$65m fraud: Ex-CEO of Federal Mortgage Bank gets N100m bail

The Federal High Court in Abuja has granted N100 million bail to a former Chief Executive Officer of the Federal Mortgage Bank of Nigeria (FMBN), Mr. Gimba Kumo Yau, who is accused of allegedly awarding a $65,000,000 real estate contract to an allegedly incompetent firm, Good Earth Power Nigeria Limited, in 2012.

Justice James Omotosho granted N100 million bail each to Yau and co-defendants Bola Ogunsola and Mr. Tarry Rufus on Wednesday, in the matter filed by the Independent Corrupt Practices and Other Related Offences Commission‘s (ICPC) lawyer, Dr. Osuobeni Ekoi Akponimisingha, in the charge sheet marked FHC/ABJ/CR/333/24.

Good Earth Power Nigeria Limited and T. Brend Fortunes Limited were also joined as defendants, having been sued for their alleged contravention of the Public Enterprises Regulatory Commission Act and Section 19 of the Money Laundering (Prevention and Prohibition) Act, 2022.

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Facts of the case 

• In ICPC’s five-count charge, the anti-graft agency 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 ICPC maintained that the former bank CEO allegedly contributed to his organization’s failure at the time by approving $65,000,000 to a firm that could not carry out and complete the real estate project.
• The allegations stated that Mr. Gimba Kumo Yau and Bola 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.
• This loan was said to be earmarked for the development and completion of 962 residential housing units in Kubwa, Abuja, named “Goodluck Jonathan Legacy City,” within 18 months.
• ICPC further alleged that Mr. Gimba Kumo Yau, as the bank’s CEO, awarded the $65 million contract despite knowing that the company lacked the capacity to carry out the contract.
• ICPC 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.
• When the charges were read out to the defendants in open court, they had pleaded not guilty.
• Subsequently, their legal team applied for bail.

What transpired in court 

• The defendants had argued that bail is at the discretion of the court and that the applicants are entitled to bail, being presumed innocent under the law.
• They also assured that their clients would not jump bail when granted bail, as one of the defendant’s counsel also submitted that the charge against his client is not one punishable by death.
• On the part of the ICPC counsel, he did not oppose the applications for bail.
• Ruling on the bail applications on Wednesday, Omotosho held that bail is premised on the presumption of innocence, which an accused person enjoys until he is declared guilty by the court.
• He also said that bail is at the discretion of the court.
• Subsequently, he granted N100 million bail to each of the defendants with two sureties in like sum.
• He ruled that each of the sureties must be owners of property worth N100 million and that they must swear to an affidavit of means and show evidence of tax payment for the past three years.

“The sureties and defendants shall submit their recent passport photographs and certified bank statements. 

“The Defendants shall submit their international passports to the registrar of this court,” the judge said.  

• He also ordered that the registrar of the court shall verify these documents and issue a report while the defendants are remanded pending the perfection of the bail conditions.

$65m fraud: Ex-CEO of Federal Mortgage Bank gets N100m bail

VIDEO: Fire guts Radio Nigeria Lagos office

A fire outbreak has razed down sections of Radio Nigeria in the Ikoyi area of Lagos State.

The incident, which was confirmed by the Director of the Lagos State Fire and Rescue Service, Margaret Adeseye, took place Wednesday evening.

According to Adeseye, the fire and rescue service was alerted to the incident at about 5:30 p.m. and quickly responded to the distress call. Firefighters from Dolphin, Ebute Elefun, and Oba Oniru Fire Stations were deployed to the scene as first responders.

“The Lagos State Fire and Rescue Service is attending to a Fire outbreak at the Radio Nigeria on Plot No. 35, Ikoyi Rd, Ikoyi, Lagos.

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“The Agency which was alerted at about 17:30 hours had Firefighters from Dolphin, Ebute Elefun and Oba Oniru Fire Stations as first responders who met the Fire well-alight due to the substances involved in the material composition of the studio section.

“The public is however assured that the collaborative efforts with the Federal Fire Service and other Emergency Responders including the Nigerian Police has put the situation under control and confined it to the studio section of the U-shape one storey building where it emanated,” Adeseye said on Wednesday evening.

“While the cause of the Fire is yet unknown with no report of any casualty, damping down of the Fire embers continues. Update to follow as situation demands,” she added.

VIDEO: Fire guts Radio Nigeria Lagos office

Gunmen attack Innoson Vehicle showroom in Anambra, abduct three persons

Gunmen have abducted three persons from the motorcycle showroom of the Innoson Vehicle Manufacturing in Nnewi, Anambra State.

This came during an attack on the showroom on Tuesday evening, according to a police statement issued on Wednesday.

It was not clear on Wednesday the intention of the criminals but the police said they had launched a joint security offensive operation for the rescue of the abducted persons and the arrest of their abductors.

The statement issued by the Anambra State Police Command in Awka confirmed the gunmen attack and the abduction of the three persons at the Innoson showroom.

The Public Relations Officer of the Command, SP Tochukwu Ikenga, in the statement said that the incident occurred at the company’s showroom located along Owerri Road, Nnewi at exactly 6:45pm on Tuesday.

He said, “The Police Command is determined and is already working with information obtained from the scene for the ongoing rescue operations.

“The command also urges residents or anyone with useful information that will aid the investigation to come forward to the command headquarters, Awka, or the nearest police station.”