2b Naira SMEs Fraud: EFCC detains DG Kwara Bureau of Small & Medium Enterprise Development, 6 Micro Finance banks’ MDs
The Economic and Financial Crimes Commission ( EFCC) Ilorin Zonal Office has arrested the the Director General of Kwara State Bureau of of Small and Medium Enterprise Development, Mr Segun Soewu and six others over alleged fraud of two billion naira.
Soewu is being detained alongside six managing directors and Chief Executive Officers of Micro Finance Banks operating within the State.
The Bank Chief Executive Officers vwho are presently being interogated by the operatives of the EFCC include, Mr Ogudu Samuel of Brightway Micro Finance, Mr A.K Imam of Magajingari of Micro Finance, Mr Adeleke M.S of Sincere Micro Finance bank, Mr Yusuf Kayode Muideen of Balogun Fulani Micro Finance bank and Mr Issa Abdulrasheed of KCMB Micro Finance bank, Oyebode Asimiyu of Apels Micro Finance bank.
Others who are under investigation of the Commission are, Lawal J Ayo of Omu-Aran Micro Finance bank, Tope Eniola of Iludun Micro Finance bank, Lawal Folashade of Stockcarp Micro Finance bank, Yusuf Tajudeen of First heritage Micro Finance bank and Olawoye E.O of Offa Micro Finance bank.
The anti graft body had earlier received intelligence reports over alleged fraud case and mis-management of over two billion naira given by the Kwara State Government to assist market men and women across the sixteen Local Government Areas of the State.
It was discovered during investigations that at the point of granting the loans, the Director General of Kwara State Bureau of Small and Medium Enterprise Development and Sixteen Micro Finance Bank Chief failed to follow due process.
It was also revealed that the two billion naira loan facility which was designed for lending to the general public to support their businesses and argument their working capital was distributed to highly placed Politicians, Traditional Rulers and Prominent People within the sixteen local government Areas of the State.
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 seventy eight million naira cash from the loans which was designed to assist petty traders but never refund a dime ”
“The Traditional Ruler through his Company, Yafy International Ventures Limited secured the money the loans without following the due process ”
They disclosed further that ” selected and influentials market men and women across the sixteen Local Government Areas of the State received the sum of five million naira each as loans but did not pay back the money”
The Commission also gathered that about fifty percent of the said 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 Small and Medium Enterprise Development.
Findings by the operatives of the Commission also indicated that the highly placed individuals who benefited from the said between 2012 to 2018 failed to pay back the huge loans they secured.
The arrested suspects are still in the Custody of the Commission while efforts are ongoing to arrest the highly placed individuals who received the said controversial loans.
The anti graft body is also set to invite all the beneficiaries including a fist class Traditional Ruler and prominent individuals who received the money which did not follow the due process.