How sacked bank chief used fake firms to steal N20bn

Lanre Adewole, Abuja - 01.11.2009

Sustained investigation by the Economic and Financial Crimes Commission into the alleged insider abuse in the banking sector has reportedly led to the uncovering of a N20 billion scam allegedly perpetrated by the sacked Group Managing Director of Bank PHB, Mr. Francis Atuche while in charge of the ailing bank.

Atuche, who was removed as the helmsman of the bank about two weeks ago by the governor of the Central Bank, Sanusi Lamido, was said to have used fake companies in moving the monies abroad.

Subsequently, the chairman of the anti-graft agency, Mrs Farida Waziri, has reportedly directed that a money laundering charge be preferred against Atuche, who is currently standing trial for alleged underhand dealings in the management of the bank.

The commission’s spokesperson, Mr. Femi Babafemi, confirmed to Sunday Tribune that the sacked bank chiefs are being investigated in different ways and that the money laundering trial for Atuche was a certainty.

Atuche and two other bank chiefs, Mr. Charles Ojo of Spring Bank and Mr. Ike Oraekwuotu of Equitorial Trust Bank were sacked by the apex bank after their banks failed a stress test jointly conducted by the Central Bank and the Nigeria Deposit Insurance Commission {NDIC}.

Another N14 billion scam had earlier been linked to Atuche in the course of the probe into how his management team almost got the bank distressed.

Babafemi, while responding to Sunday Tribune’s enquiry on the alleged money laundering scam involving Atuche, stated that “fresh charges cannot be ruled out because the chairman {Waziri} has directed that other investigations be carried out in some of the cases of the sacked bank chiefs”.

Sunday Tribune gathered that the lid was blown off Atuche’s alleged criminal dealings while heading the bank when the biggest debtor to three of the ten ailing banks, sacked Managing Director of Falcon Securities, Mr. Peter Ololo, decided to spill the beans during his interrogation by the operatives of the anti-corruption agency.

Ololo had been arrested alongside Atuche in the wake of the release of the final audit result of the stress test by the apex bank, with their homes in Lagos raided for exhibits that could be used in their trial. Falcon Securities is a subsidiary of Finbank that handles its shares’ business.

Ololo owes three troubled banks; Bank PHB, Afribank and Intercontinental Bank, a total of non-performing debts of N108.55 billion.

In the course of his interrogation, Ololo, according to the Sunday Tribune source, was said to have confessed that he did not apply for any loan at Bank PHB, while claiming that his signature was forged on the loan documents.

The list of non-performing loans released by the apex bank listed the N4billion loan against his company Pogoson Oil &Gas.

Atuche allegedly used fake companies’ accounts as well as accounts of some of the bank’s customers without their knowledge in moving the depositors’ funds abroad, on the pretence that he was advancing them loans.

In the case of Ololo’s company’s bank account, Sunday Tribune’s source disclosed that, “You know we arrested Peter Ololo, who is the original owner of Pogoson Oil &Gas. In Bank PHB’s debtor’s list, it was claimed that he was advanced N4 billion to build Tank Farm in Calabar but he told the investigators that he did not apply for any loan at Bank PHB and never had Tank Farm anywhere in the country. He also claimed that his signature on the loan documents was forged and that the two other signatories on the account in which the N4 billion was paid, were not known to him. It was discovered that Atuche used the company’s account to launder depositors and investors’ funds.”

The source added that the most curious thing about the loan was that the N4 billion was paid into the account on December 27, 2007, the same day it was opened.

Another company allegedly used for money laundering was FutureView Securities Limited, which was granted a N3.5 billion loan without the knowledge of the original owner of the company.

The money paid into the company’s account was said to have been traced abroad by the anti-graft operatives, where Atuche allegedly moved it into a domiciliary account.

The source revealed that the company had earlier applied for loan from the Atuche led management which was not granted “only for Atuche to wire the same amount rejected as loan for the company, into the company’s account, from where it was moved abroad”.

The original owner of the said company had reportedly disclaimed the loan, which Atuche said not to have any defence on who was granted the loan.