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Tag: fraud

  • Abia judicial panel uncovers N23b ‘fraud’

    A judicial panel of enquiry set up by the Abia State Government to examine the activities of the board and workers of the State Physical Planning and Infrastructural Development Fund from 1999 till date, has submitted its report.

    The panel said it uncovered N23.494billion fraud in the course of its assignment.

    Submitting its report to Governor Theodore Orji in Umuahia, the state capital, the Chairman, Justice Ken O. Wosu, said the fraud was allegedly committed between 1999 and 2007.

    He called for the implementation of the panel’s recommendations.

    Justice Wosu said: “As a result of the combination of factors that are articulated in Volume 1 of this report, it is estimated that the state lost N19.292billion from inception of the fund, from 1999 to 2012.

    “The panel also discovered that the fund was, between 2000 and January 2007, used by the past administration in Abia State to divert the state’s funds accruing from the monthly statutory allocations to payments for undisclosed projects and other payments outside the contemplation of the enabling law to the tune of about N4.2billion.”

    The panel noted that because of the absence of a board to administer the fund, “the observance of Law No. 28 of 1999, which established the fund, was more in the breach”.

    The chairman said it was, therefore, easy to divert money accruing to the fund to unspecified projects and payments.

    The panel urged the government to implement its recommendation for a comprehensive audit of the fund to “reveal the exact amount and all those involved” in the alleged fraud.

    It recommended the refund of the N80 million, representing only 0.3 per cent of the N24 billion, which the panel discovered to have been lost by the fund in 13 years.

    Justice Wosu said the panel conducted public hearing and visited sites and projects associated with the fund both in Umuahia and Aba.

    According to him, the panel received 21 memoranda and took oral testimonies from 30 respondents and witnesses while 103 exhibits were received.

    The panel chairman explained that the observance of Law No. 28 of 1999, which established the fund, was more in the breach.

    He added: “It was the constitution of the Board of Trustees (BoT), as provided by the enabling law that gave rise to the evaluation of the law in its entirety necessitating the subsequent amendments of 2010 and 2012.”

    On debt collection from the public, the panel recommended that modern approach of debt collection and “the attendant prosecution of defaulters, which conform to modern-day tenets of democracy, constitutionalism, respect for human rights and dignity and the rule of law must be adopted. This will in turn restore public confidence and acceptance of the levy by the people of Albia State”.

    After receiving the report, Orji explained that the panel was set up not to witchhunt anyone but to find out why the fund had not been living up to expectations.

    The governor thanked the panel for ensuring a painstaking assignment.

    He recalled that it was the activities of the last chairman of the board, Okey Nwaubani, that led to public outcry on the fund.

    Orji added that the recommendations of the judicial panel would be implemented to the letter.

    The governor decried the huge revenue loss through the fund.

    He noted that if the money had been injected into the system, it would have made a big difference in the development of the state and impacted on the lives of Abia residents.

    Orji said the development fund was set up by the previous administration to develop the state.

    He said: “This report has opened our eyes on how many people instead of paying money into government coffers, rather convert into their private pockets.”

    Orji, on May 22, last year, inaugurated the Judicial Panel of Enquiry for the State Physical Planning and Infrastructural Development Fund with terms of reference which include; to examine the activities of the Board and its staff starting from the inception of the board till date.

     

  • Court jails two ‘clerics’ 10 years each for fraud

    Wo men, Glory Abrefera and Vincent Okpogo were yesterday sentenced to 10 years’ imprisonment each by a Federal High Court in Asaba, Delta State.

    Justice Ibrahim Buba found the two and their company, Mustard Seed Micro Investment Limited guilty on a four-count charge of carrying out banking practice without licence.

    Abrefera (said to be a Pastor) and Okpogo (who claimed to be a Reverend) were accused, in the charge brought againt them by the Economic and Financial Crimes Commission (EFCC), of collecting over N1 billion from individuals and organisations as deposits in an illegal banking practice. They were said to have been unable to account for the deposits they collected.

    The convicts were said to have between 2006 and 2007 in Warri, Delta State engaged in banking practice without the banking licence and thereby committed an offence contrary to Section 2(2) of the Banks and Other Financial Institutions Act, Cap B3, Vol 2, Laws of the Federation of Nigeria 2004.

    Mustard Seed Micro Investment Limited was convicted on two counts and fined N2 million on each counts.

    EFCC”s spokesman Wilson Uwujaren said “Pastor Abrefera and Reverend Okpogo, both directors of Mustard Seed Micro Investment limited, were also convicted on two counts and sentenced to 10 years imprisonment each.

