CBN denies funding Boko Haram

THE Central Bank of Nigeria (CBN) has denied allegations that there are people using it to fund the activities of Islamic group, Boko Haram.
  CBN’s denial was contained in a letter obtained by The Guardian yesterday. The letter dated October 16, 2014 was addressed to Socio-Economic Rights and Accountability Project (SERAP).
    The letter with reference LSD/ACL/GEN/SRP/02/090, which was signed by O.A. Ogundana on behalf of the Director, Legal Services Department of the bank, reads in part: “We write to acknowledge the receipt of your letter dated 15th September 2014 on the subject captioned: request to provide information about alleged money laundering to Boko Haram through the bank.

   “In your letter you had requested from the CBN information about persons or office involved in alleged money laundering activities of the Boko Haram through the CBN; and information on the exact nature and duration of any such transactions.
   “We wish to inform you that after investigating the allegations across various departments at the bank that deal with payments, the bank could not find any information pertaining to persons involved in money laundering through the CBN to fund the activities of Boko Haram.
   “The CBN as banker to the Federal Government only maintains accounts for and on behalf of the Government, its Ministries, Departments and Agencies; Deposit Money banks and other financial institutions in Nigeria and can only make payments on their behalf based on authorised mandates.
  “Consequently, the CBN does not maintain or operate any accounts for individuals, officers or offices within the bank. In conclusion, your organisation may wish to note that the bank maintains a robust Anti-Money Laundering/Combating the Financing of Terrorism framework to prevent the use of its platform for financial crimes. Please, accept the assurances of the Governor, Central Bank of Nigeria.”
  On October 14, SERAP sued the apex bank at the Federal High Court, Lagos. In the originating summons of the suit marked FHC/L/ a copy of which was made available to The Guardian, the human rights group through its Executive Director, Adetokunbo Mumuni, wants the court to determine among other things, “Whether by virtue of the provision of Section 4(a) of the Freedom of Information Act 2011, the CBN is under an obligation to provide the plaintiff with the information requested for.”
   According to SERAP, “a necessary implication of the rule of law is that a public functionary and institution can only act in accordance with law, as to do otherwise may enthrone arbitrariness.   Obedience to the rule of law by all citizens but more particularly those who publicly took oath of office to protect and preserve the constitution… In a democratic society, this is meant to be a norm; it is an apostasy for public institutions like the CBN to ignore the provisions of the law.”
  No date has yet been fixed for the hearing of the suit.