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The Anti-Corruption Commission (ACC) has today 30 May 2023 announced the conclusion of its investigation into the EAP Group of Companies and the controversial “Motherland City” project.
The investigation was initiated following allegations of fraudulent activities involving the President/Chairman of the EAP Group, Edward Alex Olubode Philips, and the real estate development in Sierra Leone.
The ACC’s investigation focused on alleged fraudulent activities carried out by the EAP Group of Companies between 2022 and March 2023. It was alleged that the company, under the leadership of Chairman Edward Alex Olubode Philips, conspired with others to establish a housing project called “Motherland City” in York Village, Western Rural District. The company collected substantial deposits from individuals both domestically and internationally, promising affordable housing schemes. Additionally, it was discovered that Philips used fictitious names to open bank accounts in various commercial banks, potentially facilitating money laundering activities.
Key findings from the investigation include:
1. That the EAP Group of Companies with address as 25 Lawrence Street, Funkia, Freetown is a private Company incorporated in Sierra Leone on the 18th May, 2020 by the Registrar of Companies. It is also registered with the National Revenue Authority (NRA) and Freetown City Council (FCC) respectively. The building occupied by the Company was leased from a Lebanese businessman, who due to lack of payment by the company had issued them a Notice to Quit.
2. That Edward Alexander Olubode Philips is the Major Shareholder of the Company, and the other shareholder with a minority interest is one Professor Ricky White who is said to be residing in the United States of America. Mrs. Mabinty Philips, wife of Dr. Philips-Chairman of the EAP Group of Companies serves as the Vice President of the said Company.
3. That Edward A.O. Philips is the holder of a Sierra Leonean passport issued to him on 11th March 2021, by the Immigration Department.
4. It was also established that between 2017 and 2021, Edward A.O. Philips was issued four (4) Sierra Leonean passports by the Immigration Department, and that the passport dockets which will give a clear history about the four (4) Sierra Leonean passports issued in favor of Edward A.O. Philips within the said period could not be traced at the Immigration Department due to apparent destruction by his collaborators within.
5. That through the Economic and Financial Crimes Commission (EFCC) in Nigeria, the ACC learned that Edward A.O. Philips is a Nigerian citizen and convict known as Olufunmilade Adeyemi who escaped criminal charges by the EFCC for real estate fraud in July 2018. That Mr. Philips is also a holder of a Ghanaian passport with serial number G1517140 with the name Moses Alexander, and also known in Dubai as Alex Moses. He also is a qualified lawyer having passed Lagos Bar in 1999.
6. That the primary alleged objective of the EAP Group of Companies was to engage in the construction of houses for its clients at the York Village which otherwise would have been known as the Motherland City Project. That the Company entered into several agreements/contracts with various persons for the construction of houses ranging from two bedrooms at Two Hundred and Sixty (New) Leones (NLe:260,000) and three bedrooms at Three Hundred and Sixty (New) Leones (NLe: 360,000) basic flat; Economy two bedrooms at Seven Hundred and Twenty (New) Leones (NLe:720,000) and three bedrooms flat at One Million and Eighty (New) Leones (NLe:1,080,000); and Premium two bedrooms at One Million Eight Hundred (New) Leones (NLe:1,800,000) and Economy three bedrooms flat at Two Million, One Hundred and Sixty (New) Leones (NLe:2,160,000) respectively. That the modes of payments to EAP Group of Companies were through bank deposits and cash payments in installments to last for over a period of twenty years or less depending on the income level or mode of payment of interested clients.
7. That at the commencement of the investigation, visitation to the project site at York village was made and that no construction works had commenced by the EAP Group of Companies on the proposed Motherland City Project, but excavation work could be seen.
8. That Mr. Philips is in possession of a conveyance for 53 Acres of land at York Village alleged to be owned by the Pratt family indicating an amount of Five Hundred Thousand (New) Leones (NLe:500,000) whilst a handwritten undertaking by him stated him agreeing to make a payment of Five Million, Three Hundred Thousand (New) Leones (NLe:5,300,000) to the aforementioned family against an unspecified date. The Pratt family claims that the plan they shared with Mr. Philips was not the one in the conveyance provided by Mr. Philips. They also have not received any amount to date from him.