    “They were equally fined N2 million on each of the counts. The terms are to run concurrently.

    “The so-called men of God were arrested, following a petition filed by some of the depositors to the EFCC, detailing the dubious activities of the accused persons.

    “The EFCC subsequently intervened, investigated the activities of the voodoo bank and arraigned the suspects in 2011.”

    Part of the charge on which they were convicted reads: “That Pastor Glory Okeoghene Abrefera, Reverend Vincent Okpogo and Mrs Nonye Abrefera (still at large) while being directors of Mustard Seed Micro Investment Limited sometime between 2006 and 2007 in Warri, Delta State within the jurisdiction of the Federal High Court knowingly consented to the carrying on of banking business without a valid licence by the company thereby committed an offence contrary to Section (2) and 49(1)of the Banks and other Financial Institutions Act Cap B(3), Vol 2, laws of the Federation of Nigeria 2004”.

     

  • Fraud: Sharia Court remands Marabout in prison

    The Kaduna Sharia Court II, Magajin Gari on Friday revoked the bail granted a Marabout, Hambali Ahmad, 66 in a case of criminal breach of trust, conspiracy and cheating.

    Ahmad and Nafiu Iliyasu, 33, were in court for misappropriating N1.56 million worth of telephone recharge cards belonging to one Ahmed Abdullahi of Ibrahim Taiwo road in Tudun Wada, Kaduna.

    When the case was mentioned on December 10, Ahmad had agreed to have collected N300, 000 cash and another N380, 000 worth of recharge card from Iliyasu, the principal suspect.

    The Marabout, who hailed from Duba village in Batsari Local Government, Katsina State, however changed his plea on Friday, claiming that the amount was payment for his professional services.

    Ahmad claimed that he colected N680, 000 as payment for the “spiritual work’’ done for Iliyasu to enable him get married in 2008.

    The prosecutor, Cpl. Bitrus Kwaji however faulted the claim, reminding the court that the offence was committed in 2012.

    He noted that the court had fixed this Friday for judgment and urged it to discountenance the submission of the accused person.

    The judge, Malam Ibrahim Inuwa revoked bail granted to Ahmad on December 10 “in view of the fact that you have now changed your plea.”

    The judge set a new bail condition for the Marabout, who was ordered to produce a surety residing in Kaduna with verifiable fixed asset.

    The News Agency of Nigeria reports that Inuwa adjourned the case to January, 17, 2013.

     

  • Banks mull foreign collaboration to check rising fraud

    Banks mull foreign collaboration to check rising fraud

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

    The 2011 financial report of the Nigeria Deposit Insurance Corporation (NDIC) released last week 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 2010.

    Chairman, Nigeria Electronic Fraud Forum (NeFF), Emmanuel Obaigbena, disclosed that there is a plan by banks to partner with their foreign counterparts to fight fraud in the system because of the global dimension the issue is now assuming.

    He spoke at forum’s monthly meeting in Lagos.

    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, stressing that the objective of the forum was for banks and relevant agencies to share data to eliminate fraud in the industry.

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

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

    Chief Technical Officer, Digital Encode, Seyi Akindeinde, said the 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 fraud. He added that the forum was also working with the Nigeria Inter-Bank Settlement System (NIBSS) to enhance the fraud reporting format 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.

    NIBSS Executive Director, Operations, Niyi Ajao, said one way it is achieving this objective is through the use of its anti-fraud portal developed by the firm to check financial frauds in the banking sector.

     

     

     

     

  • Mainstream politics is a fraud, says Aregbesola

    Osun State Governor Ogbeni Rauf Aregbesola at the weekend described mainstream politics as the “main fraud used by selfish elements to befuddle the sensibility of the Yoruba people”.

    He was reacting to the position of the Peoples Democratic Party (PDP) leaders in the Southwest that mainstream politics would speed up development in the zone.

    Aregbesola spoke at the Centre for Black Culture and International Understanding (CBCIU) in Osogbo, the state capital, during a seven-hour live interactive broadcast programme, tagged: “Ogbeni Till Day Break”.

    The programme was part of activities marking the second anniversary of the Aregbesola administration.

    It was attended by Deputy Governor Titi Laoye-Tomori, House of Assembly Speaker Najeem Salaam, top government officials, the media and the public. Aregbesola said those canvassing mainstream politics could not be compared with the leaders of the Action Congress of Nigeria (ACN), who are championing the campaign for regional integration in the Southwest.

    He said regional integration has created an avenue for ACN-controlled states in the Southwest to work together to create wealth.

