EFCC appeals against partial acquittal of ex-NHIS boss in $2.2m money laundering case

The Economic and Financial Crimes Commission (EFCC) has appealed against the partial acquittal of Olufemi Thomas, a former Executive Secretary of the National Health Insurance Scheme (NHIS), in a $2.2 million money laundering case.

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On 24 July, the Federal High Court in Lagos Mr Thomas partially convicted Mr Thomas on one count and acquitted him on six others. The court cited EFCC’s failure to prove its case beyond a reasonable doubt in respect of the majority of the counts.

The judge, Ayokunle Faji, only convicted Mr Thomas on one count of violating Nigeria’s cash transaction limit law and fined him N10 million instead of a custodial sentence.

The court further ordered the EFCC to return the seized $2.2 million to Mr Thomas within 14 days of the fine payment, ruling that the funds were not proven to be proceeds of crime.

Dissatisfied with the verdict, the EFCC has filed a notice of appeal through its legal team led by Senior Advocate of Nigeria (SAN) Ekele Iheanacho.

The agency asked the Court of Appeal to overturn the acquittal and convict Mr Thomas on counts 1, 2, 3, 4, and 7 which the lower court acquitted him of.

It also seeks a forfeiture order for the $2.2 million to the federal government.

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EFCC’s grounds of appeal

In its appeal, the EFCC argued that the trial court relied on “imaginary and fanciful doubts” to absolve Mr Thomas despite what it described as overwhelming evidence of unlawful enrichment.

The agency said Mr Thomas failed to offer a satisfactory explanation for the sharp increase in his assets while holding public office—an obligation under Section 140 of the Evidence Act 2011, Section 19(5) of the EFCC Act, and Section 82 of the Lagos State Criminal Law 2011.

The commission also faulted the trial court for dismissing the value of its investigative work and rejecting key documentary evidence, including Mr Thomas’s audited financial statements.

The anti-graft agency noted, for example, that Safeline Agro Business Ltd—allegedly owned by Mr Thomas—declared a pre-tax profit of only N3.9 million in 2014, yet somehow received $2.2 million in cash that same year, a claim it described as “unreasonable and unsatisfactory.”

According to the EFCC, the trial judge erred by selectively accepting inconsistent explanations from the defendant while disregarding stronger prosecution evidence.

The agency also claimed the court failed to properly evaluate Mr Thomas’ asset declaration forms (Exhibits G1–G12), which it said undermined his defence.

Background

Mr Thomas and his co-defendant, Kabiru Sidi, were arraigned on 28 June 2017 on seven counts of conspiracy, money laundering, and making false statements about the origin and ownership of $2,198,900 moved in cash.

While the court acquitted Mr Thomas on five counts—including unlawful enrichment and conspiracy—it convicted him on one count for making a cash payment above the legally permitted N5 million threshold.

“The transaction in count five was not found to be a crime, only that it exceeded the cash threshold,” Mr Faji ruled. “While the money was not proven to be proceeds of unlawful activity, the act of paying above the cash threshold is a violation.”

In sentencing, the judge acknowledged Mr Thomas’s clean record, consistent court attendance, and professional service to the country.

“You have no prior criminal record, you attended court regularly, and you have served this country with distinction. This influenced my decision to impose a fine rather than a custodial sentence,” the judge ruled.

Mr Thomas was also barred from travelling outside the country until the fine is paid.

Conviction of second defendant

The court also convicted the second defendant, Mr Sidi, on a single count of falsely claiming ownership of the $2.1 million cash during the EFCC’s investigation.

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His lawyer, Olanrewaju Ajanaku, pleaded for leniency, citing his client’s deteriorating health.

During the allocutus, Mr Thomas’s lawyer, Collins Ogbonna, assisted by Kunle Gbolahan, urged the court to temper justice with mercy, noting his client’s contributions to Nigeria’s health sector.

“Dr. Thomas is a distinguished cardiologist who established the cardiology department at Lagos University Teaching Hospital and trained many of Nigeria’s cardiologists,” Mr Ogbonna said. “He is a first-time offender, retired, and has a dependent child still in school.”