Allegation of diversion of recovered proceeds of crime: defect in the EFCC Act 2004 and the need for amendment
| DOI | https://doi.org/10.1108/JFC-10-2020-0210 |
| Published date | 25 March 2021 |
| Date | 25 March 2021 |
| Pages | 659-671 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial crime |
| Author | Sirajo Yakubu |
Allegation of diversion of
recovered proceeds of crime:
defect in the EFCC Act 2004 and
the need for amendment
Sirajo Yakubu
Nile University of Nigeria, Abuja, Nigeria
Abstract
Purpose –The purpose of this paperis to critically examinethe Economic and Financial Crime Act 2004 to
investigate whether there are defects in the 2004 Acts which enable abuse of the system by those who are
responsiblefor fighting corruption and other economic crimes in Nigeria.
Design/methodology/approach –The paper adopts qualitative methods of research. The research
studied the laws and regulations relevant to the recovery and management of proceeds of crime. However,
personalexperience of the author in the civil service, security and law enforcementaccounts significantly.
Findings –The paper finds thatthe provisions of the EFCC Act 2004 relevant to the recovery ofproceeds of
crime and management of recovered assets are defective. The 2004 Act contains loopholes that enable
mismanagement and diversion of recovered assets for personal use. Althoughthe EFCC Act empowers the
Minister of Justiceto issue Regulations to regulate the activitiesof the EFCC, the Asset Tracing, Recovery and
ManagementRegulations 2019 the Minister of Justice issuedcannot be used to close the loopholes. Thus, there
is an urgent needto amend the EFCC Act 2004.
Research limitations/implications –Non-availability of data on the mismanagement of seized and
recovered assets is a severe limitation.Thus, analysis in this research focuses on the laws and regulations to
illustrates the defects in the 2004 Act. Also, the study could only use reported cases and incidence of
corruptionamong the security and law enforcement to illustrate unsuitabilityof securityand law enforcement
for the positionof thechairman of the EFCC.
Originality/value –There is no comprehensive work that examines the defects of the provisions of the
2004 Act that breeds lack of transparencyin the recovery of proceeds of crime as well as mismanagement of
recovered assets. Therefore,this paper is of value to the Nigerian Government and the National Assembly in
consideringamendments to the EFCC Act 2004. The paper is also of importance to researchers.
Keywords Asset tracing, Fighting corruption, Lack of transparency,
Management of recovered assets, Recovery of proceeds of crime
Paper type Research paper
1. Introduction
In the afternoon of 6 July 2020, media houses in Nigeria broke the news of the arrest of the
acting chairman of Economic and Financial Crime Commission (EFCC) Commissioner of
Police, Ibrahim Magu (SaharaReporters). At the initial stage, it was not certain why law the
enforcement arrested the Acting chairman, and that led to many speculations. One of the
widespread assumptionswas that his arrest was due to the power struggle between him and
Honourable Attorney General of the Federationand Minister of Justice (Minister of Justice).
Then allegations of corruption against the acting chairman became the subject matter.
Currently, a Judicial Commission of Inquiry headed by a former President of the Court of
Appeal is investigatingthe suspended acting chairman. The previous chairmen of the EFCC
Diversion of
recovered
proceeds of
crime
659
Journalof Financial Crime
Vol.28 No. 3, 2021
pp. 659-671
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-10-2020-0210
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