Speaker: Chief Godwin Obla , SAN, FCIArb . (with
Assistance from Damilare George Adeyemi Esq)
Paper delivered to the Governing Council of the
University of Nigeria, Nsukka, Nigeria at Abuja on the
31st of January 2014
1

Definition of Seminar Topic

Ignorance of the Law is no Excuse

Avoidable Pitfalls Tips.



Graphic Enumeration of Relevant Laws vis-a-vis the Applicable
Statutory Provisions
Core Areas to be Scrupulously Followed and
Consequences of Violations
Attendant
Typical Nigerian Attitude and the Consequential Price to be Paid.
2


Pitfalls within the purview of this text connote the
attendant dangers/consequences of violations of acts
and activities statutorily regulated under the Nigerian
laws.
Avoidable Pitfalls in the Management of Public Funds
from a financial Crime prosecutor’s perspective imply
due compliance with the relevant provisions of the
Applicable laws relating to the management of public
funds to obviate the inherent dangers/consequences
of violations of financial acts/activities sanctioned
under the Nigerian laws.
3

To avoid Pitfalls observe the following tips with care:

Know the relevant laws



Know the relevant statutory provisions relating to
financial crimes
Know the prescribed procedures for Management of
Public Funds and Follow
Know the scope, extent and limit of your role , duty or
responsibility.
4


UNIVERSITY OF NIGERIA ACT CAP. U11 LFN ,2004.
ECONOMIC
AND
FINANCIAL
(ESTABLISHMENT ) ACT 2004.
CRIMES

MONEY LAUNDERING (PROHIBITION ) ACT 2011

PUBLIC PROCUREMENT ACT ,2007

CORRUPT PRACTICES
COMMISSION ACT 2003.
AND
OTHER
COMMISSION
RELATED
OFFENCES

CODE OF CONDUCT BUREAU AND TRIBUNAL ACT C.15 LFN 2004

FISCAL RESPONSIBILITY ACT 2007
5




Simply put; the Status of members of the University Governing Council,
except where otherwise stated by the law, is that of a Public Officer:
Public Officer ,under paragraph 14 of the Second Schedule of the Code
of Conduct Bureau and Tribunal Act , include Chairmen and members
of the Boards of other government bodies and staff of statutory
corporations and of companies in which the Federal or any State
Government has controlling interest.
The members of the University Governing Council ,under Part II of the
fifth Schedule to the 1999 Constitution of the Federal Republic of
Nigeria (as amended) are qualified as Public officers)
Pursuant to Part II of the fifth Schedule to the 1999 Constitution of the
Federal Republic of Nigeria (as amended) Public Officers include:
Chairman and members of the Boards or other governing bodies and
staff of statutory incorporations and of companies in which the Federal
or State Government has controlling interest.
6


The Governing Council or Finance and General
Purposes Committee of the Governing Council
control the University Funds subject to the
direction of the Governing Council of this
University.( See
Section 6 (1) & (2) of the
University of Nigeria Act)
The
Finance
and
General
Purposes
Committee/Governing Council are expected to
comply with the provisions of any other statutes
made by the University( in relation to public
funds) subject to the University of Nigeria Act.(See
Section 10 (1) of the University of Nigeria Act)
7


Intro: The Economic and Financial Crimes Commission (EFCC)
was established by section 1 of the Economic and Financial Crimes
Commission Act and is charged with enormous responsibilities
which include; the investigation of all financial crimes to wit;
advance fee fraud , money laundering , counterfeiting ,illegal
charge transfers, futures market fraud, fraudulent encashment of
negotiable instruments, computer credit card fraud, contract scam,
etc (See Section 6 of the EFCC Act).
Section 7 (1) of the Economic and Financial Crimes Commission
Provides The Commission has power to (a) cause investigations to
be conducted as to whether any person ,corporate body or
organization has committed an offence under this Act; and (b)
cause investigations to be conducted into the properties of any
persons if it appears to the Commission that the person’s life style
and the extent of his properties are not justified by his source of
income.
8

The EFCC is Charged with the responsibility of
enforcing the following provisions:
(a)
the Money Laundering Act 2004;No.7. 1995 No.13
(b)
the Advance Fee Fraud
and Other Fraud
Financial Related Offences Act 1995;
(c)
the Failed Banks (Recovery of Debts) and
Financial Malpractices in Banks Act , as amended;
9
(d) the Banks and Other Financial Institution s Act 1991,as amended ;
(e) Miscellaneous Offences Act ;
(f) any other law or regulation relating to Economic and Financial
Crimes, including Criminal and Penal code.(See section 7(2) of the
EFCC Act)


