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CBN Probe Reveals Startling Fraud, Mismanagement Under Emefiele
Under the leadership of former governor Godwin Emefiele, a report by Jim Obazee, appointed by President Bola Tinubu to investigate, has exposed severe mismanagement, fraud, and arbitrary practices at the Central Bank of Nigeria, resulting in substantial financial losses running into trillions for the country.
Following the suspension of Emefiele as Governor of the CBN on June 9, 2023, the President appointed a Special Investigator to delve into the affairs of the apex bank.
Subsequently, the former CBN head was arrested by the Department of State Services (DSS) before being transferred to the Economic and Financial Crimes Commission (EFCC).
He faced arraignment on November 17, charged with six counts related to an alleged N1.6 billion procurement fraud.
After the submission of the interim and final reports by the Special Investigator on December 20, it seems Emefiele might face even greater trouble ahead.
The reports highlighted extensive financial misconduct, not solely attributed to Emefiele but also implicating other high-ranking officials from the apex bank, individuals from the former President Muhammadu Buhari’s administration, and a Minister, as disclosed by a source.
A total of 16 individuals identified in the report have been recommended for prosecution due to their involvement in various fraudulent activities within the CBN.
The reports outlined numerous violations of the CBN Act, citing instances of arbitrariness, fund diversion, and misappropriation, alongside forgery and collusion, involving Emefiele and associates both within and outside the CBN.
One significant highlight of Emefiele’s arbitrariness, as revealed by a source, includes the investment of billions of dollars from Nigeria into accounts in the United States, China, and the United Kingdom without obtaining approval from the CBN Board or the Investment Committee.
The Special Investigator’s findings uncovered over 500 such accounts operated by the CBN during Emefiele’s tenure, with £543,482,213 held in fixed deposits within one UK account.
The Special Investigator successfully traced all the accounts in question.
Additionally, the report shed light on the fraudulent and mismanaged utilization of the controversial Ways and Means program during the Buhari administration at the CBN.
The investigation revealed that the management of the Ways and Means program was characterized by significant arbitrariness under Emefiele, involving funds withdrawn from the national treasury without the required authorization.
The report from the Special Investigator highlighted the inability of CBN officers to provide a satisfactory account of how the over N27 trillion was spent or authorized by the president.
Regarding the nearly N30 trillion presented to the 9th National Assembly under the guise of “Ways and Means” financing, CBN officials were only able to justify over N9 trillion.
There was also an alleged non-negotiated or unadvised interest element of over N6 trillion.
This discrepancy raised concerns, suggesting that the ‘Way and Means Financing’ served as a channel for misappropriation during Emefiele’s leadership at the CBN and within the Ministry of Finance.
The report, relying on documents from the CBN and the Ministry of Finance, accounted for just over N4 trillion at the time when the former administration requested the 9th Assembly to securitize advances of N22,719,703,774,306.90 on December 19, 2022, which went against the CBN Act of 2007.
Adding to the puzzle was the revelation that Emefiele urged Buhari to initiate the restructuring of the “Ways and Means” totaling N23,719,703,774,306.90 on the same day the N22 trillion was presented to the National Assembly for securitization.
Emefiele asserted the final “Ways and Means” figure stood at N26.627 trillion by June 8, 2023, suggesting that under his leadership, the CBN continued to dubiously print money despite public outcry, as noted in the report.
Additionally, the report outlined how the CBN, during Emefiele’s tenure, mismanaged approximately N1.622 trillion allocated for COVID-19 intervention.
Unauthorized transfers and donations to various individuals and organizations were highlighted. Shockingly, the Special Investigator’s findings uncovered how the former CBN Governor manipulated former President Goodluck Jonathan’s directive concerning the establishment of the Nigeria Electricity Supply Industry (NESI) Stabilization Strategy Limited.
Contrary to the former President’s directive to establish the entity as a Special Purpose Vehicle (SPV) limited by Guarantee, Emefiele incorporated the entity as a company limited by shares.
This move allowed the entity to issue debentures, despite being a newly established entity.
Consequently, the former CBN Governor facilitated the issuance of over N64 billion in debentures by the company, which was sanctioned by the Committee of Governors of the CBN during its meeting on January 21, 2015, in violation of Section 31 of the CBN Act, 2007.
The Special Investigator’s report indicated a staggering total of N952 billion diverted from the CBN vaults under this pretense by the end of the 2021 financial year.
Specifically, N1.325 billion was diverted to four companies before their incorporation, while 14 banks were implicated in fraudulently diverting over N17 billion from the Nigerian Electricity Market Stabilization Facility.
Another alarming revelation was Emefiele’s decision to initiate an economically detrimental naira redesign policy at the urging of a Buhari aide, Tunde Sabiu. Emefiele pursued this initiative, which resulted in the collapse of numerous small and micro-businesses and financial ruin for many Nigerians, without securing the President’s permission, contradicting Section 19(1) of the CBN Act.
The Special Investigator’s findings revealed that the CBN Board was not involved in the decision to redesign the currency. Instead, the initiative was proposed to Emefiele by Sabiu during a visit to the presidential villa in September 2022. Subsequently, on October 6, 2022, the former CBN Governor forwarded a memo to the President seeking approval for the venture, which was granted the same day. The President’s directive stipulated that the new naira notes should be printed domestically.
However, contrary to the President’s instruction, Emefiele awarded the design contract to a UK firm, De La Rue, resulting in the apex bank incurring a cost of N61.5 billion for the printing.
