N2bn SME Fraud: EFCC Arrests Kwara Govt Official, Six Micro-finance Bank MDs *Probes five others

The Economic and Financial Crimes Commission (EFCC) ON Monday arrested the Director General, Kwara State Bureau of Small and Medium Enterprise Development, Segun Soewu,and managing directors of six micro-finance banks in the state over an alleged N2 billion fraud.

The bankers arrested are Ogudu Samuel, Brightway Micro Finance; A.K. Imam, Magajingari Micro Finance; Adeleke M.S., Sincere Micro Finance Bank; Yusuf Muideen, Balogun Fulani Micro Finance Bank; Issa Abdulrasheed, KCMB Micro Finance Bank, and Oyebode Asimiyu, Apels Micro Finance bank.

Others who are under investigation include, Lawal Ayo, Omu-Aran Micro Finance Bank; Tope Eniola, Iludun Micro Finance Bank; Lawal Folashade, Stockcarp Micro Finance Bank; Yusuf Tajudeen, First Heritage Micro Finance Bank, and Olawoye E.O., Offa Micro Finance bank.

A statement issued by EFCC said the anti-graft agency had earlier received intelligence reports alleging fraudulent misappropriation and mismanagement of about N2billion given by the Kwara State Government to assist market men and women across the 16 Local Government Areas of the state.

It said investigations further revealed that at the point of granting the loans, Soewu and the 16 micro finance bank chiefs failed to follow due process.

It was also revealed that N2 billion loan facility which was designed for lending to the general public to support their businesses and augment their working capital was distributed to highly placed politicians, traditional rulers and prominent people within the 16 LGAs.

Soewu and one of the managing directors of the bank who were grilled by the operatives of the commission for several hours said: “a prominent and first class traditional ruler in the state received over N78 million cash from the loans, which was designed to assist petty traders but never returned a dime.

“The traditional ruler through his company, Yafy International Ventures Limited secured the loans without following the due process.”

They disclosed further that “selected and influential market men and women across the 16 Local Government Areas of the state received the sum of N5million each as loans, but did not pay back the money.”

The commission also gathered that about 50 percent of the rather controversial loans were shared by highly placed individuals and selected businessmen and women at the expense of other beneficiaries which defeated the aims and objectives of SME project.

Findings by the operatives of the commission also indicated that the highly placed individuals who benefited from the loan between 2012 to 2018 failed to pay back the huge loans they secured.

The arrested suspects are still in the custody of the commission, and are cooperating with the EFCC, Spokesman, Tony Orilade, said.