Former governor of Delta State, James Ibori, were among some prominent Africans named in a newly discovered secret offshore assets scam released by a German newspaper Süddeutsche Zeitung.
Details of how Mr. Ibori organised the looted funds were contained in a leak of about 11.5M secret documents owned by the Panama-based international law firm, which showed how world leaders, celebrities, athletes, FIFA officials and criminals hid money using anonymous shell corporations across the world.
Newsweek newspaper quoting the report disclosed that Ibori was linked to four offshore companies including Stanhope Investments, which he allegedly used to open a Swiss bank account. The account, it added, was used by Ibori to channel funds for the purchase of a $20m private jet.
Ibori, who is currently serving jail term in the United Kingdom after pleading guilty to fraud charges in 2012, enlisted his immediate family as beneficiaries of the offshore companies and foundations.
To hide his loot, Mr. Ibori, working through a Swiss asset management firm, Clamorgan S.A. in Geneva, established several offshore companies, including Stanhope Investments Limited,a foundation, Julex Foundation, and a trust, The Hopes Trust, enlisting himself, his wife and daughters as beneficiaries.
Clamorgan prides itself as a company that provides asset management, fiduciary services, immovable property administration, amongst others, and operates under the laws of Geneva, Switzerland.
The beneficiaries of Mr. Ibori’s Julex Foundation were Mr. Ibori himself; his wife, Theresa and some other believed to be his daughters: Obianuju, Ehriatake Ibori, Otonvwen, Eseoghene, Oberhili and Eguono.
In August 2003, Clamorgan S.A. applied for registration for Stanhope Investments Ltd. in the Pacific Island of Niue with initial shareholders’ capital of $50,000 at $1.00 per share, all held by Julex Foundation. A certificate of incorporation for Stanhope was issued by the Office of the Registrar of International Business Companies on August 11, 2003.
On behalf of Mr. Ibori, Clamorgan S.A. contacted Mossack Fonseca & Co. in Seychelles to act as the registered agents for Stanhope Investments Ltd.
Mr. Ibori then secured the services of Yvette Rogers and Francis Perez to act as nominee directors on his behalf. Nominee directors are usually appointed in tax havens to hide ownership of companies and assets.
Both Mrs. Rogers and Mrs. Perez were staff of Mossack Fonseca. The two only signed forms as directors of the company, and they take direct instructions from shareholders — Julex Foundation, through Clarmorgan S.A.
Therefore, they had no discretion over the company’s activities, whatsoever.
Mr. Ibori hired Sebastian Thiery, a certified independent assets management consultant based in Switzerland as the signatory to the account of Julex Foundation. He operated the bank accounts on behalf of the Iboris.
When Mossack Fonseca resigned as the registered agent for Stanhope in Seychelles in 2012, the company transferred all Stanhope’s assets to Mr. Thiery.
The documents also showed that all the shares of Stanhope were issued in bearer form. According to Investopedia, bearer form means the security is traded without any record of ownership, so physical possession of the security is the sole evidence of ownership. Most securities issued today are in registered form.
The leaked papers linked Stanhope Investments, Julex Foundation, Financial Advisory Group Ltd. and Hunglevest Corporation as the four companies owned by Mr. Ibori in tax havens.
Other companies such as Borel and Barbey, a Swiss law firm, The Hopes Trust and Howard LLP in London also had links to Mr. Ibori.
