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Tag: fraud

  • ‘Background check efficient against fraud’

    ‘Background check efficient against fraud’

    Effective background check is necessary to protect business and investment climate, the Managing Director of Background Check International (BCI), Mr. Kola Olugbodi has said.

    Insecurity, he said, “Constitutes a threat to peace in the country would have been eliminated if proper background screening is conducted to properly isolate people with criminal tendencies and also develop pro-active strategies to confront them.”

    The society has become porous in terms of insecurity and threat to lives and people still exhibit nonchalant attitude to curtail such negative tendencies that pose enormous threat to the wellbeing of everyone.

    Olugbodi said background check is all about risk management, fraud risk, safety risk, relationship risk. What background check does is that before making decision there should be verification and clarification. The act of doing this saves you the risk of trusting blindly. The person to be employed must be verified in case he absconded from the previous employment before being employed in a new company. It is important to know the background of every potential employee to eliminate the risk of employing a fraudster and criminal.

    According to him, background check is a potent tool to stem the tide of frauds and security breaches that are prevalent. When due diligence is applied to verify the criminal records of an investor, banks will not labour in vain to recover loans. Background check forays in to every area of our corporate and private lives and as a result, all focus

    The BCI boss expressed the company’s readiness to partner with corporate organisations and government at all levels to ensure that Nigeria improves its image of fraudulent and corruption tendencies through development of appropriate strategies.

  • Court remands nurse for ‘fraud’

    A 48-year-old nurse, Oduwole Taiwo, who allegedly defrauded a commercial bus owned by the Lagos State Government (LAGBUS) by failing to pay the correct fare, is to remain behind bars, a court has ruled.

    An Ogudu Magistrates’ Court, which gave the order, said the woman should be remanded at Kirikiri prisons until the bail conditions were met.

    Magistrate O. Sule-Amzat, had granted the accused bail in the sum of N20, 000 with one surety in like sum.

    Taiwo, who lives at Lucky Fiber Road, Ikorodu, had pleaded not guilty to the two-count charge of disorderly conduct and assault occasioning harm.

    Prosecuting Sergeant Ihiehie Lucky told the court that the accused committed the offence on July 10 at Ketu Bus Stop.

    He said there was an argument between the accused and a LAGBUS ticket person over fare.

    According to the prosecutor, the accused boarded the bus from Ikorodu to Ojota at about 4.15 p.m. and was expected to pay N100 instead of N50 she offered to pay.

    “As the ticket person was collecting money from other passengers, she got to the accused and she brought out N50 to pay instead of N100.

    “The conductor became angry and threatened that she would not be allowed her to disembark at her bus stop until she pays her bus fare.

    “The driver tried to settle the matter and to his dismay, the accused left the ticket person and held the driver’s trouser on motion.

    “The accused also unlawfully held the steering of the bus, causing the driver, Ogbogbo Gabriel, to lose control and in the process, the bus hit a BRT bus,’’ he told the court.

    The offence contravened Sections 166(1), (d) and 171 of The Criminal Law of Lagos State, 2011.

    The News Agency of Nigeria (NAN) reports that Section 166(1) provides a fine of N15, 000 or three months imprisonment or both for disorderly behaviour, while Section 171 stipulates three years for assault occasioning harm.

    The case was adjourned to September 20.

  • Report exposes eight years of fraud in army contracts

    Report exposes eight years of fraud in army contracts

    THE Air Vice Marshal (AVM) Jon Ode-chaired Presidential Committee on the Audit of Defence Equipment Procurement in the Armed Forces between 2007 and last year submitted its third interim report to President Muhammadu Buhari last week. According to the report, a whopping N185,843,564.30 and $685,349,692.49 were allegedly spent on the procurement  of equipment and military operations during the period under review. Below is the executive summary signed by Committee President AVM Ode (rtd)

    In continuation of its assignment, the Committee on Audit of Defence Equipment Procurement (CADEP) in the Nigerian Armed Forces, analysed procurement contracts awarded by or for the Nigerian Army between 2007 and 2015.

