Abacha fraud case: US gets involved

Monday 06 February 2017

A request by American authorities to get involved in a long running fraud case being heard in Jersey’s Royal Court involving the Nigerian government and a company associated with the country’s former dictator General Sani Abacha, has been put on hold.

It’s alleged the General and his family stole money running into millions of pounds from the Nigerian government, and laundered it through the USA, and that the profits ended up in a bank account registered in the Island.

What worries the US government is that if the case is settled in Jersey in Nigeria’s favour, without the correct legal paperwork, it might be stopped from claiming any money back.

The request leaves Jersey’s Royal Court in an awkward situation. Should it wait for the Americans to register their claim and hear that case before settling the current case – something that is potentially unfair to the Nigerian government - or should it settle the current case, potentially making it difficult for the Americans to go ahead with their claim?

Having heard the evidence, a sort of compromise has been reached whereby the case will be settled, but the paperwork has been re-written in such a way that any decisions made will not restrict the Americans pursuing their claim under the so-called 2007 Law. Nigeria has also agreed it won't claim any of the money it gets by settling the case until America has had the chance to put its case.