    To prove his passion for regional integration as a means of advancing the course of the Yoruba people, Aregbesola said after he assumed office, the first person he visited was Ondo State Governor Segun Mimiko, to discuss ways of working together in the interest of the Southwest people.

    He said: “Ondo State, with its gas, would have been a great asset for generating power in the Southwest, if its leadership could work with the rest of us.”

    Aregbesola said the only thing the zone got from mainstream politics was the use of security agencies to terrorise innocent people.

    He said past PDP administrations in the zone failed the people in many ways, including education, food production and security.

    The governor said: “What we want to use regional integration to achieve is create a new lease of life for our people. We are establishing a final relationship among states to create wealth for the people.

    “Mainstreaming is a fraud. The crusaders are only using it to befuddle the people. Ask them what they have achieved all these years in the Southwest with the so-called mainstream politics. The mainstreamers cannot, in anyway, be compared with us and what we are planning for our people.”

    He said his administration has improved infrastructure, health, education, food production, and created jobs, among others.

    Aregbesola said many Osun PDP leaders, including ousted Governor Olagunsoye Oyinlola and the former Chairman of the Senate Committee on Appropriation, Senator Iyiola Omisore, failed abysmally in their constituencies during the 2011 general elections.

    He said Oyinlola won only two wards in his home town, adding that Omisore won with only three votes in his polling booth.

    Aregbesola said: “What that simply means is that Oyinlola is not better than a councillor in his constituency and Omisore cannot become anything. Where will the support come for them to be able to defeat our party in any free and fair election?”

    On the victory of the Labour Party (LP) in the October 20 governorship election in Ondo, Aregbesola said the ACN has put the loss behind it.

    He said the defeat was not the end for the ACN in Ondo State, adding that the party was preparing for future polls.

    Aregbesola said: “We are allowing them (LP) to enjoy the victory. They are bragging now, but their bragging will soon be over. Our loss should not be seen as a weakness. The beauty of what happened is maturity in democracy.

    “The loss in Ondo is helping us identify our weaknesses and plan how to move on. We are taking stock. We have received our own bashing. The time for them to take their own bashing will soon come.”

    He said if Mimiko decides to attack him for supporting the ACN’s candidate in the Ondo election, Mr. Rotimi Akeredolu (SAN), as is being insinuated in some quarters, he is well prepared.

    Aregbesola denied the rumour that he contributed about N4 billion to Akeredolu’s campaign.

    He said: “I did not use Osun State’s resources to fund the Ondo governorship election. If I had spent Osun’s resources on the Ondo election, I would not have been able to pay workers’ salaries and execute many projects we are doing now.

    “What I did in Ondo State was what any democrat in the world would do. I went to Ondo State to campaign for the candidate of my party and I have no apology for doing that.”

  • Orubebe denies N29b fraud in ministry

    •Threatens legal action

     

    The Minister of Niger Delta Affairs, Godsday Orubebe, yesterday denied the allegation that his ministry is involved in a N29 billion contract fraud.

    A group, Anti-Corruption Network, led by Dino Melaye, had, on Monday, claimed that there was fraud in the ministry being championed by the minister.

    Briefing reporters in Abuja yesterday, Orubebe said the allegations are false and aimed at tarnishing his image.

    He said the projects are in existence and verifiable in the Niger Delta.

    The minister said they were in line with the Due Process Act and that there is no room for fraud in his ministry.

    Orubebe said N662 million is owed by the Federal Government on the N2.37 billion Canalisation/River training of Foupolo-Bulou Ndoro creek project awarded on February 2, last year, to First Marine and Engineering Services Ltd in Delta State.

    He said N299 million is also owed for the N1.3 billion Canalisation at Odoubou, Ogbabagbene awarded to Ogbosite International Ltd on February 2, last year, in Delta State.

    The third project, Land Reclamation/Shoreline protection in Delta State was awarded to Snecou Group of Companies Ltd on March 7, last year at N2.4 billion.

    He said: “The communities where these contracts are awarded have traditional rulers, chairmen, councillors, and the contracts awarded to the companies are verifiable.

    “We have stated the amount that we have mobilised and we have also stated the money we owe these contractors.

    “There is a process through which contracts are awarded. Evaluation of contracts are not done by the ministry.

    “If certificate and proposal are generated by the ministry, it will go to the Due Process Office and this is contained in the Due Process Act.

    “All the process were done by the Due Process Office and by that act, any project that is above N1billion will have to go to the Federal Executive Council, the processes have to be certified by the Due Process Office. It is not the Ministry of Niger Delta.”

