and the transactions done through a bank.
According to him, the problem only arose when the South African company could not fulfill its own part of the bargain with respect to the process of returning the money to Nigeria through the bank before it was impounded by the authorities.
“There is nothing illegitimate in that transaction. A company duly registered in Nigeria and another legitimate company in South Africa did a legitimate business with a recognised bank.
“The only problem was that the one in South Africa could not deliver on the job and tried to return the cash through a bank. Now how is that an illegal transaction?”, he asked.
He added: “We have hosted South African companies like MTN, DSTV and others doing businesses in Nigeria through the same medium unmolested. So how come they are trying to ridicule the country like this?
“It is like some people are bent on embarrassing Nigeria at any slightest opportunity but the war against terror must be won.”