    The Committee so far noted that within the period under review, the total amount spent for procurement and operations were N185,843,052,564.30 and $685,349,692.49. The Committee reviewed some of the Nigerian Army contracts awarded by MOD for the period under review and observed that contracts were often awarded without significant input from the end-user (i.e. the Nigerian Army) and to vendors who lacked the necessary technical competence. As an example, 3 contracts with a total value of N5,940,000,000.00 were awarded to DYI Global Services Ltd and Doiyatec Comms Nig Ltd (owned by the same individuals) for the procurement of military hardware including 20 units of K-38 Twin Hull Boats and 6 units of 4 x 4 Ambulances fitted with radios. The Committee found that the 2 companies collected N5,103,500,000.00 representing 86% of the total value of the 3 contracts worth N5,940,000,000.00, but only performed to the tune of N2,992,183,705.31.

    In another instance, 2 contracts were awarded to Baram International Nigeria Limited, amounting to N420,726,799.20 for the procurement of 53 Armoured Vehicles Spare Parts at the cost of N169,916,849.77 and that of Ballistic Vests, Night Vision Binoculars and 3 Unmanned Aerial Vehicles at the cost of N250,809,949.50. Sadly, the contract worth N169,916,849.77 with 90 days completion time is yet to be completed 5 years after.

    Similarly, between 29 April 2005 and 19 October 2010, the MOD awarded 2 contracts to Progress Limited for the supply of 42 units of BTR-3U Armoured Personnel Carriers and spare parts for the Nigerian Army. However, neither the MOD nor the NA could provide the contract agreements to ascertain the cost of the APCs. Although 26 of the APCs were delivered in 2007 and immediately deployed for Peace Keeping Operations in Sudan, the APCs scandalously broke down on induction. The Committee observed that the APCs did not meet the operational requirement for the Army, caused Nigeria international embarrassment and deprived her appropriate reimbursement from the United Nations.

    With respect to contracts awarded directly by the Nigerian Army, the Committee found that many of the contracts were characterized by lack of due process, in breach of extant procurement regulations and tainted by corrupt practices. In this regard, a review of the procurement carried out by Chok Ventures Ltd and Integrated Equipment Services Ltd established that between March 2011 and December 2013, the 2 companies exclusively procured various types of Toyota and Mitsubishi vehicles worth over N3,000,000,000.00 for the Nigerian Army without any competitive bidding. Though the Committee found no credible evidence of delivery of the vehicles, the vendors were fully paid based on job completion certificate authenticated by the then Chief of Logistics. Also, analyses of the various banks accounts of the 2 companies showed transfers to individuals related to the then Chief of Army Staff.

    Similarly, between 19 September 2013 and 11 September 2014, the Army awarded contracts to DICON amounting to N4,329,985,000.00 for the procurement of Igirigi and Spartan APCs; with arms and ammunition. The contract for the procurement of 40 units of NSVT Heavy Machine Gun with accessories and 10 units of Igirigi APCs were subcontracted to Kennedy Logistics Ltd and Streit Group FZE at the cost of $1,597,500.00 and $1,850,000.00 respectively. The contracts were awarded to DICON at the cost of $2,237,000.00 and $3,450,000.00 resulting in price differentials of $781,000.00 (33%) and $1,600,000.00 (46.4%) respectively.

    Furthermore, the post- delivery Technical Inspection Reports revealed that the APCs were unsuitable for the North East operation. However, sequel to the deployment of the APCs in the North East, one was destroyed by RPG fire, killing a Colonel inside. As at 13 May 2016, only one of the 10 Igirigi APCs deployed to the North East was serviceable.

    It was also found out that following a request by the ONSA on 13 May 2013, the Government released N1,340,000,000.00 for OPERATION BOYONA, aimed at dislodging terrorist camps along the borders with Cameroun, Chad and Niger. In August 2013, ONSA requested and got approval for additional N2,000,000,000.00. However, DHQ and the Services confirmed non-receipt of any additional funds for Operation BOYONA.

