Alleged $65m fraud: court warns ex-FMBN CEO against frivolous adjournment
Justice James Omotosho of the Federal High Court, Abuja, has adjourned the trial of the former Managing Director and Chief Executive Officer of the Federal Mortgage Bank of Nigeria (FMBN), Mr. Gimba Kumo Ya’u, and two others, along with their companies, to May 7, 2025.
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) is prosecuting Ya’u, Bola Ogunsola, Tarry Rufus, Good Earth Power Nigeria Limited, and T-Brend Fortunes Limited for allegedly diverting $65 million meant for the development of 962 housing units in the Kubwa District of Abuja.
At the resumed hearing on Wednesday, prosecution counsel Osuobeni Akponimisingha told the court that the prosecution was ready to proceed with five witnesses scheduled to testify. However, Benjamin Ogar, counsel for the first defendant, informed the court that the lead counsel, Tawo Tawo (SAN), had requested an adjournment due to the recent death of his nephew.
The prosecution confirmed receiving a call from Tawo on Tuesday regarding the loss and the intention to seek an adjournment, though no formal application had been served. Akponimisingha said he would not oppose the request given the circumstances.
Justice Omotosho, while granting the adjournment, warned against further delays, noting that the case was last adjourned at the instance of the first defendant’s counsel. He advised junior lawyers to be fully prepared and conversant with their cases when appearing in court.
“All junior counsel appearing before this court must be prepared and have knowledge of the cases they accompany their seniors to handle,” the judge said.
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The matter was subsequently adjourned to May 7, 9, and 12, 2025.
The ICPC, in the charge marked FHC/ABJ/CR/333/24, accused the defendants of violating the Public Enterprises Regulatory Commission Act and Section 19 of the Money Laundering (Prevention and Prohibition) Act, 2022.
According to the five-count charge, Ya’u allegedly paid N3.78 billion of the total $65 million contract sum to Good Earth Power Nigeria Limited for the construction of the “Goodluck Jonathan Legacy City” in Kubwa, despite the company’s alleged lack of capacity. The project remains incomplete.
The ICPC also alleged that Ya’u and Ogunsola, in their capacities as CEO and Executive Director of the bank, secured a N14 billion loan from Ecobank Nigeria Plc in August 2012. The commission claimed the award of the contract caused economic losses to the bank.
In addition, the other defendants were accused of receiving and distributing $3.55 million in cash from the contract sum, in violation of anti-money laundering laws. Tarry Rufus, Good Earth Power Nigeria Limited, and T-Brend Fortunes Limited were said to have converted N991.4 million into $3.55 million and handed it over to one Jason Rosamond, who is currently at large.
All the defendants pleaded not guilty to the charges.
Following their arraignment, Justice Omotosho granted each defendant bail in the sum of N100 million, with two sureties in like sum. The sureties must own property worth N100 million, swear to an affidavit of means, and present evidence of tax payment for the past three years.
The court also ordered the defendants and their sureties to submit passport photographs and certified bank statements, while the defendants’ international passports were to be deposited with the court registrar.
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