PITFALLS /CONSEQUENCES OF VIOLATIONS IDENTIFIED
VIS-A-VIS THE EFCC ACT.
Any
member of this Governing Council who gives false
information or makes any misrepresentation in material particular
commits an offence and such offender is liable to a term of
imprisonment not less than 3 years and not more than 5 years.
(See section 16 (1) & (2) of the EFCC Act)
10



Any member of this Governing Council who ;
whether by concealment , removal from jurisdiction ,transfers to
nominees or otherwise retains the control of the proceeds of an
Economic or financial crime on behalf of another person knowing
that the proceeds are as a result of criminal conduct by the
principal; or
knowing that any property in whole
or in part directly or
indirectly representing another person’s proceeds of an economic
or financial crime , acquires or uses that property or has
possession of it , commits an offence and is liable on conviction to
imprisonment for a term not less than 3 years or to a fine
equivalent to 100 per cent of the value of the proceeds of the
economic or financial crime or to both such imprisonment and
fine . (See section 17(a) & (b) of the EFCC Act)
11

CONSEQUENCE OF VIOLATION:

Public officer who engages;
(a)
(b)
(c)
(d)
in the acquisition , possession or use of property knowing at the time of its acquisition
, possession or use that such property was derived from any offence under this Act.
in the management , organisation or financing of any offence under this Act;
in the conversion or transfer of property knowing that such property is derived from
any offence under the EFCC Act ; or
in the concealment or disguise of the true nature , source , location, disposition ,
movement, rights with respects to or ownership of property knowing that such
property is derived from any offence under this Act, commits an offence under this
Act; and is liable on conviction to the penalties provided in Section 18(2) of the EFCC
Act .
is
liable for a term of imprisonment not less than 2 years and not more than 3
years(See Section 18(2) of the EFCC Act):
12

(a)
(b)
(c)
Any person convicted of an offence under the EFCC Act shall forfeit to
the Federal government of Nigeria:
all the assets and properties which may or are the subject of an interim
order of the court after an attachment by the commission as specified in
section 26 of this Act;
Any asset or property confiscated , or derived from any proceeds the
person obtained directly or indirectly as a result of such offence not
already disclosed in the assets declaration form specified in Form A of
the schedule to this Act or not falling under paragraph ‘a’ above.
Any of the person’s property or instrumentalities used in any manner
to commit or to facilitate the commission of all offence not already
disclosed in the declaration of assets form or not falling under paragraph
A of this subsection (See section 20(1) of the EFCC Act).
13

ASSETS DECLARATION UPON ARREST :

CONSEQUENCE OF VIOLATION
A person arrested for the commission of an offence under this Act, such person shall
make a full disclosure of all his assets and properties by completing the declaration of
assets form as specified in form A of the schedule to the EFCC Act and shall be
investigated by the EFCC and if he –
(a)
Knowingly fails to make full disclosure of his assets and liabilities; or
(b)
Knowingly make a declaration that is false; or
(c)
Fails ,neglect or refuses to make a declaration or furnishes any information required, in
the declaration of assets form ,
Commits an offence under this Act and is liable on conviction to imprisonment for a term not
exceeding 5 years. (See section 27 (1)(2) & (3) of the EFCC Act)
14

A person who-
(a)
wilfully obstructs the EFCC or any authorised officer of the
EFCC in the exercise of any of the powers conferred on the
commission by this Act; or
(b)
fails to comply with any lawful enquiry or requirement
made by any authorised officer in accordance with the
position of the EFCC Act, commits an offence under this
Act and is liable on conviction to imprisonment for a term
not exceeding 5 years or to a fine not below the sum of
500,000 or to both such imprisonment and fine. (See
Section 38(2) of the EFCC Act).
15


PITFALLS IDENTIFIED VIS-A-VIS THE ML ACT (2011).
Every person or body corporate shall not, except in a
transaction through a financial institution, make or accept
cash payment of a sum exceeding:
(a)
N5,000,000 or its equivalent, in the case of an individual ;or
(b)
N10,000,000 or its equivalent in the case of a body
corporate. (See Section 1 of the EFCC Act.)
16



