The Independent Corrupt Practices and Other Related Offences Commission (ICPC) is set to arraign former CEO Gimba Kumo Yau and others over alleged $65 million real estate fraud in Abuja. The accused are facing charges for their roles in a botched real estate deal that has left a multi-billion naira project incomplete.
Allegations of Contract Irregularities and Misappropriation of Funds
According to the ICPC’s charge sheet, Yau and others allegedly awarded a contract to an incompetent firm, Good Earth Power Nigeria Limited, and misappropriated funds meant for the project. The contract, worth $65 million, was for the development of 962 units of residential housing in Kubwa, Abuja, named “Goodluck Jonathan Legacy City”.
ICPC’s Case Against the Accused
The ICPC has filed a five-count charge against Yau, Bola Ogunsola, Tarry Rufus, Good Earth Power Nigeria Limited, and T.Brend Fortunes Limited. The charges include:
- – Contravention of the Public Enterprises Regulatory Commission Act
- – Violation of Section 19 of the Money Laundering (Prevention and Prohibition) Act, 2022
- – Making payment to Good Earth Power Nigeria Limited in the sum of N3,785,000,000.00 without proper execution of the contract
- – Approving $65,000,000 to a firm that lacked the capacity to carry out and complete the real estate project
- – Giving and receiving $3,550,000.00 of the contract sum in cash, in contravention of the Money Laundering Act
Consequences of the Alleged Fraud
The ICPC alleges that the accused’s actions led to the failure of the project, resulting in economic adversity for the Federal Mortgage Bank of Nigeria (FMBN). The project remains incomplete, and the bank has suffered significant losses.
Legal Implications
The accused are facing serious legal consequences, including jail terms, for their alleged roles in the fraud. The Public Enterprise Regulatory Commission Act forbids officials from taking steps that will cause an enterprise to fail, and the Money Laundering (Prevention and Prohibition) Act imposes severe penalties for violations.
Next Steps
The arraignment is expected to take place soon, and the ICPC has vowed to ensure that justice is served. The case is a significant one, and the outcome will have far-reaching implications for the banking and real estate sectors in Nigeria.
