The Nation Newspaper

Tag: fraud

  • Assembly orders probe of fraud in Lagos firm

    •The Nation’s report  causes  stir

    THE Lagos State House of Assembly has directed its Committee on Finance to look into the allegation of fraud levelled against the Lagos Building Investment Company (LIBC) by its subscribers.

    Yinka Ogundimu (Agege 2), at plenary yesterday under matters of urgent public importance, drew the attention of his colleagues to a report on the issue in The Nation.

    He urged his colleagues to look into the issue as it is capable of giving the government a bad name.

    According to him, there is need to look into the alleged sharp practices, which subscribers say officials and non-employee agents of the firm engaged in, thereby ripping off subscribers in millions of naira.

    According to The Nation’s report, “subscribers allege that some LBICs’ officials, working with non-employee agents, have devised a scheme through which they encourage people to subscribe to non-available houses. In the process, their funds (mostly in millions of naira) are either tied down for years or lost”.

    Omowunmi Olatunji-Edet (Oshodi/Isolo 2) said the matter should be of interest to the lawmakers “because the state and the government are being projected negatively and we owe it a duty to our people to verify these claims and counter claims by both the subscribers and LBIC”.

    The committee is expected to report back to the House next Monday.

  • Banks mull foreign partnership on fraud control

    Banks mull foreign partnership on fraud control

    Local banks are considering securing international partnership, especially with foreign banks to fight rising cases of fraud and forgeries in the banking sector, The Nation has learnt.

    The banks are consulting with their counterparts abroad on technology buildup, especially on banking software and new fraud techniques to keep perpetrators on check.

    The financial report of the Nigeria Deposit Insurance Corporation (NDIC) released showed that the banking sector reported N28.40 billion fraud cases last year, representing 33.4 per cent rise from N21.29 billion reported in the previous year.

    The Chairman of the Nigeria Electronic Fraud Forum (NeFF), Emmanuel Obaigbena, confirmed that that there is a plan by banks to partner with foreign lenders to fight fraud because of global dimension of the acts.

    Obaigbena said: “It is advisable for banks to give accurate data on fraud cases. They should not be scared of sharing statistics with each other.”

    He said the forum has set up a committee to sanction erring banks. The objective for this forum is for banks and the relevant agencies to share data to eliminate fraud in the industry.

    According to him, fraud not only translates to operational risk losses to banks’ it erodes the confidence of the public in electronic platforms/systems as a channel for transacting business.

    He reiterated that the need to protect customers from fraud cannot be over-emphasised, adding that the electronic payment system is international and requires to be approached from global perspective.

    Chief Technical Officer, Digital Encode, Seyi Akindeinde, said internet and mobile banking constitute the most frequent avenues through, which frauds are perpetrated.

    Also, the NeFF is collaborating with the Economic and Financial Crimes Commission (EFCC) and the judiciary to fight the scourge. He added that the forum was also working with Nigeria Inter-Bank Settlement System (NIBSS) to enhance the fraud reporting in banks.

    According to him, fraud not only translates to operational risk losses to banks, it erodes the confidence of the public in electronic platforms/systems as a channel for transacting business.

    Also, the Nigeria Interbank Settlement System (NIBSS) said it is taking measures aimed at reducing the volume and value of fraud perpetrated in the banking sector.

     

     

  • EFCC re-arraigns bankers, others for alleged N.855m fraud

    EFCC re-arraigns bankers, others for alleged N.855m fraud

    The Economic and Financial Crimes Commission (EFCC) yesterday re-arraigned three officials of Bank PHB (now Keystone Bank Plc) and five foreigners at a Lagos High Court, Ikeja for conspiracy and obtaining money by false pretence.

    Those charged before Justice Olabisi Akinlade of a Lagos High Court, Ikeja are an Indian, Ashrok Isran, his company, Nulec Industries Ltd and three officials of the bank – Anayo Nwosu, Olajide Oshodi, Sunny Obazee.

    The defendants were last year arraigned before Justice Habeeb Abiru on a two-count charge bordering on conspiracy and obtaining money by false pretence.

    The re-arraignment of the defendants was informed by the elevation of Justice Abiru, to the Court of Appeal

    But in the new charge, they are facing an amended 12-count charge bordering on conspiracy and obtaining money by false pretence.

