The Hon. (Barr.) Jerry Uzosike’s led House Committee on Public Accounts, Anti-Corruption and Due Process of the Abia State House of Assembly has on Friday commenced investigations into the alleged N200 million Small and Medium Enterprise (SME) alleged fraud as controversies loomed in different submissions.
Recall that the Abia State House of Assembly had earlier received a petition alleging the sudden disappearance of N200 million meant for SME Microfinance Bank establishment in the 17 local government areas of the State and a headquarters. Speaking while declaring the investigation open, the Chairman of the Committee, Hon. (Barr.) Jerry Uzosike revealed the strength of the petition and the determination of the State House of Assembly under the leadership of Rt. Hon. Chinedum Enyinnaya Orji to see to the end of the matter. The Chairman challenged all parties involved to give accurate account as they are under oath.
Reacting to the petition, the Commissioner for SME, Mr. Onyema Wachukwu declined involvement in the committee charged with the responsibilities and the processes of establishing the SME Microfinance banks in the State as he is new into the office. The Commissioner further submitted that no document of any State Microfinance bank was handover to him upon assumption to office, but was only invited to the commissioning of the purportedly Abia State Microfinance Bank two (2) days before the ceremony. Reacting to the submission of the Commissioner, the Chairman regretted the possibility of carrying out a project in a ministry without involving the Head while asking the Commissioner to furnish the House with the letter of invitation he claimed to have received for the commissioning of the bank.
In his own submission, the Permanent Secretary, Ministry of SME also claimed non-involvement in the issue as his constitutional right of being the secretary of the Dr Eme Okoro led committee established by the governor was given to the Director of Finance, Mrs. Ijeoma Chukwuma of which he later refused signing the PV letter sent to him for approval of N200 million facility under the ministry.
On her part, the Director of Finance (DOF) explained her involvement in the committee as being the choice of the Executive Governor of the State, Dr Okezie Ikpeazu who constituted it. She further told the house that there is an Abia State Microfinance bank operational in the state, and is located at No. 17b Ngwa road Aba. She explained that the committee went ahead to acquire a bank due to the inability to secure license for State Wide Microfinance bank, which got to N1 billion upon their realization of the initial N100 million. Mrs Chukwuma submitted that the initial arrangement was for N100 million to be for the license and the balance of N100 million to be for the infrastructure. The DOF further claimed that there was a resolution from the State House of Assembly for the initial plan of getting a license and the second plan of acquiring a bank. However, the House sought to see the document, which the DOF promised to release in the next hearing.
Mrs Chukwuma further claimed that the loan facility was acquired through the Committee instead of the Ministry of SME because of the the refusal of the Perm. Sec to sign the request. According to her, the account is currently having over N100 million balance as it gave a grant of N200, 000 each to twenty persons for SME under the Governor’s approval. The House therefore called on her to provide all evidences including the approvals form the Governor, the House of Assembly resolution, documentary backings to her activities, and all bank statements for all her transactions before the House in the next sitting.
In his submission, the then SSA to the Governor on Youth Development and Job Creation, Mr. Chinenye Nwaogu who was involved in the processes of establishing the Microfinance bank in the State also claimed the existence of such an establishment. He explained that the loan was acquired from Keystone Bank despite the alleged stubbornness of the then Commissioner for Finance, Hon. Obinna Oriaku, who had subsequently refused the Governor’s orders on the establishment of the microfinance bank.
He further accused Hon Obinna Oriaku of writing a petition to Central Bank of Nigeria through some fronts revealing that the state was embarking on the microfinance bank with borrowed money which is against CBN regulation. This action he claimed made it impossible for the change of name of the acquired bank (Swift Microfinance Bank). This obviously reveals the fact that at the moment their is no establishment like Abia SME Microfinance Bank.
Mr Nwaogu further claimed that the microfinance bank, which is with the name “Swift Microfinance Bank” have also concluded the process of change of name, which is verifiable from the CBN.
He further told the house on the ongoing plans to have the branches in all the local government areas in the state as earlier proposed. He blamed the issues of the bank on the composition of the committee and the personal interest of the then Commissioner for Finance, while stating that the present Commissioner for SME was not given any N40 million as earlier stated in the media.
Responding to the existence of the state microfinance, the house refused the submission of one of the staff as she presented contradictory statements. They therefore resolved that the Managing Director of the acclaimed Microfinance bank to appear before the House on a later date with documentary evidences regarding the bank and its operations.
The House also mandated the Commissioner and Perm Sec. of Ministry of SME to investigate into the cost of licensing a unit microfinance bank with the CBN as at the date the first negotiation was made by the Dr Eme Okoro led Committee, also investigate into the cost of acquiring a state wide microfinance bank as at the same point and provide documentary evidences pertaining the microfinance bank processes within their disposal.
The hearing was adjourned to Wednesday, 3rd February, 2021 by 10:30am at the Committee Room 1 of the Abia State House of Assembly as the Chairman pleaded with all parties involved to the present and provided all documents required from them.
Questions left unasked and unanswered at the moment are;
- How much was Swift Bank acquired
- What was the asset and liability of Swift bank as at when acquiring the bank?
- Who are the board of directors of the bank now?
- How much was the consultant that handled the project paid?
- Why were grant released from the money ?
- Why did Abia State Internal Revenue pay for the loan collected fr a bank?
- Why is the billboard carrying Abia SME Bank, while the bank was still Swift Bank?
- How many people have gotten loans from the bank apart from the grant?
- How many more grants have been given so far. Many more questions.
