CBN Queries Mayfresh Mortgage Bank Over N50m Fraud Against Some Management Staff

Posted by Ignatius Okpara African News, Business News, Featured, Latest Headlines Thursday, November 7th, 2024

(AFRICAN EXAMINER) – The Central bank of Nigeria (CBN), has requested Mayfresh Mortgage Bank Limited to respond to its query on the reported fraud cases of N30 million and N23.854 million leveled against some management Staff of the financial institution within fourteen (14) days of receipt of her letter.

This was contained in a letter addressed to the acting managing director of the bank by the CBN and other financial institutions supervision department dated October 23, 2024 obtained by our Correspondent through a close source to the bank.

The letter signed by M.D Dalvop for: Director, in charge of the department, has as its reference number OFI/SG1A/CON/PMB/016/359, followed an investigation on a petition on alledged fraud sent to the nation’s apex bank against some top management Staff of the Mortgage bank.

Our Correspondent reports that the document titled: ‘investigation into the petitions written against Mayfresh Mortgage Bank limited by two shareholders and a former Director’ equally revealed certain alledged corrupt practices in the bank.

It read thus: “We received petitions from two shareholders and a former Managing Director of the bank claiming several cases of fraudulent interference by some board members and senior management.

According to CBN, “the petitions also made serious accusations against the bank’s current management.

“In line with the above, a team of two Examiners visited your bank for an on-the-spot assessment and verification of these claims from the petitioners.

“Considering the current situation of the bank and discoveries made by the Examiners, you are required to implement the following with immediate effect:

“The bank’s shareholders should immediately dissolve the current board and institute a new Board and its Committees to provide necessary oversight on the bank’s affairs.

“The list of the new board members and other required documents should be forwarded to the CBN for approval.

Also, “All shareholders of the bank, particularly Rev. Fr. Emmanuel Edeh and Maris Omego, must cease interfering in the day-to-day running of the bank immediately.

“Whatever concerns they bear should be addressed only at the Annual General Meetings or Extraordinary General Meetings.

The CBN equally orders that “The bank should immediately disengage Maria Omego from being the Chief Cost Controller, as the position was not in the approved oraganogram of the bank.

It also orders that “The Head of Treasury, Pamela Awa, and the Elele (CPM) Branch Manager, Ijeoma Nwankwo, and its officers should be redeployed and investigated immediately for breaches and subversion of the bank’s policies.

“As a matter of urgency, the bank should constitute a team to reconcile all its unposted transactions in branches and establish the true credit position of the bank to all its related parties, such as Caritas University, J.C.T Properties, and Madonna University, which had negatively impacted on its financial position.

“This exercise should be completed, and the report submitted to the CBN within thirty (30) days of receipt of this letter.

“The bank should stop further loan/overdraft disbursement to all its rolandpri companies/institutions) and embark on full recovery of all outstanding loan to these parties.

“The bank is required to respond to the CBN’s query on the reported fraud cases of N30 million and N23.854 million within fourteen (14) days of receipt of this letter.

It said “In line with Section 50 of BOFIA 2020, the PMB is required to issue a cheque/draft 2 million in favor of the Central Bank of Nigeria for payment of interim dividends to shareholders on yet-to-be-approved Audited Accounts for 2021, 2022, and 2023 financial years.

“For falsifying all the minutes books and Board approvals presented to Examiners during the previous examinations and providing misleading information to the CBN contrary to Section 7.3 Item 8 of the Revised Guidelines for Primary Mortgage Banks in Nigeria, the bank is required to issue a cheque/draft of 5 million in favor of the Central Bank of Nigeria as a penalty for this contravention.

“Finally, the bank is required to implement all the recommendations stated above immediately and issue two separate cheques/drafts (2 million and 5 million) in favor of the Central Bank of Nigeria, as indicated above.