    They were alleged to have defrauded Sir Daniel Chukwudozie of Dozzy Oil of N855,000,000.

    All the defendants pleaded not guilty to the 12-count charge offence.

    Justice Akinlade ordered that the defendants should continue to enjoy the bail earlier granted them by Justice Abiru.

    Also at yesterday’s proceedings, Justice Akinlade granted leave to the Indian defendant, Isran, to travel to Geneva, Switzerland for medical check-up.

    Isran’s counsel, Mr. Uche Offorma (SAN) had informed the court that his client had consulted two medical experts who suggested that he travel to Geneva for medication.

    Counsel to EFCC, Mr. Rotimi Jacobs told the court that he would not oppose the application but urged the court to be careful in granting the application.

    Offorma, however, allayed the fear of the court and that of the EFCC that the defendant being a foreigner and the principal suspect may abscond and never come back to face his trial.

    The judge in her ruling granted the application and ordered the court Registrar to release Isran’s travelling documents to enable him go for treatment.

    The matter has been adjourned till May 28.

     

  • Oyo N1.6b pension fraud: 10 persons remanded in prison

    An Ibadan Magistrate’s Court yesterday remanded 10 persons in Agodi Prisons for allegedly defrauding the Oyo State Government of N1.6 billion.

    The money belonged to the State Local Government Pension Board.

    The accused are Hakeem Muili, Alhaja Iyabo Giwa, Adeduntan Johnson, Oguntayo Banji, Adesina Jimoh, Johnson Bosede, Adebiyi Olasumbo, Kareem Rasheed, Muili Adedamola and Salewa Adedeji.

    They were charged with conspiracy to steal, abuse of office and stealing of local government staff pension fund.

    All the accused pleaded not guilty.

    They were granted N2 million bail each with two sureties in like sum.

    Each surety is to have a Certificate of Local Government Origin or landed property within the court’s jurisdiction or an account with a reputable bank in Oyo state or Certificate of Business Registration.

    The accused were remanded at Agodi Prisons when they could not meet the bail conditions.

    The Chief Magistrate, Mrs. Tijani Durosaro, adjourned the case till March 19.

    The state government discovered the fraud last August and invited the police to look into it.

    Chairman of the Board and the Local Government Service Commission Chief Lasisi Ayankojo said the fraud was responsible for the delay in the payment of the pension of retired teachers.

     

  • Why bank fraud persists, by police boss

    The Commissioner of Police in charge of the Special Fraud Unit (SFU), Milliverton Road, Ikoyi, Lagos, Mr Olatunde Ogunsakin, has attributed the difficulty in tackling fraud in the financial sector, especially banks, to what he described as insider abuse.

    He explained that no matter how hard the police try to check financial crime in banks, bank executives must do something drastic check the problem of insider abuse in the sector.

    “There are a lot of people working in banks now that are not supposed to be there. We have been asking the banks’ executives to review their procedures for staff recruitment.

    This is the only way we can begin to successful fight fraud in the banks.

    “The Inspector General of Police has given us that mandate and we must win the fight against financial crime and frauds in the banks. We are already thinking of organising a workshop for banks’ executives where we will teach them how to recruit the right persons to work in their organisation”, Ogunsakin explained.

    Ogunsakin noted that the new forensic department of the SFU which is still under construction would be employed to check fraud when completed.

    “We at the SFU are committed to the course of fighting financial fraud whether in the banking industry or in the oil and gas sector. As a policeman, my responsibility is to fight crime in all its ramifications and that is what I am doing here. And we are lucky to have an IG whose cardinal point is crime fighting”, he said.

    On how he had been able to ensure justice for victims of fraud cases brought before him, Ogunsakin said: “As an Ekiti man, what gives me satisfaction is to give justice to people. The poor victims feel more fulfilled with the justice they get. Whoever comes here needs to be given justice. The justice you give to the lowly-placed in the society can be more enduring than the one you give to the rich”.

  • N7.6m fraud victim takes case to IGP

    On November 2, 2010, Alhaji Saliu Alabi Omoniyi had the rare luck of seeing his defrauder walk into his trap. He was happy that he would soon have his life back. Reason: The fraudster promised to return his money.

