28 November 2012

Nigeria: Finbank Directors Bought Shares From Fake Companies, Witness Tells Court

A witness for the Economic and Financial Crimes Commission(EFCC), Sabo Yaro, yesterday testified in the ongoing trial of the former Managing Director of Finbank, Okey Nwosu, before a Lagos High Court sitting in Ikeja that the ex- directors of the bank used the bank's money to procure shares for companies that had no traceable addresses

Yaro,who is an Assistant Superintendent of Police attached to the EFCC stated that based on a joint report of the Central Bank of Nigeria (CBN) and the Nigerian Deposit Insurance Cooperation (NDIC) that the addresses given for the seven companies for which the shares were bought were fictitious

Nwosu is being tried alongside three other directors of the bank, Dayo Famoroti Danjuma Ocholi and Agnes Ebubedike for allegedly stealing N10.9 billion from the bank between September 2006 and November 2007.

Yaro, testified before Justice Lateefa Okunnu that their investigations revealed that the companies were not customers of the bank and their addresses could not be traced

"During investigations, we discovered that the companies are not clients of the bank. The addresses they gave do not exist, they are fictitious and cannot be traced. There is one that they claim is No 41, but we learnt the last number on that street is No 21

"We wrote Finbank and they confirmed to us in writing that the companies that the shares were bought for are not clients or bank customers"

Yaro said that the Directors debited the sundry account to the tune of N18 billion and credited the account of Springboard Limited to buy shares for non existent companies and transferred it to some individuals that can't be traced.

"We found out that the Directors used their positions to manipulate and debit the account to credit another account. The money belong to the customers and should not be used to buy share," Yaro added

Justice Okunnu then admitted as exhibits before the court a certified true copy of the document titled "Finbank Nigeria Plc Special Report of Joint Task Force of NDIC and CBN of May 31, 2009, the letter written by Finbank to state that the companies were not their clients and the statement made by the third defendant, DanjumaOcholi

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