(a)
(i)
Public Officers should observe risks management
system in place respecting financial transactions
involving their institutions. {See Section 3(8) of
MLA (2011)}.
CONSEQUENCE OF VIOLATION:
Person whoconverts or transfers resources or properties
derived directly from :
Illicit traffic in narcotics drug or psychotropic
substances; or {See Section 15(1) of MLA (2011)}.
17
(ii)
Participation in an organised criminal group and racketeering ,
terrorism, terrorist financing, trafficking in human being and
migrant ,smuggling, tax evasion , sexual exploitation, illicit arms
trafficking in stolen and other groups, bribery and corruption,
counterfeiting currency , counterfeiting and piracy of products,
environment crimes, murder, grievous bodily injury,
kidnapping, illegal restraints and hostage takings, robbery or
thefts, smuggling, extortion, forgery, piracy , insider trading and
market manipulation and any other criminal act specified in this
Act, or any other legislation in Nigeria relating to money
laundering illegal bunkering , illegal mining with the aim of
either concealing or disguising the illicit origin of the resources
or property or aiding any person involved to evade the illegal
consequences of his action; {See Section 15(1) of MLA (2011)}.
18
(b) collaborate in concealing of disguising the genuine
nature, origin, location, disposition, movement or
ownership of the resources property or right
thereto derived directly or indirectly from the Act
specified in paragraph a of this subsection
commits an offence under this section and is
liable on conviction to imprisonment for a term
not less than 5 years but not more than 10 years.
{See Section 15(1) of MLA (2011)}.
19


CONSEQUENCE OF VIOLATION
A person who commits an offence under
section 15 (1) of MLA 2011 shall be subject to
the penalties specified in that subsection
notwithstanding that the various acts
constituting the offence were committed in
different country or places. {See Section 15(2) of
MLA (2011)}.
20

(a)
(b)
(c)
A person who –
conspires with, aids, abets, or counsels any other person to
commits an offence;
attempts to commit or is an accessory to an act or offence; or
Incites, procures or induces any other person by any means
whatsoever to commit an offence under this Act, commits an
offence and is liable on conviction to the same punishment as is
prescribed for that offence under this Act. {See Section 18 of
MLA (2011)}. FRN V. SABIT IKUFORIJI & ANOTHER
21



PITFALLS IDENTIFIED VIS-A-VIS THE PUBLIC
PROCUREMENT ACT
The Council as public officer must comply with the
procedures for procurement under the Public
Procurement Act subject to prior review thresholds as
may from time to time be set by either the Bureau
particularly under section 7 (1) (a)-(b) or by the
relevant statutes; {See Section 15 (1) (a) of PP
Act(2007)}
Procurement should be :
22



based only on procurement plans supported by prior budgetary
appropriations
and no procurement proceedings shall be
formalised until the procuring entity has ensured that funds are
available to meet the obligations and subject to the threshold in
the regulations made by the Bureau has obtained the “Certificate
of ‘No Objection” from the Bureau. (may not be applicable in the
light of the University autonomy granted by the Federal
Government of Nigeria to Nigerian Universities)
by open competitive bidding
in a manner which is transparent , timely, equitable for ensuring
accountability and conformity with this Act and regulations
deriving therefrom. { See Section 16 (1) of PP Act(2007)}
23



With the aim of achieving value for money and
fitness for purpose.
In a manner which
economy and efficiency
promotes
competition,
In accordance with the proceedings and timeline
laid down in PP Act(2007) and as may be specified
by the Bureau from time to time. { See Section 16
(1) of PP Act(2007)}.
24

where the Bureau has set prior review thresholds
in the procurement regulations , no funds shall be
disbursed from the threshold
of Federation
Account or any Bank Account of any procuring
entity for any procurement falling above the
thresholds unless the cheque , payment or other
forms of request for payment is accompanied by
“Certificate of ‘No Objection” to an award of
contract duly issued by the Bureau.
25


Code of Conduct of Public Officers involved in Public
Procurement:
All public officers involved in public procurement and
disposal of Assets shall maintain the highest standard
of ethics in their relationship with persons real or
corporate who seeks government commerce whether
as a bidder, supplier, contractor ,or service provider by
developing transparent , honest and professional
relationships with such persons. {See Section 57(8) of
PP Act (2007)}
26