    However, his joy was short-lived as some police officers introduced a twist that cut short his expectation. Today, two years after his ordeal, he is still waiting for justice.

    The suspected fraudster, Princewill Arinze, specialised in defrauding Bureau de Change operators, posing as a Senator. Omoniyi fell prey to Arinze on April 20, 2010 at his Marina, Lagos office.

    “Some fuel station attendants beside my office came to me that someone needed my services and that he wouldn’t alight from his car because he is a senator,” Omoniyi told The Nation.

    “I went to him and he said he needed $40,000 and £5,000. As we agreed; I went to satisfy his request while he went to get the naira equivalent at a nearby bank. When I came back, he said the bank did not have enough money and asked that I follow him to the bank’s headquarters,” he added.

    Omoniyi entered the Toyota Sienna car with the ‘Senator’ and his supposed orderly, a Mobile Police officer. He knew he was in trouble when the ‘Senator’ gave him a “deafening slap” and the MOPOL hit him with his gun butt. They collected all he had on him – $40,000, £5,000, and N348,860.

    “They drove to school where a police van crossed our car and forced us to park. I was happy. I thought the officers saw them beating me and came to my rescue,” he said.

    He was wrong. The ‘Senator’ alighted and entered the police van. Two officers, one in mufti and the other in uniform, entered the Sienna car, sandwiching Omoniyi and another round of beating started as they drove off in a convoy.

    After a while, the ‘senator’ alighted from the police van and entered another vehicle, a Mercedes Benz Sports Utility Vehicle (SUV). Omoniyi’s captors drove him to Osborne Road, Ikoyi, where they collected his two mobile phones, a gold wristwatch and a stamp used to authenticate dollars. He was given N700 and forced off the moving car.

    “By then, I looked like a mad man,” he said. He reported the matter at Zone 2 Police Headquarters, Onikan, Lagos but every lead they followed led to nowhere. “Life became difficult because I actually borrowed most of the money from colleagues,” he said.

    But on November 1, he was “relaxing” close to the office of an operator, who was Arinze’s next target. “I recognised him immediately I saw him, but I didn’t shout because I feared he might have a gun on him. After he left, I went to meet the operator who told me Arinze was a Senator and wanted to buy dollars worth N23 million. I quickly told him my story and we set a trap for him,” he said.

    “Arinze was caught the next day and taken to Zone 2. He confessed that he robbed me and right there, he wrote two cheques in my name, one for N3 million and another for N4.62 million. At that point, the officer, who was in mufti, asked me to leave the room but I was eavesdropping. He asked for N2m to spoil the case. They refused to release the cheques to me till today,” Omoniyi said.

    The matter was transferred from Zone 2 to the Special Anti Robbery Squad (SARS) and from there to Force Headquarters, Abuja.

    “When I went to Abuja, I saw about 17 others who said Arinze also robbed them. When he was paraded before us, he denied defrauding others but he again confessed that he robbed me. Still, they refused to give me the cheques,” he said.

    Omoniyi came back to Lagos and sought legal intervention from Olabode Abikoye, who petitioned the Inspector-General of Police (IGP), in a letter dated February 25, 2011, to transfer Arinze’s case back to Lagos, where the offence was committed.

    Greg F. Esele, an Assistant Commissioner of Police, who was the principal staff officer III to the IGP, wrote to Commissioner of Police, Lagos Command on March 11, 2011. The letter, with the reference number CB:7000/IGP.SEC/ABJ/VOL. 15/44 directed Lagos Police Commissioner to “treat” the matter.

    On that same day the IGP’s letter was written, Arinze was flown to Lagos and quickly arraigned before Magistrate O.I Oguntade of Igbosere Magistrate’s Court on a nine-count charge by Ubanwa Kennez, an Assistant Superintendent of Police based in Abuja.

    “We could only watch the proceedings. We could not join ourselves in the matter,” said Mr. Abikoye.

    Arinze was granted bail at the second hearing on March 25. At the third hearing on May 11, 2011, Kennez told the court he could not be coming from Abuja to appear in the matter. He said he had been advised to “transfer the file to D.P.P Lagos for legal advice” and presented a letter dated April 5, 2011 addressed to DPP Lagos from Commissioner of Police, Legal Department, Abuja.

