Money Laundering: EFCC Investigates AIPF, Three Executives

The Economic Financial Crimes Commission (EFCC) is currently investigating Africa Infrastructure Partners Fund (AIPF), owned by Indian businessman, Harpinder Singh Narula and his son Anhad Narula, for suspected fraud, criminal conspiracy to obtain the company’s shares and money, money laundering activities and criminal breach of trust.

This follows a petition filed by Fenchurch Energy Nigeria Limited on the likely violations and breaches by AIPF, Singh Narula and Anhad Narula of extant criminal, banking, company laws of Nigeria, the Investments and Securities Act 2007 as well as the SEC Rules.

Before the petition, Fenchurch Energy Nigeria Limited had filed a 2-count legal action at the Federal High Court bordering on a multi-billion naira financial claim against Harpinder Singh Narula, Anhad Narula, Niran Ajakaiye, Dipo Lawore, and Africa Plus Partners Nigeria Limited (APPNL) regarding the material breach of terms of their investment agreement with Fenchurch as well as investments and operations of Bastanchury Power Solutions Limited (BPSL), a company formed to develop and operate the 8.5MW IPP in Asaba for the Delta State Government.

The petition for criminal investigation of grievous multi-billion naira economic crimes against the identified parties was also regarding suspected financial misappropriation, money laundering, misrepresentation, fraudulent diversion of funds, involving the activities of the AIPF, which is owned and operated by APPNL, Anhad Narula, Niran Ajakaiye and Dipo Lawore.

“AIPF were invited as investors based on their claim to fund infrastructure projects; they however proceeded to instigate an illegal hostile takeover of the company upon which the affairs of BPSL has been run in a manner unknown to the laws of Nigeria. AIPF and its executives’ actions have including a complete lack of corporate governance with board resolutions—when there had been no board meetings—made up and accounts signed for, funds transferred in and out of various company accounts, including various illegal payment to Government officers but none to shareholder”.

The legal and criminal actions against the defendant allege that, following the plotted takeover of Bastanchury Power Solutions Limited, they committed premeditated fundamental breach of contract and are under investigations by the EFCC for suspected criminal conspiracy to obtain the Company’s shares and money and for money laundering activities and criminal breach of trust.

The parties are also alleged to have run the Company in a manner that is oppressive and unfairly prejudicial to shareholders’ rights in clear breach of the Nigerian company laws; carried out criminal unlawful financial assistance in using the Company’s project which constitutes a criminal act under Nigerian company laws; operated the Company’s bank accounts illegally and in breach of the account mandates provided to the Company’s banks in breach of extant banking laws; and failed to hold statutory general meetings as required under Nigerian company laws.

They are also alleged to be in violation of SEC regulations and have likely committed breaches which may include making full and material disclosures of all claims, liabilities and criminal prosecutions it js subject to and rendering improper accounts of its financial statements as regards the losses it has been incurring in the Company which is its subsidiary as well falsely informing its auditors Ernst & Young of a lack of legal proceedings against the Fund and company; and non-disclosure to the SEC and investors in the Fund of the possible impact and adverse material effect that the likely determination of the Legal and Criminal Actions against it will have on the Fund as well as on the promoters of APPNL as a registered capital market operator.

AIPF is also said to have resisted a forensic audit of BPSL accounts as requested by Fenchurch Energy which also requested to be bought out of BPSL after a proper audit and valuation. Instead AIPF and its executives allegedly engaged in unscrupulous actions which undermine Nigerian laws including filing spurious matters against Fenchurch’s Funso Adeyemi and Femi Bakare in a bid to stop any audit or investigation into the accounts of BPSL and payments to government officials in Delta state.

Funso Adeyemi and Olufemi Bakare of Fenchurch Energy have however retained the law firms of Babalakin and Co, AAA Chambers and The Prestige Consulting LP to pursue actions in court and SEC.