Lagos - Mass Telecom Innovation (MTI), a notable local telecommunications s infrastructure services firm, is entangled in fraud crisis involving N275 million.
Shareholders accuse the former directors of the company of taking part in a fraud.
The former directors allegedly involved in the fraud include Frank Karkitie, Glenroy Darley, Amanuel Araya, Gaetano Marconi and Odibo Isaac.
Shareholders of the company, in a petition to the Nigerian Security and Exchange Commission (SEC) alleged that the former directors connived among themselves to defraud the company by paying themselves unapproved severance packages.
The shareholders also alleged that the former directors fraudulent appropriated, distributed and utilized the company’s funds raised from the capital market.
Shareholders alleged that between March and April 2008, after obtaining the consent of the SEC, MTI had a private placement to raise funds for the purpose of implementing its business development and expansion programme, improvement in information technology infrastructure, staff development and working capital as stated in the offer document.
They further alleged that some money was raised by way of private placement and the company was converted to a public limited liability company and its shares listed on the Nigerian Stock Exchange (NSE) after a successful private placement.
The shareholders however said as soon as the funds were released, the board and management paid severance package to the directors.
Each of the five directors, according to the shareholders took the sum of N55 million.
After collecting the money, it is alleged all the directors, including the non-executive directors remained on the board.
The shareholders want SEC to investigate the matter and mete sanctions to the directors.
– CAJ News