    “It is when the Due Process Office is satisfied with the quantity and the pricing that the papers are sent to Federal Executive Council and that is what happened with this case.

    “There is no recorded case of fraud in this ministry. This is total fallacy and I have also consulted my lawyers and I hope Melaye is ready to meet me in court,” he said.

     

  • EFCC arraigns four for N1.05 b subsidy fraud

    The Economic and Financial Crimes Commission (EFCC) yesterday arraigned four suspects for alleged N1.05billion fuel subsidy fraud.

    Saminu Rabiu, Jubril Rowaye, Alminnur Resources Limited and Brila Energy Limited were arraigned before Justice Adebukola Banjoko of the High Court of the Federal Capital Territory, Abuja on a 17-criminal count charge of conspiracy, forgery and obtaining N1.05billion under false pretence.

    A statement by EFCC’s Head of Media and Publicity, Wilson Uwujaren, said the accused were arraigned for allegedly defrauding the Federal Government.

    The statement said the suspects allegedly submitted some forged documents and obtained the sum from the Petroleum Support Fund as subsidy for the importation of 10,000 metric tonnes of Premium Motor Spirit (petrol).

    “When the charges were read to the accused, they all pleaded not guilty. Barristers R.O. Unnah (Counsel for first and third accused) and Ajibola Oluyede (Counsel for second and fourth accused) prayed the court to grant them bail.

    “The prosecution counsel, Sylvanus Tahir, did not oppose the application but urged the court to impose stringent conditions ,which will ensure that the accused are available for trial.

    “Justice Banjoko granted bail of N10million and two sureties.

    “One of the sureties must be a director in the Civil Service. Both sureties, who must be resident in Abuja, are to swear an affidavit of means and produce evidence of tax payment in the past three years.

    “In addition, the accused must deposit their international passports and three passport photographs each with the court.

    “She adjourned the case till November 29 and 30 f and ordered that the accused be remanded in custody until they meet their bail conditions.”

  • Hospital worker held for N6.7m ‘fraud’

    A worker at the Accounts Department the Irrua Specialist Teaching Hospital (ISTH) in Irrua, Edo State, has been arrested by the police for allegedly embezzling N6.7 million belonging to the hospital.

    It was learnt that the worker had not been remitting some of the money collected on behalf of the hospital into designated accounts.

    It was gathered that some senior officers of the accounts department had been sent on compulsory leave because of the fraud.

    A source at the hospital said the fraud was discovered by the cash unit supervisor while auditing the accounts.

    ISTH Director of Administration Mr. Tony Edeko said an administrative Panel of Enquiry has been set-up to probe the accounts.

    He said the suspension of some account officers was to allow for transparent investigation.

  • Couple charged with insurance fraud

    Attorney General Scott  Pruitt’s Workers’ Compensation and Insurance Fraud Unit has filed a charge against an Oklahoma City couple for allegedly conspiring to falsely obtain insurance money.

    Shake Haque, 33, and wife Nadeea Hossain, 39, were charged in Oklahoma County District Court with one count of conspiracy to commit a felony.
    According to the charge, the following events took place:

    Nov. 29, 2011 – Haque was involved in a morning car accident while driving his wife’s car. He allegedly gave the other driver an expired insurance policy number. Later that day, his wife bought a liability only policy for her car.

    Hossain contacted the other driver and allegedly asked her to say the accident happened the following day, Nov. 30.

    Dec.6, 2011 – The insurance company contacted the other driver and she told them that the accident occurred on Nov. 29 and records from the Midwest City Police Department confirmed the date of the accident.  Dec. 13, 2011 – The accident claim was denied.

    The Attorney General’s Workers’ Compensation and Insurance Fraud Unit is the only Oklahoma law enforcement agency dedicated to the investigation and prosecution of workers’ compensation fraud. The Unit also helps raise public awareness of insurance fraud in Oklahoma.

  • Preacher arraigned for alleged N209m fraud

    An Anambra State preacher, Jide-jisos Ejie (47), has been remanded in prison custody for allegedly defrauding his flock of N209,035,000.

    He was arraigned before Chief Magistrate C.N Chinwuba of the Ogidi Magistrate’s Court in Idemili North Local Government Area.

    Ejie allegedly collected the money from both members and branches of the United Nigeria Chaplaincy (UNC), nationwide, under the pretence that they were going to have a peace summit with President Goodluck Jonathan at the Eagle Square in Abuja.

    Chief Magistrate Chinwuba remanded him in prison custody and adjourned the hearing till December 18.