The Federal High Court in Abuja grants N100 million bail to the former Chief Executive Officer of the Federal Mortgage Bank of Nigeria (FMBN), Gimba Kumo Yau, who is accused of awarding a $65 million real estate contract to an allegedly unqualified company, Good Earth Power Nigeria Limited, in 2012.
Justice James Omotosho also grants bail to co-defendants Bola Ogunsola and Tarry Rufus during Wednesday’s hearing. The Independent Corrupt Practices and Other Related Offences Commission (ICPC) files the case, alleging violations of the Public Enterprises Regulatory Commission Act and the Money Laundering (Prevention and Prohibition) Act, 2022.
Case Details
The ICPC accuses Yau of authorizing payments totaling N3.78 billion to Good Earth Power Nigeria Limited for a project to build 962 residential units in Abuja, named “Goodluck Jonathan Legacy City.” The anti-graft agency claims the firm lacks the capacity to deliver the project, which remains incomplete.
The defendants are also accused of obtaining a N14 billion loan from Ecobank Nigeria PLC in 2012 for the project, which was expected to be completed within 18 months. The ICPC states that the deal caused significant financial losses to the bank, violating regulatory laws.
Additionally, the defendants are accused of facilitating the transfer of $3.55 million in cash from the contract sum, breaching the Money Laundering Act.
All defendants plead not guilty during their arraignment.
Court Proceedings and Bail Conditions
The defendants’ legal teams argue for bail, citing the presumption of innocence and assuring the court that their clients will comply with court orders. The ICPC does not oppose the applications for bail.
Justice Omotosho emphasizes the presumption of innocence and the court’s discretion in granting bail. He sets strict conditions, requiring two sureties for each defendant who must own property worth N100 million, provide evidence of three years of tax payments, and swear an affidavit of means.
The defendants must also surrender their international passports, provide passport photographs, and submit certified bank statements. The court registrar is instructed to verify these documents before their release.
Background
In 2021, the ICPC declares Gimba Kumo Yau, Tarry Rufus, and Bola Ogunsola wanted over allegations of diverting public funds for real estate projects. The agency recovers N53 billion from a developer connected to the Federal Mortgage Bank of Nigeria.
The Senate Committee on Public Accounts previously summons Yau over a N3 billion contract flagged in a 2015–2018 audit report. Yau consistently denies the allegations, stating his willingness to cooperate with investigations.
This case underscores efforts to address financial misconduct in Nigeria’s public sector.
, Gimba Kumo Yau, who is accused of awarding a $65 million real estate contract to an allegedly unqualified company, Good Earth Power Nigeria Limited, in 2012.){kind=link}