…FCMB admits opening accounts for EMIS, following a $5m facility.
by Achadu Gabriel, Kaduna
Surprisingly, fresh facts have emerged how AFREXIM Bank allegedly participated actively in defrauding Em-international System Nig Ltd (EMIS) of five million Dollars, according to a leaked memo obtained from the Economic and Financial Crimes Commission (EFCC).
The leaked memo, dated April 28, 2017, also fingered FCMB, COM-DEV and seven others as suspects in the alleged criminal conspiracy.
Signed by Bawa Usman Katungo, the then EFCC Head, Bank Fraud Section, Lagos, the memo stated that AFREXIM and FCMB were active participants in the fraud.
According to the memo, “AFREXIM Bank participated actively to defraud an investor of a member country (Nigeria) EMIS the sum of $5 million.
“Findings revealed that FCMB & AFREXIM Bank, with intention to defraud EMIS, refused, neglected and 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 $5 million to COMDEV International,” the EFCC report added.
The memo, according to 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.
“Additional investigation revealed that COMDEV Wireless is yet to supply the telecoms equipment till date, despite full payment by AREXIM Bank,” findings from the EFCC report stressed.
The EFCC memo, entitled, ‘Investigation Reports: Re Allegation of Fraud Against First City Monument BANK PLC, COM-DEV & AFREXIM Bank by EM-International System Nigeria Limited.’
“Complaint: EM-International System Nig Ltd (EMIS)” explained that EMIS Telecoms failed to get value for its money.
“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 $5 million, to Phase Atlantic/COMDEV of Canada without following the letters and spirit of their tripartite agreement.
“This deliberate negligence and lack of one 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.
EFCC, therefore, stated 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, addeding that, “EMIS cannot do this since she was not a party to the tripartite agreement.”
The memo stated 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 added.
The memo indicated 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 identified by EFCC in the memo are, Ladi Balogun, Mr. Obaseki, Biodun Oyapero, Mr. B.O. Oramah, Keith Ainsworth and Anita Davis.