Moreover, Emefiele left behind a debt exceeding N30 billion for the currency printing, with only N31.79 billion of the contract sum paid by the time of his departure from office.
A Delta State High Court in Effurun has ruled in favor of the Registered Trustees of the Neo-Black Movement of Africa, awarding them N30 million in damages in a libel case against popular Nigerian blogger, Linda Ikeji.
The lawsuit, with Ese Kakor, Felix Kupa, and Mayor Onyebueke as claimants, resulted in the court ordering Ikeji to pay N300,000 in litigation costs.
Presiding Justice Roli Daibo-Harriman delivered the verdict in Suit No: EHC/210/2021 on Monday.
Additionally, Ikeji was instructed to publish a retraction of the libellous statements on her blog and in national dailies.
Furthermore, Ikeji has been restrained from making further damaging publications against the claimants.
The Neo-Black Movement of Africa (NBM) took the legal action against Linda Ikeji after she allegedly failed to retract and apologize for a defamatory article published on her blog on October 19, 2021.
The article reportedly labeled the NBM of Africa as a dreaded cult group, black axe, and criminal organization, prompting the claimants to seek N1 billion in damages and an unreserved apology to be published on Ikeji’s blog and in two national newspapers.
Justice Daibo-Harriman, in her ruling, deemed the terms “dreaded cultist group,” “black axe,” and “criminal organization” used in the Defendant’s publication as defamatory.
Kelvin Agbroko, Counsel to the Claimants, emphasized that the ruling “Will serve as a lesson to bloggers that it is not every item you publish. It is good to verify information before making a publication.”
He said, “NBM of Africa is a legal organisation duly registered with the Corporate Affairs Commission. The publication made by the Defendant against my client has been cleared that it was a damaging publication.
“NBM is good to go, we are going to take all necessary steps to enforce the terms of the judgment against her. It was an erudite judgement that is all-encompassing and will be difficult to fault.”
Ese Kakor, President of the NBM of Africa, revealed that the legal proceedings regarding the case had been ongoing for approximately two years.
Kakor expressed his dismay at Linda Ikeji’s actions, stating, “What Ikeji did was just to sell in a bid to defame the character of NBM of Africa. It is very wrong.”
He advised other bloggers against following similar steps, cautioning that they may also face litigation for defamation.
Kakor clarified that the NBM of Africa has no association with cultism, black axe, or criminal activities, emphasizing that it is a well-registered organization.
In a shocking turn of events, Gihan Mbelu, the esteemed chairman of Victoria Garden City in Lagos’s bustling Lekki area, was found lifeless inside his vehicle.
His sudden demise has prompts police inquiry into the mysterious circumstances surrounding his death.
The 42-year-old financial luminary and venture capitalist was found unconscious in his opulent C300 4Matic vehicle around 10:10 am on Friday, April 26, 2024.
According to report, Mbelu was swiftly transported to the Lagos University Teaching Hospital, where a doctor on duty confirmed his unfortunate demise.
Meanwhile, concerned individuals took it upon themselves to examine his vehicle, which had been running for hours at the spot where it was parked.
The post reads “Concerned by the discovery, some of the people in the area, upon close observation of the vehicle, found Mbelu in it.
“While some people speculated that the 42-year-old man might be sleeping, some other persons, who were bent on ascertaining Mbelu’s true state, reportedly made frantic efforts to wake him up but it proved abortive.
“In a bid to rescue Mbelu, it was learnt that he was rushed to the Lagos University Teaching Hospital where he was reportedly confirmed dead by one of the doctors on duty.
“Mbelu’s corpse was said to have been deposited in the hospital’s morgue. The case was also reported to the police for an investigation to commence to ascertain the circumstances surrounding Mbelu’s death.”
Prior to his demise, Mbelu was married to Eloho, a distinguished tech entrepreneur, former investment banker, and private equity investor. Together, they are parents to two daughters.
In response to the news, Benjamin Hundeyin, the spokesperson for the state police command, affirmed the incident on Saturday, April 27, disclosing that an investigation has been launched into the matter.
In the aftermath of the escape from its Suleija facility in Niger State, the Nigeria Correctional Service (NCoS) has disclosed the successful recapture of three escaped inmates.
Despite these efforts, 106 inmates are still on the run.
Abubakar Umar, an Assistant Controller and spokesperson for the NCoS, dismissed rumors circulating online suggesting that 50 inmates had been apprehended, clarifying that only three had been recaptured.
He said “Aside from the 10 earlier recaptured, three more have been recaptured. So, we are on the chase of 106.”
He further dismissed reports from television sources alleging over 8,000 escaping inmates nationwide.
He clarified that following heavy rainfall damaging parts of the Suleija facility, at least 119 inmates had escaped.
During a visit to the facility, Minister of Interior, Dr. Olubunmi Tunji-Ojo, underscored the urgency of relocating the correctional center from its current urban location.
He noted that the facility, originally designed for 250 inmates, was accommodating 499 individuals prior to the incident.
He said; ”Obviously, it was a force majeure. There was a storm and there was a breach of the outer wall of this facility and some of the inmates escaped.
“Of course, we have been able to retrieve about 10 out of the 119. So we have 109 at large and the manhunt is presently ongoing. We will do everything possible to make sure that everyone is brought back”.
Additionally, the Service (NCoS) announced its intention to publish the identities of the escapees at a later time.
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