Every public officer involved directly or indirectly in
matters of public procurement and disposal of assets shall :
(a)
divest itself of any interest or relationships which are
actually or potentially inimical or detrimental to the best
interest of Government and the underlining principles of
PP Act(2007)Act ; and
(b)
Not engaging or participate in any commercial transaction
involving the Federal Government its Ministries, extra
ministerial departments, corporations where his capacity as
public officer is likely to confer any unfair advantage –
pecuniary or otherwise on him or any person directly
related to him. {See Section 57(8) of PP Act (2007)}
27


any person who engages in public procurement
and disposal of assets who has assumed , or is
about to assume, a financial or other business
outside business relationship that might involved a
conflict of interest, must immediately declare to
the authorities any actual or potential interest. {See
Section 57(10) of PP Act (2007)}
such a declaration shall bring to the notice of the
relevant authority that
a conflict of interest
already exist. {See Section 57(11) of PP Act (2007)}
28

(a)
(b)
(c)
Conflicts of interests exist where a person :
Possesses an interest outside his official duties
that materially
encroaches on the time or attention which should otherwise be devoted
to affairs of government.
Possesses a direct or indirect interest in or relationship with a bidder
,supplier, contractor, or service provider that is inherently unethical or
that may be implied or constructed to be , or make possible personal
gain due to the person’s ability to influence dealings;
Entertains relationships which are unethical , rendering his attitude
partial toward the outsider for personal reasons or otherwise inhibit the
impartiality of the persons business judgment ; {See Section 57(12) of
PP Act (2007)}
29
(d)
(e)
(f)
(g)
(h)
Places by acts or commissions the procuring entity he represents or the
Government in an equivocal , embarrassing , or ethically questionable
position;
entertains relationships compromising the reputation or integrity of the
procuring entity he represents or the Government.
receives benefits by taking personal advantage of an opportunity that
properly belongs to the procuring entity he represents or the
government.
creates a source of personal revenue or advantage by using public
property which comes into his hands either in course of his work or
otherwise ; and
Disclose confidential information being either the property of his
procuring entity , the Government or to a supplier , contractor, or service
to unauthorized persons. {See Section 57(12) of PP Act (2007)}
30

(a)
(b)
(c)
(d)
Offences to which a person/public officer may be liable under this Act
include:
entering or attempting to enter into a collusive agreement whether
enforceable or not , with a supplier, contractor or consultant where the
prices quoted in the respective tenders , proposals or quotations are or
would be higher than would have been the case had there not been
collusion between the persons concerned ;
conducting or attempting to conduct procurement fraud by means of
fraudulent and corrupt Act, unlawful influence , undue interests, favour,
agreement , bribery or corruption;
directly , indirectly, or attempting to influence in any manner the
procurement process to obtain an unfair advantage in the award of a
procurement contract;
splitting of tenders to enable the evasion of monetary threshold set; {See
Section 58(4) of PP Act (2007)}
31
(e) Bid rigging ;
(f) Altering any procurement document with the intent to influence the outcome of a tender
proceeding ;
(g) Altering or using fake documents or encouraging their use and wilful refusal to allow the
Bureau or its officers to have access to any procurement records. {See Section 58(4) of
PP Act (2007)}
CONSEQUENCE OF VIOLATION

Any person who while carrying out his duties as an officer of the Bureau , or any
procuring entity who contravenes any provision of this Act commits an offence and is
liable on conviction to a cumulative punishment of :
(a)
(b)
a term of imprisonment of not less than 5 calendar years without any option of fine ;
and
b) summary dismissal from government service. {See Section 58(5) of PP Act (2007)}
32
PITFALLS IDENTIFIED VIS-A-VIS The CPC Act (2003)




Offence of Accepting Gratification.
Penalty: 7 years imprisonment. See Section 12 of the
CPC Act (2003).
Corrupt offers to Public Officers.
Penalty: 7 years imprisonment. See Section 13 of the
CPC Act (2003).
33






Corrupt demands by persons.
Penalty: 7 years imprisonment. See Section 14 of
the CPC Act (2003).
Fraudulent Acquisition of Property.
Penalty: 7 years imprisonment. See Section 15 of
the CPC Act (2003).
Fraudulent Receipt of Property.
Penalty: Guilty of felony. See Section 16 of the
CPC Act (2003).
34






Penalty for offences committed through postal system.
Penalty: 7 years imprisonment. See Section 17 of the
CPC Act (2003).
Deliberate frustration of investigation
by the
Commission.
Penalty: Guilty of felony & liable to 7 years
imprisonment. See Section 18 of the CPC Act (2003).
Making false statement or returns.
Penalty: 7 years imprisonment. See Section 19 of the
CPC Act (2003).
35






