Abacha Loot Recovery Continues As Govt Pushes For €185m (40billion naira) in Liechtenstein

Nigeria has embarked on an international campaign to
press Liechtenstein into returning €185m (about
N40.1bn) linked to the late military dictator General
Sani Abacha, which is still harboured in the tiny
principality nearly 14 years after recovery proceedings
began.
The Federal Government first requested assistance from
Liechtenstein in returning the assets in 2000, two years
after Gen Abacha's sudden death paved the way for the
return of civilian rule.
Criminal investigations and subsequent forfeiture
proceedings established that the funds originated from
bribes paid by Germany's Ferrostaal AG to companies
whose ultimate beneficiary was Gen Abacha. They
related to a grossly inflated contract for the construction
of an aluminium smelter, according to a Financial
Times report.
Liechstenstein's constitutional court ordered the
confiscation of the funds in 2012 and in March 2013
dismissed a final appeal against the order by companies
linked to the Abacha family, clearing the way for
restitution of the funds.
But the Liechtenstein government has declined to accept
written guarantees from Nigeria that it will compensate
the principality in the unlikely event that it should incur
any liabilities in a further suit that has been filed by the
Abacha-linked companies at the European Court of
Human Rights in Strasbourg. This could delay the
return of the funds for several more years.
The late Gen. Abacha was the penultimate and most
brutal of Nigeria's military rulers. He and what
Switzerland's Supreme Court dubbed the "Abacha
family criminal enterprise" amassed a fortune worth
several billion dollars from misappropriation of public
funds during his 1993-1998 rule. The lawyer
representing the Abacha family could not be reached
for comment.
Ngozi Okonjo-Iweala, Nigeria's minister for economy
and finance and the former managing director of the
World Bank, described the delays as "outrageous" and
accused the Liechtenstein government of being
uncooperative.
She told the Financial Times she plans to appeal for
support for Nigeria's claims at this week's International
Monetary Fund and World Bank meetings.
"This is about funds that were stolen by a corrupt
dictator. We have spent nearly 14 years trying to get
them back and we are pleading with the Liechtenstein
authorities not to aid and abet the continuation of that
corruption," Mrs Okonjo-Iweala said.
Liechtenstein officials defend the delay as the result of
the case in Strasbourg which would, if the court accepts
to hear it, address the plaintiffs' rights to a fair hearing
under article 6 of the European convention on human
rights. The European court cannot overrule
Liechtenstein court rulings restoring the funds but
officials in the principality fear they could be laid open
to compensation claims from the Abacha-linked
companies.
"Unfortunately, now we are in a situation where we
have a final judgment, we have the assets and the
government wants to return those assets to Nigeria, but
four entities have filed a case at the ECHR," Robert
Wallner, Liechtenstein's attorney-general said.
"Even though their chances of winning are low we
lawyers know we can never be sure of the outcome."
Enrico Monfrini, a Swiss lawyer working with the
Nigerian government, has traced $2.4bn of assets linked
to Gen. Abacha, most of which were channelled
through European banks. Nigeria has recovered $1.3bn
(N208b), the largest tranche of which – $500m – came
from Switzerland in 2005. A further $1.1bn – in
France, the UK, Luxembourg and the Channel island of
Jersey – is still tied up in legal proceedings.
"Every other country where a final court decision was
taken, paid back immediately," Mr Monfrini said,
taking issue with Liechtenstein for failing to accept the
Nigerian guarantee relating to the Strasbourg case.
"They don't want to trust these people because they are
Africans, although the balance sheet of Nigeria is a lot
better than France or Spain. I would call this a neo-
colonialist attitude."
Nigeria has engaged the World Bank's Stolen Asset
Recovery unit, Star, set up by Mrs Okonjo Iweala
herself when she was at the bank, to monitor the use of
the funds once they are returned – as it has done with
other recovered assets. But Liechtenstein wants the
World Bank to play a greater role as guarantor.
"We want the World Bank to discuss with us and
develop different opportunities to how we can bring the
money back," a senior official at the Justice ministry
said. "We are OK to pay the money back but we want
to have an opportunity to be on the safe side…It is a
long process but it is a fair proceeding," the official
said.