    In March 2014, the ONSA made a case for the release of N1,000,000,000.00 to sustain offensive operations against Boko Haram insurgents across. Although the amount was approved and released, the Committee could not establish the utilisation of the funds. Similarly, in January 2015, the then Honourable Minister of State Foreign Affairs (HMSFA II) requested for N7,000,000,000.00 to urgently fund the operation of the Multi National Joint Task Force (MNJTF) in the Lake Chad Basin which was approved and released to ONSA. However, the Committee could not ascertain the utilization of the funds from ONSA, DHQ and the Services. The returns made by ONSA to the Committee showed that about N1,500,000,000.00 was withdrawn in cash while several disbursements were made to some companies that appeared not to have any relationship with the MNJTF or any operations against Boko Haram.

    The Committee observed that contracts awarded to SEI and its 2 associated companies, APC Axial Ltd and HK-Sawki Nig Ltd, fell short of established norms. Between May 2014 and March 2015, the ONSA mandated CBN to release various sums totaling $386,954,000.00 to SEI and the 2 associated companies for ‘procurement of technical equipment’, without tying the money to particular items of procurement. Thus, the allotment of the fund was left at the discretion of the vendor without input or consultation with ONSA or the Nigerian Army. One of the new equipment SEI procured for the Nigerian Army from Ukraine was BTR-4E APC. However, according to the designers of the equipment, “some of the products sold to Nigeria were actually among 42 units designed for Iraq which subsequently rejected them due to poor performance rating”.

    The Committee also noted that between 3 September 2014 and 30 April 2015, NIMASA funded accounts of the Joint Task Force Operation Pulo Shield with various sums totaling N8,542,586,798.58 purportedly to enhance operations of the Joint Task Force in the Niger Delta. Analyses of the accounts of the Joint Task Force showed that transfers totalling N6,277,698,885.13 were made from the account. The then JTF Commander could not justify these transfers but confirmed that the sums were changed into dollars and handed over to a private citizen. Additionally, he could not account for the balance of N2,264,887,914.45.

    The Committee observed breaches of laws and regulations on payments of With-holding Tax (WHT) and Value Added Tax (VAT). The unremitted WHT from 2007 to 2015 amounted to about N862,962,065.99, $2,093,710.06 and €2,700.00 respectively. However, through the intervention of the Committee, some companies remitted N109,843,495.40 to FIRS. The Committee is of the opinion that the FIRS should liaise with the Nigerian Army to recover all outstanding payments of WHT.

    The Committee’s interactions with the field operators revealed that although the platforms and ammunition procured for the Nigerian Army were deployed for the NE operations, most of them were over aged or expired and support spares were insufficient or completely not available. The platforms were prone to frequent breakdown without immediate recovery support. The non-adherence to the procurement procedures resulted in procurement of some unreliable equipment that reduced the capacity of the Nigerian Army in the NE Operations and resulted in avoidable loss of lives and equipment.

    The President, Commander in Chief of the Armed Forces has therefore approved the recommendation of the Committee that relevant agencies should carry out further investigation in respect of the following individuals and companies that were accounting officers or played key roles in the Nigerian Army procurement activities during the period under review:

  • N4.745b ‘fraud’: Drama as EFCC holds Omisore

    N4.745b ‘fraud’: Drama as EFCC holds Omisore

    Only my body will follow you, ex-Deputy Governor tells EFCC team

    After about three months of hide and seek, the Economic and Financial Crimes Commission (EFCC) yesterday arrested a former Deputy Governor of Osun State,  Otunba Iyiola Omisore.

    He was arrested in Abuja for the N4.745billion  allegedly allocated to him and others by the Office of the National Security Adviser(ONSA).

    Of the slush funds, about N1.310billion was allegedly traced to Omisore and three companies.

    His suspected accomplices include Governor Ayodele Fayose and former Minister of (State) Defence Musiliu Obanikoro, who is in the United States.

    The arrest of Omisore was with a tinge of drama. He reportedly locked himself up in the master’s bedroom to evade arrest by EFCC operatives, sources said.

    EFCC operatives climbed a balcony to enter the room where a “jittery” Omisore was arrested. Found in his room, said the source, are $21,000 and about N1million cash.

    Sensitive documents relating to transfer of funds to slush companies by ONSA, the National Assembly and some companies were also recovered from Omisore, The Nation learnt.

    Omisore reportedly told the EFCC team: “I will not follow you; only my corpse will follow you.”

    He reportedly surrendered when the siege to his house was daunting.

