Following escalating reputational crisis arising from the United States release of a detailed 36 page documentary allegations, detailing an extensive 27 count multiple charges of bank fraud, credit application fraud, money laundering and aggravated identity theft against Mr Allen Onyema, Chairman and CEO of Air Peace Limited and his company’s head of Finance and Administration, Ejiroghene Eghagha, the former has come under enormous pressures to step down as Air Peace’s CEO and chairman.
Top level sources in Nigeria’s business community hinted The New Diplomat that the decision to exacerbate pressures on Mr Onyema to resign as CEO of Airpeace, a top-grade, thriving Nigerian Airline is to stave off the company from increasing injurious reputational crisis, and protect Air peace andothers known and unknown from losing billions of dollars for orders already placed for an additional 10 B737MAX aircraft, a move that was celebrated as an exceptional business feat in Nigeria last year.
This latest development is coming in the thick of broadening investigations against Onyema and his cohorts, including Eghagha as Canadian authorities have reportedly commenced moves to execute a corresponding warrant of arrest issued against the duo. Both the US and Canada, two major countries in North America, have long-standing convention, protocols and treaties on cross-border crimes, criminality and financial fraud. Russell Vineyard, a magistrate at the US District Court for the Northern District of Georgia issued a corresponding warrant of arrest for Mr Onyema and Eghagha in Canada in early September. With this, the US law enforcement agents reportedly requested the assistance of their Canadian counterparts to take the duo into custody if found within Canadian territory. In August, 2018, Onyema established Bluestream Aero Services and Springfield Aviation Company in Ontario, Canada, respectively.
A US-based Attorney said typically both Canada and US share information on matters of cross-border security, criminality, taxation, etc. He referenced the example of the Canadian-US tax treaty which provides relief from double taxation in the US and Canada for world income earned by citizens or residents of both countries. Broadly, in the charges against Mr Onyema, he was accused of holding funds totaling $4,593,842.05 in Bank of Montreal, Canada in the name of Springfield Aviation Inc, and an additional $5,634,842.04 in funds in the same Bank of Montreal, Canada held in the name of Bluestream Aero Services Inc. This was in addition to $4,017,852.51 he purportedly held in the name of Springfield Aviation Company, LLC with JP Morgan Chase Bank, US. Given the US-Canadian protocols dealing with cross-border crimes, it was professionally procedural that the US Law enforcement authorities would reach out to their Canadian counterparts to “take the two suspects into custody if sighted in their jurisdiction”
An international Law expert who spoke withThe New Diplomat in confidence expressed concern that the indictment by the US Grand Jury and issues therein have far-reaching consequences for Mr Onyema, Eghagha, Air peace, the legion of Non-profit organizations(Foundation for Ethnic Harmony, International Center for Non-Violence and Peace Development, All-Time Peace Media Communications Limited and Every Child Limited) used allegedly in transiting funds into the US for the purchase of these aircrafts as well as two Nigerian commercial banks so far mentioned (Fidelity Bank and United Bank for Africa(UBA) in the 36 page report. Also believed to be affected are those classified asothers known and unknown in the damning indictment. The US government further alleged that these NGOs transferred funds into escrow, logistical and personal bank accounts in the US between 2013- 2016.
Mr Onyema has been facing multiple charges of money laundering and bank fraud in excess of $20 million in the US following his indictment by a US grand jury. He, however, debunked the allegations as “ false and are in no way in line with my character as a person and as a business man.” According to him, all the money transferred for the purchase of aircraft went through the Central Bank of Nigeria(CBN), stressing that he has “never laundered money” in his life neither has he committed bank fraud anywhere in the world. “Every kobo I transferred to the US for the aircraft purchase went through the Central Bank of Nigeria LC regime and all were used for the same purpose… The American companies that received the funds are still in business. I never took a penny from any US bank or Nigerian bank. I am willing to defend my character in the US courts.” he added.
Though the Nigerian government has not officially spoken on this spiraling indictment, the Economic and Financial Crimes Commission (EFCC) last Saturday raised what sources described to as a “special panel” to investigate the matter. The EFCC investigations, according to sources, is projected to cover the activities, operations and inflows into the accounts of the four the Non-profits organizations sponsored by Onyema, from which funds were reportedly wired into the designated US Banks. EFCC sources hinted that the anti-graft agency may also be examining allegations that Onyema may likely be fronting for some high-profile persons. “We are also interested in the roles played by two banks in the country including one that has been on our radar for a while for money laundering… Our immediate suspicion is that these four groups (the four non-profit organizations) are likely to be tools for money laundering…”, an EFCC source added.
Presidency sources confided in The New Diplomat at the weekend that the Presidency was still weighing the issues, and evaluating the situation with keen interest as more revelations unfold. It is not clear what action the Nigerian government would take should Onyema be convicted or found guilty by the US government. Some experts maintain that AMCON might be prompted or triggered to step in to take-over Air peace, especially if the suspect is unable to explain how he pooled resources or earned revenue legitimately to establish the airline. Onyema, according to US authorities, started frequenting Atlanta, US within the last ten years and consequently opened his first US bank account in Atlanta. Both Arik Air and Aero Contractors, two privately owned airlines have previously been taken over by the Assets Management Corporation of Nigeria (AMCON).
Against this backdrop, Mr Onyema is said to be under intense pressure from business associates to step down as reputational issues continue to spiral and amplify with detrimental consequences on the corporate profile of Air peace, an excellent and thriving Nigerian Airline which has become the toast of most Nigerians who enjoy air travels. The New Diplomat’s telephone calls to Mr Onyema on this latest development were not answered. But a preliminary Reputation Audit conducted by The New Diplomat on how the indictment spectacle may have impacted on the Airline since the scandal broke indicate a widening consequences with injurious implications for the flourishing, first-class company. In September this year, Mr Onyema offered his aircraft free to airlift Nigerians fleeing from South Africa following xenophobic attacks. That gesture earned him an instant national adulation.
Some Aviation experts in Nigeria have weighed in. Group Capt John Ojikutu (Rtd), a former Commandant of the Murtala Mohammed International Airport, Lagos and top-shot of Aviation Roundtable Group expressed concern that the exacerbating US revelations have far-reaching implications for not only Air Peace but the entire Aviation industry in Nigeria. Ojikutu who was quoted as saying he was “unconvinced of the sources(of funds) to buy more than 30 new and fairly used aircraft for close to $3billion” said: “ That was the red flag and concern for the DSS even if they don’t say it out. Hard time awaits any…that has a hand in this pot of mess. The report says known and unknown persons are connected.”
THREE BROAD LEADS MENTIONED IN THE US INDICTMENT OF ONYEMA…
A. Nigerian bank frequently mentioned in the Onyema Indictment…
- Fidelity Bank
B. 4 Onyema-led NGOs allegedly used to funnel funds for the purchase of aircrafts …
- Foundation for Ethnic Harmony
- International Center for Non-Violence and Peace Development
- All-Time Peace Media Communications Limited
- Every Child Limited
C. Actors and corporate bodies mentioned in the damning report…
- Allen Ifechukwu Athan Onyema
- Ejiroghene Eghagha
- Springfield Aviation Company LLC(Atlanta, United States)
- Air peace Limited
- Bluestream Aero Services
- Springfield Aviation Company Inc
- Others Known and Unknown
Source: newdiplomatng.com
