EFCC Arrests Kwara SMED Director, 6 Microfinance Chiefs Over Alleged N2m Fraud

The Economic and Financial Crimes Commission, EFCC, Ilorin Zonal
Office has arrested Segun Soewu, Director General, Kwara State
Bureau of Small and Medium Enterprise Development, over an alleged
N2billion fraud.

Also arrested are managing directors of microfinance banks.

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

Others who are also being investigated include, Lawal 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 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.

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 the two billion naira 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 N78million 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 Small and
Medium Enterprise Development.

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.

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