By Onyewuchi Ojinnaka
The Federal Ministry of Justice on Wednesday arraigned former Managing Director of Imperial Micro Finance Bank, Chijioke Mbagwu, before Justice Ayokunle Faji of a Federal High Court, Lagos Nigeria on 14-counts charge of alleged fraud.
Specifically Mbagwu is being prosecuted for fraudulent diversion of funds, as well as granting of unsecured credit facilities.
According to the charge, he was alleged to have granted N25 million unsecured credit facilities to Investment Micro Finance Bank, formerly called Nsulu Community Bank, which he allegedly owns.
In counts two to five, the defendant was alleged to have granted unsecured credit of about N4.5 million to Investment Micro Finance Bank.
In count six, he was alleged to have acted both as MD of Imperial Micro Finance Bank as well as Chiik Finance and Securities, which is not a subsidiary of Imperial.
In counts seven to 11, Mbagwu was alleged to have fradulently obtained the sum of about N29.5 million from Imperial Micro Finance Bank, under the pretence that it was for management of the bank.
Moreover, he was alleged to have diverted the said funds to Investment Micro Finance Bank.
In count 12, he was alleged to have obtained the sum of N10 million from Mega Equities Ltd, under the pretence of helping it secure shares from Imperial, but diverted same to Chiik Finance and Securities.
In count 13, he was alleged to have fraudulently obtained a culmulative sum of N8.7 million from Imperial Micro Finance Bank, and diverted same to the account of Chiik Finance and Securities, with intent to promote illegal banking activities.
Furthermore, in count 14, the defendant was alleged to have between 2007 to 2009, obtained a leasehold improvement of about N30.3 million from Imperial Micro Finance Bank, and diverted same for personal use.
The defendant allegedly committed the offence between 2007 and 2009 while serving as MD of Imperial MicroFinance Bank
According to the charge, the offences contravene the provisions of Sections 1(a), 15, 16 and 19 of the Failed Banks (Recovery of Debts) and Financial Malpratices in Banks Act, Cap F2, Laws of the Federation, 2004.
After hearing the charge preferred against him, the defendant pleaded not guilty to all the counts.
After the plea by the defendant, his defence counsel Mrs S. Anoka moved a bail application for the defendant, urging the court to admit him to bail in most liberal terms.
Responding, the prosecutor, Mrs Ogochukwu Mba, a Senior State Counsel from the Ministry of Justice, opposed the bail application, submitting that the defendant had evaded arraignment on two occasions.
She further submitted that the defendant had tried to feign absence when required by the police; and consequently, she urged the court to refuse the bail application.
In a short ruling, the court held that the defendant has shown the reasons why he should be granted bail, adding that nothing has been shown by the prosecution in the paragraphs of its affidavit to substantiate the opposition to bail.
Consequently, Justice Faji admitted the defendant to bail in the sum of N7million with two sureties in like sum.
Other conditions of the bail state by the judge include: the sureties must be resident in Lagos State, must show means of livelihood and depose to affidavit of means and must deposit two passport photographs with the court registrar.
The court orderd that the defendant must not travel without the court’s permission. The defendant was given seven days to perfect the bail condition.
Meanwhile, the case was adjourned till June 28 for report of compliance with the bail, whereas the court held that in the mean time, the defendant continues to enjoy the administrative bail granted him.