    According to a top source in EFCC, the arrest of Omisore followed a successful trail of his movement to Abuja.

    The source said: “We had intelligence report that Omisore was at his 1, Kainji Crescent in Maitama, Abuja. We set out at 6am to invite him but when we got there; we were told he was not in town.

    “We went into the compound and gained access to the house. We started searching the rooms one by one. At a point, we discovered that the master’s bedroom was locked. We asked them to open it but they said, they had no key to it. Having been aware of our presence, Omisore had firmly locked up himself to evade arrest.

    “We surrounded the place with armed policemen and entered the master bedroom through the balcony. When we met him, we showed him a court warrant of arrest and a search warrant fully endorsed by a competent court.

    “We searched his  room afterwards and we discovered documents linking him to those  companies used for laundering of money from ONSA , National Assembly and some firms which they forced to part with cash to fund political campaign.

    “Some of the documents on landed properties which he bought with these slush funds.

    “When we finished the search,  we showed him the warrant of arrest but he retired into a mild drama that he would not go to the EFCC office.

    “Omisore, who knew the game was up said: ‘I will not follow you, only my corpse   will follow you.’ The suspense continued until his lawyer, a Senior Advocate of Nigeria, asked him to go to  EFCC headquarters.

    “After then, we took him to the office and obtained  a statement from him. During interrogation,  he admitted that  he is a director of some of the companies linked to him . ONSA, National Assembly and some firms that paid huge funds into the accounts of these companies .”

    According to the source, Omisore told detectives that the companies paid the funds  under investigation to him but they were the money he loaned them.

    “We have served him bail conditions, it is left to him to meet these terms to regain freedom. So far, we have detained him,” the source said.

    About N1.310billion was traced to Omisore and  three companies out of the N4,745billion.

    According to a report by the EFCC, the funds were  remitted as follows: Fimex Gilt Limited(N160m)-8/8/2014in UBA; Metropolitan Consortium (N350m)—9/7/14 in First Bank; Sawanara (N300m)—1/8/14 in First Bank and Metropolitan Consortium(N350m)-1/8/14 in First Bank.

    A top EFCC source, who spoke in confidence, said: “Preliminary findings have shown that N1.310billion out of the N4.745billion from ONSA was remitted to the three firms and the accounts of these three companies belong to Omisore. This is one of the reasons we have invited the former Deputy Governor but he is yet to show up.”

    The anti-graft agency through a letter, of April 7, 2016 invited Omisore for interrogation.

    The letter, signed by Abubakar Madaki on behalf of the Acting Chairman of EFCC, reads in part: “The commission is investigating an alleged case in which your name featured prominently.

    “In view of the above, you are kindly requested to attend an interview the undersigned on Monday, 11th of April 2016 at No.30, Harper Crescent, Wuse Zone 7 at10am.

    “Your cooperation in this regard is solicited.”

    Instead of honouring the invitation, Omisore wrote a letter through one of his lawyers, Wole Jimi-Bada and Co. that the interview should be rescheduled to Thursday, April 14, 2016.

    The counsel said in part: “Your letter dated 7th April 2016 and addressed to our client and delivered to his gateman at our client’s residence has been passed on to our chambers.

    “We regret to inform you that our client travelled briefly out of Abuja but will return by Wednesday evening. Consequently and unfortunately, he will not be able to attend the interview scheduled for Monday, 11th April 2016 as requested in your letter under reference.

