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Real Reasons Mainstreet Bank Chairman, Falalu Bello Was Sacked +His Violations and Misappropriations

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Information we have authoritatively gathered has revealed real reasons behind the sack of Mallam Falalu Bello, Chairman of Mainstreet Bank Ltd.

A source who confided in us, said Bello’s former employer, Unity Bank appealed against him to the Central Bank of Nigeria (CBN), over allegations bordering on breach of corporate governance when he was the managing director of the bank.

The petition alleged his violation of corporate governance from his former bank over one-party approval of N3.4 billion ($21.067 million) foreign exchange deal is also a factor underlining his resignation.

Unity Bank had in a petition to the CBN alleged that Bello unilaterally approved the said amount for his company to import fertilizer, but he had been foot-dragging to pay back the facility.

The source further disclosed “After the consideration of the petition written by Unity Bank against him, the CBN wrote a response to the bank and copied the management of Asset Management Corporation of Nigeria (AMCON), indicting the former managing director of gross breach of corporate governance. This consequently prompted the AMCON management to advise him to resign from his position as the Chairman of Mainstreet Bank on the strength of CBN’s letter.”

According to the petition signed by Ahmed Yusuf, Acting Executive Director, Enterprise Risk Management and Umar M. Adamu, Divisional Head, Legal and Compliance, with Ref. No UB/L&C/UMNHJSIMB5FB/02l14, dated3rdFebruary, 2014, to the Governor of CBN stated in part: “We hereby humbly write to bring to your notice instances of Violation of Code of Corporate Governance. Sometime between June to September 2013, three Deferred Letters of Credit (LCs) totaling$21,067,500.00 were opened in favour of MBS Merchants Limited”.

Besides the CBN, Unity Bank also petitioned the Inspector General of Police, Mohammed Abubakar, over the matter, which prompted the invitation of Bello for questioning by the Force Criminal Investigation Department (FCID) Headquarters in Abuja.

A statement issued by MBS Merchants also admitted that Bello was invited to the Office of the Inspector General of Police (IGP) in Abuja to clarify issues in connection with a petition by Unity Bank Plc to the Central Bank of Nigeria (CBN) and the IGP.

The statement said the petition was based on three deferred letters of credit issued by the bank on behalf of MBS Merchants.

“In this regard, the MBS has answered all CBN enquiries on the matter. Also, Mallam Falalu Bello was invited by the IGP to discuss the same issues involved, being a recipient of the same petition”.

“Based on his position as chairman of MBS, Bello equally answered the invitation of the IGP just as he did that of the CBN so that such high level discussions between the parties involved will bring closure to a matter, which is basically a financial transaction between two parties that have been business partners for over seven years,” the statement said.

It could be recalled that Bello retired as the Group Managing Director of Unity Bank Plc on June 30, 2011, and was shortly afterwards, appointed chairman of Mainstreet Bank, one of the three banks nationalised by the Sanusi Lamido Sanusi-led Central Bank of Nigeria.

According to a source, there has been no love-lost between Bello and the managing director of Mainstreet Bank, Ms. Faith Tuedor-Matthews, a woman was reported in the media sometimes last year February to have resigned over alleged misappropriation of funds in the bank. It was alleged that she transferred funds into her private accounts abroad, which was said to have impelled the Board led by Bello to suspend her. However, the story was unfounded.

Nevertheless, their rivalry was said to have polarised the staff of the bank and affected their productivity. During the height of hostilities, staff perceived to be loyal to Bello was allegedly transferred from the head office and the partitions in all the offices, except on the executive level, were dismantled to allow a see-through floor plan. It was also purported that the strategy was to unmask any clandestine movement or motives by Bello loyalists.

In the meanwhile, there is no replacement yet for the former chairman, Falalu Bello. But, a source in AMCON who claim anonymity said “his successor would, most likely, be selected from current Board members since the bank would be sold to a new core investor soon.”

All efforts to reach corporate communications personnel of Mainstreet bank were futile.

– societyreelnews

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Pictorial: Gender mobile signs Mou with university of Uyo

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Monday June 10th Gender Mobile lead by Barr Omowunmi Ogunrotimi signed an Mou with the university of Uyo lead by its Vice Chancellor Professor Nyaudoh Ndaeyo

The Mou will allow Gender Mobile to support the University of Uyo to institutionalize sexual harassment prevention frameworks through policy, preventative education, and technology adoption.

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How US Billionaires Allegedly Fund Organ Trafficking In Nigeria

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The Global Prolife Alliance, GPA has sensationally revealed that billionaires from the United States are funding an organ trafficking cartel in Nigeria.
The GPA made the shocking revelation in a letter to President, Bola Ahmed Tinubu and Speaker, House Of Representatives.
The letter is signed by Academician (Dr) Philip Njemanze, Chairman, Global Prolife Alliance, GPA.
Njemanze said the cartel’s grip on the country’s healthcare system has resulted in the poaching of human organs and ovarian eggs, with millions of lives at stake.
The GPA cited the National Health Act of 2014 (NHAct 2014) as a tool for the cartel’s nefarious activities.
According to them, the cartel’s scheme involves coercing female farmers into purchasing genetically modified seeds in exchange for their ovarian eggs.

