ICPC arraigns ex-Mortgage Bank MD, others over alleged $65m housing scam

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has arraigned Gimba Kumo Ya’u, former managing director of the Federal Mortgage Bank of Nigeria (FMBN), alongside two others, over the alleged diversion of $65 million earmarked for a housing project in Abuja.

The arraignment, which took place on Tuesday, was presided over by James Omotosho, Justice of the Federal High Court, Abuja.

Other defendants include: Bola Ogunsola,
the bank’s former executive director, and Tarry Rufus, managing director of T-Brend Fortunes Nigeria Limited.

In a statement released by Demola Bakare, ICPC spokesperson, the Commission disclosed that the funds were meant for the construction of 962 housing units in the Kubwa District of Abuja, a project named the “Goodluck Jonathan Legacy City.”

The ICPC, in a five-count charge marked FHC/ABJ/CR/333/24, accused the trio of contravening the Public Enterprises Regulatory Commission Act and the Money Laundering (Prevention and Prohibition) Act, 2022.

Among the allegations was that Ya’u authorised the payment of N3.78 billion to Good Earth Power Nigeria Limited, a contractor that the ICPC claims lacked the capacity to execute the project.

The Commission further alleged that the project remains incomplete over a decade later, resulting in significant financial losses for the bank.

The ICPC also accused the defendants of securing a N14 billion loan from Ecobank Nigeria PLC in 2012 for the project and mismanaging the funds.

One of the charges also detailed how the defendants allegedly converted N991 million into $3.55 million and handed it in cash to Jason Rosamond, a foreign associate, who is reportedly at large.

This act was said to contravene provisions of the Money Laundering Act.

When the charges were read in court, all three defendants pleaded not guilty.

Following their plea, Omotosho granted them bail on liberal terms and adjourned the trial to February 6, 2025.

The ICPC said it remains committed to ensuring accountability in the management of public funds, especially in critical sectors like housing.