In a five-count charge obtained by housingtv on Wednesday, the Independent Corrupt Practices and Other Related Offences Commission (ICPC) accused former bank CEO Gimba Kumo Yau of making a payment of N3.785 billion to Good Earth Power Nigeria Limited out of a $65 million contract for the development of 962 residential housing units in Kubwa, Abuja, known as “Goodluck Jonathan Legacy City,” contrary to accepted practices.
The ICPC alleges that Kumo, in his capacity as Chief Executive Officer, and Bola Ogunsola, then Executive Director of the bank, secured a N14 billion loan from Ecobank Nigeria PLC in August 2012 for this project, intended to be completed within 18 months. The anti-graft agency maintains that Kumo approved the $65 million contract despite knowing the company lacked the capacity to fulfill it, leading to the project remaining incomplete and causing significant economic loss for the bank. This action is purportedly in violation of Section 68(1) of the Public Enterprise Regulatory Commission Act, CAP P39, Laws of the Federation, 2004.
Other defendants in the case are accused of engaging in money laundering, specifically converting N991.4 million into $3.55 million in cash and handing it to one Jason Rosamond, who is now at large. This contravenes Section 18(2)(b) and is punishable under Section 18(a) of the Money Laundering (Prevention and Prohibition) Act, 2022.
The Public Enterprise Regulatory Commission Act prohibits officials from actions leading to the failure of an enterprise, with penalties including jail terms. A date for the arraignment has not been fixed, and the defendants remain innocent until proven guilty in court.
Kumo’s Legal Defense
Kumo’s lawyer, Barrister Okpara Orji, confirmed to Nairametrics that his client had previously been investigated by anti-graft agencies and was allegedly exonerated. Orji claimed the EFCC found no evidence linking Kumo to the charges, and he accused the federal government of engaging in a political witch hunt against his client. Orji threatened to file for malicious prosecution if the charges proceed, citing previous statements from ICPC’s legal director, Henry Emore, that no charges were pending against Kumo.
Background of the Case
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In 2021, the ICPC declared Tarry Rufus, Gimba Kumo Yau, and Bola Ogunsola wanted in connection with the diversion of public funds for the $65 million real estate project. The ICPC announced in August 2021 that it had recovered N53 billion from a real estate developer for the Federal Mortgage Bank of Nigeria. The former ICPC Chairman, Prof. Bolaji Owasanoye, disclosed this during a meeting with the House of Representatives Ad-hoc Committee investigating real estate developers in the FCT. The developer allegedly took the money without providing the promised housing units.
The Senate Committee on Public Accounts also summoned Kumo over an irregular N3 billion contract awarded under his leadership, based on a 2015-2018 audit report by the office of the Auditor-General of the Federation (AuGF). Kumo has reportedly stated that he has nothing to hide regarding these allegations.
