N3.8billion Bank Loan Gets Samuel Joseph Arrested By EFCC

A Lagos businessman, who allegedly diverted
a N3.8billion loan secured from an old
generation bank has been arrested by the
Economic and Financial Crimes Commission,
EFCC. Samuel Joseph, Managing Director of
Vegefresh Company Limited, Rhema
Doormart West Africa Limited, and Plywood
and Chemicals Accessories was picked up this
morning by operatives of the Commission in
Lagos. The suspect is alleged to have
collected N3,828,756,877.61 (Three Billion,
Eight Hundred and Twenty Eight Million,
Seven Hundred and Fifty Six Thousand, Eight
Hundred Seventy Seven Naira, Sixty One
Kobo) from the bank in tranches.

He allegedly collected the sum of
N2,000,000,000 (Two Billion Naira only) in
February 2012 as loan through Vegefresh
Company Limited ostensibly for the purpose
of setting up a Tomato Processing Plant in
Bauchi and Tomato Cannery in Badagry,
Lagos, as well as Cassava factory in Ogun
State. Another N1.5 billion was released to
him under the Commercial Agriculture Credit
Scheme Facility (CACS), while N500 million
was released as NEXIM Bank’s Rediscounting
and Refinancing Facility (RFF) which
accumulated to N3, 828,756,877.61 with
interest.

The bank alleges that the suspect
deliberately diverted the funds for purposes
other those intended as evidenced by
inappropriate transfers made within and
outside the bank. The suspect is also alleged
to have collected a property worth N400
million on lease from bank, paid N100 million
deposit and later demolished and sold the
property before attempting to pay the
balance of N300 million.

At the point of paying the balance, the new
management of the bank smelt a rat and
rejected the payment. The bank later
discovered that the suspect paid the initial
deposit from the N100m loan he obtained
from the same bank which he re-routed
through accounts of companies that are his
alter ego, back to the Bank’s Assets Disposal
Account. The original title to the property is
still in the bank’s possession, raising
questions as to how the suspect sold the
property. Investigation into the case
continues.

Wilson Uwujaren
Head, Media & Publicity
12th January, 2015