Payments provider eTranzact has payables due to First Bank of Nigeria to the tune of N2.95 billion as a result of fraudulent transactions by Smart Micro Systems Limited.
The payables decreased slightly from N2.72 billion at the end of 2019.
“eTranzact’s portion of the recovered assets from Smart Micro Systems Limited was transferred to First Bank of Nigeria Plc, to reduce the balance payable to First Bank,” eTranzact said.
The EFCC had in 2018 arrested the Managing Director of Smartmicro Systems Limited, and begun an investigation into the firm’s operations.
Smartmicro was alleged to have approached eTranzact in 2012 for the deployment of bulk purchase solution called “Corporatepay” to facilitate payment of salaries of Delta State employees in microfinance banks.
It was also alleged that the company configured an additional outbound fund transfer solution called “Fundgate” in 2017, which required Smartmicro to maintain a pre-funded settlement account with First Bank of Nigeria for settlement of account it had initiated.
However, it was alleged that the bank, sometime in March 2018, revealed that the settlement account was in debit of N11, 498,944,038.29.
The MD of SmartMicro, in his statement to the EFCC, confessed to have committed the crime, stating that he created fraudulent and imaginary monies through the aid of Fundgate financial application from the company.
The commission, in the course of investigation recovered a paper version of the programme called MicroSwitchServer1, which he allegedly used to create and post the imaginary monies.
He also admitted to have diverted to his personal use N7.5 billion (N7,519,381,202) out of the total sum of N11.5 billion (N11,498,944,038.29).
The commission has so far recovered N2.9 billion, $37,992 and €18,538 found in the SmartMicro MD’s accounts in various banks in the country.
Also, a total of 20 properties located in various parts of Edo, Rivers, Lagos and Abuja, worth several millions of Naira, were traced MD which were allegedly acquired with proceeds of crime.
ETranzact reported a loss of N118.2 million as at June 2020.