draining development.pdf - Khazar University

430 Draining Development?On the day of his arrest, police officers searching one of his Londonproperties discovered almost £1 million in cash. A worldwide criminalrestraint order over his assets was obtained under the Criminal JusticeAct 1988 from the English High Court by the U.K. Crown ProsecutionService and was enforced in Cyprus and Denmark through requests formutual legal assistance. 16 A criminal restraint was also obtained in theUnited States.Alamieyeseigha was initially remanded in custody after failing to persuadethe court that he should be permitted to return to Nigeria for fourweeks to attend to the affairs of Bayelsa State. After three weeks in custody,he was released on bail on conditions, including the surrender ofhis passport, the payment of £1.3 million into court by sureties, anddaily reporting to the police.He then sought to challenge his arrest and prosecution in the UnitedKingdom on the basis that, as a Nigerian state governor, he enjoyed sovereignimmunity under English law. That argument was robustly rejectedboth by the English Crown Court and on appeal by the High Court.In November 2005, despite his bail restrictions, Alamieyeseigha managedto flee the jurisdiction and return to Nigeria. He was subsequentlyimpeached and charged with various corruption offences.His flight led to the confiscation of the bail monies put up by his associates.(Subsequent scrutiny of the financial affairs of one of these associatesled to the associate’s prosecution and conviction in the United Kingdomfor mortgage fraud and the confiscation of his London property.)Proceedings to recover the assetsA variety of criminal and civil mechanisms were used to recover Alamieyeseigha’sassets.After he had absconded, criminal confiscation of U.K. assets on convictionwas no longer possible. Alternative mechanisms were necessary.The assets that had been frozen comprised cash, properties, and bankbalances. The cash was straightforward. The United Kingdom has anuncomplicated procedure for the forfeiture of cash representing the proceedsof unlawful conduct, under the Proceeds of Crime Act 2002. Anapplication can be made to a magistrates court by the police, amongothers, and, in cases of theft or fraud, the true owner of the cash canintervene under the Proceeds of Crime Act to seek its return. This proce-