EFCC Arrests Former Kaduna Government Contractor Over N30 Billion Fraud — Fake Contracts, Expired Drugs, and Hidden Warehouses Uncovered

 

In a shocking twist that has rocked Kaduna State and drawn national attention, the Economic and Financial Crimes Commission (EFCC) has arrested Bashir Ibrahim, the Chief Executive Officer of Formal Act Legacy Limited, over his alleged involvement in a massive fraud scheme reportedly worth over ₦30 billion.

According to the EFCC, Ibrahim, a former contractor with the Kaduna State Government, is being accused of continuing to pose as a legitimate government consultant even after his official dealings with the state were terminated in 2023. The agency alleges that he deceived dozens of unsuspecting contractors into executing fictitious contracts under the false belief that they were government-approved.

A Web of Deceit Built on a Terminated MoU

In a public statement shared via its official handle on X (formerly Twitter), the EFCC detailed how Ibrahim’s alleged criminal activities were based on a Memorandum of Understanding (MoU) he signed with the Kaduna State Government in 2020. The MoU, according to him, was for the purpose of sourcing intervention grants from global donor agencies to fund various Local Government Area (LGA) projects and support the achievement of Sustainable Development Goals (SDGs) in the state.

But things took a dark turn when the EFCC revealed that Ibrahim allegedly continued to exploit this MoU even after it was officially terminated in October 2023. The anti-graft agency said:

“It is also alleged that he informed his victims that he had a 2020 Memorandum of Understanding, MoU, with the Kaduna State government for the purpose of sourcing intervention grants from global donor agencies for the funding of LGA projects in the state and supporting the actualization of SDGs within the state.”

Fake Contracts and Unfulfilled Promises

Despite having no legitimate mandate to act on behalf of the Kaduna State Government, Ibrahim is accused of luring contractors into supplying medical and utility items, including hospital beds, drugs, boreholes, and ambulances. The EFCC revealed:

“He convinced contractors to supply materials meant for hospitals and water projects — such as beds, drugs, boreholes, and ambulances — claiming he was acting on behalf of the government.”

However, the items that were supposed to go to hospitals and rural communities were never delivered to their intended destinations. Instead, the EFCC alleges that the goods were either sold for personal profit or hidden in secret warehouses, completely unknown to the supposed government beneficiaries.

“He kept the contractors in the dark, refused to pay for the items, and stored the goods in warehouses unknown to the supposed beneficiaries,” the EFCC added.

Middlemen, Fake Paperwork, and the Collapse of Trust

In what appears to be a calculated and large-scale operation, Ibrahim allegedly sold fake contract documents through a network of middlemen. He also reportedly altered the terms and nature of the contracts unilaterally — without government involvement or approval. According to the EFCC:

“These fraudulent acts coupled with his unilateral alteration of the nature of the contracts and their terms allegedly led to the termination of the MoU he had with the state government in 2023.”

This deliberate deception left many contractors in financial ruin, having already supplied materials without receiving any payment.

What the EFCC Found During the Raid

During the EFCC’s operation to arrest Ibrahim, the agency recovered a massive collection of valuable items. Among the seized assets were:

• Toyota Hilux vans

• Ambulances

• Buses

• Dispatch motorcycles

• Heavy-duty generators

• A large cache of hospital equipment

Even more alarming was the discovery of large quantities of medical supplies inside a private warehouse. The supplies included:

• Capsules, syrups, and creams

• Syringes and surgical gloves

• Vaccines meant especially for children

The EFCC has confirmed that many of these items were either expired or counterfeit, posing serious health risks to the public if they had been distributed.

Authorities Raise Red Flags on Drug Safety

Due to the sensitive nature of the seized drugs and medical materials, the EFCC is now collaborating with the National Agency for Food and Drug Administration and Control (NAFDAC) and the Kaduna State Ministry of Health to assess the safety and authenticity of the products.

A NAFDAC official, Umar Suleiman, who serves on the agency’s federal task force, confirmed the gravity of the situation:

“Some of the recovered products have expired, while others were either counterfeit or from unregistered companies.”

This revelation has sparked fears that if not for the EFCC’s timely intervention, these substandard medical products could have ended up in public hospitals, endangering lives — especially those of vulnerable children.

Adding to the concern, Abubakar Balarabe, a pharmacist with the Kaduna State Ministry of Health, condemned the condition of the warehouse where the drugs were found:

“The place is not fit for storing medicines because of the way and manner they were kept,” he said.

This raises serious questions about the potential health hazards the public could have faced if these medications had been unknowingly distributed by government agencies.

Next Steps: Prosecution Awaits

The EFCC has made it clear that Bashir Ibrahim will face prosecution once investigations are fully concluded. Given the magnitude of the case, legal experts believe the charges could include fraud, conspiracy, misappropriation of public goods, and endangerment of public health.

This case has once again highlighted the challenges of monitoring private contractors and enforcing transparency in government-related projects. It also calls for stricter vetting processes and regular audits to prevent individuals from exploiting government channels for selfish gains.

NaijaRush will continue to follow the story closely as more details emerge and as justice takes its course.