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The Independent Corrupt Practices and other Related offences
Commission (ICPC), is currently investigating the suspended managing director
of the Federal Housing Authority (FHA), Terver Gemade over allegation of
diverting N400 million belonging to authority.

The investigations are sequel to a petition written by a
non-profit group, Transparency and Anti-Corruption Vanguard and signed by its
Executive Director, Obioma Ugochukwu.

The petition alleged that the group’s investigations have
uncovered a massive fraud at the housing authority allegedly perpetuated by Mr
Gemade who is currently on suspension as an internal investigation to ascertain
his culpability begins.

“We have no faith in the so-called internal investigation. Our
investigations have revealed all manner of cover-ups are being done by his cronies
at the FHA and that is why we implore you to act expeditiously,” the petition
said, in parts. One of the allegations was the diversion of N400 million
belonging to the FHA into an escrow account without first obtaining approval of
the authority’s Executive Management Committee (EMC) or the FHA Board of
Directors as required by law.

Escrow account

“We have it on good authority that he pocketed the tidy sum of
N25 million as kickback for allowing the contractor to have access to the
N400million. Even though a query was issued to him by the Board of the FHA over
this transaction, he ignored the query,” the group alleged in the petition.

They also said Mr Gemade went further to transfer N140 million
from FHA escrow account to the Tangent Nigeria Limited project account, without
board approval and was allegedly rewarded with N10 million for his efforts.

“His bank details would reveal the staggered payments into the
account. He did not pay in the lump sum of the kick back, but paid in small
instalments. We urge you to obtain his bank statement from March 2010 in proof
of this allegation and you would see how he hides his proceeds of corruption,”
the petition said.

Mr Ugochukwu said the group is demanding a thorough investigation
into the allegations, alleging that since assuming office, Mr Gemade has
acquired a fleet of expensive cars and converted many buildings belonging to
the FHA to himself.

To the court

“While we have absolute faith in your organization to carry out a
thorough investigation, we shall be compelledto approach the law courts for an
order of mandamus to compel you to prosecute Gemade if no action is taken
within seven days,” the petition to the ICPC said.

All attempts to get Mr Gemade to react to the allegations, proved
abortive. One of his aides said he was away from the city, but did not reveal
where he travelled to.

The Federal Government recently suspended Mr Gemade for alleged
gross misconduct.

Minister of Lands, Housing and Urban Development, Nduese Essien
confirmed the suspension. The Special Assistant, (Media) to the minister,
Ibanga Isine, said government wielded the big stick based on allegations of
gross misconduct levelled against him by members of the board.

“The board had accused the former managing director of gross misconduct and
called on the government to constitute a panel to investigate him (Gemade),” Mr
Isine said. “After careful consideration of the matter and in view of Mr
President’s commitment to transparency, due process and the rule of law, the
former MD has been suspended for an initial period of three weeks to pave way
for his investigation.”