9. That another 19 Acres of land’s site plan by the Richards family at York Village was also provided to him for his proposed Motherland City Project after he seemed to have convinced the family for which a verbal fee of One Million, Nine Hundred Thousand (New) Leones (NLe:1,900,000) was agreed upon at One Hundred Thousand (New) Leones (NLe:100,000) per acre, but the Richards family, represented by Walter Richards, claim that no money was received from Mr. Philips for the said property up to date.
10. That as at 31st March 2023, the investigations recorded Three Hundred and Sixteen (316) persons who claimed to have entered into agreement with the EAP Group of Companies for the construction of houses of different categories. The total amount of money received from clients as against the aforementioned is _*Three Million, Seven Hundred and Twenty Six Thousand, Six Hundred and Seventy Five (New) Leones (NLe:3,726,675) and Eighteen Thousand, Five Hundred and Seventy Five United States Dollars (USD$ 18,575)_ respectively. That there is no evidence of any funds committed to the project by the company itself or any donor, other than a facility of _*One Million, Four Hundred and Fifty Thousand (New) Leones (NLe:1,450,000)_ obtained from a local Bank by the company in late January 2023 and that paid by clients.
11. That Edward A.O Philips is the sole signatory to all of these bank accounts. The accounts statements highlight deposits of customers, withdrawals by Edward Philips and other persons.
12. That the One Million, Four Hundred and Fifty Thousand (New) Leones _(NLe:1,450,000) facility was obtained from a local Bank by EAP Group of Companies with a six-town lot title deed at Angola town in the name of Edward Alex Olubode Philips submitted to the bank as a collateral with one year duration for repayment. Information further provided by the Bank is that the reasons advanced by EAP group of companies for the facility by Edward A.O. Philips was for the launch of the Motherland City Project and purportedly for payment of EAP staff salaries.
13. Investigation conducted at the property at Adonkia, which documents were submitted as collateral to a commercial bank revealed that, the six-town lots have already been sold by the wife of Alex A.O Philips, Mrs. Mabinty Philips.
14. That Mabinty Philips being the wife of the Chairman of EAP Group of Companies has been at large since the arrest of her husband by the ACC.
15. That the Commission received responses from banks where the EAP Group of Companies hold and operate accounts. Analyses of these accounts showed unfavorable bank balances as follow: _
S/NO_ _BANK NAME_ _ACCOUNT NO._ _BALANCE NEW LEONES_
1 Bank 1 – Le 3,602.50_
2 Bank 2 – Le _29.82
3 Bank 3 – _0
4 Bank 4 – _(1,466,149.22)
5 Bank 5 – _264.50
6 Bank 6 – 13,774.55
Based on the above and upon interviewing and recording statements from over twenty Persons of Interest, analyzing the records of accounts, concerning the Chairman and EAP Group of Companies, we hereby confirm that the matter i.e., fraud and obtaining money by false pretenses, etc. fall within issues concerning the wider powers of the Sierra Leone Police. The ACC has therefore referred the matter to the Sierra Leone Police to carry out full and thorough criminal investigations that fall within their responsibility and mandate. We will give them the detailed findings we have and collaborate with them to ensure full closure.
The suspect has therefore been handed over to the Sierra Leone Police together with all evidence we have. The police will conclude and decide how to proceed with his issue, including any possible charges. We have notified the Police of the request from our Counterparts, the Economic and Financial Crimes Commission (EFCC) to have him returned to Nigeria to face sentencing in a prosecution that he escaped from, having been convicted, just before he could be sentenced. We plan to ensure that. Therefore, we advised issues pertaining to bail and custody should be jointly determined.
The Commission wishes to thank the Public for their interest and support in the course of this investigation at the ACC, and reassures the public of its commitment to address all levels of corruption in Sierra Leone.
