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AFTER DIVERTING OVER N1 BILLION OF ZUMAX NIGERIA LTD, HIGH COURT RULES FCMB GUILTY AND A BANK OF FRAUD

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No one goes to an armed robber to hand over money for safe keeping, but when customers walk into First City Monument Bank (FCMB), they unknowingly walk into a den of robbers, hands over money for safekeeping but ends up diverted by FCMB, not once, not twice but countless times. The Adam Nuru led bank is currently enmeshed in a financial scandal, that they have almost succeeded in getting majority of Nigeria’s prominent newspapers and online news platform from reporting the outcome of a suit slammed against them by Zumax Nigeria Limited, who dragged them before the Lagos State High Court, for diversion of their funds.

FCMB according to court documents (LD/1668/2009 – Zumax Nigeria v FCMB) and FCMB own documents seen by Society Reporters detailed how the bank diverted N250 million of Zumax, kept with them. This prompted the company to petition the Economic and Financial Crimes Commission (EFCC) who invited the bank for questioning.

Typical of a fraudsters lifestyle, FCMB lied to the anti graft body that Zumax was indebted to them by N465 million. Documents however revealed that contrary to FCMB claim, Zumax was owing only N321 million, which is exclusive of the N250 million diverted by the bank as well as over N182 million which they deducted as bank charges and interest rate. Not convinced by FCMB claim, the oil servicing company requested for their account statement, beginning from the day they started transaction with the bank. Apparently knowing that they have stolen from Zumax, the bank refused to honor the request, against the banking policy. In documents owned by FCMB, it revealed how they recovered over N1 billion of Zumax money and went ahead to float a company called ZR to divert the money to, as well as monies paid by Chevron for the contract they executed for them. Once the case was adjourned, with the court satisfied that even the witnesses from FCMB as well as the audit department could not give valid claims to why the diversion took place, the hammer struck.

The Honorable Judge ruled that FCMB has truly defrauded the bank and lied under oath before the court. While reading the judgment, sources in the court revealed that the bank sensing the language used by the Judge rushed out to meet Journalists present not to make any report if the ruling does not favor them, while reaching out to other journalists who were not present, pleaded with them not to go to press with it. Finally, the judge ruled in favor of Zumax Nigeria Ltd and directed FCMB to pay every penny owed the company. When we contacted the media relationship manager of FCMB, Mr Rafiu Mohammed to give the bank’s official statement on the ruling which has been kept away from the press, he promised to find out details from the department in charge and revert back. He never did till press time. Zumax Nigeria Ltd in responding to us stated that “We have immediate issues we are resolving at the moment. Please revert in 6 weeks”, to which we replied that we are hitting the press with our story and only reached out to confirm the judgment, which they didn’t deny.

News and Report

Former Governor Ifeanyi Okowa, Spends Second Night In EFCC’s Cell Over N1.3 Trillion Alleged Fraud

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Immediate past governor of Delta State, Ifeanyi Okowa, who was arrested and detained by the Economic and Financial Crimes Commission (EFCC) has spent second night in the custody of the anti-graft commission.

 

Okowa is currently being investigated and detained over the alleged diversion of N1.3 trillion.

 

The N1.3 trillion reportedly represents the 13% derivation fund from the federation account between 2015 and 2023.

 

According to sources within the commission, Okowa was invited to the EFCC office in Port Harcourt, Rivers State, where he’s subsequently detained by officials.

 

One of the sources stated, “Okowa was at our Port Harcourt office following an invitation from investigators probing the allegations against him. He was then arrested. The commission is investigating him regarding the N1.3 trillion 13% derivation fund from the federation account between 2015 and 2023.

 

“He is also accused of failing to account for the funds, as well as another N40 billion he allegedly claimed was used to acquire shares in UTM Floating Liquefied Natural Gas. He reportedly bought shares worth N40 billion in one of the country’s major banks, representing an 8% equity stake, to support the offshore LNG project. The funds are alleged to have been misappropriated for other purposes.

