How Banks Raped Imo Under Okorocha; Over N112B Involved; The Full Report

Finally, the egg has been broken.

The sh.t has hit the fan.

An unbelievable financial scam which wrecked Imo state under the former Governor Rochas Okorocha’s administration has been uncovered.  It is an unprecedented fraud.

And, both the Government and the people of the state are reeling in shock.

Nobody can, for now, confirm if the banks were on a free financial scam, on their own, or if they were in connivance with the then Government, but the state was scammed to the tune of Billions of Naira. A whopping sum of over  N112 billion is involved. At the last count, it could be more.

In  a letter accopanied by its interim report to the State Governor, Senator Hope Uzodinma, a Panel, set up by the immediate past Governor, The Rt.Honourable Emeka Ihedioha, to look into the financial status of the state, exposed the fraud and rip off. The Panel was headed by one of Nigeria’s best, Dr Abraham Nwankwo, a former boss of the Debt Management Office.

Members of the Panel  told Uzodinma that they were ready to work with him to get to the end of this unprecedented financial scam, in a bid to move the state forward.

The governor has given the Panel a nod to go ahead.

The Panel said that monies owed the atate by the banks “were claims from various infractions, including unexplained debits and penalties arising from their dealings with the state government”

These include:

*Excess penal claim

*Excess COT charges

*Excess interest on authorised overdraft

*Excess interest collections on loans

*Wrong debits recovery

*Double reversals

*Excess interest

*Collections on loans

*Excess summary penal summary claim

*Inappropriate facility fees

*Excess advisory and processing fees

*Excess management fees collections on disbursement net loss on disbursement net loss on investment of short term facility.

According to the Panel, the banks are to refund to the state the sum if N74.6billion as principal amount from the alleged infractions and penalties. In addition, they are to pay another N38.2 billion as principal sum and penalties.

Following, the full text of the Report and the letter to Governor Uzodinma by the Panel.

It was signed by Nick Opara-Ndudu, FCA, Secretary, and, Dr Abraham Nwankwo, Chairman.

The Full Report