Justice Muyiwa Idris of the Federal Capital Territory (FCT) High Court sitting in Nyanya has ordered the detention of the Managing Director/Chief Executive Officer of Galaxy Transportation and Construction Services, Babagana Dalori, in Economic and Financial Crimes Commission (EFCC) custody for diverting $2.8 million and N6.5 billion of investors’ funds.
The judge gave the order yesterday while ruling on a bail application brought before the court by Dalori’s counsel, Joe-Kyari Gadzama (SAN), following the suspect’s arraignment by the EFCC for criminal charges. EFCC had on September 2, 2019 arraigned Dalori and his company before Justice Idris on three sets of charges – two counts on alleged N95.53 million fraud, two on obtaining N4 million by false pretence, and eight on N30.908 million fraud.
Dalori is also being prosecuted by the EFCC before Justice Venchak Gaba of the FCT High Court, Kwali, Abuja, for alleged N10 million fraud.Following his arraignment before Justice Idris, his counsel applied for his bail, arguing that the case against him was civil.He also urged the court to release him on health grounds.
The bail application was, however, vehemently opposed by counsel to EFCC, Maryam Ahmed, who urged the court to deny the application for bail in the interest of justice.In arguing against the application, the EFCC also attached 145 petitions in the counter-affidavit, stressing that it needed more time to investigate the allegations.
The court also noted that the EFCC was able to prove beyond reasonable doubt that Dalori used investors’ money to trade in foreign exchange, as indicated in the confessional statement by a representative of Forextime Limited (the company he allegedly used for the transaction), which was attached in the EFCC’s counter-affidavit.
Specifically, Dalori was alleged to be running a ponzi scheme, which he used to defraud unsuspecting investors to the tune of N6.5 billion. So far, the EFCC has received a total of 146 petitions, with 128 already tilting against him involving the fraud.Investigations into his dealings also revealed that he traded with investors’ $2.8 million in forex at a loss, and gave a N500 million tip in order to secure a contract, which, however, flopped.
Further probe into the petitions also exposed activities, which involved diversion of investors’ funds to acquire properties, including four filling stations, one hospital, supermarket, watermelon farm, fish and poultry farm, a water factory, estates, and three quarries in Kano, Ogun and Abuja.
EFCC also picked holes in Dalori’s claim of investing in transportation through Galaxy, as investigators could not trace any existing bus used for transport by his company.