ICPC Charges Former FMBN MD and Two Others Over Alleged $65m Fraud
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has arraigned the former Managing Director/Chief Executive Officer of the Federal Mortgage Bank of Nigeria (FMBN), Mr. Gimba Kumo Ya’u, along with two others, in connection with an alleged $65 million fraud linked to the development of 962 residential units in Kubwa District, Abuja.
ICPC spokesperson Demola Bakare confirmed in a statement that Mr. Ya’u was brought before Justice James Omotosho of the Federal High Court in Abuja on Tuesday. He was joined by the former Executive Director of FMBN, Mr. Bola Ogunsola, and Mr. Tarry Rufus, the Managing Director of T-Brend Fortunes Nigeria Limited.
According to the charge sheet, marked FHC/ABJ/CR/333/24, the three defendants are accused of committing offences that contravene the Public Enterprises Regulatory Commission Act and Section 19 of the Money Laundering (Prevention and Prohibition) Act, 2022.
The ICPC presented a five-count charge against Mr. Ya’u, accusing him of making an improper payment of N3,785,000,000 (about $6.2 million) to Good Earth Power Nigeria Limited from the $65 million allocated for the development of the 962 units of residential housing in Kubwa, Abuja, dubbed the “Goodluck Jonathan Legacy City.”
The commission further alleges that in August 2012, Mr. Ya’u and Mr. Ogunsola, while holding senior positions at FMBN, secured a loan of N14 billion from Ecobank Nigeria PLC on behalf of the bank. The ICPC claims that despite knowing the company lacked the capacity to carry out the project, Mr. Ya’u awarded the $65 million contract, which remains unfinished to this day, resulting in economic loss for the bank.
In addition, the ICPC alleges that Mr. Ya’u, Mr. Ogunsola, and Mr. Rufus were involved in the illegal conversion of part of the contract sum, totaling $3,550,000, into cash. This contravened the provisions of the Money Laundering (Prevention and Prohibition) Act, 2022.
Mr. Rufus, alongside his company Good Earth Power Nigeria Limited and T-Brend Fortunes Limited, is also accused of converting N991,399,255 into $3,550,000 and handing it over in cash to one Jason Rosamond, who is currently at large.
All three defendants pleaded not guilty to the charges when they were read in court.
Justice Omotosho, after hearing the not guilty plea, adjourned the case until February 6, 2025, for the trial to begin. He also granted the defendants bail under liberal terms.
