EFCC Tells Court How Indian Businessman Defrauded Nigerian Banks Of N32bn

EFCC Tells Court How Indian Businessman Defrauded Nigerian Banks Of N32bn

Patrick Fernandez An Economic and Financial Crimes Commission (EFCC) witness, Adeniyi Adebayo yesterday told a Federal High Court in Lagos how a Nigeria-based Indian businessman, Patrick Fernandez defrauded some Nigerian commercial banks of about N32bn.

Adebayo who is an Investigator with the Economic and Financial crimes Commission (EFCC) told the court presided over by Justice John Tsoho that the Commission’s investigation into the case revealed that the  banks involved in the scam did not follow due process when granting the accused person loan.

Fernandez, alongside his three companies, Joseann lobal resources Limited, Pet Prime Impex Limited and Pet ferns Nig. Limited were arraigned before the court by the EFCC on 56 counts charge of fraud.

According to the carge sheet filed by the EFCC,the accused persons were alleged to have between the 21st and 25th of January 2008 fraudulently present to the banks various  Manager's cheques for various sum.

The accused was also allegedly to have procured joseann Global Resources Limited to retain in its account, on his behalf, the sum of N6 billion which represented the proceeds of his illegal act.

The accused was also said to have transfer the sum of N1.9 billion and another N1.2 billion wich formed part of his illegall act wih the aim of concealing the illicit orgin of the funds. 

All offences the EFCC said is punishable under section 1(2)(a)of the Miscellaneous Offences Act cap M17 Laws of Nigeria and under section 14(1) of the money laundering (Prohibition) Act, 2004. 

At the resumed hearing of the case on Tuesday, Adebayo informed the court that sometimes in February 2008 the EFCC got a Suspicious Transaction Report from the Financial Intelligence Unit that the commission should investigate some huge money running through the accounts of three companies.

“Based on this report we wrote the banks involved and we got confirmation that the money were indeed in the accounts, and upon further inquiry the banks told us that the money are loan applied for by the accused person.

"However we discovered that the banks did not follow due process in granting the loan. If someone applies for a loan there has to be an application and a letter of offer by the bank but in this case there were no such document from the banks.

“What the Accused person was doing was to present cheque for huge sums to the banks purported to be payment for contract awarded to him then he will requested that the banks to pay him pending when the cheque will be cleared.

“But we discover that there were no money in the account upon which the cheques were issues, the bank practice is that there must be money in the account of the person who issued the cheque before the banks can pay”, the witness also said.

The witness while being cross-examination by the defence counsel, James Ocholi (SAN), said that the when the banks were interviewed they informed the EFCC that the accused person applied for cheque discounting facility.

He said, “During interview with the banks, we were informed by bank officials that the huge amount were related to loans granted the accused especially by the defunct Intercontinental Bank, which had since been dissolved and merged with Access Bank.

When asked whether the EFCC had the authority to question bank loans, Adebayo replied in the negative but said the commission could demand for documents in relation to any account if there was any suspicion.