Offence of giving or Accepting Gratification through Agent.
Penalty: 5 years imprisonment or a fine not less than
N200,000. See Section 20 of the CPC Act(2003).
Bribery of Public officer.
Penalty: 5 years imprisonment with hard labour. See
Section 21 of the CPC Act (2003).
Using office or position for gratification .
Penalty: 5 years imprisonment without option of fine. See
Section 22 of the CPC Act (2003).
36





Forfeiture of gratification and other penalties. : Forfeiture
subject of gratification or pay a fine not less than five
times the sum or value of such gratification or ten
thousand. See Section 23 of the CPC Act (2003)
Bribery in relation to auction.
Penalty: A fine of the current price of the property the
subject of auction and 3 years imprisonment. See Section
24 of the CPC Act (2003).
Bribery for giving assistance ,etc..., in regards to contract.
Penalty: 7 years imprisonment and a fine not less that 1
million naira. See Section 25 of the CPC Act (2003).
37




Duty to report bribery transactions.
Penalty: A fine not more than one hundred
thousand naira or not more than 2 years
imprisonment, or both . See Section 26 of the CPC
Act (2003).
Dealing with, using, holding, receiving or
concealing gratification.
Penalty: Not more than 5 years imprisonment. See
Section 27 of the CPC Act (2003).
38




Making false or misleading statement to the
commission .
Penalty: Not more than 7 years imprisonment. See
Section 28 of the CPC Act (2003).
Attempts ,conspiracies, abetments, punishable as
offence.
Penalty: Liable for punishment provided for such
offences See Section 29 of the CPC Act (2003)
39


(a)
Conflict of interest with duty : Section 5 of the CCBT
Act prohibits a public officer from putting himself in a
position where his personal interest conflicts with his
duties and responsibilities.
Restriction on Specified Officers: Without prejudice to
section 5 of the CCBT Act , a public officer shall not:
receive or be paid the emoluments of any public office
at the same time as he receives or is paid the
emoluments of any other public office; {See Section 6
of the CCBT Act}.
40

Prohibitions of
foreign accounts; public
officers cannot operate or maintain a foreign
account. See Section 7 of the CCBT Act.
41


•
Gifts or benefits in Kind:
A public officer shall not ask for or accept any property or
benefits of any kind for himself or any other person on
account of anything done or omitted to be done by him in
the discharge of his duties. (See section 10(1) of CCBTA)
Receipt of gift or benefit in kind by public officer from
entity having contract with the Government is presumed to
have contravened the provision of section 10(1) of CCBTA
(See section 10(2) of CCBTA).But gifts/benefits received by
a public officer from relatives or personal friends
particularly during public or ceremonial occasions are
exempted. (See section 10(3) of CCBTA)
42



Bribery of Public Officers: property/gift/benefits
offer to induce a public officer in order to secure a
favour((See section 12 of CCBTA).
Abuse of Powers : Public officer’s unlawful intentional
acts prejudicial to people’s rights or contrary to any
government policy. (See section 13 of CCBTA)
Membership of any society incompatible with the
functions or dignity of office of the members of the
University governing Council (See section 14 of
CCBTA)
43


CONSEQUENCE OF VIOLATIONS:
The following punishments may be imposed on
any public officer in contravention of any
provisions of CCBTA :
(a)
Vacation of office
(b)
Disqualification from holding office (whether
elective or not) for a period not exceeding ten
years; and
44
(a)


Seizure and forfeiture to the state of any property
acquired in abuse or corruption of offence. (See
section 23(1) & (2) of CCBTA)
It is of prime importance to note that the above
punishments are without prejudice to the
additional punishments prescribed by any other
written law in force in Nigeria for the same
offence. (See section 23(3) of CCBTA)
Fiscal Responsibility Act: No punishments
provisions.
45


Relevant Case Of Federal Republic Of Nigeria V.
Sabit Ikuforiji & Another.
Conclusion: The only assured way guaranteed
under the Nigerian laws to avoid the pitfalls
inherent and incidental to the management of
public funds is nothing (else)other than the due
compliance with all the relevant provisions under
the Nigerian laws(the university statutes inclusive)
respecting the management of public funds as
copiously adumbrated earlier. For the umpteenth
time; ignorance of the law is no excuse. Thanks.
46