A Mayor’s Mansion in the Eye of a UK Legal Storm: What Happened in Leeds?
Imagine losing a significant investment, especially when it’s tied to your home. That’s the reality unfolding for the Lord Mayor of Leeds, Abigail Katung, as a recent UK High Court decision has ordered the forfeiture of a luxury property she occupies. This isn’t just a legal technicality; it’s a story of international finance, contested ownership, and a deep dive into the origins of wealth.
The Heart of the Matter: A £1 Million Property and “Suspicious Funds”
On June 6th, Justice Jay of the King’s Bench Division made a landmark ruling. The UK’s National Crime Agency (NCA) is set to take possession of a prime property, valued at £1 million, under the Proceeds of Crime Act 2002 (POCA). Why? The court deemed it “recoverable property,” linked to financial activities that raised significant red flags.
This isn’t just any property. It once belonged to Mansoor Hussain, a businessman previously accused of laundering money for organized crime in Northern England. The connection immediately draws attention, setting the stage for a complex legal battle.
The Purchase: A Mayor’s Investment Under Scrutiny
Back in 2015, the same year her husband, Sunday Katung, was first elected to Nigeria’s House of Representatives, Mrs. Katung signed a contract to purchase this very property. She made a substantial £400,000 deposit, paid in two separate installments directly into Hussain’s bank account.
But here’s where the story takes a turn. Court documents revealed that £360,000 of that deposit, transferred from Nigeria, triggered serious alarm bells. Mrs. Katung candidly admitted in court that she used Nigeria’s “black market” for the currency exchange, citing foreign exchange restrictions under the Buhari administration in 2015. She explained that part of the funds originated from her husband’s N120 million bank loan.
She stated the money was converted and sent to the UK through a Bureau de Change (BDC) and then deposited into her company’s account, 1st Resource.
The Court’s Verdict: Inconsistent Explanations and Missing Evidence
However, the court wasn’t convinced. Justice Jay found Mrs. Katung’s documentation “grossly insufficient” and her explanations “inconsistent.” He pointed to a crucial lack of clear, documented evidence of the transaction’s legality. “She has failed to do that,” the judge stated, referring to the absence of proof.
Even more striking, the judge noted: “Mrs. Katung’s witness statements in these proceedings did not address how the payments were made… there is no witness statement from her husband. These are telling omissions from which I draw an adverse inference.”
An attempt to validate the transaction with a letter from “My Honey Oil Interbiz Ltd” was also rejected. The judge highlighted that the Central Bank of Nigeria records did not list this company as a licensed BDC. Ultimately, the court concluded that the transaction was an attempt to bypass Nigeria’s foreign exchange rules.
“Mrs. Katung was only conducting a business in foreign exchange transactions to circumvent Nigerian foreign exchange regulations and/or to avoid a punitive exchange rate,” the ruling declared.
The Consequences: Deposit Forfeited, Property Recovered
The ruling has significant financial implications for Mrs. Katung. Her £400,000 deposit will not be credited or refunded; it too is considered “recoverable” under POCA. Even her lawyer conceded that the funds fell within the scope of the POCA regime.
Despite the harsh financial outcome, Justice Jay made a point to clarify that Mrs. Katung was not found to have knowingly collaborated with criminal elements. “I do not find that she was cognisant of what Mr. Hussain was up to,” he stated, a crucial detail that aims to protect her reputation.
The NCA now has the authority to take possession of the property and, if necessary, pursue additional financial remedies. The agency was also awarded full legal costs.
Who is Abigail Katung? A Public Servant’s Journey
Abigail Katung, originally from Zaria, Kaduna State, moved to the UK in 2000 to study at the University of Leeds. In 2024, she made history, becoming the 130th Lord Mayor of Leeds and the first Black African to hold the prestigious office. “Since arriving in Leeds in 2000, the city quickly became my cherished second home,” she shared at her inauguration last year. Her husband, Sunday Katung, continues to serve as a senator representing Kaduna South Senatorial District in Nigeria.
This case serves as a powerful reminder of the global reach of financial regulations and the intense scrutiny placed on the origins of funds, especially when high-profile individuals are involved.
