A prosecution witness, Temitope Erinomo, yesterday, told the Federal High Court, Abuja that Malabu Oil and Gas Limited and six other companies charged with fraud in the Oil Prospecting Licence (OPL) 245 transactions violated money laundering laws.
Erinomo is the Principal Compliance Officer at the Special Control Unit against Money Laundering in the Federal Ministry of Trade and Investments.
Other defendants in the suit are A-Group Construction Company Limited, Rocky Top Resources Limited, Mega Tech Engineering Limited, Novel Properties and Development Company Limited, Imperial Union Limited and Carlin International Nigeria Limited.
Testifying in the money laundering charge brought against Malabu Oil and Aliyu Abubakar, Erinomo told the court that Malabu Oil was registered as a consultancy firm.
The witness, led in evidence by the Economic and Financial Crimes (EFCC) counsel, Bala Sanga, said the other companies allegedly linked to Abubakar were registered to carry out construction activities.
According to him, considering the status of the six firms as construction and consultancy firms, they were designated by the Ministry of Trade and Investments as Designated Non-Financial Institutions (DNFI) because of their high tendency of being used for money laundering.
The witness further explained that DNFI firms were mandated by the Money Laundering Prohibition Act to, among others, be registered with the ministry and submit statutory reports of their activities and declare qualified transactions to the ministry and the EFCC.
While being cross-examined by Mr J.A Achimugu, the witness said he did not visit Malabu’s office or invite its staff, before arriving at his findings, because he was not mandated to do so.
The witness also tendered reports of his findings which were admitted in evidence.
The trial judge, Justice Inyang Ekwo adjourned the matter till October 27 for continuation of cross-examination.
Abubakar and the other defendants are standing trial on 67-count of money laundering involving about $800 million instituted by the EFCC.