Bank consultant, 2 others arrested over N 947m fraud
The Kano State Public Complaints and AntiCorruption Commission has uncovered a N947.7 million fraud in the newly established 37 microfinance banks in the state.
Already, the commission has arrested the Chief Consultant to the banks, Alhaji Rabi’u Tudun Wada, the Managing Director of the firm, Alhaji Rabi’u Ririwai and its Director of Recruitment, Hajia Hajara Umar.
The Executive Chairman of the commission, Mr Muhuyi Magaji, disclosed this while briefing newsmen in Kano on Saturday.
He said the banks were established by the immediate past administration of Gov. Rabi’u Kwankwaso in 37 local government areas and handed over to the R.I. and Co. Consultants on contract.
‘‘The R.I. and Co. was mandated to employ all the managing directors of the 37 microfinance banks and the state government set aside a steering committee to supervise the activities of the consultants’’, he said.
He said the state government had initially deposited N740 million at the Central Bank of Nigeria (CBN) as the total share capital for the banks which had since been refunded to the banks by CBN.
‘‘The CBN refunded the share capital deposits with the accrued interest of N74 million after issuing licenses to the banks. But the chief consultant, R.I. and Co. fraudulently directed all the managing directors of the 37 microfinance banks to transfer N2 million each, being the accrued interest of the share capital for each of the banks, into his company account at the First Bank of Nigeria Plc. The total amount of money debited in the name of treasury bills was N74 million which was illegal’’, Magaji said.
In addition, he said the consultant claimed to have supplied eight desktop computers to each of the banks while only six computers were supplied to each of the banks.
‘‘He pocketed N832, 500 meant for the computers not supplied to the banks’’, he said.
The consultant was also alleged to have inflated the price of 37 Volkswagen cars he purchased at the cost of N900, 000 each.
He said as soon as investigation is concluded, the suspects would be charged to court for proper prosecution. (NAN).