  • Osunwon Omoluabi: End to business fraud in Osun

    Osunwon Omoluabi: End to business fraud in Osun

    In its efforts to prevent cheats from taking advantage of unsuspecting customers, the Osun State government has introduced scale and weight standard for use in markets across the state. In the circumstances, Governor Rauf Aregbesola formally launched the scales and weight instruments and officially outlawed the old practice of transacting business using plastic bowls such as kongo, denge, kobiowu, dana and tin, among others that often results in several complaints and frictions among the buyers and sellers in most markets across the state.
    In their stead, the state government introduced standard gauge and weight measurement through the use of scales for transaction of businesses. The new method was aimed at eliminating problems associated with the old measuring practices.
    Deliberate alteration of measures; not measured fully to standard by trimming the head, melting and layering the plastic bowls and other containers with candles to reduce container size; deliberate distortion of bottles to reduce their content capacity and unhygienic conditions of the bottles, tins and others used for measuring liquid items are some of the causes of frequent friction among buyers and sellers in most markets.
    While launching the standardised weights and measuring scales known as Osunwon Omoluabi at the Nelson Mandela Freedom Park, Governor Rauf Aregbesola said fair and honest trade rest on the use of accurate weights and measures.
    Aregbesola said: “No business can be conducted satisfactorily unless each person is sure the other person is fair and honest.”
    He further stated that the scheme would eliminate cheating and other malpractices that have become the hallmark of doing business in most markets.
    The governor maintained that the use of standardised scales in markets across the state will engender a chain of economic benefits, adding that dealers in weighing scales would experience business expansion as the programme will ensure increase in the demand of their products.
    Aregbesola said the move was to make the state the preferred destination for commercial activities in the sub-region, reiterating that his administration would not relent in its efforts to increase economic activities.
    He said: ”In the quest to be competitive and make more profit, which is greed, traders devise varying means of short-changing buyers. Measures are deliberately reduced through cutting, filling with candles and wax, and sleight of hand. Scales are tilted fraudulently while husks, chaffs, barks and other rubbish are included in goods sold, with the intention of reducing the actual value of what the buyers take home.
    “One of the tragedies of this immoral practice is that foreigners began to distrust our export because, for instance, cocoa graders put top grades at the top of the sack, leaving poor quality at the bottom, and in the process, collect money for the top grade. Those who are in the business can tell you what loss they suffered because foreigners distrusted their products and classified all cocoa coming from our land as inferior, irrespective of the grade.”
    The Governor maintained that the introduction of standardised weights and measures was a Federal Government’s law being replicated in the state.
    He explained that weights and measures constitute item 63 on the Exclusive Legislatives List of the 1999 Constitution of the Federal Republic of Nigeria. That is, only the Federal Government can legislate on weights and measures in the country.
    The various laws made in this respect include Weights and Measures Act CAP W3LFN, 2004, Pre-Shipment Inspection of Export Act CAP P25 LFN, 2004; Weights and Measures Standardisation of Indigenous Measures Regulations, 1992 and the Weights and Measures Fees Regulations.
    “The legislations are geared toward ensuring that products are not under-dispensed at markets, factories, oil and gas stations and crude oil depot in Nigeria,” he said.
    The Coordinator of the scheme, Mr. Ismaila Adekunle Jayeoba-Alagbada, who is the former Commissioner for Industries, Commerce, Co-operatives and Empowerment, hinted that the standardised weighing scale across markets in the state became necessary in order to mitigate challenges noticeable in commercial transactions.
    Jayeoba-Alagbada said in order to eradicate cheating in the process of exchange of commercial goods and checkmate other challenges of market forces, government decided to formally introduce the standardised weighing scales.
    He stated that training workshops had already been conducted in the markets all over the state on the effective use of the scales.
    He stated that the Ministry of Industries, Commerce, Co-operatives and Empowerment is saddled with the responsibility of monitoring the day-to-day administration of the programme.
    He said: “I need to emphasise that market men and women had been fully mobilised to key into this emerging commercial revolution. Both the leadership and the followership of the associations of market women and men had agreed, not only to comply with the right use of the scales and measures but also to continuously carry out peer reviews with a view to ensuring flawless implementation of the standardised weighing scales and measures programme. I want to place it on record that, but for the grace of God and the dogged determination of Mr. Governor, this launch, and indeed the entire standardised scales and measures programme would have been a mirage.”
    He revealed that 178 OYES cadets have been trained under the train-the-trainer programme on the use, maintenance and repairs of the new measuring scales. The OYES cadet would also man some control posts in all the markets to serve both as repair and challenge-mitigating centres.
    Speaking on the new scale, the President-General of Osun State Market Women Association, Alhaja Awawu Asindemade, said the standardised scale became necessary due to imbalance in measurement and fraud in commercial activities.
    Asindemade said the kongo measurement introduced to the market in the old Oyo State became the standard measurement in Osun State when it was created. According to her, the old measurement was gradually subjected to abuse and fraud to the extent that individual seller used his or her yardstick for measurement, thus the need to re-standardise and unify it.
    She, however, warned that the introduction of the standard scale should not translate to increase in prices of commodity in the markets.
    “It is in a bid to correct the anomaly in measurement and scale that the Osun State government introduced the standardised weighing scales in markets so as to forestall fraud and cheating in measurements. As we embrace this innovation, I call on market men and women to co-operate with government to make this a success. Besides, introduction of the weight and measurement does not and should not lead to increase in price of commodities in our markets.”
    The state government, however, subsidised the new measuring scales for the traders. For instance, from the supplier in Lagos, a 150kg platform is sold for N38, 500, but the state government is selling it at N28, 500. The prices of the scales are: 150kg (table) N8, 500, 20kg N2, 500, 10kg 2,500, while 5kg is N2, 000.