Investigators are also examining the alleged diversion of funds by the former governor to acquire estates in Abuja and Asaba, Delta State. He is currently being held at the EFCC facility in Port Harcourt.

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Lagos Government Shuts Down Redeemed Church, Celestial Church, Clubs, Event Centres Over Noise Pollution

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The Lagos State government has shut down a branch of Pastor E. A. Adeboye’s Redeemed Christian Church of God, a Celestial church, nightclubs and event centres over noise pollution.

The Commissioner for Environment and Water Resources, Tokunbo Wahab, who made this known on Wednesday, said the churches, clubs and event centres were sealed on Tuesday by the Lagos State Environmental Protection Agency (LASEPA) in the Ogudu, Gbagada, Iyana Ejigbo, Isolo, Ajao Estate, Oshodi, Ilasamaja, and Okota areas of the state.

The sealed establishments include: Redeemed Christian Church of God, Celestial Church of God, OMA Nightclub and Lounge, Lounge & Lodging, Bridge Spot Bar, Okiki Event Center and Hall, Emota Paradise Hotel (Phase 2), CF Hotel & Suites, House 27 Hotel & Suites, Echo Spring Hotel, and Smile T Continental Hotel.

The commissioner in a post on X said, “In a bid to address noise pollution and other environmental violations, the Lagos State Environmental Protection Agency (LASEPA) took action yesterday, closing down several establishments across different parts of the state.

“This enforcement drive, focusing on areas like Ogudu, Gbagada, Iyana Ejigbo, Isolo, Ajao Estate, Oshodi, Ilasamaja, and Okota, is part of LASEPA’s continuous efforts to uphold environmental standards and safeguard public health.

“The affected establishments include Honourable Lounge & Lodging, Redeemed Christian Church of God, Celestial Church of God, OMA Nightclub and Lounge, Bridge Spot Bar, Okiki Event Center and Hall, Emota Paradise Hotel (Phase 2), CF Hotel & Suites, House 27 Hotel & Suites, Echo Spring Hotel, and Smile T Continental Hotel.”

 

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Gen. Taoreed Lagbaja: Tinubu directs flags be flown at half-mast

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President Bola Tinubu has directed that Nigeria’s national flags be flown at half mast for seven days across the country to mourn the passing of the late Chief of Army Staff, Lt. Gen. Taoreed Lagbaja.

The late Army chief, who was appointed by Tinubu on 19 June 2023, was said to have passed away on Tuesday night after a prolonged illness.

The Secretary to the Government of the Federation, George Akume, in a statement on Wednesday by his office Director of Information & Public Relations, Segun Imohiosen, said the president expressed regret over Lagbaja’s death.

Akume said, “President Bola Tinubu has expressed regret following the death of the Chief of Army Staff, Lieutenant General Taoreed Abiodun Lagbaja, after a brief illness at the age of 56.

“The President has directed that national flags be flown at half mast throughout the country for seven days in honour of the departed Army chief.

“He profoundly appreciates the services of the departed to the nation and wishes the family the fortitude to bear the great loss.”

Meanwhile, the Ministers of Defence, Mohammed Badaru and Bello Matawalle, have commiserated with the president, the military, and Lagbaja’s family over his death.

In a statement by the Ministry’s spokesperson, Henshaw Ogubike, the ministers described Lagbaja’s death as a great loss to his family, the Army, and the nation at large.

“The passing on to eternal glory shocked us at the Ministry of Defence, as our working relationship with him was commendable; he exhibited the spirit of camaraderie and cooperation with us in the discharge of our mandate.

“The late Chief of Army Staff contributed significantly to internal security operations across Nigeria and also exhibited a high level of professionalism.

“He will be greatly missed by the family, the military, and the nation, as he served the nation with commitment and dedication,” the statement added.

 

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