Date Published: 10/19/09

Why sacked bank PHB boss, Atuche was arrested by EFCC…

…How he withdrew over $35Million from NNPC’S accounts to block non-performing loans

…How he fraudulently acquired bank shares worth over N45Billion

Farida Waziri, EFCC Boss

Details emerged at the weekend about the alleged financial crimes committed by the sacked boss of Bank PHB, Francis Atuche and his cronies at the bank, which led to his incarceration by the Economic and Financial Crime Commission (EFCC).

Atuche and the Falcon Securities boss, Peter Ololo were picked up by the EFCC on Friday over strings of non-performing loans and dubious acquisitions. Ololo owes three troubled banks, which are Atuche’s Bank PHB, Afribank, and Intercontinental Bank. Ololo has over N108 billion to his name as non-performing loans approved without adequate collateral by Atuche and the Chief Executives of Afribank and Intercontinental.

Pointblanknews.com gathered from sources at the EFCC and Central Bank of Nigeria that Atuche was picked by the EFCC to explain his role in several financial misconducts.

According to our source, Atuche, in concert with a small clique at Bank PHB approved non- performing loans worth over N170Billion without adequate collateral, while he held sway at the bank.

It was also learnt that Atuche and alleged co-conspirators diverted over $35Million from the accounts of the Nigeria National Petroleum Corporation (NNPC), to fraudulently service some non- performing loans he had approved without collateral.

The source who preferred anonymity because the investigation is on-going, further disclosed that Atuche allegedly acquired bank shares worth over N45 Billion without backing such purchase with cash. It was however not clear if he got the shares for himself or for some of his benefactors or cronies which include Executive Directors..

Pointblanknews.com also learnt from our source that Atuche is being investigated for what the source tagged income overstatement running into over N32.4Billion.

Spokeperson for the Central Bank of Nigeria(CBN), Mohammed Abdulahi, and that for the EFCC, Femi Babafemi both confirmed that Atuche was being investigated for financial misconducts, but would not give details of the alleged scams.

Babafemi said “ As you are aware they are in our custody, and the investigation is going on.”

Abdulahi on his part said in a separate telephone interview “ We can’t confirm anything at this time. All we know is that the NDIC and CBN are examining the books of the bank (Bank PHB), They found a lot of infractions bothering on due process. “