By Innocent Anaba

A Federal High Court sitting in Lagos on January 30, 2023, sentenced a businessman, Kenneth Amadi, to 18 months imprisonment over a fraud of N2.9 billion. The court found, among others, that Amadi, while an employee of Eunisell Ltd owned by a businessman, Chika Ikenga, abused his position and diverted the proceeds of the sale of Eunisell’s goods to a company operated by him and his wife.

In the year 2000, seven years after Ikenga set up Eunisell in Victoria Island, Lagos, he hired Amadi, a fresh university graduate as a salesman. As Eunisell’s chemicals’ importation, distribution and manufacturing business grew, so did Ikenga grow the welfare and work conditions of his employees, including Amadi, who soon rose to the position of Chief Executive Officer, CEO, with a salary of N2.5million plus $4,000 monthly, an official Lexus SUV, business class tickets for travels and free medical care abroad, all paid for by Eunisell, as of October 2016.
But on January 30, 2023, almost seven years after he left the firm, Amadi was on his way to jail for some of his actions while working for Eunisell. His company, IDID Nigeria Limited, faced liquidation.

After months of legal battle, Justice Alagoa found Amadi guilty of counts 4 and 5 of the criminal charge FHC/L/355C/2019 filed against him by the Federal Government through the office of the Attorney-General of the Federation, AGF.

The charge

On October 2, 2019, the Office of the AGF filed a five-count charge against Amadi and IDID for allegedly obtaining Eunisell’s N2.9bn by false pretence and with intent to defraud from A-Z Petroleum Ltd and AMMASCO International Ltd. He was also accused of forgery of invoices and waybills, as well as suppression of data concerning financial transfers to Eunisell “with intent to confer economic benefits” on himself
Trial

The trial commenced on October 15, 2021, with the government calling Ikenga as a prosecution witness. Ikenga in his testimony stated that Amadi was his employee, who was hired in 2000.

He testified that the defendant started as a Salesman in 2000 after his NYSC, grew to become an Assistant Manager and was promoted to a General Manager and in 2012, was made Eunisell’s CEO.

He also stated that the defendant left Eunisell on October 28, 2016, as CEO following an enquiry by one of Eunisell’s foreign suppliers and partners, Lubrizol. According to Ikenga, Lubrizol wrote to Amadi and copied him in July and told Amadi that their competitor called Oronite had appointed a distributor in Nigeria and they wanted him to find out about this local distributor called A.B.D. Energy Solutions Ltd.

Ikenga said Amadi did not get back to them with the information and gave no reason for that. He further stated that he instructed his lawyers to find out from the Corporate Affairs Commission, CAC, the particulars of the company so that he could furnish the foreign firm with the information.

According to Ikenga, the search from the CAC revealed that Amadi was the owner, shareholder, promoter and director of A.H.D. Energy Solutions Limited.

How alleged fraud was exposed

According to Ikenga, when Amadi left his company, an audit was carried out to reconcile the account of the big companies he was managing. Ikenga stated that the audit revealed that payments that had been coming into the company’s bank account were from Amadi and his company.

Ikenga told the court that Amadi used Eunisell’s funds to operate IDID. He alleged that Amadi altered the invoices to Ammasco and A-Z Petroleum to enable him to receive Eunisell’s payment “without authority, mandate and approval and diverting funds to build up the profile and credibility of the Defendant. Other witnesses also corroborated Ikenga’s testimony.

Defence

In his defence, Amadi through his lawyers contended that no document said to be in possession of the prosecutor was tendered to show that he defrauded Eunisell Ltd “of the bogus amount of N2.9bn.”

He also submitted that the charge was an abuse of the court process, adding that PW1 and PW2 gave contradictory testimonies, regarding the auditing of Eunisell’s banking activities.
The defendants also submitted that Ikenga claimed N2.9bn at a time, “but later claimed that N103million was unaccounted for.”

He claimed the prosecution’s evidence is replete with contradictions which resulted in the prosecution’s failure to prove its case beyond a reasonable doubt.”

The defendants urged the court to hold that the prosecution failed to prove essential ingredients of the offences beyond a reasonable doubt.

Judgment

In his judgment, Justice Allagoa held that the prosecution did not prove counts 1, 2 and 3 beyond a reasonable doubt, He, however, convicted Amadi and his firm of counts 4 and 5.
Meanwhile, Kenneth Amadi has challenged his conviction at the Court of Appeal.