Appeal Court Warns EFCC Against Interference in Civil Transactions

The Court of Appeal, Kaduna Judicial Division, has cautioned the Economic and Financial Crimes Commission (EFCC) against meddling in civil transactions, emphasizing that its statutory powers do not extend to investigating or resolving disputes arising from simple contracts.

The warning was issued in a judgment delivered by a three-member panel of justices, led by Justice Ntong Ntong, while ruling on an appeal brought by the EFCC against Mr. Bela Becker, Managing Director of DKG ITCC Nigeria Limited, an oil and gas engineering company.

The case involved allegations of criminal misappropriation and breach of trust amounting to over N30.4 billion in a transaction with the Nigerian National Petroleum Corporation (NNPC).

In its judgment, the appellate court dismissed EFCC’s appeal and upheld the decision of the Kaduna State High Court, which awarded N1 million in damages against the anti-graft agency for infringing on Mr. Becker’s fundamental rights.

The EFCC had alleged that Mr. Becker, through his company, awarded subcontracts to Advic Engineering Limited worth over N30.4 billion.

It claimed that while DKG ITCC paid N13.2 billion, the remaining N19.2 billion was misappropriated, framing the situation as an economic and financial crime.

However, the court rejected this argument, stating that the EFCC had improperly used terms like “criminal misappropriation” and “criminal breach of trust” to frame a civil transaction as a criminal matter.

Justice Ntong, delivering the lead judgment, said, “EFCC used these phrases merely to deceive the public and justify their illegal actions, aiming to tarnish the reputation of the first respondent to achieve their agenda.”

The court further clarified that while criminal elements may occasionally arise in contractual disputes, any intervention by the EFCC or police must be cautious, limited, and discrete.

In this case, however, the EFCC acted beyond its constitutional mandate.

The court noted that the record of proceedings clearly established the contractual nature of the dispute, and since the appellants failed to contradict this, the transactions were deemed civil.

Justice Ntong criticized the EFCC’s actions as unconstitutional, illegal, and an abuse of power, stating that, “The EFCC acted ultra vires by overzealously interfering in a civil matter that falls within the purview of a High Court.

Their actions were predicated on illegality, and no court should condone such behavior.”

The appellate court warned that government officials, including EFCC operatives, must adhere strictly to the rule of law and face consequences for actions taken outside their legal authority.

“Where any EFCC official or police officer jettisons the rule of law, such an official should be made to bear the consequences,” the judgment concluded.

This ruling reinforces the court’s stance against the misuse of law enforcement powers to interfere in civil disputes.