Ex-CEO of Federal Mortgage Bank granted N100 million bail in alleged $65 million ‘fraud case’ 

The Federal Excessive Court docket in Abuja has granted N100 million bail to a former Chief Govt Officer of the Federal Mortgage Bank of Nigeria (FMBN), Mr. Gimba Kumo Yau, who’s accused of allegedly awarding a $65,000,000 actual property contract to an allegedly incompetent agency, Good Earth Energy Nigeria Restricted, in 2012.

Justice James Omotosho granted N100 million bail every to Yau and co-defendants Bola Ogunsola and Mr. Tarry Rufus on Wednesday, within the matter filed by the Unbiased Corrupt Practices and Different Associated Offences Fee‘s (ICPC) lawyer, Dr. Osuobeni Ekoi Akponimisingha, within the cost sheet marked FHC/ABJ/CR/333/24.

Good Earth Energy Nigeria Restricted and T. Brend Fortunes Restricted have been additionally joined as defendants, having been sued for his or her alleged contravention of the Public Enterprises Regulatory Fee Act and Part 19 of the Cash Laundering (Prevention and Prohibition) Act, 2022.

Details of the case 

• In ICPC’s five-count cost, the anti-graft company accused Yau of constructing cost to Good Earth Energy Nigeria Restricted within the sum of N3,785,000,000.00 out of the entire contract sum of $65,000,000 for the event of 962 models of residential housing in Kubwa, Abuja, named “Goodluck Jonathan Legacy Metropolis,” opposite to accepted apply.
• The ICPC maintained that the previous bank CEO allegedly contributed to his group’s failure on the time by approving $65,000,000 to a agency that would not perform and full the actual property mission.
• The allegations said that Mr. Gimba Kumo Yau and Bola Ogunsola, of their roles as  chief govt officer and govt director of the bank in August 2012, had secured a mortgage of N14 billion from Ecobank Nigeria PLC on behalf of the bank.
• This mortgage was mentioned to be earmarked for the event and completion of 962 residential housing models in Kubwa, Abuja, named “Goodluck Jonathan Legacy Metropolis,” inside 18 months.
• ICPC additional alleged that Mr. Gimba Kumo Yau, because the bank’s CEO, awarded the $65 million contract regardless of figuring out that the corporate lacked the capability to hold out the contract.
• ICPC added that the mission stays incomplete as of immediately, thereby amounting to “financial adversity” for the bank and in violation of Part 68(1) of the Public Enterprise Regulatory Fee Act, CAP P39, Legal guidelines of the Federation, 2004.
• The opposite defendants have been accused of giving and receiving $3,550,000.00 of the contract sum in money in contravention of the Cash Laundering Act.
• When the fees have been learn out to the defendants in open court docket, they’d pleaded not responsible.
• Subsequently, their authorized group utilized for bail.

What transpired in court docket 

• The defendants had argued that bail is on the discretion of the court docket and that the candidates are entitled to bail, being presumed harmless below the legislation.
• Additionally they assured that their purchasers wouldn’t bounce bail when granted bail, as one of many defendant’s counsel additionally submitted that the cost towards his consumer shouldn’t be one punishable by dying.
• On the a part of the ICPC counsel, he didn’t oppose the functions for bail.
• Ruling on the bail functions on Wednesday, Omotosho held that bail is premised on the presumption of innocence, which an accused particular person enjoys till he’s declared responsible by the court docket.
• He additionally mentioned that bail is on the discretion of the court docket.
• Subsequently, he granted N100 million bail to every of the defendants with two sureties in like sum.
• He dominated that every of the sureties should be homeowners of property price N100 million and that they have to swear to an affidavit of means and present proof of tax cost for the previous three years.

“The sureties and defendants shall submit their current passport images and licensed bank statements. 

“The Defendants shall submit their worldwide passports to the registrar of this court docket,” the choose mentioned.  

• He additionally ordered that the registrar of the court docket shall confirm these paperwork and problem a report whereas the defendants are remanded pending the perfection of the bail situations.

Backstory  

In 2021, the ICPC had declared Tarry Ruffus, Mr. Gimba Yau Kumo, and Mr. Bola Ogunsola needed in reference to points referring to the diversion of public funds for actual property to the tune of $65 million.

• The ICPC, in a press release on its web site dated August 29, 2021, mentioned that it recovered N53 billion from an actual property developer for the Federal Mortgage Bank of Nigeria.
• Former Chairman of ICPC, Prof. Bolaji Owasanoye, had disclosed throughout a gathering with the Home of Representatives Advert-hoc Committee Investigating the Operations of Actual Property Builders in FCT on the time.
• In line with him, the developer took the cash with out offering homes for its subscribers.
• The Senate Committee on Public Accounts had additionally summoned Mr. Kumo over the irregular award of an N3 billion contract below his management.

The summons was based mostly on a 2015-2018 report by the workplace of the auditor-general of the federation (AuGF) towards the bank.

Kumo had reportedly advised the ICPC that he had nothing to cover following its allegations.