The Federal High Court in Abuja has granted bail to Mr. Gimba Kumo Yau, former CEO of the Federal Mortgage Bank of Nigeria, in the sum of N100 million.
Yau is facing charges of allegedly awarding a $65 million real estate contract in 2012 to Good Earth Power Nigeria Limited, a firm accused of lacking the competence to complete the project.
On Wednesday, Justice James Omotosho also granted N100 million bail to two co-defendants, Bola Ogunsola and Tarry Rufus, in connection with the case filed by the Independent Corrupt Practices and Other Related Offences Commission.
The charges, outlined in case FHC/ABJ/CR/333/24, involve multiple breaches of regulations, including violations of the Public Enterprises Regulatory Commission Act and the Money Laundering (Prevention and Prohibition) Act.
Alongside the individual defendants, Good Earth Power Nigeria Limited and T. Brend Fortunes Limited have been named as co-defendants for allegedly contravening statutory provisions.
The ICPC’s charges accuse Yau of approving a payment of N3.785 billion to Good Earth Power Nigeria Limited, part of the $65 million contract intended for the construction of 962 residential units in Kubwa, Abuja, under the “Goodluck Jonathan Legacy City” project.
The commission claims the company was unqualified to carry out the work, resulting in an incomplete project and significant financial loss for the bank.
Yau and Ogunsola, as executives of FMBN in 2012, had secured a N14 billion loan from Ecobank Nigeria PLC for the housing project. However, the project has reportedly remained unfinished, contributing to “economic adversity” for FMBN.
The ICPC further alleges that the defendants were involved in money laundering, with the defendants accused of receiving and disbursing $3.55 million in cash from the contract sum.
At the bail hearing, defense counsels argued that their clients were entitled to bail under the presumption of innocence, highlighting that none of the charges carried a death sentence. ICPC’s counsel did not oppose the bail applications.
In his ruling, Justice Omotosho affirmed that bail is granted based on the presumption of innocence, and at the discretion of the court. Each defendant was granted bail of N100 million, with the condition of two sureties per defendant, each possessing property worth N100 million.
Additionally, the sureties must provide an affidavit of means and evidence of tax payment for the last three years. The defendants must also submit their international passports to the court registrar.
This case stems from a 2021 ICPC investigation that resulted in the declaration of Yau, Ogunsola, and Rufus as wanted for their involvement in the alleged diversion of public funds linked to the $65 million real estate contract.
The Senate had also previously summoned Yau over irregularities, including the controversial award of a N3 billion contract, as highlighted in an audit report by the Auditor-General of the Federation. Yau has maintained that he has nothing to hide in the ongoing investigation.
