Alleged $2.1m unlawful enrichment: Court clears former NHIS Boss Femi Thomas, orders EFCC to return his seized funds within 14 days
By Onyewuchi Ojinnaka
Justice Ayokunle Faji of the Federal High Court sitting in Lagos on Thursday delivered judgement in the $2.1 million money laundering case filed by the Economic and Financial Crimes Commission (EFCC) against a former Executive Secretary of the National Health Insurance Scheme (NHIS), Dr. Femi Thomas.
The court discharged and acquitted Thomas on five out of the six counts charge bordering on money laundering and unlawful enrichment brought against him by the anti-graft agency and find him guilty on only one count which is cash transaction above the legal threshold of N5 million without going through a financial institution.
Delivering his judgement, Justice Faji held that the EFCC failed to prove beyond reasonable doubt the allegations contained in counts 1, 2, 3, 4, and 7. The judge noted that the Commission admitted during trial that it did not investigate several claims made by the defendant and had not established unlawful enrichment against him.
Consequently, the judge ordered the EFCC to release the funds previously seized from Thomas, noting that the agency had no basis to continue holding them. However, the court directed that the release of the funds would be subject to the payment of a N10 million fine imposed on him for the single count on which he was convicted.
Specifically, the court found Thomas guilty on count five, which involved making a cash payment above the N5 million threshold permitted by law for individuals. He was accordingly sentenced to pay N10 million fine in lieu of a custodial sentence.
The trial Judge also found the second defendant, Kabiru Sidi, guilty on count six which is the only count against him for falsely claiming ownership of the money in question during an EFCC investigation.
During the allocutus, counsel to the first defendant, Mr. Collins Ogbonna, who led Mr. Kunle Gbolahan, pleaded for leniency, describing Dr. Thomas as a first-time offender with an outstanding professional record. He noted that the defendant had trained many cardiologists in Nigeria, established the cardiology department at Lagos University Teaching Hospital (LUTH). He served the nation meritoriously as a Commissioner and as an executive secretary of NHIS and is now a retiree with a dependent child still in school. He made his money through hard work.
Ogbonna urged the court to impose a non-custodial sentence, preferably a fine, in consideration of the defendant’s contributions to the country and his family circumstances.
Counsel for the second defendant, Mr. O. Ajanaku, also pleaded for mercy, citing his client’s serious health challenges.
Justice Faji, while delivering his final verdict, imposed a fine of N10 million on Dr. Thomas and asked Sidi to pay a fine of N100,000.
The trial judge said , “I have listened to your allocutus and noted that you are regular in court, that you have no criminal record, that you have served the nation meritoriously as a commissioner and as Executive Secretary and therefore your integrity is not doubted”.
The court further held that Dr Thomas made his money legitimately, adding that the money is not proceeds of crime.
Furthermore the court gave Thomas seven days grace from the day of judgement to pay the fine but added that he should not travel out of the country untill the payment of fine is made.
“On the seized money the court held that it is not a proceed of crime. The transaction in count 5 was only above the N5 million threshold”
” I order the prosecution to return the money to you within 14 days.
Recall that Dr. Femi Thomas and Kabiru Sidi were arraigned on June 28, 2017, before Justice Faji on an amended seven-count charge bordering on money laundering involving $2,198,900. The charges included conspiracy, unlawful enrichment, and making false statements. They had pleaded not guilty to the charge.
One of the charges reads:
“That you, Dr. Martins Oluwafemi Thomas, a former Executive Secretary of the National Health Insurance Scheme, and Mrs. Femi Thomas (still at large), on or about July 3, 2015, in Lagos, within the jurisdiction of this Honourable Court, procured Bamidele Ibitoye to remove from Lagos the sum of $2,198,900, being proceeds of your unlawful enrichment as a public officer, thereby committing an offence contrary to Section 18 and punishable under Section 15(2)(c) and (3) of the Money Laundering (Prohibition) Act, 2011 (as amended).”
Another count accused Kabiru Sidi of falsely claiming ownership of the money during an interview with EFCC investigator Afeez Mustapha.
