The Court of Appeal sitting in Lagos has overturned the conviction and 17-year prison sentence earlier handed to businesswoman, Oluremi Phillips, ruling that the matter in dispute was purely civil and not criminal in nature.
In the lead judgment delivered virtually through Zoom, Justice Yargata Nimpar held that the allegations against Phillips arose from a commercial transaction and did not disclose any criminal offence.
The appellate court consequently set aside the judgment of the Lagos State High Court, Ikeja, which had convicted Phillips on several counts bordering on stealing and issuance of dud cheques.
The court’s decision came after Phillips had already served the prison sentence imposed by the lower court.
According to Justice Nimpar, the appellate court carefully examined the submissions and issues presented by both parties before arriving at the conclusion that the transaction between the parties lacked criminal intent.
“This was essentially a civil transaction without any criminal element whatsoever,” the court ruled, noting that the respondent, the Economic and Financial Crime Commission (EFCC) improperly converted a business dispute into a criminal prosecution.
Phillips had appealed against the December 4, 2024 judgment of the Lagos State High Court, Ikeja Judicial Division, which found her guilty on multiple charges.
In her Notice of Appeal, she challenged the judgment on several grounds. Both parties subsequently filed and exchanged their briefs of argument in line with court procedures, with the appellant raising five issues for determination while the respondent presented one issue.
After reviewing the arguments, the Court of Appeal resolved all the issues in favour of Phillips.
On the allegation concerning the issuance of a dud cheque, the appellate court held that the prosecution failed to prove the essential elements required under the law.
Justice Nimpar observed that there was no evidence showing that Phillips was formally notified of the alleged dishonour of the cheque issued to the complainant.
“The law is clear that the issuer must be informed or notified of the dishonour, and no such notification was placed before the court,” the judge stated.
The court therefore allowed the appeal and quashed the conviction against the businesswoman.
The judgment was unanimously supported by Justice Senta and Justice Kwaha, who both agreed with the lead decision.
Phillips had earlier been convicted by Justice Rahman Oshodi Ijelu of the Lagos State High Court, Ikeja, over allegations that she and her company, Omritas Energy Limited, fraudulently converted N57,690,000 belonging to AYM Shafa Limited in a transaction involving the supply of Automotive Gas Oil.
The Economic and Financial Crimes Commission (EFCC) had alleged that the money was paid for diesel supply which was never delivered.
The anti-graft agency also accused Omritas Energy Limited of issuing a Diamond Bank cheque valued at N14,298,075 to AYM Shafa Limited in April 2017, which was allegedly dishonoured due to insufficient funds.
Phillips was initially arraigned before Justice Sherifat Solebo on January 27, 2022. However, following Justice Solebo’s retirement in November 2022, the case was reassigned to Justice Ijelu.
She was subsequently re-arraigned alongside her company on May 22, 2023, on five counts bordering on stealing and issuance of dud cheque involving the sum of N57.6 million.
Phillips pleaded not guilty to the charges, while the prosecution and defence each called three witnesses during the trial.
In his judgment, Justice Ijelu sentenced Phillips to nine years imprisonment or an option of N2 million fine on count one, while imposing two years imprisonment each on counts two to five, to run concurrently.
The court also fined Omritas Energy Limited N250,000 on count one and N100,000 on each of the remaining counts.
In addition, the trial court ordered restitution of N57,690,000 to AYM Shafa Limited within 90 days and directed that the company be wound up if the restitution was not made within the stipulated period.