  • EFCC charges ex-Air Force chiefs with N21b fraud

    EFCC charges ex-Air Force chiefs with N21b fraud

    The Economic and Financial Crimes Commission (EFCC) has filed a money laundering charge against Air Marshal Adesola Amosu Nunayon (rtd) at the Federal High Court in Lagos.

    He was charged along with Air Vice Marshal Jacob Bola Adigun and Air Commodore Gbadebo Owodunni Olugbenga.

    Companies named in the charge are Delfina Oil and Gas Ltd, Mcallan Oil And Gas Ltd, Hebron Housing and Properties Company Ltd, Trapezites BDC, Fonds and Pricey Ltd, Deegee Oil and Gas Ltd, Timsegg Investment Ltd and Solomon Health Care Ltd.

    EFCC accused them of converting N21billion from the Nigeria Air Force around March 5, 2014 in Lagos.

    They were also accused of concealing “proceeds of crime” and thereby committed an offence contrary to Section 18(a) of the Money Laundering (Prohibition) (Amendment) Act, 2012 and punishable  under Section 17(a).

    The accused persons were accused of using the companies to convert and conceal the money.

    Air Marshal Nunayon and Air Vice Marshal Adigun were said to have, between July 17 and September 16, 2014,  allegedly removed over N663.4million from the Nigerian Air Force accounts to purchase properties at  50-52 Tenterden Grove, London (NW4 1TH) and at 93B Shirehall Park, LondonNW4 2QU, United Kingdom.

    They were accused of buying 40A, Bourdillon, Ikoyi, with N900million, and a property at Sinari Daranijo in Victoria Island with N1.5billion.

    EFCC said they also bought a property named as Cappadol Mall at Adetokunbo Ademola Street, Wuse II Abuja, for N750million, as well as a property worth over N1.7billion at Agobogba Street, Parkview, Ikoyi Lagos, using the airforce’s money.

    Other properties they allegedly bought using Air Force’s funds include one at Salt Lake Street, Maitama, Abuja; one at Agadez Street off Aminu Kano Crescent, Abuja; 61A, Lake Chad Street, Maitama, Abuja; and one at 1, River Street, Wuse II Abuja using alleged stolen funds.

    Between last March 6 and April 30, the accused allegedly used N428,139,539.00 removed from the accounts of the Nigerian Air Force to renovate and purchase medical equipment for Solomon HealthCare Ltd situate at 24th Adeniyi Jones Street, Ikeja Lagos.

    Prosecuting counsel, Rotimi Oyedepo Isiokuwa, who signed the charge, said 42 witnesses will testify when trial begins.

    Count one read: “That You, Air Marshal Adesola Amosu Nunayon (Rtd), Air Vice Marshal Jacob Bola Adigun, Air Commodore Gbadebo Owodunni Olugbenga, Delfina Oil and Gas Ltd, Mcallan Oil and Gas Ltd, Hebron Housing and Properties Company Ltd, Trapezites Bdc, Fonds and Pricey Ltd,Deegee Oil and Gas Ltd, Timsegg Investment Ltd And Solomon Health Care Ltd on or about the 5th day of March, 2014 in Lagos, within the jurisdiction of this Honourable Court conspired amongst yourselves to commit an offence, to wit: Conversion of the sum of N21,467,634,707.43, property of the Nigerian Air Force, which sum was derived from stealing, and thereby committed an offence contrary to Section 18(a) of the Money Laundering (Prohibition) (Amendment) Act, 2012 and punishable  under Section 15(3) of the same Act.”

