draining development.pdf - Khazar University

420 Draining Development?Before that single-candidate election could be held, Abacha was dead;this was in June 1998. It was claimed subsequently that one of the reasonsAbacha amassed all that he did was to build up his war chest to fightthe elections.The total security vote withdrawals comprised US$1.13 billion and£413 million in banknotes, US$43.3 million and £3.5 million in traveler’schecks, and US$328.5 million in telex or telegraphic transfersabroad. A small fraction (US$15 million) of the cash was given in aid tosome neighboring African states, and around US$100 million may havebeen lost in currency exchanges. The balance of unrecovered funds wasput at US$748 million and £341 million.Mechanisms and techniques used to transfer funds. The Abachas had tofind ways to manage the colossal sums they had stolen. MohammedAbacha admitted in evidence in other proceedings that, sometimes,there was as much as US$50 million–US$100 million in banknotes at hishouse in Abuja. These monies were then either retained by the Abachafamily and used for their personal purposes or passed on to associates tobe laundered and concealed.Cash shipments out of Nigeria were sometimes intercepted. In August1995, US$7.5 million and £250,000 in cash and US$1.5 million in traveler’schecks were intercepted by the Nigerian customs service in transitfrom Union Bank of Nigeria to the bank’s London branch. As a result, adirective was issued that, in future, currencies “evacuated” from thecountry should be transferred through the CBN. Bagudu said, in evidence,that, despite this directive, individuals could still buy currencyand take it out of the country in cash and that this means of removalfrom Nigeria was still practiced on a widespread scale.In February 1998, a Mr. Daura of Sunshine Bureau de Change wascaught with US$3 million in cash after he had landed at Heathrow in aprivate jet. HM Customs & Excise then made an application for themoney to be forfeited, assuming it to represent the proceeds of drug trafficking.10 Daura and his Bureau de Change were big recipients of securityvote monies. He deposited the monies with the local branch of FirstBank and other Nigerian banks. He then exchanged the amounts held inthe accounts that were in his name in Lagos and had them transferred tobranches of the same banks abroad. These were then transferred from