Alleged $65m Fraud: ICPC arraigns ex-FMBN MD, 2 co-defendants
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has arraigned Mr. Gimba Kumo Ya’u, the former Managing Director/Chief Executive Officer of the Federal Mortgage Bank of Nigeria (FMBN), along with two others for their alleged involvement in a $65 million fraud concerning the construction of 962 residential housing units in Kubwa District, Abuja.
ICPC spokesperson, Demola Bakare said in a statement that Mr. Ya’u was arraigned on Tuesday before Justice James Omotosho of the Federal High Court, Abuja alongside the former Executive Director of the bank, Mr. Bola Ogunsola and the Managing Director of T-Brend Fortunes Nigeria Limited, Mr. Tarry Rufus.
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According to the ICPC in a charge sheet, referenced FHC/ABJ/CR/333/24, outlines that the defendants are accused of violating the Public Enterprises Regulatory Commission Act and Section 19 of the Money Laundering (Prevention and Prohibition) Act of 2022.
The ICPC, in a five-count charge accused Yau of making payment to Good Earth Power Nigeria Limited in the sum of N3,785,000,000.00 out of the total contract sum of $65,000,000, for the development of 962 Units of Residential Housing in Kubwa, Abuja named “Goodluck Jonathan Legacy City” contrary to accepted practice.
The allegations stated that Mr. Yau and Ogunsola, in their roles as chief executive officer and executive director of the bank in August 2012, had secured a loan of N14 billion from Ecobank Nigeria PLC on behalf of the bank.
ICPC further alleged that Mr. Yau, as the then CEO of FMBN 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 $3,550,000.00 of the contract sum in cash in contravention of the Money Laundering Act.
Tarry Rufus, Good Earth Power Nigeria Limited and T-Brend Fortunes Limited were accused of directly converting the sum of N991,399,255 into $3,550,000.00 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.
Justice Omotosho, in view of the not guilty plea, adjourned the matter to February 6, 2025 for commencement of trial.
He also granted the defendants bail in most liberal terms.
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