    At the fourth hearing on July 12, 2011, Arinze, his lawyer and prosecutor were absent and the proceeding ended in another impasse.

    “We have done what we knew we could. We checked the DPP’s office but there was no such letter from Abuja asking for legal advice. Now the matter could not proceed,” Abikoye said

  • Mint-fresh fraud

    Mint-fresh fraud

    ALTHOUGH corruption has become a national problem, with almost every aspect of our lives compromised, there are some institutions that we expect should have zero tolerance for it. One of these is the Nigerian Security Printing and Minting Company Ltd (NSPMC), otherwise known as the Mint. Located in both Abuja and Lagos, the Mint prints the country’s banknotes, postal orders as well as stamps.

    These are sensitive functions that require utmost honesty. Unfortunately, the cankerworm of corruption has infested the organisation, with allegations of fraud rocking it. At least about N2.1 billion reportedly disappeared from its vaults last month, prompting the House of Representatives to set up a probe panel to investigate it, after considering a motion sponsored by 61 legislators. Chairman, House Committee on Rules and Business, Albert Sam-Tsokwa, led the debate on the matter.

    Perhaps what is equally curious is the fact that no one knows exactly by how much the institution has been defrauded. According to Sam Tsokwa: “We are disturbed that there has been conflicting information on the actual amount of money declared missing. While the Governor of the Central Bank of Nigeria (CBN) said it was about N2 billion, the Managing Director of the Nigerian Security Printing and Minting Company (NSPMC) has claimed that the amount was N1.5 million, and the media adviser to the managing director claimed that the actual amount missing was N900,000.

    It is saddening that this is happening in the Mint, which once was a place that many fresh graduates longed to work. The pay was good, things were done professionally such that people accounted not only for finished products but also wastes, and no one involved in production was allowed to go home unless figures tallied.

    All these appear to have gone with the winds, given the rate at which fraud is being perpetrated in the organisation nowadays. At least 70 of its members of staff have been sacked in the Lagos office alone over fraud-related matters in recent times. Last September, one of them was allegedly caught with N1.5million, being his share of stolen money from the Lagos office. Some reports even alleged that in the last audit of the organisation, over 750,000 pieces of unfinished notes estimated at about N371million were alleged to be missing.

    What is obvious is that there are security breaches in the Mint. And that is why both the Central Bank of Nigeria (CBN) whose governor is the chairman of its board, and the House of Representatives, have set up committees to investigate the circumstances that made such thefts possible.

    Even as we await the findings of both panels, one other thing that we cannot gloss over is the fact that welfare matters have been relegated in the organisation, compared to what used to obtain. This is evident in the high staff turnover as well as the inability of the organisation to honour its obligations to its retirees, some of whom were there a few days ago on appointment, only to be told to come back for their entitlements. These do not augur well for an organisation where trust is essential for optimum performance.

    It is unfortunate that the Mint has become a victim of a national malaise in which there is no connection between what people do and the reward. Otherwise, some of its junior staff would not have been caught with the huge amounts they were alleged to have stolen. Perpetual injection into the economy of such cash not backed by productivity is part of the crises that the country is facing today. Unfortunately, nobody takes responsibility for the crimes against the state and hardly is anyone punished.

    We know we have sunk to the extent that people are no longer shocked by the amount of money stolen, no matter how huge, but we should not allow this to be the norm, especially in a sacred organisation like the Mint. We welcome the investigations into the NSPMC’s affairs and hope that they would be thorough and productive. If the Mint is not safe, where then can be safe?

  • Pensioners allege fraud in petition to Jonathan

    The Association of Federal Public Service Retirees (AFPSR) yesterday in Abuja accused the Office of the Head of Civil Service of the Federation of alleged mismanagement of pensioners’ entitlements.

    The National Chairman of AFPSR, Emmanuel Akinola Omoyeni, told reporters at a briefing that since the office took over the payment of pensioners’ entitlements last November from the Pension Reform Task Team (PRTT), 98 per cent of the retirees have been grossly underpaid, unpaid or denied existence.

    In a letter written by AFPSR to President Goodluck Jonathan, Omoyeni urged him to order the office to pay the arrears of pensioners and return the payment of retirees to the PRTT, whom he said, has been paying promptly.

