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Fraud In The Apex Bank: CBN Suspends Deputy Governor, Directors For Fraud

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7 years ago

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One of the three deputy governors of the Central Bank of Nigeria is currently on suspension for being involved in ‘a sophisticated plot’ to defraud the bank a huge sum of money, findings by our correspondent have revealed.

 

Top officials of the CBN close to the development told our correspondent that two directors of the bank were also suspended over the multi-million naira scam.

 

The officials, who spoke under the condition of anonymity because they were not authorised to speak on the matter, said their suspension was ordered by the CBN Governor, Mr. Godwin Emefiele, after preliminary findings revealed that they might be culpable.

 

The CBN had on Thursday night said it had uncovered what it described as a highly sophisticated plot to defraud the bank by some people.

 

The bank said in a statement by the Acting Director, Corporate Communications, Isaac Okoroafor, that while preliminary investigations had not revealed any accomplices within the bank, some personnel within the CBN had been placed on suspension.

 

The nature of the fraud was not specified in the statement.

 

It, however, said the need to place the officials on suspension was to allow for proper investigations by the relevant authorities.

 

The statement read, “A highly sophisticated plot to defraud the CBN by some criminally minded elements has been uncovered and aborted by the bank.

 

“Although preliminary investigations so far have not revealed any accomplices within the CBN, the management has decided to place all key personnel involved in the transaction on suspension.

 

“This is to ensure a full and unfettered investigation. This incidence has been reported to the relevant authorities.”

 

The CBN in the statement assured stakeholders in the banking sector that the security within the central bank remains intact and had not been breached.

 

Experts said the CBN as a regulator was being saddled with responsibilities that were related to that of commercial banking and, as such, made its system prone to corruption.

 

Economic and financial services expert , Mr. David Adonri, who is also Chief  Executive Officer of Highcap Securities, said, “The CBN is a banker to the Federal Government; it is also in charge of the foreign exchange market; it is also in charge of regulating the banks.

 

“In some countries, those functions are separated. The CBN is allocating forex to banks. There have been lots of cries that some are favourerd while others are not favoured. This is something that can breed corruption. There are two ways to allocate scarce resources, namely administration and market. That of administration is not always effective in allocating scarce resources. It is only the market that can do a good job.”

 

He also said, “With the implementation of the Treasury Single Account, the CBN is now more of a banker than a regulator. That is another thing that can breed corruption. The CBN is being saddled with more responsibilities that have to do with banking rather than being a regulator.

 

“The attempted fraud allegation is very disappointing, discouraging and is not expected to be coming from the regulator. This is what happens when the regulator also plays the role of a player.”

 

A top ex-banker and Chief Executive Officer, Cowry Assets Management Limited, Mr. Johnson Chukwu,  commended the CBN for having what he described as a robust internal control system to intercept the fraud.

 

He said, ‘The fraud attempt was unsuccessful, so it is a plus and indicates that the CBN has a robust internal control process. It shows the level of desperation of people to make money. This kind of thing usually happens in the financial services sector but the key thing is to ensure there is robust system to intercept it.”

 

The CBN spokersperson, Okoroafor, refused to disclosed the names of the suspended officials.

 

He said, “I am in a meeting in Calabar. Investigations are ongoing. Some key personnel of the bank have been placed on suspension not because they are the perpetrators. We need to have a full and unfettered investigation. Please note that the perpetrators are from outside. Two of them have been arrested and no accomplice has been found within the CBN so far.

 

 

 

@ The Punch

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Edo Governor Suspends Attorney-General, Local Govt Commission Chair Over ‘Financial Infractions’

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1 hour ago

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February 6, 2025

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The Edo State Government has announced the suspension of its Attorney-General and Commissioner for Justice, Samson Osagie, and the Chairman of the Local Government Service Commission, Damian Lawani.

The Secretary to the State Government, Musa Ikhilor, made this announcement in a statement released on Thursday morning in Benin, the state capital.

Ikhilor stated that the two high-ranking state officials were suspended due to allegations of “grave official and financial infractions.”

According to him, the suspension, which takes immediate effect, is pending the conclusion of an investigation into the allegations.

