Nine years after the being directed to refund a sum of five million dollars investment funds belonging to EMIS, First City Monument Bank (FCMB) has continued to evade responsibility, InsightMedia has gathered.
According to documents available, the bank was found guilty of mismanagement and fraud by the Economic and Financial Crimes Commission after the anti-graft agency launched an investigation into how FCMB conspired with African Export and Import Bank (AFREXIM) to defraud Em-International System Nig. Ltd (EMIS) of five million dollars.
According to the 2017 memo signed by the then Head of Bank Fraud Unit of EFCC, Lagos zonal command, Bawa Usman Katungo, the anti-graft agency also fingered COM-DEV and seven others as suspects in the alleged criminal conspiracy.
“AFREXIM Bank participated actively to defraud an investor of a member country (Nigeria), EMIS Telecoms of the sum of $5million.
“Investigation revealed that FCMB & AFREXIM Bank, with intent to defraud EMIS, refused, neglected or did not exercise due diligence and refused to adhere to the condition precedent to disbursement of funds as stipulated in the tripartite agreement in the discharge of its obligation of payment of the sum of $5million to COMDEV International,” the EFCC report said.
The report said that investigations further revealed that FCMB, AFREXIM and COM-DEV all benefited in the transaction while EMIS became their victim.
“Investigation also revealed that AFREXIM acted in bad faith by making full payments on the 22/12/2000 (a day after the signing of the agreement) in obvious, deliberate violation of the tripartite agreement.
“Investigation revealed that COMDEV Wireless till date is yet to supply the telecoms equipment despite full payment by AREXIM Bank,” findings from the EFCC report said.
“In view of the above findings, it is a fact that EMIS was systematically defrauded by the trio of FCMB, AFREXIM & COM-DEV. EMIS did not get value for the money AFREXIM paid to COM-DEV for telecom equipment on its behalf. It can be concluded that FCMB and AFREXIM Bank and COM-DEV conspired and defrauded EMIS.
“They were negligent and did not apply professional diligence by discounting the promissory notes upfront on the two invoices totaling approximately $5million to Phase Atlantic/COMDEV of Canada without following the letters and spirit of their tripartite agreement.”
“This deliberate negligence and lack of due diligence had crippled EMIS as a company, and greatly facilitated the non-performance of the equipment supply contract between COMDEV and EMIS. FCMB should be held liable for conspiracy and corporate negligence and should refund EMIS all monies illegally deducted from EMIS account,” it said.
The EFCC therefore, said that, “AFREXIM Bank Cairo is to reimburse FCMB of all the monies it had repaid her servicing the loan, including calculated interest.
“AFREXIM Bank was party to the tripartite agreement, she can use the legal nexus created by the tripartite agreement to press claims of recovery on COMDEV of Canada or through international Court/Arbitration,” EFCC advised.
It added that, “EMIS cannot do this since she was not a party to the tripartite agreement”.
The memo said that investigation established a strong nexus of criminal conspiracy between, AFREXIM, FCMB & COM-DEV with intent to defraud the complainant by hurriedly discounting the promissory notes, A-DAY after the tripartite agreement was signed even when they knew that the equipment were not supplied.
“That AFREXIM Bank paid out the two separate sums on two separate invoices (one for equipment supply and the other for equipment installation and commissioning) on the same date,” the memo said.
The memo said that in its response, FCMB admitted that it opened accounts for EMIS following a $5million facility it secured for EMIS from AFREXIM Bank, Cairo.
“The Bank stated however, that EMIS, over the years became indebted and could not service the facility that was granted: In the circumstance, the bank had to create Commercial Papers and Bankers, Acceptance to enable it manage the account,” the memo revealed.
Others indicted by EFCC and recommended for criminal prosecution in the memo are, Ladi Balogun; (FCMB Managing Director) Mr. Obaseki, (Director FCMB) Biodun Oyapero, (Director, COMDEV) Mr. B.O. Oramah, (now Ex-President, Afrexim Bank) Keith Ainsworth, (Director, COMDEV) and Anita Davis, (Vice President, COMDEV.)
FCMB, AFREXIM turn down presidential order
Following the investigation in 2017, former President Muhammadu Buhari intervened and directed the Central Bank of Nigeria to ensure implement of the report against the FCMB.
Memo sighted by InsightMedia which was signed by the former Attorney-General of the Federation, Abubakar Malami, showed the directive of President Buhari to the Central Bank of Nigeria to midwife the implementation of the funds but ignored.
I have been directed to write you in respect of the above subject matter, which has been investigated by the Economic and Financial Crimes
Commission (EFCC) following a request from the President and C-n-C, President Muhammadu Bubari, GCFR, as conveyed by the Hon. Attorney-General the Federation and Minister of Justice.
Following the investigation by the EFCC, the Honourable Attorney-General of the Federation has directed that the EFCC report be forwarded to you for your necessary action.
InsightMedia gathered that FCMB has failed to implement the report