ICPC arraigns ex-bank CEO, 2 others for $65m fraud

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has arraigned in court, the former Managing Director/Chief Executive Officer (CEO) of the Federal Mortgage Bank of Nigeria (FMBN), Gimba Kumo Ya’u, and two others over an alleged diversion of $65,000,000 meant for the development of 962 units of residential housing in the Kubwa area of Abuja.

Ya’u was arraigned alongside the former Executive Director of FMBN, Bola Ogunsola, and the Managing Director of T-Brend Fortunes Nigeria Limited, Tarry Rufus, before the Federal High Court in Abuja on Tuesday, November 26, 2024.

The ICPC, in a charge sheet marked FHC/ABJ/CR/333/24, said alleged offences against the trio contravened the Public Enterprises Regulatory Commission Act and Section 19 of the Money Laundering (Prevention and Prohibition) Act, 2022.

The ICPC, in a five-count charge, accused Ya’u of making payment to Good Earth Power Nigeria Limited in the sum of N3,785,000,000 out of the total contract sum of $65,000,000, for the development of the residential building named “Goodluck Jonathan Legacy City” contrary to accepted practice.

The commission stated that the former Federal Mortgage Bank CEO and Ogunsola, in their roles as Chief Executive Officer and Executive Director of the bank in August 2012, secured a loan of N14 billion from Ecobank Nigeria Plc on behalf of the bank.

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The ICPC further alleged that Ya’u, as the then CEO of the Federal Mortgage Bank awarded the $65 million contract despite knowing that the company lacked the capacity to carry out the contract.

It added that the project remains incomplete “as of today thereby amounting to economic adversity for the bank and in violation of Section 68(1) of the Public Enterprise Regulatory Commission Act, CAP P39, Laws of the Federation, 2004.”

The other defendants were accused of giving and receiving $3,550,000 of the contract sum in cash in contravention of the Money Laundering Act.

Rufus, Good Earth Power Nigeria Limited, and T-Brend Fortunes Limited were accused of directly converting the sum of N991,399,255 into $3,550,000 and handing over the same to one Jason Rosamond (now at large) in cash, “contrary to Section 18(2) (b) and punishable under Section 18 (a) of the Money Laundering (Prevention and Prohibition) Act, 2022.”

The defendants however pleaded not guilty when the charges were read to them.

Following their not-guilty plea, the presiding judge, Justice James Omotosho, granted the defendants bail in most liberal terms.

Justice Omotosho, therefore, adjourned the matter to February 6, 2025, for the commencement of trial.

The Star