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Alleged corrupt politicians, businesspeople hiding ill-gotten wealth in France real estate: Transparency International

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Time and again, foreign politicians and businesspeople allegedly involved in or convicted of financial crimes have been revealed to own luxury properties in France.

New in-depth analysis finds unacceptable level of money laundering risk in French real estate, despite transparency measures
Non-compliance, incomplete data and loopholes are creating a brick wall for attempts to follow flows of dirty money into French real estate, according to a new report by Transparency International France, Transparency International and Anti-Corruption Data Collective (ACDC). Six years after France began collecting information on the beneficial owners of companies, almost a third of legal entities in France have failed to comply. Partly as a consequence, more than 7.33 million parcels of land – which could contain one or multiple properties – in France are anonymously held. This effectively creates a dead-end for efforts to follow the money of white-collar criminals, kleptocrats and sanctioned elites into French real estate, which is known to be a favoured destination for corrupt cash.

The report, Behind a Wall: Investigating Company and Real Estate Ownership in France, is based on an in-depth analysis of publicly available records on French-registered companies and real estate. The authors scraped roughly five million individual web pages containing company information from France’s company beneficial ownership register and cross-referenced the results with data from the French cadastre, or land registry plan.

The analysis returned alarming results. More than 1.53 million legal entities registered in France – just under a third – have not declared who ultimately owns and benefits from them, despite being required to do so since 2017. Nearly 10.35 million parcels – the smallest unit of the cadastre – across France are owned by private legal entities. Yet, in 7.33 million of these, the real owners remain unknown. The vast majority of these companies did not provide data on their real owners or did not appear in France’s beneficial ownership register at all. The latter may include foreign companies, which can own real estate in France without registering a French company that would be subject to transparency requirements. As a result, 71 per cent of all corporate-owned French parcels are anonymously held.

Despite the high number of companies failing to comply with beneficial ownership disclosure rules, only one criminal sanction has been imposed between 2016 and 2020, French authorities confirmed to the report’s authors. Authorities in France have presented slightly different compliance figures, but researchers have been unable to independently verify the government’s numbers.

Sara Brimbeuf, head of the illicit financial flows programme at Transparency International France, said: “Fifteen years after the start of the first ‘ill-gotten gains” cases in France, and at a time when tracking down the real estate assets of Russian PEPs and oligarchs is supposed to be a priority, it is unacceptable that more than two-thirds of corporate-owned real estate is anonymously held. We call on the authorities to quickly close loopholes, improve data collection and verification, and sanction companies that continue to keep their owners secret.“

The research also highlighted issues of data quality and completeness in the French beneficial ownership register. For example, historical data is not included, meaning that individuals expecting to come under scrutiny can disappear from the register by transferring ownership of their company to a relative.

Maíra Martini, research and policy expert on corrupt money flows at Transparency International, said: “We have known for a long time that luxury French real estate is hot property for criminals and the corrupt looking to stash and clean their ill-gotten gains. Transparency measures of recent years should have been game-changing, but we have a long way to go to ensure that these tools achieve their full potential. The authorities should scale up their fight against money laundering through the real estate sector, and bring data collection and reporting requirements in-step with the level of risk.”

Parallel investigations by the Organized Crime and Corruption Reporting Project (OCCRP) have revealed more than a dozen properties in France linked to alleged money launderers, politicians accused of corruption and their relatives from across Latin America.

Additionally, the authors of Behind a Wall were able to identify 166 Russian persons of public interest listed in the French beneficial ownership registry, including Russian politicians, businesspeople, bureaucrats, journalists as well as their close family relatives. Almost half of their companies are société civile immobilière – a legal arrangement often used to purchase real estate properties in France. The Russian-owned companies were more than twice as likely to be registered at a “mass address”: a key red flag in the company formation process. The companies own parcels of land with properties ranging from villas in Saint-Tropez to ski chalets in the Alps and luxury apartments in the many of Paris’s most glamorous arrondissements.

David Szakonyi, co-founder of Anti-Corruption Data Collective, said: “The fact that journalists and researchers could identify these persons of interest and their properties in France speaks to the importance of having this information freely accessible in the public domain. Unfortunately, our analysis suggests that these cases could be merely the tip of a corruption iceberg. With so many companies failing to declare who controls and benefits from them, investigators will keep running into a wall until the compliance rate comes up and data completeness and accuracy issues in the register are fixed.”

