EFCC Arrests Kwara Director and 6 Microfinance Bank MDs over Alleged N2bn SME fraud. A Classic Case of Diversion of Public Funds. – PensionNigeria

EFCC Arrests Kwara Director and 6 Microfinance Bank MDs over Alleged N2bn SME fraud. A Classic Case of Diversion of Public Funds.

Economic and Financial Crimes Commission (EFCC), Ilorin Zonal Office, has arrested Segun Soewu, Director General, Kwara State Bureau of Small and Medium Enterprise Development and Managing Directors of six Microfinance Banks, over an alleged N2billion fraud.

The Managing Directors of the six Microfinance Banks also arrested are;
Ogudu Samuel of Brightway Micro Finance
A.K. Imam of Magajingari Micro Finance
Adeleke M.S. of Sincere Micro Finance Bank
Yusuf Muideen of Balogun Fulani Micro Finance Bank
Issa Abdulrasheed of KCMB Micro Finance Bank, and
Oyebode Asimiyu of Apels Micro Finance bank.

Others who are also being investigated include;
Lawal Ayo of Omu-Aran Micro Finance Bank
Tope Eniola of Iludun Micro Finance Bank
Lawal Folashade of Stockcarp Micro Finance Bank
Yusuf Tajudeen of First Heritage Micro Finance Bank, and
Olawoye E.O. of Offa Micro Finance bank.

The anti-graft agency had earlier received intelligence reports alleging fraudulent misappropriation and mismanagement of about N2billion given by the Kwara State Government to assist market men and women across the 16 Local Government Areas of the state.

Investigations further revealed that at the point of granting the loans, Soewu and the 6 Micro Finance Bank Chiefs failed to follow due process.

It was also revealed that the N2billion loan facility which was designed for lending to the general public to support their businesses and augment their working capital was distributed to highly placed politicians, traditional rulers and prominent people within the 16 LGAs.

Soewu and one of the managing directors of the bank who were grilled by the operatives of EFCC for several hours said: “A prominent and First Class traditional ruler in the state received over N78million cash from the loans, which was designed to assist petty traders but never returned a dime.

“The traditional ruler through his company, Yafy International Ventures Limited secured the loans without following the due process.”

They disclosed further that “selected and influential market men and women across the 16 Local Government Areas of the state received the sum of N5million each as loans, but did not pay back the money.”

The Commission also gathered that about 50% of the rather controversial loans were shared by highly placed individuals and selected businessmen and women at the expense of other beneficiaries, which defeated the aims and objectives of Small and Medium Enterprise Development.

Findings by the operatives of EFCC also indicated that the highly placed individuals who benefited from the loan between 2012 to 2018 failed to pay back the huge loans they secured.

The arrested suspects are still in the custody of EFCC, and are cooperating with the EFCC.