The outgoing Finance Director at the Central Bank of Nigeria (CBN), Benjamin Fakunle, has been arrested and detained by the Department of State Service (DSS). Fakunle’s detention is reportedly related to his alleged involvement in the fraudulent preparation of the seven-year audited accounts of the apex bank.
According to findings by InsideBusinessNG, discrepancies and irregularities were discovered in the audited accounts, leading to Fakunle’s arrest. He was reportedly apprehended during his retirement party held in his honor on Wednesday.
In his role as the finance director, Fakunle was responsible for overseeing the finance department of the CBN, including the preparation of audited accounts. This position required him to supervise processes, adhere to accounting best practices, and liaise with auditors in accordance with the institution’s enabling act.
However, reports suggest that issues arose regarding the accuracy and integrity of the audited accounts, prompting an investigation. The Special Investigator’s team had previously interrogated Shuaib Ahmed, the Executive Secretary of the Financial Reporting Council of Nigeria (FRC), and his deputy, Iheanyi Anyahara. They were questioned about the ‘Accounting Guideline for Financial Reporting by the CBN,’ which was utilized by the CBN for preparing its audited accounts from 2017 to 2022.
Allegedly, the guidelines, consisting of six documents, were sold to the CBN for a total cost of N401.75 million by the late Daniel Asapokhai, the former executive secretary, his deputy, Anyahara, and Ahmed, the current executive secretary.
President Bola Tinubu appointed Mr. Jim Obazee as the special investigator to look into the affairs of the apex bank and related entities. Part of Obazee’s mandate includes strengthening key Government Business Entities (GBEs), addressing financial leakages in the CBN and associated GBEs, and producing a comprehensive report on public wealth in the possession of corrupt individuals and entities.
Fakunle is expected to provide explanations regarding the alleged N401 million payment for the guideline documents, which reportedly contradicts the rules established by the Financial Reporting Council of Nigeria. Additionally, he will need to clarify why an advance payment of N300 million was made to both KPMG and EY, the two auditors of the CBN, even though work on the 2022 audited accounts had not commenced.
It is worth noting that the DSS had previously arrested and subsequently released the Deputy Governor of the CBN in charge of Economic Policy, Dr. Kingsley Obiora, after an interrogation. Meanwhile, the suspended Governor of the apex bank, Godwin Emefiele, has been in DSS custody since his arrest on June 10, 2023, following his suspension by President Tinubu.
