The Senate has indicted the Federal Mortgage Bank, FMB for non-recovery of loans and illegal award of contracts to the tune of N4.5 billion.
The breakdown of the mismanaged fund showed that the management of the bank irregularly awarded N3.4bn contracts, while it also failed to recover N70 million trapped in a defunct bank.
Additionally, the bank failed to recover arrears and outstanding balances of loans trapped in primary mortgage bank and micro finance bank, as well as N79 million loan granted to former officers of the bank and non recovery of loan granted to former directors.
The Senate panel then ordered the FMB to account for the sum of N3.0 billion contracts that were irregularly awarded. Additionally, the sum of N1.3 billion granted as loans to six primary mortgage banks and a micro finance bank remained outstanding as of the time of audit in 2017.
The agency in its response said the loans have already been referred to Nigeria Deposit Insurance Corporation, NDIC to assist in the recovery of the funds.