N4.8bn Paid To Silva McNamara Was For Clandestine Operations Not Illicit- Obanikoro
Former Minister of State For Defence, Senator Musiliu Obanikoro on Tuesday told a Federal High Court in Lagos that the N4.8 billion paid into a company, Silva McNamara by the National Security Adviser (NSA) was not an illicit fund but it was for clandestine security operations.
Obanikoro also claimed that the funds from which he later transferred $5 million under the directive of former NSA, Col Sambo Dasuki to former Governor of Ekiti State, Ayodele Fayose, was part of security funds, which is also being used to fund the local Joint Task Force on Boko Haram.
He also told the trial judge, Justice Mojisola Olatoregun that he still report to the office of the Economic and Financial Crimes Commission ( EFCC ) from time to time.
Obanikoro said his reporting to the commission’s office was part of the conditions attached to the administrative bail granted him by EFCC and that he believed that he is still under investigation.
The Economic and Financial Crimes Commission (EFCC) had Arraigned Fayose before the court alongside his company, Spotless Limited over allegations of laundering the sum of N3.3 billion.
Fayose, however, pleaded not guilty to the charge.
Obanikoro, who is the fifth EFCC witness in the trial, also told the court that the NSA has responsibility for coordination of security in the country and all the security agencies but that some of their operations are clandestine and are usually not documented.
He said, “It borders me as a person that clandestine operations of the NSA are described as illicit. It should worry every Nigeria. I am surprised that the current NSA can characterise the funds as illicit.
“The local Joint Task Force on Boko Haram is still being funded by the NSA and the operation started under our watch,” he claimed.
The former Minister while being cross-examine by the counsel to Spotless Limited, Olalekan Ojo, stated that, “It is correct that I am being investigated for having been privy to illicit transfer of funds. The allegation has not been withdrawn.
Obanikoro further testified that there was no contract between NSA and Taiwo Kareem who he said owned Sylvan Mcnamara Limited through which NSA transferred the funds.
The former minister said he liaised with Diamond Bank on NSA behalf, “I gave instructions to Alex Otti (former Diamond Bank Managing Director) for the payment of N1.2 billion. The NSA never interacted with the bank. I gave verbal instructions to Diamond Bank.
“I didn’t reduce it to writing because of the nature of the transaction. There was no written instruction for the release of N1.2billion,” he stated.
Obanikoro also told the court that there was no written resolution by the board of Sylvan Mcnamara Limited that he should operate the account.
He said, “The moment Sylvan Mcnamara decided to work with NSA for security purposes, it was agreed that I would supervise the account because of government funds in it. A verbal agreement was reached to that effect.
“No, Fayose does not have any relationship with Sylvan Mcnamara.”
When he was asked by Ojo if he was aware that two of your children were signatories to Sylvan Mcnamara’s account?”
Obanikoro said, “Yes, they were signatories to the account prior to the operation in 2014. My children have relationship with the company. I also have relationship with the company.”
When asked why there was no documentations for most of the transactions on the account, he said, “As a corporate citizen, the bank had a responsibility to support the activities of security operations by government institutions.
“If you work in security operations, you will see worst things. And it’s all over the world, not only in Nigeria.”
Ojo: “You had known Sylvan Mcnamara long before you recommended it to NSA.”
Obanikoro: “Of course.”
Ojo: “You recommended Sylvan Mcnamara because of your interest in the company.”
Obanikoro: “That’s preposterous. I was in charge of security when I was Commissioner for Home Affairs in Lagos. I knew the owner of the company then as a skilful security operative. When the opportunity came, I didn’t hesitate to recommend him to the NSA. The company account went through three phases of ownership.”
The former minister admitted that one of the former directors in Sylvan Mcnamara, Ikenna Ezekwe, lived with him in his Parkview Estate, Ikoyi home for years before he left.
On how much was paid to Sylvan Mcnamara in total, the witness said: “About 4.7 billion was paid to Sylvan Mcnamara’s account from NSA.”
The trial judge, Justice Mojisola Olatoregun later adjourned the case till February 6 (today) for continuation of trial.