    He pleaded with President Jonathan to allow the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) investigate the matter and ensure that November and December entitlements are paid to the pensioners.

    The letter reads: “We have called this news conference to let the world know that the cabals that destroyed and stole billions of Naira are back to the pension environment, stronger and bolder. It is sad to report to Nigerians that from November 2012 to date, the Office of the Head of Civil Service of the Federation has brought back their agents, who have started mismanaging the entitlements of pensioners.

    “President Goodluck Ebele Jonathan never told us that he used the PRTT to give us a temporary solution. We have started to jubilate only to use the other hand to make the Office of the Head of Service return us to the years of pain, anguish, sorrow and penury. Why did this office bring this confusion? Since this office took over the payment of Pensioners’ entitlements in November, 98 per cent of our members have been grossly underpaid, unpaid or denied existence.

    “The core management function of the Office of the Head of Service was primarily and principally designated to carry out pension payment as the most acceptable custodian and administrators of pension funds. Mr. Stephen Oronsanye, a professional accountant as the HOCSF, who initiated and inaugurated the PRTT, comprising professionals and officials of the law enforcement agencies to normalise and standardise the pension climate, embarked on a verification exercise. “Although, there were lapses in which the Chairman, PRTT, demonstrated competence by introducing strategies to have a meaningful starting point, the office suddenly hijacked the payment of pensions in November 2012 without recourse to the knowledge of PRTT; despite that the PRTT came on board in October 2010 and streamlined the monthly pensions as well as paying 3,986 pensioners their backlog of harmonised arrears.

    “President Jonathan should stop the Office of the Head of Civil Service of the Federation from interfering and stealing pensioners money. All of us were denied our entitlements in November/December 2012. We celebrated the Christmas and New Year in hunger.”

  • Gospel singer Aragbaye accuses land dealer of N6.5m fraud

    •’I’m willing to refund 60 per cent’

    Popular gospel singer Evangelist Funmi Aragbaye has accused an Ibadan land dealer, Mrs. Adetoun Oladeji (a.k.a. Mama ke) of defrauding her of N6.5 million.

    Speaking with The Nation yesterday in Ibadan, the Oyo State capital, Mrs. Aragbaye said she met Mrs. Oladeji through a woman pastor in 2010, when she needed land to build a church.

    She alleged that Mrs. Oladeji sold three acres of land at Gbokpa village, Ibadan, to her for N6.5 million.

    The singer said though she was given documents of the land, she later found out that it did not belong to Mrs. Oladeji.

    Mrs. Aragbaye said when she requested for a refund, Mrs. Oladeji gave her a cheque, but it was rejected by the bank because there was no money in the account.

    Since then, she said, all efforts to recover the money have failed.

    Mrs. Oladeji acknowledged selling the land to the singer for N6.5 million in 2010, but said Mrs. Aragbaye should be prepared to accept 60 per cent refund.

    She accused Mrs. Aragbaye of colluding with the family that owns the land to get a refund as well as get the land back from them.

    Mrs. Oladeji said the singer had an altercation with her son, Mr. Akinyele Oladeji, and the case had been reported to the police.

    She challenged Mrs. Aragbaye to sue her.

    Mrs. Oladeji said Mrs. Aragbaye could arrange to collect the 60 per cent at a neutral place.

    She threatened to sue this newspaper or any other that publishes the story.

    The representative of the family that owns the land, Alhaji Laoye, denied colluding with Aragbaye.

    He said Mrs. Oladeji could not point to any member of the family as the person that sold the land to her.

     

  • Flood victims allege fraud

    Flood victims in Edo State have alleged diversion of the funds.

    They accused the relief committee of diverting funds meant for their rehabilitation.

    The victims claimed that other states had begun payment to affected persons.

    But Chairman of the State Relief Committee, Ms Maimunat Momoh, denied the allegation. She described it as mischievous and ill-conceived.

    “What we did after they left camp, we went to their communities to count the houses that were destroyed or affected by the flood.

    “If we don’t count the houses, how do we ascertain the damage and the numbers?

    “I am not to decide who gets what and how, my job is to write the report and submit to the governor who appointed me and the report is being compiled and ready for submission.”