    EFCC said the accused converted and concealed the sums, which they “reasonably ought to have known forms part of the proceeds of an unlawful act, to wit: stealing.”

  • ‘Background check efficient against fraud’

    Efforts aimed at riding Nigeria of all forms of corruption will become more effective when background checks on both private and public functionaries before assuming office is entrenched the Managing Director, Background Check International (BCI), Mr. Kola Olugbodi has said. Speaking with journalists recently in Lagos, Olugbodi advised both private and public sectors to stop trivialising the importance of due diligence on the background check of prospective employees or functionary, saying morally bankrupt people can be checked from getting to position of trust through diligent background check before appointment.

    According to him, prospective employees will do everything possible to conceal their dark past which might include propensity for fraud and other anti-society vices, saying that it is the duty of smart employer to dig out such areas through some level of background check on such individuals.

    He pointed out that many corporate organisations have burnt their fingers arising from negligence and lackadaisical attitude to background check, stating that the deed would have been done before they realise the repercussion.

    “Negligence hiring does not only result in fraud. It may also result in bodily injuries arising from assault from a co-worker who is pruned to violence, a tendency such staff would have carefully concealed away during job interview but which some level of background check would have exposed. And in most cases, injured staff institute legal action which the company end up being joined with the co-worker who unleash the violence,” BCI boss said.

  • Alleged N42b fraud: Ex-Customs chief Dikko in hospital

    Alleged N42b fraud: Ex-Customs chief Dikko in hospital

    The Economic and Financial Crimes Commission (EFCC) is watching over a former Comptroller-General of Nigerian Customs Service(NCS), Abdullahi Inde  Dikko in a hospital in Abuja.

    Dikko, who is being investigated over alleged N42billion fraud, has been in hospital since he surrendered to the EFCC for interrogation  last  Thursday.

    A top source in the anti- graft commission, who spoke in confidence, said: “When Dikko reported at the EFCC, he was looking pale. It was obvious that his health was in bad shape.

    “We interacted with him and relocated him to a hospital for treatment. From the first day, we allowed him to stay in hospital. Our operatives are only watching over him at the hospital.

    “We need to set the records straight. He was never at any time detained in EFCC’s custody because of his frail health. But we are monitoring him in a hospital.”

    Out of the total fraud sum Dikko is being grilled on the sources of funds with which he acquired a N2billion mansion at 1, Audu Ogbe Street, Jabi Abuja.

    The anti-graft agency had been on the trail of Dikko since January 8 when its operatives stormed the posh residence of the ex-Customs boss.

    Following search pressure, Dikko gave himself up on Thursday by responding to the outstanding invitation of the EFCC.

    Looking pale, Dikko arrived at the EFCC’s headquarters at about 10am for interrogation which lasted about eight hours.

     

     

     

  • House investigates TCN for alleged fraud

    House investigates TCN for alleged fraud

    The House of Representatives has raised the alarm over the fleecing of the economy by eight expatriate managers of the Transmission Company of Nigeria (TCN) that earns about N168million monthly among them.

    The lawmakers have consequently mandated its Committees on Power and Public Procurement to investigate alleged massive corruption being carried out by the management of Manitoba Hydro International Nigeria Ltd.

    Manitoba was engaged by the Federal government to manage TCN.

    The decision of the House followed the adoption of a motion by Gaza Gbefwi (APC, Nasarawa), who regretted that Manitoba was able to carry out the fraud through validation of contracts without due process as well as foreign exchange manipulation among others.

    He said: “While the consideration of the management contract includes emoluments for 15 expatriates, only eight  expatriates are working at the TCN.

    “In these harsh economic times, the Managing Director of TCN, a public corporation, draws a monthly salary of N35,500,000 while other expatriates and the Managing Director, ISO earn monthly incomes of N20,500,000  and N19,100,000  respectively.

