EFCC denies taking 10 per cent of recovered debts

By Elizabeth Archibong

The Economic and Financial Crimes Commission (EFCC) has described reports accusing it of collecting 10 per cent of the money recovered from debtors, on behalf of the banks, as "a distraction." NEXT on Sunday had published an investigative report on November 8 in which banking and commission sources revealed that such a remittance existed, as an "administrative charge."

"We of course collect 10 per cent administrative charges for all our labour" an operative of the Commission told NEXT on conditions of anonymity, in Abuja at the weekend, insisting that "it is not a bribe, it's just administrative, and it's done everywhere in the world, even the police do it here." But in an official statement issued on Sunday, Femi Babafemi, the Commission's spokesman said, "For the avoidance of doubt and the benefit of the public, the Commission has not at any time demanded or collected any cut in whatever form from any bank over funds so far recovered for the bailed out banks or any other."

Counter-accusations

Spring Bank officials had revealed that the financially unrealistic payment of 10 per cent cuts to debt recovery firms and the law enforcement agencies was a crucial point at a board meeting convened by Olusola Ayodele, the bank's new chief executive, about two weeks ago.

A source present at the meeting said the bank decided they would do without the services of the debt recovery agents.

However, the Commission's statement in turn claimed those disenchanted with its recent successes at recovering a total of N171 billion owed the banks by Nigeria's businessmen and politicians, were to blame.

Licensed to recover

Though in his statement, Mr. Babafemi admits that "a simple loan facility does not at face value invite the EFCC," he argues that "where the loan process from application, through processing, to approval, disbursement, utilization and finally repayment has a criminal flavour, then the EFCC will be involved because a criminal law has been flouted."

The Commission also justified its role in the recovery of loans by citing the EFCC Act of 2004.

"We understand that section 7 (2) of the legislation establishing the Commission states that the EFCC ‘shall be the coordinating agency for the enforcement of the provisions' of the following key legislations: The Failed Banks (Recovery of Debts) and Financial Malpractices in Banks Act 1994 (and) The Banks and other Financial Institutions Act (BOFIA) 1991."

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Reader Comments (12)

Posted by TATA on Nov 10 2009

deny? have you ever heard an accused confess to a crime in nigeria? ibori claims he is not guilty, obasanjo inherited money to build bells university...even the bank managers and debtors are denying....there is no smoke without fire...we can only trust the cbn to tell us who has custody of 100% of the recovered amounts...

Posted by eclub on Nov 10 2009

I think Madam Farida aka Honest Dame should sue NEXT for defamation of character. This poor woman doing her best for the fatherland is blasphemed, trodden upon and mutilated on the pages of NEXT. She's just collecting 10% of the money that would have been stolen, is she not entitled to the national cake? I would see as this playes out...as we say na siddon look cat de wey mouse come take im tongue play

Posted by Austine Uche Ejeke on Nov 10 2009

NEXT you like gossip so much. This is a shoddy report as far as am concerned; all the confirming authorities you are supposed to get confirmation you did not. What we read were just hear say. This is not good for your new newspaper. Get your readers documentary proofs and hardcore evidence in this kind of story as it’s is very sensitive and can affect our nationhood and stability. Mention names and publish them or be damned. Am not saying that efcc is a saint organization, but it may not be the official line of the institution to take 10%. If few corrupt officials are extorting money, that is a different case altogether and there should be no need for this kind of generalizations

Posted by Jacob on Nov 10 2009

This is part of the problem with Nigerian journalist. They are lazy, the use of anonymous sources, especially when the information cannot be verified from another source is a suspect and should be discontinued. The quote may even have been made up by the writer and citing anonymous source as a cover-up.

Posted by Debola on Nov 10 2009

@ Jacob, I don't know what newspaper in any part of the world that does not use anonymous sources in 1 of 4 of their stories.

Posted by daniel on Nov 10 2009

More importantly how many crimes have jacob and his ilk ever helped prevent or uncover by providing information of ANY kind to the authorities?If NEXT came to ask him questions about his work,would he give truthful answers? Why is it so easy to criticise but never do anything concrete to help?

Posted by johncissy on Nov 11 2009

10%?efcc na God?

Posted by Chika on Nov 11 2009

Good article, but the problem with anonymous sources is they can be challenged and it bring the credibility of the publication into question. Is it absolutely plausible that the EFCC is accepting a 10% "administrative fee"? Hell yes! But where is the evidence you have of that in your investigative reports? Show that, and the EFCC wouldn't have a leg to stand on. And could you break down that last paragraph. What exactly does the 2004 Act state - in plain English?

Posted by Sumayya on Nov 18 2009

I heard from a reliable bank manager that EFCC quickly returned the 10% to their bank before the official denial came.... thank God for the media, at least it is making them jittery and at least that bank recovered the amount paid!

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