EFCC Puts Searchlight on Banks, Developers Over N100bn Housing Fraud

EFCC Puts Searchlight on Banks, Developers Over N100bn Housing Fraud

The Economic and Financial Crimes Commission (EFCC) has turned its attention on developers and primary mortgage banks that have misappropriated over N100bn housing loans obtained from the Federal Mortgage Bank of Nigeria.

This assurance was given by the Chairman of the EFCC, Mr. Ibrahim Magu, when the acting Managing Director and Chief Executive Officer of the bank, Richard Esin, led his team to the corporate headquarters of the anti-graft agency in Abuja, Punch reports.

“He (Esin) said the bank had come to identify with the commission and to also plea for the assistance of the EFCC to intervene and recover about N100bn which is in the hands of developers and primary mortgage banks,” EFCC said in a statement.

“Magu appreciated the management of the bank for the visit and assured them that the commission would do everything within its mandate to assist the bank and prevent it from going under.”

In a separate statement by FMBN, Esin alleged that fraudulent partner developers have a huge debt overhang with the bank, explaining that they obtained construction finance from the bank to build estates, but diverted the funds into other non-productive and non-regenerative activities.

He added that but for the resilience of the bank, they wouldn’t be able to meet their financial obligations to Nigerians.

The bank MD appealed to Magu to assist in the recovery of their funds from contractors and vendors who were mobilised to execute various contracts for the bank, but failed to execute same and misappropriated the bank’s money.

“Their activities are fraudulent, and constitute financial crimes. We, therefore, seek the EFCC’s kind assistance in the recovery of these funds which belong to the Nigerian workers.”

Esin further informed Magu that his management was committed to helping the workers of the commission to own houses following the Memorandum of Understanding between both organizations.