Federal government has dragged two top executives of Telecom Satellites Limited (TSTV), to court over alleged tax evasion, money laundering and advanced fee fraud offences.

The accused are Dr Bright Ikechukwu Echefu, managing director and chief executive officer of TSTV and Dr Felix Nnamdi Ignoanuga said to be the executive director of the telecom satellites company.

They were put on trial at the federal high court in Abuja, alongside TSTV and another company, Briechberg Investment Limited by the Economic and Financial Crimes Commission (EFCC), on 9-count criminal charges.

Part of the charges are that the two men on May 18, 2020, committed money laundering bordering on tax evasion, unremitted VAT, Company income tax and Pay As You Earn (PAYE), deducted from the salaries of 165 workers punishable under section 15 of the Money Laundering Prohibition Act 2011 as amended in 2012.

They were alleged to have on May 18, 2020, diverted to their personal use N33. 9M, N13. 5M and N19. 4M tax money payable to the federal government in breach of section 15 of the Money Laundering Prohibition Act.

On his part alone, Dr Bright Ikechukwu Echefu who is the first accused person was alleged to have defrauded Turaki Kabir Tanimu, SAN, of N960 million under false pretences.

The charge indicated that Echefu while acting as the managing director of Briechberg Investment Limited on May 18, 2020, with intent to defraud obtained the sum of N150m from Tanimu who is the Managing Director of Kalsiyam Farm as a loan to acquire modern equipment for his telecom company.

The money was said to have been paid into Briechberg Investment Limited account number 1015561485 domicile at Zenith Bank.

On the same day, the accused person was said to have obtained another N380m paid into the same account for the same purpose while another N400m was also allegedly secured by the accused the same day and for the same purpose from Tanimu who is also the MD of BYI General and paid into the same account.

Still on the same May 18, 2020, Turaki SAN, while acting as Managing Director of K. T Turake made two payments of N15M each into the Briechberg Investment Limited bank account belonging to Dr Bright Ikechukwu Echefu for the same purpose.

It will be recalled that Turaki Kabir Tanimu SAN was at a time, a Minister of the Federal Republic of Nigeria and was physically present in court during Thursday’s arraignment of the defendants.

When the charges were read to them, the two accused persons denied the alleged fraud charges.

Sylvanus Tahir, a Senior Advocate of Nigeria who led the prosecution team vehemently objected to the bail application made by Eyitayo Fatigun, SAN on behalf of the two defendants.

While Tahir insisted that the accused persons are flight risks having allegedly been evading arrest, Fatigun disagreed and insisted that EFCC itself granted them administrative bail.

In a short ruling, Justice Inyang Edem Ekwo adopted the EFCC bail conditions to allow the two men go home.

The Judge, however, ordered them not to travel out of the country without the permission of the court while the immigration must be notified of the seizure of their international passports.

He warned that any breach of the bail conditions or absence in court would automatically lead to revocation of their bail and to remain in custody throughout the trial period.

Justice Ekwo directed the EFCC to transmit the record of administrative bail granted to the defendants to the court within seven days.

Meanwhile, July 15, 16 and 17 have been fixed for the commencement of trial.

The National Information Technology Development Agency (NITDA) has taken a significant step towards driving the implementation of the Nigeria Startup Act (NSA) with the inauguration of a Startup Labelling Committee.

The committee, inaugurated by Kashifu Inuwa CCIE, Director-General of NITDA, comprises representatives from both the public and private sectors.

The NSA, enacted on October 19th, 2022, established a legal and institutional framework to foster the development and growth of Nigerian startups. A critical provision within the Act is the Startup Label. This label recognizes eligible startups, granting them access to the various benefits outlined in the NSA.

The issuance of the Startup Label hinges on a thorough assessment and validation process to ensure a startup meets the eligibility criteria as defined by the Act. The newly formed committee will play a pivotal role in overseeing this process.

In his address at the inauguration ceremony, Inuwa emphazised on President Bola Ahmed Tinubu’s administration’s unwavering dedication to fostering an environment conducive to the growth and success of young Nigerian innovators.

He acknowledged the pivotal role startups will play in propelling the nation’s economic development, and the significance of the committee’s work in nurturing and supporting these enterprises.

He elaborated on the various initiatives and support mechanisms the government plans to implement, aimed at reducing hurdles and providing financial assistance and mentorship opportunities to young entrepreneurs.