 

  • 247 Ureport

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CONTRACT SCANDAL ROCKS TETFUND AS ICPC ARRESTS CONTRACTOR

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A contract scandal of monumental proportion is currently rocking the the Tertiary Education Trust Fund (TETFund).

So bad is the situation that operatives of the Independent Corrupt Practices and Other Related Offences Commission (ICPC) have beamed their searchlight on the activities of TETFund.

Last Tuesday, a contractor, known as Paul Chukwuma, was arrested by the and as at the time of filling this report, he was yet to regain his freedom on account of not been able to perfect his bail condition.

We gathered that Paul Chukwuma, who is the founder and promoter of Fides Et Ratio Academy, an educational service provider was detained by the ICPC over his alleged involvement in contract mess.

Recall that the media was agog with the report of how TETFund awarded a controversial N3.8 billion contract to Mr Chukwuma’s company and paid N2.9 billion to the company in four installments without following due process

Shortly after the publication by Premium Times in April, the anti-graft body detained TETFund’s Director of Finance and Accounts, Gloria Olotu, and grilled others including the Director of Human Resources and General Administration, Kolapo Okunola, and the Director of Information Communication Technology (ICT), Joseph Odo.

Mr Chukwuma’s detention is the latest major development in the ICPC investigation that dates back to April.

ICPC’s spokesperson, Ademola Bakare, on Wednesday, confirmed Mr Chukwuma was in the agency’s custody.

The suspect, a player in the education business in the country, was also on the list of members of governing councils of tertiary institutions recently released by the Nigerian government before President Bola Tinubu directed the review of the list.

Recall that TETFund– a tertiary institutions’ funding agency under the Federal Ministry of Education– awarded the contract which it tagged: “Capacity Building Certificate Course (Communication, Entrepreneurship, and Productive Skill Development) inclusive of the Train-the-Trainer Programme for 502 (five hundred and two) Participants”.

Findings by this newspaper indicated that the funding for the contract was sourced from the 2023 annual direct disbursement budget domiciled in the agency for the use of about 251 beneficiary institutions – public universities, polytechnics, and colleges of education across the country.

Multiple sources confirmed that the institutions’ 2023 direct disbursement budget which totalled N15.2 billion was for Information Communication and Technology intervention projects.

However, rather than releasing the funds to the institutions as mandated by its operational guidelines, TETFund deducted the funds upfront from each of the institutions, amounting to a total of N7.6 billion.

During an interview with our reporters, the Executive Secretary of TETFund, Sonny Echono, told PREMIUM TIMES that each beneficiary institution contributed 50 per cent of its ICT funds while each polytechnic and college of education contributed 25 per cent of theirs to the project.

The choice of the project, the sourcing of the contractor, and signing a memorandum of understanding with the vendor were undertaken by TETFund. This development angered the administrators of most of the institutions.

Also, while the project designs and modalities were yet to be finalised, sources confirmed that within a month of the award of the contract TETFund on 30 June 2023 credited the company’s bank account with over N550 million (N550,380,780.23).

The transfer is with mandate number CBN/PROJ/224/JUN2023.

Over N820 million (N820,223,850) was additionally paid into the account on 12 July 2023, while on 26 July 2023 and 17 November 2023, N1.5 billion (N1,503,743,850) and N62.68 million (N62,684,036.05), respectively, were credited to the account by the CBN on behalf of TETFund.

Meanwhile, despite the various supposed beneficiary institutions denying the execution of the project, Mr Chukwuma, during a meeting between PREMIUM TIMES’ reporters and the company’s management, said the project “has been done and dusted.”

PREMIUM TIMES is aware that the project was designed for training 12 ICT officials across the 251 beneficiary institutions, and to onboard more than 500,000 students for both physical and virtual sessions. However, only two ICT officials in each of the tertiary institutions have taken part in what some of these officials described as engagement sessions.

Mr Chukwuma promised to make documentary evidence to back his claim to PREMIUM TIMES in April but as of the time of filing this report he has yet to do so.

He said his company was only helping Nigeria to achieve the very best for the students and the schools, saying the courses being offered the students through the programme has been “ridiculously subsidised.”

Learnt that Mr Chukwuma was on Tuesday invited to give a statement concerning his involvement in the contract scandal being investigated by the agency.

However, sources confirmed that after going through his statement, the antigraft agency imposed strict bail conditions that require the suspect to produce highly placed persons as suretees, among other conditions.

The agency’s spokesperson, Mr Bakare, who confirmed that Mr Chukwuma was in ICPC custody, said the suspect remained in detention because he could not satisfy the bail conditions.

“Yes, Chukwuma is in ICPC’s custody, unable to fulfil bail conditions,” Mr Bakare wrote in a terse statement shared with our reporter on early Wednesday. As of 6.05 p.m. when contacted over the telephone again by our reporter, Mr Bakare said he could not immediately ascertain if the suspect met the bail conditions before the end of official work hours.

Meanwhile, ICPC said the Executive Secretary of TETFund was yet to be invited, and not in its custody as being allegedly circulated.

It, however, said the investigation into the scandal was still ongoing and that it could not rule out the possibility of arresting anyone who played roles in the matter.

“Echono wasn’t invited but investigations are still ongoing,” Mr Bakare said.

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