By Uzoma Akobundu
The use of eTranzact International PLC platform by First Bank Plc and the fraudulent scandal emanating from the business relationship is unsettling their boards and management.
But there appears to be respite for eTranzact as the Economic and Financial Crimes Commission (EFCC) probing fraud of more than N11 billion in First Bank through eTranzact platform may have exonerated the firm.
Armadanews.com learnt that the apex bank, the Central Bank of Nigeria (CBN), was worried about news making the rounds that billions of depositors’ money were fraudulently tampered with through the eTranzact platform.
First Bank was said to have pointed accusing fingers at owners of eTranzact since it had a business relationship with Platinum Multi-Purpose Cooperative Society Limited that was using its platform to do business in First Bank.
When the fraud blew open, Niyi Toluwalope was appointed Managing Director in Acting capacity, with many thinking the move was connected with the fraud in First Bank.
The shake-up also affected other senior managers of eTranzact.
Toluwalope was used to replace Valentine Obi, the founder and former CEO of eTranzact.
Toluwalope was the Chief Financial Officer of the company, a position he has held since 2011 before his recent elevation.
Other top executive positions affected included Executive Directors, Sullivan Akala and Ike Eze; Chief Technology Officer, Richard Omoniyi, and Head of Operations, Kehinde Segun.
The CBN had earlier asked Obi and four other senior management personnel of the payment processor company to step down based on the fraud when one Michael Obasuyi, Chief Executive Officer of Platinum Multi-Purpose Cooperative Society Limited and business partner of eTranzact was linked to it.
But eTranzact, said the change in the management had nothing to do with the fraud, insisting it was strictly a decision by the board.
eTranzact had said in press statement: “We want to categorically state that there was no fraud in eTranzact International Plc, however, a merchant used the company’s interface with a bank to perpetrate fraud.”
It also said neither PricewaterhouseCoopers (PwC) nor Ernst and Young was reviewing her books contrary to claim, even though it acknowledged that PwC handles various technology-related assignments from time to time for the company, none of which it said, has to do with account reviewing.
Armadanews.com was told by a source in First Bank that correspondences had been exchanged with CBN on the matter with the board and management uncomfortable with the amount so far lost to the use of the platform.
First Bank’s worry, our source said, stemmed from the fact that the bank is already grappling with huge debts from Non Performing Loans (NPL), and other forms of challenges, all of which are putting a lot of dent on the image of the bank as regards depositors’ money.
The resolve to involve the EFCC led to the arrest of Obasuyi as prime suspect who, it was gathered authoritatively, may have colluded with some characters in First Bank to perpetrate the fraud.
Obasuyi had taken the EFCC operatives to some of the choice assets he used the fraudulent money to purchase and had even entered into plea bargain on how to pay up all he stole using eTranzact platform.
Sources said during interrogation, Obasuyi also exonerated eTranzact from the fraud, just as the EFCC corroborated his statement that eTranzact does not have access to depositors money in First Bank.
However, EFCC operators are still keeping their ears open because of the assumption that Obasuyi and his team would not have cleaned out the said money over a period of about four years without the connivance of personnel of First Bank.
EFCC sources said they are working on the hypothesis of “give and take” that may have existed between now jailed Obasuyi and his First Bank’s co-conspirators particularly in the light of Obasuyi’s claim that he has the capacity to interfere in any technology available to the banks.
eTranzact may not also be leaving anything to chance as the management had engaged the services of KPMG to look at its books over some years in the wake of fresh financial business dealings.
Mike Obasuyi, prime suspect