    “Although the official exchange rate of the dollar to the naira four years ago was around N160 which is now N199,  the exchange rate being used by the management company since 2012, has been N395, a rate that was and is still higher than both the official and parallel market rates

    “As a result of the unlawful exchange rate being used by Manitoba Hydro International Nigeria Limited in the last 13 quarters, the transmission company of Nigeria has fraudulently and illegally lost N3,769,000,000 over and above its entitlement under the management contract

    “Although Manitoba Nigeria Limited, a Federal Government Nigeria through the Federal Inland Revenue Service (FIRS), it recoups the amounts from the funds of the market operators of the ISO in the TCN and has so far recovered over N1, 680,000,00  to date.”

    Gbefw said in April this year, the management company unlawfully revalidated a 2010 contract worth N1,900,000, 000 and awarded it to ABB India without due process, in flagrant violation of the Public Procurement Act, 2007

  • SEC probes stockbroking firm over shares fraud

    SEC probes stockbroking firm over shares fraud

    Securities and Exchange Commission (SEC) has launched investigation into alleged multi-million Naira shares fraud involving a stockbroking firm, WT Securities Limited, in another high-profile case after the apex capital market regulator indicted and banned two BGL companies from the capital market.

    In a preliminary indictment charge, SEC, at the weekend, alleged that its preliminary investigation indicated that WT Securities Limited engaged in fraudulent sale and mismanagement of clients’ shares, valued at about N254 million.

    According to the apex capital market regulator, WT Securities Limited was alleged to have mismanaged the investment portfolio of Chief Opral Mason Benson valued at N185.20 million and also sold 500,000 shares of Nigerian Breweries belonging to one Ngozi Oyekwere Nwachuku without the authorisation of the client. The Nigerian Breweries’ shares are currently valued at about N68.5 million.

    “A preliminary investigation carried out by the Commission revealed that WT Securities Ltd sold the complainants shares without authority and management of the Commission has directed that the firm, its directors and sponsored individuals be invited to a meeting to explain their roles in the transaction,” SEC stated in the preliminary indictment charge.

    With the preliminary indictment, the directors and officials of WT Securities Ltd are expected to appear before the internal disciplinary panel of the apex capital market regulator tomorrow to “show cause why they should not be sanctioned for violating the provisions of Rules 43 and 182A (1), (3) and (5) of the SEC Rules and Regulations”.

    SEC, two weeks ago, withdrew and cancelled the registration of BGL Securities Limited and BGL Asset Management Limited after the Administrative Proceedings Committee (APC) found the firms and their operators guilty in a N2.2 billion asset management case.

    The APC, the adjudicatory arm of SEC, also banned key executives and management staff of BGL from the capital market for various numbers of years. However, BGL could appeal the decisions to the Investment and Securities Tribunal (IST).

    The APC found the two firms and their executives guilty of failure to honour N2.2 billion investment agreements in breach of extant capital market rules. The group managing director of BGL Group, Mr. Albert Okumagba and his deputy Mr. Chibundu Edozie were fined N100, 000 each and were banned for 20 years.

    The APC stated that the firms and their executives “engaged in acts capable of adversely affecting the investing public’s image of, and confidence in the capital market”.

    Besides, the indictment also referred the firms and the officials to the law enforcement agencies noting that “pursuant to Section 304 of the Investments and Securities Act 2007 all information on possible criminality in this matter be and is hereby referred to the appropriate law enforcement agencies and the Enforcement Department of the Commission shall follow up and ensure that the matter is brought to a logical conclusion”.

    Besides the cancellation of their registrations, BGL Securities was slammed with total fine of N22 million while BGL Asset Management was slammed with N5 million. Also, Mr. Peter Adebola was banned for five years, Joseph Ashley-Osuzoka was banned for four years with a fine of N100,000, Victor Obire was banned for three years with a fine of N100,000; Joshua Sesan Adetiloye was banned for one year; Nkechi Azubuike, Adekule Alli, Mohan Lalchandani, Anthony Nwozor and Oluwo Oluwale were all banned for one year and fined N100,000 each while Ande Ewubare, Victor Inyang, Hilary Eludu, Ehime Alofoje and Ofem Mbui Omni were slammed with two-year ban with a fine of N100,000 each.