N2bn SME fraud: EFCC arrests director, 6 microfinance bank MDs

The Economic and Financial Crimes Commission (EFCC) yesterday said its Ilorin Zonal Office has arrested Segun Soewu, Director-General, Kwara State Bureau of Small and Medium Enterprise Development, over alleged N2billion fraud.

A statement from EFCC spokesman, Tony Orilade, said the anti-graft agency also arrested 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.

He said others who are also being investigated include Lawal Ayo of OmuAran 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.

He said 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.

Orilade said the investigations further revealed that, at the point of granting the loans, Soewu and the 16 micro finance bank chiefs failed to follow due process.

He said it was also revealed that the N2billion loan facility meant for lending to the general public to support their businesses was distributed to politicians, traditional rulers and prominent people within the 16 LGAs.

Orilade added that Soewu and one of the managing directors of the bank who were grilled by the operatives of the commission 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.”

The EFCC said they further disclosed 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 further said findings by its operatives also indicated that the highly placed individuals who benefited from the loan between 2012 and 2018 failed to pay back.

He said the arrested suspects are still in the custody of the Commission and are cooperating with the EFCC.