Transparency International France, Transparency International and ACDC recommend that the French authorities move quickly to increase the cost of non-compliance, and improve their own data collection and verification mechanisms. They should also address money laundering risks associated with specific company types, the real estate sector and foreign companies.

Sterling Financial Holdings Company Plc Appoint Directors

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Sterling Financial Holdings Company Plc wishes to notify of the appointment of new directors to its Board. The approval of the Central Bank of Nigeria has been obtained for the appointment of the following directors:

1. Yemi Adeola (Chairman) – Mr. Yemi Adeola has over 35 years of experience in banking, finance, law, and corporate consultancy. He worked at PricewaterhouseCoopers as a Consultant, Legal and Corporate Advisory Services at Citibank, Nigeria where he rose to the position of Executive Director, Public Sector, and Infrastructure Banking. Mr. Adeola was the former Managing Director/Chief Executive Officer of Sterling Bank from 2007 – 2018. He also served as the Deputy Managing Director in Trust Bank of Africa Ltd from 2003 – 2005. He is currently the Chairman of Lennox & Blair Group and a partner at Adeyemi Adeola & Co. Commercial Arbitrators and Legal Consultants. Mr. Adeola holds a bachelor’s degree in law from Obafemi Awolowo University, is a fellow of the Chartered Institute of Bankers of Nigeria, Member Chartered Institute of Arbitration (CIARB) and Member, Board of Trustees, Association of Banks’ Legal Advisers and Company Secretaries (ABLACS). He is an alumnus of Harvard Business School, Stanford Business School, University of Oxford, and the Wharton Business School of the University of Pennsylvania. He is also a John F. Kennedy Scholar.

2. Yemi Odubiyi (GMD/CEO) – Mr. Odubiyi started his banking career with the Nigeria unit of Citibank as an Operations & Technology Generalist serving across all its Operations and Technology functions and was thereafter enrolled in its Management Associate program undertaking stints across all key units of the Bank. He left Citibank to join the turnaround team of the then Trust Bank of Africa in 2003 as Head of Operations & Technology. Upon the consolidation of Trust Bank into Sterling Bank Plc, Yemi served as pioneer Group Head, Trade Services. In 2008, he was mandated to build the Structured Finance Group and also assumed oversight for corporate strategy serving as Chief Strategy Officer. Mr. Yemi Odubiyi served as the Executive Director, Corporate and Investment Banking at Sterling Bank Limited from February 2015 to June 2023. He holds a bachelor’s degree in estate management and a master’s in international law from the University of Lagos. He has undertaken senior PUBLIC management/executive education programs in Risk Management, Finance, and General Management at leading international educational institutions including the London and Harvard Business Schools.

3. Abubakar Suleiman (Non-Executive Director) – Mr. Abubakar Suleiman is a NonExecutive Director of Sterling Financial Holdings Company Plc and the MD/CEO of Sterling Bank Limited. He was appointed to the Board of Sterling Bank in April 2014 with responsibility for directly overseeing the Strategy & Innovation, Branding & Communication, and Human Resource Management Departments before assuming the role of the Managing Director. Mr. Suleiman joined the Sterling Bank family (Trust Bank of Africa) in 2003 with responsibility for Treasury and Finance. Following the merger in 2006, he was appointed Group Treasurer; a position he held until 2011 when he assumed the role of Integration Director – tasked with managing and integrating Equitorial Trust Bank (ETB) into Sterling. He began his career as an Experienced Staff Assistant at Arthur Andersen (now KPMG Nigeria), before moving to MBC International Bank (now First Bank) as a Management Associate. He later worked in Citibank Nigeria in roles spanning Treasury and Asset & Liability Management. Mr. Suleiman holds a degree in Economics from the University of Abuja and a master’s degree in Major Programme Management from the University of Oxford. He has attended various executive education programmes at INSEAD, Harvard, Wharton, and Said Business Schools.

