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Nigeria could have to 'replace' $300 mln Abacha loot if mis-used - US

Published 30/04/2020, 16:02
Nigeria could have to 'replace' $300 mln Abacha loot if mis-used - US

ABUJA, April 30 (Reuters) - Nigeria must use money
repatriated from funds looted by former military ruler General
Sani Abacha on agreed public projects or be forced to "replace"
it, the U.S. Justice Department said.
The United States and the British dependency of Jersey
agreed with the Nigerian government in Febuary to return $300
million that Abacha, who died in 1998, had stashed in their
banks. Nigeria has pledged to use it to develop road
infrastructure. The U.S. Justice Department outlined the so-called "claw
back" provison in a response to a query from a powerful U.S.
senator questioning the prudence of returning the cash.
"Should any of the parties — including the United States
—conclude that any of the returned funds had been used for an
ineligible expenditure, a "claw-back" provision would then
obligate the FRN (Nigeria) to replace fully any such improperly
diverted monies," the letter said.
It did not specify how and to whom, the money would be
"replaced".
The provision is notable as Nigeria continues efforts to
repatriate money allegedly stolen during Abacha's tenure leading
Nigeria, Africa's biggest oil producer, from 1993 until his
death in 1998.
Corruption watchdog Transparency International estimates he
stole as much as $5 billion of public money during that time.
Abacha was never charged with corruption during his lifetime,
and died in office.
A spokesman for Nigerian Attorney General Abubakar Malami
said the government under President Muhammadu Buhari had a
history of "prudent and transparent utilisation of recovered
assets," and that the money would be used as outlined in the
agreement.
"The Federal Government does not in any way contemplate of
doing otherwise," spokesman Umar Jibrilu Gwandu said.


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