The Kano State Anti Corruption and Public Complaints Commission has uncovered fraudulent diversion of N207 million depositors’ money from 37 microfinance banks established by the state government in 2013.
Already three persons, including the consultant that handled the establishment and running of the Micro Finance banks, Rabiu Tudunwada; the overall managing director of the banks, Rabiu Garba; and director of recruitment, Hajara Umar, were quizzed by the anti-corruption body.
Parading the accused persons before journalists in Kano, the chairman of the commission, Muhyi Rimingado, said investigation revealed that R.I and Co Financial Consultants received a total sum of N74 million as accrued interest from the share capital of 20 million in each of the 37 micro banks.
He said the chief consultant directed the banks’ managing directors to pay the money to his personal account in First Bank PLC, with account number 2023303449.
Mr. Rimingado said the sum of N50 million was therefore found to have been debited from the accounts of the banks.
He also said the chief consultant was found to have fraudulently directed all the managing directors of the banks to transfer another N2 million each into his company account.
“The money was debited in the name of Treasury Bills for the banks, and it is common knowledge that treasury bills are legal instrument duly approved by the CBN in which financial institutions invest funds and expect interests.
“And these treasury bills are issued only for commercial banks, while commercial banks also issue the same to microfinance banks, which we found was not done for any of these 37 banks and still the total sum of N74 million was carted away by the chief consultant.
“From the foregoing facts and findings, a lot of fraudulent acts were carried out during the period under review by the chief consulting company, R.I and Co Financial Institution, to the tune of N207,732,500.00.
He said there was likelihood that more fraud might be uncovered as investigations into the matter was still in progress.
Mr. Rimingado however said in line with the Central Bank of Nigeria’s directives of depositing the sum of N20 million for the establishment of microfinance banks, the state government in 2013 deposited the sum of N740 million in the apex bank.
He said after the deposit, the banks were issued with authority in principle to commence operations.
According to him, the CBN refunded the deposited amount, which was share capital, inclusive of the accrued interest, and N2 million earned as interest from each N20 million share capital of the 37 banks.
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