4. Mr. Shola Adekoya (Non-Executive Director) – Mr. Adekoya is the Managing Director of STBFMC Limited and founder of Utterfresh Processing Limited, a thriving business in the Agricultural sector. He was the Chief Executive Officer of Konga Online Shopping, where he delivered the mandate to develop and execute the growth plan of three different entities. He also worked at Etisalat as the Head of the Planning & Budget Team. Mr Shola Adekoya has over 22 years of experience in the Technology, Fintech, Telecoms and Agricultural industries. He sits on the Boards of ULesson Nigeria & Delaware, BMac Apps and Zebaj Recycling in Non-Executive and Advisory capacities. He is a fellow of the Association of Chartered Certified Accountants. Mr Shola Adekoya holds an OND in Financial Studies and a B. Sc in Business Studies from the London Bank South University.

5. Ms. Aisha Bashir (Independent Non-Executive Director) – Ms. Aisha Bashir is the Founder and Chief Executive Officer, Cam Dairy Foods Limited. Prior to her role in Cam Dairy Foods, she was a consultant with Mountain Hazelnuts, a hazelnut company in Bhutan, where she developed guidelines for deploying mobile payments solutions to farmers for payment for hazelnuts. She was also a Special Assistant to the President/Chief Executive of Dangote Group where she worked on business strategy and supported the Chief operating Officer in corporate finance activities and led financial, operational and strategic due diligence on subsidiaries. She was a co-founder, Head, Product Development and Operations of PAGA, a pioneer Nigerian mobile payments company. She also worked as a business analyst at Accenture. PUBLIC Ms. Aisha Bashir holds a Master of Business Administration from Stanford University, Graduate School of Business, Master of Science in Environment and Resources – Land Use and Agriculture from Stanford University, School of Earth, Energy and Environmental Sciences and Bachelor of Arts (Honours) in International Relations also from Stanford University.

6. Mrs. Eniye Ambakederemo (Independent Non-Executive Director) Mrs. Eniye Ambakederemo has over 29 years’ experience in the public and private sectors, banking, asset management, and investment and economic empowerment with practical executive management experience in various sectors including agriculture, production and manufacturing, finance and administration, policy development and execution. She rose to the rank of Director General of the Bayelsa State partnership initiation agency and the State investment promotion office. She was also a pioneer Board member of Asset Management Company of Nigeria (AMCON). Prior to her service in the public sector, she was a Branch Manager (Strategic Business Unit) United Bank for Africa (UBA) Plc between 2009 – 2012. She was also the Head of Corporate Banking (South Bank) United Bank for Africa (UBA) between 2008-2009. She is a Fellow of the Nigerian Institute of Management (Chartered), the Institute of Chartered Economists of Nigeria and the Institute of Fraud Examiners. She is also a member of the International Business Innovation Association (INBIA). She is passionately involved in the turnaround of ailing companies and the development and mentoring of Micro, Small and Medium Enterprises. She holds a BSc and an MBA in Accounting from the University of Port Harcourt. She is a Nigeria alumnus of the United Nations University of Peace. She has attended several management courses at Harvard and other prestigious institutions.

7. Mr. Olayinka Oni (Executive Director) – Prior to his appointment he was the Chief Digital Officer at Sterling Bank Limited where he led the execution of the Bank’s digital strategy. Before Sterling Bank, he was the Chief Technology Officer for Microsoft Nigeria where he was responsible for ensuring that the subsidiary had the right relevance in society and with the Federal Government. He also helped to generate policies and programs that created a more sustainable ICT environment for the organization. Before joining Microsoft, Mr. Oni had spent over 15 years in the ICT Industry. He previously served as the CIO/GM IT & Operations at Wema Bank Plc. He was also an Experienced Manager with the Nigerian practice at Accenture- a global management consulting firm. He was a co-convener of the CIO Nexus, a forum of all CIOs in Nigeria, and the current chairman of the CIO Forum of Banks in Nigeria. Mr. Oni is a graduate of Agric Economics from the University of Ilorin. He is an Honorary Senior Member of the Chartered Institute of Bankers of Nigeria (HCIB). His domain expertise includes solutions engineering, Program Management, Enterprise Architecture, and IT Governance. Over the course of his career, Mr. Oni has undertaken senior management/executive education programs in Business PUBLIC Strategy, Financial Acumen, Digital Transformation, and General Management at leading international educational institutions including Harvard, Said Business School (Oxford University), INSEAD, MIT, and a Cycle 24 participant of the globally acclaimed international master’s Program for Managers.

