The Court of Appeal in Abuja has scheduled a hearing for March 27, 2025, to address the N579 billion claim by Kasmal International Services Ltd, a company owned by the late Buruji Kashamu.
The claim is for a 15 per cent commission on the Stamp Duties of N3.860 trillion declared by the Supreme Court for sharing by the 36 states of the Nigeria Governors’ Forum (NGF) and the Federal Government (FGN).
The appeal was filed by the Central Bank of Nigeria (CBN), the Attorney-General of the Federation (AGF), and the School of Banking Honours (SBH) against the judgment delivered by Justice Inyang Ekwo of an Abuja Federal High Court on October 11, 2024.
Stamp Duty in banking is a protected research work
SBH stated in its appeal against the Federal High Court judgment that it holds Copyright Certificate No. LW1023 on 50-Naira Stamp Duty revenue collections which its research brought to government in 2012.
SBH, a government-recognised Innovation Enterprise Institution (IEI), contended in the appeal against the Federal High Court ruling that Stamp Duty in banking is its protected research work.
SBH was appointed by the Federal Government on 12 October, 2017 as the sole agent (by Copyright) to recover over N20 Trillion Stamp Duty for the government, as invited by the Nigeria Inter-Bank Settlement System (NIBSS).
Meanwhile, the Federal Government, on 19 October, 2017, directed CBN to open a Stamp Duty Central Account for SBH recoveries and collections to ensure the monitoring of the revenue by the Presidency.
It was disclosed that some errors were noted by government in the Federal High Court judgment which was in favour of Kasmal.
A source privy to the ongoing suit revealed that Chief Adeniyi Akintola SAN who is lead counsel for CBN and AGF stated that Hon. Justice Inyang Ekwo “erred in law” for ruling in favour of the claims by Kasmal on many grounds.
“Among the errors were that Stamp Duties are public monies to be paid into the Federation Account under Section 162 of the 1999 Constitution (as amended) and that, regardless of any previous mismanagement, the Stamp Duties must be shared by only the three tiers of government.
“This probably explains why the Supreme Court settlement was extended to lawyers and SBH who have genuine contract claims to the researched revenue, for sharing (under the Nigerian Laws),” the source added.
2016 Appeal Court judgment had nullified all claims by Kasmal
“It was also reported that Chief Oladipo Okpeseyi SAN, who is leading the SBH position, insisted that five Appeal Court Justices had unanimously nullified Kasmal from any claim on Stamp Duty, hence Justice Inyang Ekwo of the Federal High Court has no jurisdiction to entertain the matter, and even exceeded his authority by adjudicating the matter afresh.
“The Appeal Court Justices who decided against all the claims by Kasmal were Ibrahim Saulawa JCA, Ejembi Eko JCA, Adamu Jauro JCA, Moore Adumein JCA and Nonyerem Okoronkwo JCA.
“Upon the pronouncements by the Appeal Court, the AGF promptly took over all work done by SBH from NIPOST, while Kasmal somehow used SBH name and Copyright work for its unsubstantiated claims on the government, but which SBH is challenging.
“An Appeal Court Justice described the action by Kasmal as a “carefully crafted scam”. And after eight years, this is audaciously coming up again on the government fund.
“Having exhibited the judgment by the Appeal Court, five issues raised by SBH were not cleared by Justice Inyang Ekwo before he granted judgment in favour of Kasmal. These shall be addressed in the new appeal, along with 2016 Appeal Court decisions,” the source disclosed.
The five issues to be determined in the fresh appeal filed by the CBN, AGF and SBH before the appellate court in Abuja included:
Kasmal Financial Service Ltd (fake company) was Plaintiff
The source continued: “SBH exhibited an Order issued by Justice C.J. Aneke of the Federal High Court, Lagos for a fake company, Kasmal Financial Service Ltd, that initiated actions against banks and others in Suit Ref. FHC/L/CS/1462/2013.
“By the court rules, such claim by a “non-juristic” person must not succeed. Hence, that judgment was discarded at the Appeal Court.
“This proves that further claims by Kasmal (by however this is couched or disguised), must not be entertained by any court.
Commission on Stamp Duty revenue collection targeted by Kasmal was SBH work
According to the source “SBH confirmed to Justice Inyang Ekwo that the N3.860 Trillion of Stamp Duty which Kasmal targeted for 15 per cent commission of N579.1 Billion was actually 50 per cent of its (SBH) own Demand Notice for N7.720 Trillion that was served on banks’ agent, Nigeria Inter-Bank Settlement System Plc (NIBSS), for 2013/2014 and was vetted by Revenue Mobilization Allocation And Fiscal Commission (RMAFC), Finance Ministry and EFCC.
“However, Kasmal has not presented any evidence of its own work to justify its claims. The 2013/2014 assessments are outside the 2016 CBN Circular which Kasmal alluded to, but which the 2016 Appeal Court judgment has effectively nullified,” he added.
Conflicting dates on a purported NIPOST-Kasmal contract
It was disclosed that SBH exhibited some earlier judgments in favour of Kasmal in Suit Ref. FHC/L/CS/1462/2013 against banks where it claimed to have a NIPOST contract ended October 2018.
But in Suit Ref. FHC/L/CS/1710/2013 against CBN, the same ended October 2015; and in new Suit Ref. FHC/ABJ/CS/335/2024, the dates then ended January 2020. But NIPOST denied any verifiable contract with Kasmal before the judgments.
Conflicting percentages on Kasmal commission in Court
“The five per cent commission granted to Kasmal by Justice Aneke in two earlier judgments suddenly jumped to 15 per cent in the new judgment by Justice Ekwo.
“Hence in May 2024, the Economic and Financial Crimes Commission (EFCC) summoned and disclosed to SBH that it is still tracking the claims Kasmal since April 2016,” it was stated.
Kasmal obtained the settlement money by false pretenses
“Finally, the N10.367 Billion collected by Kasmal from the Accountant-General of the Federation (AGF) as “full and final” on its Appeal loss was backed with a “written undertaking” to the AGF as to its commitment to SBH (by Copyright).
“This is a proofing that the money was obtained under “false pretenses” and should now attract the attention of the EFCC for recovery and litigation, especially as SBH was unaware of such arrangement.
“However, Dr. Alex Izinyon SAN leading the Kasmal team has evaded answers to these exhibits, and hopes to bury all the crimes under some court technicalities,” the source disclosed.
