Union Homes Wants Probe Into Alleged N1.5 bn Fraud

A Lagos State High Court, sitting at Ikeja, has adjourned hearing of an application seeking an order for a probe into alleged diversion of N1.5 billion compensation paid by Lagos State Government to victims of demolition.

The matter followed a drama involving Union Homes Plc. and Aso Savings and Loans, which is the lead agency in an unfinished merger between both firms, where the latter was accused of diverting N2.5 billion judgment debt compensation, which the state should have paid to Union Homes Plc., Searaq Nigeria Limited and the Abule Ado Plumbing Materials Association.

The said judgment debt was paid to Aso Savings, a non-party to the judgment debt, instead of parties involved in the suit.

The claimants are seeking court’s intervention on alleged diversion of N1.5 billion out of the N2.5 billion compensation.

An application seeking investigation by the Economic and Financial Crimes Commission (EFCC) into the alleged diversion was tendered before the court by counsel to the claimants, M. O. Kusamotu.

Counsel to Lagos State government requested that the court grant it time to respond to the application.

Justice L. A. F. Oluyemi, after perusing the said application, asked the State counsel why the compensation in question was paid to an entity that is not a party to the suit.

The counsel told the judge that the Ministry of Justice and the Attorney-General of Lagos State were not aware of the payment to the third party and had sent the application to the respective departments to react to the application to enable them respond to same.

Meanwhile, Justice Oluyemi has adjourned to July 18, for continuation of hearing.

Additional Reports By The Guardian