Coronation Insurance Plc Proposes Delisting as its Majority Shareholders Offer a Buyout

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Coronation Insurance Plc has notified that Coronation Capital (Mauritius) Limited on behalf of itself and other related parties, (together, the “Core Shareholders”) have approached the Board of Directors of the Company with an intention to acquire the shares held by other shareholders of Coronation Insurance, at an offer price of 65 Kobo per share, and subsequently delist the Company from NGX.

The offer price of 65 Kobo represents a premium of 30% to the Company’s share price of 50 Kobo on August 12, 2021, being the last traded price prior to the offer date.

It is intended that the Proposed Transaction will be implemented under a Scheme of Arrangement in line with section 715 of the Companies and Allied Matters Act, No.3 of 2020 (as amended) and other applicable rules and regulations.

The Proposed Transaction is subject to the review and clearance of the regulators as well as the approval of the shareholders of the Company. The terms and conditions of the Proposed Transaction will be provided in the Scheme Document which will be dispatched to all shareholders upon the convening of a General Meeting of the Company pursuant to an order by the Federal High Court. If the conditions of the Proposed Transaction are satisfied and same is sanctioned by the Court, the Company would be delisted from NGX.

Further developments will be communicated to shareholders in due course. Coronation Insurance’s shareholders and members of the public are advised to exercise caution in dealing in Coronation Insurance’s shares until further information is provided.

LandWey Residential Project Faces Delays Amid Nigerian Economic Challenges

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LandWey Investment Limited, a leading Nigerian real estate company uses this medium to update our clients and the general public of unintentional delays in delivery of some of our projects.

As a renowned real estate development company to provide premium lands and modern affordable housing to aspiring homeowners, with notable products to our name, which imbibes uncompromised quality and ISO standards.
In August 2019, we embarked on an ambitious residential project to provide and deliver 2,000 housing units by 2024, a vision we still aim to achieve. Despite the company’s optimism at the start of the project we have been faced with unforeseen circumstances such as the COVID-19 pandemic and its resulting effects, coupled with Nigeria’s fluctuating economic factors and its economic repercussions, causing setbacks of unanticipated delays that have impacted our original timeline for some project delivery.

Despite these challenges, we have remained steadfast in our dedication to our clients, ensuring transparency and constant communication throughout this process. We have proactively engaged with customers, keeping them informed about the evolving situation and the progress of the projects.

We acknowledge the frustration experienced by some clients awaiting the completion of their homes and continue to take proactive steps to address their concerns. We have and still offer various options for those who are unable to wait for the revised delivery timeline, demonstrating our commitment to customer satisfaction and loyalty.

Despite these hurdles, we are glad to have achieved a significant milestone by successfully delivering the first phase of the residential project. This accomplishment is a testament to the company’s unwavering commitment to the project success, quality and excellence. The completion of the first phase serves as a reassuring sign of LandWey’s ability to overcome challenges and deliver on its promises.

Currently, LandWey is diligently working on the second and third phases of the project, with completion dates set for the near future. Our efforts to expedite construction while maintaining high standards showcase the determination to fulfil our commitment to our clients.

The economic fluctuations experienced in Nigeria have undoubtedly posed challenges for LandWey, as they have for many businesses operating in the country. However, our transparency, constant communication, and commitment to finding solutions is the hallmark of our integrity as a brand.

LandWey’s ability to adapt to unforeseen circumstances while staying true to its vision is a test of our tenacity in an uncertain business environment. The company’s dedication to delivering affordable and modern housing options for Nigerians remain unwavering, and delivering on our promise to our clients fuels our tenacity even in the face of these economic challenges.

As the Nigerian real estate market continues to evolve, our resilience and commitment to excellence make us a trusted partner for prospective homeowners. Despite the delays encountered, LandWey is determined to overcome the obstacles and deliver projects that meet the high expectations of our clients.

With the completion of the first phase and progress made on subsequent phases, LandWey continues to prove its capability as a leading residential developer in Nigeria. Our commitment to transparency and proactive measures to address client concerns are a testament to our unwavering dedication to customer satisfaction.

LandWey remains optimistic and determined to overcome the challenges posed by fluctuating economic factors. Our dedication to open communication, flexibility, and the completion of the project in a timely manner will undoubtedly solidify our position as a trusted and reliable developer in the Nigerian real estate market.