“It is hereby announced for the information of the general public that the Gov. Monday Okpebholo has approved the suspension from office of the Chairman of Edo Local Government Service Commission, Damian Lawani and Commissioner for Justice, Samson Osagie over allegations of grave official and financial infractions.

“The suspension is with immediate effect.

“Consequently, the governor has ordered the setting up of an Investigative Committee to investigate the allegations levelled against them and make appropriate recommendations accordingly.

“The suspension of Osagie and Lawani became necessary to enable the government to carry out a thorough investigation into the allegation of financial infractions levelled against them.

“The suspension is pending the conclusion of the investigation,” the SSG said.

The suspension came less than three months after the two officials were appointed.

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Court orders final forfeiture of N1.1bn, $392k, £35k from ex-First Bank of Nigeria Employee

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2 hours ago

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February 6, 2025

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A Federal High Court sitting in Ikoyi, Lagos, has reportedly ordered the final forfeiture of funds totalling N1,168,602,877.44, $392,818.01, and £35,070, recovered from a former employee of First Bank of Nigeria, Muiz Tijani Adeyinka, to the Federal Government of Nigeria.

According to a statement on Tuesday by the Economic and Financial Crimes Commission via X, Justice A.O. Owoeye granted the final forfeiture order on Monday, February 3, 2025, following a motion on notice filed by the EFCC.

The order came after an initial interim forfeiture ruling made on November 27, 2024, which required the publication of the forfeiture notice in a national newspaper, allowing any interested party to contest the claim.

Counsel to the EFCC, Zeenat Atiku, while presenting the application, stated, “The Commission, on March 26, 2024, received a petition from First Bank of Nigeria (FBN) alleging fraudulent transactions in various bank accounts within and outside the bank.”

According to Atiku, investigations revealed that Adeyinka, the principal suspect, was a former staff member of First Bank and also served as the Managing Director/Chief Executive Officer of Golden Sieve Logistics Ltd, Golden Sieve Properties Ltd, and Golden Sieve Motors Ltd. These companies were duly registered with the Corporate Affairs Commission.

“He was attached to the Settlement Office of the bank and, by virtue of his office, had some inalienable access available only to the Settlement Office,” Atiku explained.

The EFCC’s counsel further stated that Adeyinka manipulated the settlement accounts by creating fictitious domiciliary inflows, transferring the naira equivalent to himself and his associates.

“In a bid to conceal and disguise the said fraudulent proceeds derived, he laundered the same by purchasing US Dollars and USDT,” Atiku added.

The illicit funds were traced to Adeyinka’s personal dollar account and cryptocurrency wallets.

Following the publication of the interim forfeiture order in The PUNCH newspaper on December 5, 2024, the court found no contesting claims against the forfeiture application.

After reviewing the supporting affidavit, written address, and the publication, Justice Owoeye ruled in favour of the EFCC’s application.

“I have considered the application. I have examined the affidavit in support, the written address, and the publication attached. The application has merit and the same is hereby granted,” the judge declared.

 

 

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EFCC’ Raids National Hajj Commission HQ Over Alleged N90bn Fraud…

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21 hours ago

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February 5, 2025

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Operatives of the Economic and Financial Crimes Commission (EFCC) raided the headquarters of the National Hajj Commission of Nigeria (NAHCON) in Abuja on Tuesday amid allegations of fraud and misappropriation of funds.

 

The raid, which took place at 11 a.m., resulted in the detention of NAHCON’s spokesperson, Fatimah Usara, along with three other unidentified staff members. The operatives arrived with a valid warrant of arrest, underscoring the seriousness of the situation.

 

This operation is part of an ongoing investigation into the alleged mismanagement of a N90 billion intervention fund intended for the 2024 Hajj.

A source at the EFCC headquarters informed Vanguard of these developments, highlighting the gravity of the allegations against NAHCON.

 

The EFCC’s actions follow a previous raid by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) at the same commission, adding to the scrutiny surrounding NAHCON’s financial practices.

When approached for a comment, EFCC spokesperson Dele Oyewale declined to provide an immediate response but indicated that further details regarding the arrests and the investigation would be shared in due course.

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