Trial of Defendants in Alleged $42.5 Million Rice Import Fraud Stalls
The trial of five defendants, including individuals from India and the United Kingdom, as well as a foreign-registered company, faced a sudden halt at the Federal High Court in Lagos. This interruption occurred after Justice Akintayo Aluko recused himself from the case due to allegations of misconduct and bias.
Charges Against the Defendants
The defendants, consisting of Indian nationals Prem Garg and Devashish Garg, British national Marcus Wade, along with Agricco Agbe Ltd. and Wilben Trade Ltd., are facing five counts of conspiracy, fraud, and misappropriation related to questionable import transactions of rice. The alleged fraud centers on an estimated $42.5 million in funds that were purportedly designated for rice imports.
Defendants’ Absence from Court
None of the defendants were present when the case was called. Prince Damola Seriki represented the first, second, and fourth defendants in court, while IA Akintaye acted on behalf of the nominal plaintiffs. MN Enyi appeared for the third party referenced, Standard Chartered Bank.
Government’s Indictment
The federal government, through the Ministry of Justice, is prosecuting the defendants for allegedly perpetrating a fraud scheme against Ecobank involving foreign exchange transactions intended for the importation of Indian parboiled rice into Nigeria. The complaint, designated FHC/L/CR/51/2022, claims the defendants conspired from May to September 2015 to extract $42,485,900 from Ecobank under false pretenses, ultimately diverting these funds for other purposes instead of the intended import.
Details of Alleged Misappropriation
According to prosecutors, the defendants initially secured $22,485,900 in May 2015, followed by an additional $20 million in September of the same year, both under the guise of funding rice imports. The federal government further asserts that these funds were not employed for their stated purpose and were instead converted into cash, violating the original terms of the transaction.
Legal Framework and Proceedings
The actions of the defendants are said to contravene sections 422, 419A, 421, and 390 of the Criminal Law Act Cap C38 of the Act of the Federation of Nigeria 2004. Documents provide details of the defendants, noting Prem Garg and Devashish Garg as Indian nationals, while Marcus Wade serves as the chairman of Wilven Trade Limited, which is incorporated in Dubai, United Arab Emirates. Agricco Agbe Limited is registered in Nigeria.
Judicial Recusal and Concerns Over Delay Tactics
During the proceedings, Justice Aluko addressed the allegations outlined in a petition accusing him of bias, referencing the Court of Appeals’ ruling in Addio v. FRN (2019) LPELR-46793 (California). The judge asserted that while he had taken necessary measures, allegations aimed at delaying the case were evident, particularly given the defense’s consistent absence from court. He emphasized that his choice to recuse himself stemmed from a desire to avoid any appearance of bias and to ensure the integrity of the judicial process. He concluded by forwarding the case to an administrative judge for reassignment to another magistrate.
