Jonathan Nnamdi Udemadu, the former Managing Director (MD) of Achina Microfinance Bank, has been sentenced to 11 months imprisonment after being convicted for committing multiple frauds.
After being found guilty of nine-count charges of abuse of office, forgery, issuance of dud cheque, and fraudulent conversion of depositors fund to the tune of N66,633,000.00, Justice I.B. Gafai of a Federal High Court in Anambra, convicted Udemadu.
In line with Section 321(a) of the Administration of Criminal Justice, Act 2015, the presiding judge ordered the convict to refund Achina Microfinance Bank the sums of money contained in the charge.
Speaking of the incident, the Economic and Financial Crimes Commission (EFCC) said it was written a petition by the microfinance bank. The petition, according to EFCC, alleged that Udemadu during his time as Achina’s MD, granted N15 million unauthorised credit facility to Rommex Telecommunications Limited and also did the same to Noble Mike International Limited, to the tune of N3 million, as he stood as their guarantor, without collateral.
Reputational damage for Achina Microfinance Bank
It is an open secrete that fraud is a challenge that has since been plaguing the banking sector on a global scale. In recent times, fraudulent activities have been on the rise, as bank employees like Achina’s former MD, align themselves to be part of the machineries carrying out fraud at the detriment of bank customers, and sometimes the financial institution itself.
Although, Udemadu’s conviction is a victory for Achina, as it will serve as deterrent to others; when staff members of financial institutions engage in fraudulent activities or any improper business practices are revealed, it often puts the bank’s reputation at risk. As a matter of fact, in the end, this can have a negative impact on anyone who may want to do business with the company.