The Kano State High Court has adjourned the multi-billion-dollar port ownership case involving former Governor Abdullahi Ganduje.
The postponement followed a heated debate between the prosecution and defence counsel.
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Mr Ganduje and three other defendants are facing a 10-count charge involving criminal conspiracy, misappropriation of public funds, breach of trust, and conflict of interest.
The Kano State Government charged him alongside his aide, Abubakar Bawuro; his lawyer, Adamu Aliyu-Sanda; and the former Managing Director of the Nigerian Shippers’ Council, Hassan Bello.
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A heated argument broke out on Monday when the lead defence counsel, A.S. Gadanya, SAN, moved an application challenging the legal instrument—known as a fiat—authorising the prosecution team’s appearance.
Mr Gadanya argued that the fiat presented by the prosecution was issued for an entirely different matter.
He contended that because the prosecution lacked the specific authority to litigate this case, the court should set aside all prior proceedings conducted by the team.
The counsel for the state government, R O Zakariyya, opposed Mr Gadanya’s application, citing relevant statutory provisions. He presented a document to the court, which he asserted was a valid fiat containing the names of every member of the prosecution team.
The judge, Yusuf Ubale of the State High Court No. 2, sitting at the Audu Bako Secretariat Complex, listened to both arguments but declined to rule immediately.
He adjourned the hearing to 6 May for a formal ruling on the defence’s objection.
Inside the prosecution
The state government accused Mr Ganduje and three other defendants of conspiring to fraudulently transfer 80 per cent of the shares of Dala Inland Dry Port, including the state’s 20 per cent equity, to private ownership under the fictitious name “City Green Enterprise”.
The prosecution also alleged that the defendants diverted over N4.49 billion of Kano State funds to execute infrastructure projects, including a double carriageway, electricity, and perimeter fencing at the dry port, for their personal and family benefit.
The defendants also faced charges of abuse of office and conflict of interest, as it was alleged that they leveraged their official roles to redirect public resources for personal benefit, thereby violating financial and constitutional regulations.
Background
PREMIUM TIMES last September exposed how Mr Ganduje secretly transferred the state government’s 20 per cent stake in the facility to private hands, making his children co-owners of the company before awarding a contract worth more than N4 billion to provide infrastructure for the project.
The transfer ended Kano State’s shareholding in the project, while Mr Ganduje’s children and aide, Abubakar Bawuro, became directors and shareholders.
What PREMIUM TIMES’ investigation exposed
When Dala Inland Dry Port Limited was incorporated on 8 December 2003, its only directors were the founder, Ahmad Rabiu, and his son, Rabiu Ahmad Rabiu.
Two years later, at an extraordinary general meeting on 19 January 2005, the board was expanded with the appointment of four new directors: Abdulaziz Haladu, Anwar Isyaku-Rabiu, Diepreye George, and Abdullahi Kwaru.
Records obtained by this newspaper show that on 5 March 2020, Mr Ganduje’s three children and his longtime associate, Abubakar Bawuro, replaced Mr Rabiu’s son and all other directors elected in 2005 as board members of the company.
Minutes of the company’s Annual General Meeting (AGM), held on 5 March 2020, at its Zaria Road office in Kano, confirmed the appointment of Abdulaziz Abdullahi Umar, Umar Abdullahi Umar, and Muhammad Abdullahi Umar—all children of Mr Ganduje —alongside Mr Bawuro as new directors of Dala Inland Dry Port Limited.
It was also at the meeting that the state government was removed as a co-owner of the dry port and the Ganduje children were appointed, not just as directors, but also as shareholders with five million shares each.
According to its “ordinary resolution,” the meeting was “attended by all the shareholders,” and “it was unanimously resolved” that Abdulaziz Abdullah Umar, Umar Abdullahi Umar, and Muhammad Abdullahi Umar —the three children of Mr Ganduje —be allotted five million shares each, each being 20 per cent of the total 25 million shares of the company.
Mr Rabiu and Mr Bawuro were also each allotted 20 per cent, creating a new ownership structure of five equal shareholders, each with 20 per cent of the company’s shares.
This structure edged out the Kano State Government from part ownership of the company.
The state government said due process was not followed in the divestment process, accusing Mr Ganduje of using his office to undermine the state.
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