Nigeria responded with
fury Monday after South African authorities confiscated a
second tranche of funds meant for arms purchase to fight the
extremist Boko Haram sect, denying the deal was unlawful
and warning South Africa of its investment in Nigeria.
The warning came after the South African government seized
US$5.7 million wired by the Nigerian government through a
bank to an arms dealer in that country.
South Africa’s Asset Forfeiture Unit of the National
Prosecuting Authority said the money, about N952 million,
was the proceed of illegal transactions, according to local
paper, City Press.
The seizure was the second in nearly three weeks, coming
after authorities there froze $9.3 million transported in cash
by two Nigerians and an Israeli for arms purchase. At the
time, South Africa said the transaction violated its laws on
movement of cash.
In a terse reaction to what appears a potential diplomatic spat
between the two countries, the Nigerian government denied
the second transaction was illegal and reminded South Africa
of how Nigeria has provided a beneficial environment for
South African companies like MTN, DSTV and a host of
others to do business unhindered.
“It is our hope that South Africa would reciprocate this noble
gesture,” the National Security Adviser, Sambo Dasuki, said
Monday, with a vow to eradicate Boko Haram regardless of
the antics of “fifth columnists”.
Mr. Dasuki, named by the South African newspaper as the
official who signed off the first controversial deal, confirmed
late Monday the second transaction occurred as reported but
firmly denied it was conducted illegally.
“We want to state clearly that a business transaction actually
took place between a legitimate company in Nigeria and
another legitimate one in South Africa through the bank,”
said Mr. Dasuki through a spokesperson, Karounwi
Adekunle.
“In the course of events, the South African company could
not perform and decided to refund the money. What is
illegitimate in this transaction done through the bank?” he
queried.
Details of the latest transaction came more than two weeks
after two Nigerians and an Israeli were arrested as they
attempted to smuggle US$9.3 million through Lanseria
International Airport, Johannesburg, on September 5 in a
private jet from Abuja.
The money, stashed in three suitcases, raised suspicion when
the passengers’ luggage were unloaded and put through the
scanners.
The National Prosecuting Authority, NPA, in South Africa
said there was an invoice for helicopters and armaments
intended to be used in Nigeria.
Two black plastic suitcases, filled with 90 blocks each
containing US$100,000 in notes, with combination locks,
were seized, as well as two pieces of hand luggage also
containing US currency, according to City Press.
The Israeli national, Eyal Mesika, had the combination to
open the locks.
Under South African laws, a person entering or leaving the
country is expected to carry cash not exceeding US$2,300, or
the equivalent in foreign currency notes.
The news of the first transaction angered Nigerians,
particularly as it became clear the private jet involved
belonged to the head of the Christian Association of Nigeria,
CAN, Ayo Ortisejafor.
Mr. Oritsejafor, a close ally of President Goodluck Jonathan,
said the plane had been leased to a third party and he could
not be blamed for its schedules.
The Nigerian government later admitted it was behind the
arms deal, claiming it acted out of desperation for arms to
defeat extremist sect, Boko Haram.
South African paper, City Press, said it was the NSA, Mr.
Dasuki, who personally authorised the first arms contract by
issuing an end-user certificate, alongside a “shopping list”
for helicopters, unmanned aircraft, rockets and ammunition.
But Nigerian security officials said the report by the
newspaper indeed provided proof that the first transaction
was not illegitimate as well, since the end-user certificate and
a shopping list were provided.
A security source was quoted as saying “in issuing end-user
certificate, the ONSA (Office of the National Security
Adviser) ensures that it carries all relevant agencies and
stakeholders along. Therefore, such a responsibility is not a
unilateral development,” according to PRNigeria, an agency
frequently used by the Nigerian military to disseminate
official statements.
“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 insurgency which our nation had been
grappling with in the last few years. This is why the
understanding of all Nigerians is necessary.
“Nigeria is desperate to counter activities of terrorists no
matter what it takes even when some of our friends are not
being fair to us,” the agency said Monday.
The latest transaction was between Cerberus Risk Solutions,
an arms broker in Cape Town, and Societe D’Equipments
Internationaux, said to be a Nigerian company based in
Abuja.
The paper said the deal fell apart after Cerberus, which had
earlier received from Nigeria R60?million (N1.02 billion)
through its account at Standard Bank, tried to repay the
money as it could not resolve its registration formalities with
the South African authorities.
“Cerberus was previously registered as a broker with the
National Conventional Arms Control Committee (NCACC),
but the registration expired in May this year,” City Press said.
“The marketing and contracting permits also expired at the
same time. The company has since applied for re-registration,
but the application lay 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 paper reported.
The paper added that while the NPA’s Asset Forfeiture Unit
subsequently obtained a court order in the South Gauteng
High Court to seize the money, the NPA spokesperson Nathi
Mncube, said there were no indications the two transactions
were related.
“However, both are now the subject of a criminal
investigation and all possible information and connections
are being investigated,” Mr. Mncube was quoted as saying.
The statement from Mr. Dasuki’s office confirmed the
inability of the South African company to deliver and the
attempt to refund.