Inuwa expressed optimism about the future, asserting that with the right support, these budding innovators could transform their ideas into thriving enterprises, thus contributing significantly to job creation and the overall economic prosperity of Nigeria in line with President Tinubu’s priority area to “reform the economy to deliver sustained inclusive growth.”

He urged stakeholders to join hands in creating a robust ecosystem that would empower the next generation of entrepreneurs to flourish and contribute to the country’s progress.

Inuwa added that the committee will be instrumental in establishing a robust legal and institutional framework for the successful implementation of the Startup Act. Their collaborative efforts will ensure a participatory approach that benefits all stakeholders within the Nigerian startup ecosystem.

“The composition of the committee reflects the emphasis on collaboration. Representatives from government agencies, industry experts, investors, and startup founders will bring their diverse perspectives and experiences to the table.

“This collaborative approach is expected to lead to a more efficient and effective labelling process, ultimately benefiting the growth of Nigerian startups,” he stated.

Speaking on the roles and responsibilities of Committee, the National Coordinator, Office for Nigeria Digital Innovation, Victoria Fabunmi, listed the terms of reference for the advisory committee which include the following:

Review and evaluate start-ups’ applications for label based on criteria defined in the Act and any additional criteria that may ensure quality for the label; Periodically review and update additional labelling criteria to ensure alignment with industry trends; Conduct an impartial evaluation of submitted applications for Startup Label.

Furthermore, the Committee will Recommend on issuance or otherwise of Startup Label based on defined criteria; Provide feedback/comments/recommendations on areas of improvement where a start-up’s application is rejected; Where necessary, dedicate time to further engage startups for more clarity/details on information provided.

It will also periodically review its previous activities and data on labelling, to identify/recommend opportunities and gaps (e.g. DEI, sectors, capacity etc.) that policymakers may need to place added emphasis on; Periodically review workload capacity and recommend a fair ceiling for the number of applications to be considered per period.

This is in consideration of the fact that the Committee is not a full-time position; and Members shall be subject to a Code of Conduct and must duly sign this prior to commencement of duties.

She also stated that the Labelling Committee comprises Nine (9) members from the following: Four (4) Representatives of Incubators (ISN Rep, North and South); Two (2) Representatives of the Public Sector (NITDA, NSIA); Two (2) Representative of the Civil Society’ and Portal Coordinator – to serve as Secretary.

The inauguration of the Startup Labelling Committee marks a significant milestone in the implementation of the Nigeria Startup Act. With a multi-stakeholder committee guiding the process, the Act has the potential to unlock the immense potential of Nigeria’s startup ecosystem and contribute significantly to the nation’s economic development.

Mohammed Idris, minister of Information and National Orientation, has said that due processes are being applied in all stages of the trial by the laws of the Federal Republic of Nigeria.

This is coming against the backdrop of continuing interest in the ongoing trial of Binance, crypto platform, and its executives.

Idris  said that “At all stages, due process has been followed, and prosecutors are confident of their case, based on the facts and evidence gathered.

“Binance will have every opportunity to defend itself in court against these severe charges of financial crimes against the Federal Republic of Nigeria. The next hearing is on June 20, 2024,” he said.

The minister explained that Binance, the defendant, has received consular access and all due care, following normal diplomatic protocols and the rule of law, adding that the judge in the case has sufficiently posited that bail was denied because of the flight risk after a co-accused, now the subject of an Interpol warrant, illegally absconded.

It would be recalled that Binance had a turnover in Nigeria of over US$20 billion in 2023 alone, far above the federal budget for health and education, fueling currency speculation and the cost-of-living crisis.

In addition, it is not registered in Nigeria and neither has it ever paid any taxes within the Nigerian jurisdiction, having all the while operated without oversight or any of the normal guardrails to flag criminal activity.

Idris said Binance is an entity whose representatives have been variously imprisoned, fined, sanctioned, and banned in North America, Europe, and Asia in recent years.

“Changpeng Zhao, the billionaire co-founder and former CEO of Binance, is currently serving a four-month prison sentence in the United States after being found guilty of money laundering, while Binance has openly accepted its role in facilitating terrorism, corruption, sanctions busting, and in aiding and abetting paedophile gangs.

“Law enforcement agencies believe Binance operations in Nigeria are part of a broader international pattern. It will be for the courts here, as in other jurisdictions, to hold the company and its executives accountable,” Idris said.