Audit observed that in 2009, the Bank approved a loan of N184,274,350.00 to a developer for the development of 75 units of houses, out of which the sum N125,747,079.00 was released to a primary mortgage bank for onward disbursement to the developer.
However, only the sum of N98,747,079 was disbursed by the primary mortgage bank, as the balance of N27,000,000.00 was withheld by the primary mortgage bank without any justifiable reason for withholding the amount. Audit also observed that the project site had since been abandoned without any concrete explanation provided.
The Managing Director is required to explain why the Primary Mortgage Bank withheld the sum of N27,000,000.00 meant for a developer, and to recover the amount from the Primary Mortgage Bank. He is also required to ensure that the developer returns to site or the contract be revoked and the sum of N98,747,079 so far paid should be recovered from the developer. Otherwise, sanctions stated in FR 3104 should apply.
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