draining development.pdf - Khazar University

The Kleptocrat’s Portfolio Decisions 429• British Virgin Islands: Solomon and Peters Limited, the company thatacquired the four London properties• South Africa: Royal Albatross Properties 67 (Pty) Limited, the companythat acquired the South African property• Seychelles: Santolina Investment Corporation, the company that heldthe bank accounts in Cyprus, with Barclays Bank plc; in Denmark, withJyske Bank A/S; and in London, with the Royal Bank of Scotland plcThe companies used to hold the assets were established and managedby third parties. Solomon and Peters Limited was incorporated forAlamieyeseigha by a Nigerian associate resident in London. SantolinaInvestment Corporation was incorporated for Alamieyeseigha by a Londontrust and companies service provider, which also opened and managedat least some of the accounts. Falcon Flights Incorporated wasestablished and managed by the private banking department of UBSBank plc.The source of the fundsAlamieyeseigha’s wealth derived from a combination of the theft of publicfunds, principally from the Bayelsa State Development Fund, andbribes paid by contractors for the award of public contracts by BayelsaState. Evidence of the illicit activities was obtained during criminalinvestigations by the Economic and Financial Crimes Commission inNigeria and the Metropolitan Police in London in the form of documentsand witness statements from contractors and financial institutions.Foreign banks and advisers were variously told that Alamieyeseigha’swealth derived from inheritances, property sales, and businessessaid to have been operated prior to his election as governor. No evidenceof this was ever produced.The U.K. criminal proceedingsIn September 2005, Alamieyeseigha was arrested in London by officersof the Proceeds of Corruption Unit of the Metropolitan Police, questioned,and subsequently charged with three counts of money launderingcontrary to the Criminal Justice Act 1988 and the Proceeds of CrimeAct 2002.