Multi-Billion Dollar Fraud rocks NERFUND, NCAA...CEO's under fire


Allegations of large scale fraud are rocking two federal government agencies in Abuja. The multi-billion dollar scams involves the National Economic Reconstruction Fund (NERFUND), and the National Civil Aviation Authority (NCAA). learnt that while the N2 Billion allocated to the NERFUND in the last supplementary budget may have developed wings supervised by its Chief Executive, Baba Gimba, over N3Billion in airline charges collected by NCAA went into the personal account of the Director General, Harold Demuren.

According our sources, last year alone NERFUND got N2 Billion from the budget for micro finance, $130 million from the African Development Bank (ADB), and another N300 million from the Ministry Of Finance Incorporated (MOFI).

EFCC spokesman, Femi Babafemi confirmed the alleged rot at NCAA, but said the agency is yet to receive the petition against Gimba. Adding “ yes we are investigating allegations against Demuren, but if we receive any petition concerning NERFUND we will act.”

It is being alleged that less than half of all the funds received has been disbursed to needy small and medium scale entrepreneurs. Even when disbursement is made , it is grossly tilted towards cronies of Gimba, and top officials.

Sources within the fund hinted that disbursement of the N2Billion was statutorily expected to recoup 8 per cent  interest per beneficiary , while the ADB cash has a 14 per cent interest rate. But , it was learnt, Gimba had consistently disbursed to cronies waiving the interest at his whims.

Gimba who is 66 years old and has been in acting capacity for 11 years, is also alleged to have connived with an estate agent to inflate the cost of rent for its Wuse II Abuja corporate office. It was learnt that on the records, it cost N25 million per annum for its duplexe, while the going rate for similar property in that same area is N3 million per annum. also learnt that of the 22 flats inherited by the Fund in Abuja, only seven are being accounted for.

Said the source” large scale fraud is being perpetrated. Some Nigerians even think NERFUND is dead but its alive. The MD has been running it like his own. No increment of salary, he doesn't disburse the funds, he has been there for so long. He even bosts that his appointment letter has no date. “ 

At the NCAA, learnt that Demuren has consistently diverted over N3 Billion being airline charges into his private account.

He also allegedly bought top brand jeeps for members of the aviation committee in the House of Representatives.

Demuren also awarded the contract for the maintenance of the hanger to his son.

While Demuren has denied all allegations, spokesman for NERFUND, Dahiru Ali, could not be reached as at press time. However a source close to his office said” The allegations are frivolous. We have disbursed about N25Billion so far. About 266 projects benefited and 224 fully paid. “