We thank our clients for their continued patience, understanding, and unwavering trust in the brand.

Signed: Management.

Appeal court says banks cannot freeze customers’ accounts

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The Court of Appeal, Lagos has ruled that banks have no right to freeze their customers account without a proper order of court.

The court further ruled that there is no law that confers power on banks to freeze a customer’s account. Justice Sidi Dauda Bage of the appellate court delivered the judgment, upholding the judgment of Justice Iyabo Kasali of Lagos High Court who had delivered the same judgment at the lower court on September 29, 2005. It was in a case that involved Fidelity Bank and a private company, Bayuja Ventures Limited and its Managing Director, Mr Bashir Jamoh. The company and Jamoh were customers of the Apapa branch of the bank. On October 8, 2002, the bank froze the accounts of the plaintiffs by entering a no debit status on the accounts.

The bank alleged that the plaintiffs colluded with its Apapa branch manager, Mr Suleiman Lere, who allegedly defrauded the bank of N30 million, using the plaintiffs account. The bank alleged that the fraud was carried out via a draft and third party cheques belonging to the National Maritime Authority (now NIMASA). The sums were traced to the plaintiffs two accounts. The plaintiffs, however, claimed ignorance of the transactions and further insisted that the branch manager used their account for the fraud without their consent.

At the high court, the bank pleaded three different entries into the account made by Lere, the branch manager. The first was the illegal and unauthorized crediting of the second plaintiff’s evergreen savings account with the sum of N20.6 million by Lere. Others are the fraudulent conversion of three NIMASA cheques in the value of N4.6 million, and crediting it into the account of the first plaintiff; and the complicity of the second plaintiff in obtaining a N30 million draft which was not paid into the either of the accounts.

The plaintiffs, apparently dissatisfied with the action of the bank, filed a suit before the Lagos High Court seeking to order the bank to lift the no debit status placed on its account; the release of N20 million being the balance in the account; and N20 million as general damages.

The suit was filed by their lawyer, Dele Adesina SAN. Justice Kasali, in her judgment, said that there was no evidence to link the plaintiffs with the fraud perpetuated by Lere who was in the employment of the bank. The trial judge referred to the statement of fraudster bank manager in which he exonerated the plaintiffs from the fraud. She further referred to the report of police investigations which also exonerated the plaintiffs. She, therefore, entered judgement in favour of the plaintiffs.

Not satisfied, the bank challenged the decision of the trial court before the Court of Appeal. The appeal filed by the bank’s lawyer, Udom Udom formulated five grounds of appeal which includes the following: " Whether from the documentary and oral evidence placed before the trial court, the appellant proved the respondents complicity defrauding the appellant and benefited from the fraud; " Whether in view of banking practices, rules, and regulations, the sum of N4million transferred from the first respondent’s account to the second respondent’s account by the second respondent on September 30,2002, is a proceed of fraud.

In a unanimous judgement, the panel of justices at the appellate court, Justices Bage, John Inyang Okoro, and Helen Moronkeki Ogunwumiju upheld the decision of the trial court. In the lead judgement read by Justice Bage, the court maintained that the statement of Lere clearly and unequivocally admitted to the commission of the fraud against the appellant.

He also clearly maintained the fact that he committed the crime of using the respondents account without the second respondents knowledge; These are documentary evidence that oral testimonies cannot be admitted to alter, vary, subtract, or added to, especially where such documents brood no ambiguity.

In the final analysis, having resolved the sole issue formulated by the court in the determination of the appeal in favour of the respondents and against the appellant, this appeal is devoid of any merit and it is hereby dismissed . In concurring with the lead judgment, Justice Ogunwumiju said: It amounts to nothing more than a resort to self help which is unacceptable, and which amounts to lawlessness and brigandage for the appellant to unilaterally freeze the account of the respondents.

No one is allowed to resort to self help, if not, we shall all descend to a state of anarchy . In his own concurrence, Justice Okoro said: The procedure in all civilized countries, including Nigeria , is that suspects are reported to law enforcement agencies who, after investigations and if suspect is found culpable, is charged to court. It is only the court that can pronounce a person guilty of a crime. No other institution or individual is endowed with such power.