United Bank for Africa, (UBA), under Tony Elumelu, has fraudulently diverted a princely sum of N3.9 billion NSEI funds, according to the Jim Obazee report on the activities of the Central Bank of Nigeria, (CBN) under its former governor, Godwin Emefiele.
The Obazee Report indicted Tony Elumelu and Managing Directors of UBA from 2015 till date of alleged diversion of N3.9 billion meant for participation in the Nigerian Electricity Market Stabilization Facility. The report submitted to President Bola Tinubu, specifically indicted billionaire Elumelu and Managing Directors of the UBA, and therefore recommended that they should refund N3.9 billion that they allegedly diverted.
In 2015, the apex bank under former Governor Godwin Emefiele, without any policy directive or approval by former President Goodluck Jonathan, incorporated a Special Purpose Vehicle called ‘NESI Stabilization Strategy Limited’.
The report indicated that the former President Jonathan initially approved a stabilization fund which was expected to be limited by guarantee for NESI specifically to address the problems in the electricity sector to operate for ten years, during which the fund would have been expected to be repaid.
However, for the idea to come to fruition, some of the commercial banks were selected. But the report said that the Elumelu-led UBA quietly left with the funds without complying with the provisions of the NESI.
The Obazee’s report stated that UBA quietly walked away with N3.9 billion without carrying out anything in accordance with proposal. The UBA thus became the bank that bolted with the highest figure, which the Obazee’s report to the President described as fraudulent.
The report pointedly accused the Tony Elumelu-led bank, which he chairs and with the highest shareholding, of engaging in manipulation by unlawfully arranging and collecting part of the 1.9535% meant for participation in the Nigerian Electricity Market Stabilization Facility.
This was equally contained in the External Auditor’s report, which was part of the Financial Statements of NESI Stabilization Strategy Limited, which clearly stated that the fees were paid to UBA in proportion to its contribution to the Nigerian Electricity Market Stabilisation Facility (NEMSF) disbursement.
There are feelers that the UBA is considering a response to the aspect of the Report affecting it in the form if clarifications.
Neither Tony Elumelu nor UBA were able to respond to inquiries about the allegations as of the time of filing this report.
