Crisis is currently brewing at the Nigeria Association of Small and Medium Enterprises, NASME, as some council members have petitioned the Economic and Financial Crimes Commission, EFCC, over the alleged misappropriation and conversion of $40,000 belonging to the association by its president, Dr Abdulrashid Yarima.
NASME is the umbrella body of all Micro, Small and Medium Enterprises, MSMEs, in Nigeria.
Led by Mike Alade, a member of the Governing Council and the National Publicity Secretary of the association, the council members also filed a suit against Yarima and the trustees of the association at the Federal High Court Abuja in suit no: FHC/ABJ/CV/2024.
The petition to the EFCC chairman, dated May 15, was signed by Miss Faidat Balogun of Adedunmade Onibokun & Co, on behalf of Alade and the council members.
In the petition, EFCC was urged to investigate the alleged misappropriation by Dr Yarima.
“We wish to state that it has come to our client’s attention, along with several concerned members of NASME, that there are serious allegations of financial misconduct involving the president of our esteemed organisation.
“Specifically, allegations that the president misappropriated $40,000 which was donated by sponsors during our ECOWAS SME Summit conducted on October 30, 2023 and was intended for the development and support of small and medium enterprises across the country, as well as its West African delegates,” the petition read.
They stated that there had been lack of transparency and accountability in the financial operations related to these funds, raising significant concerns among members and relevant stakeholders of NASME.
“There have been deliberate efforts to withhold or manipulate financial records to conceal the misappropriation of these funds. It is our clients position that these allegations, if proven, represent a severe breach of trust and fiduciary duty by the president and they undermine the objectives of NASME.
“The misappropriation of such a significant amount not only adversely impacts the financial standing of the organisation, but also hinders its ability to support and promote the growth of small and medium enterprises in Nigeria, which is crucial for the country’s economic development,” the petition added.
The EFCC was implored to utilise its expertise and resources to conduct a thorough and impartial investigation into the matters.
The summon was done by Olatunji Salawu of Law Office of Kayode & Co, for the said claimant whose address is at No 19, Sani Bello Close, Off Mobolaji Johnson Street, Apo Zone D, Legislative Quarters, Abuja, FCT, and was dated May, 2024.
The claimant urged the court to determine whether the tenure of the second defendant (Yarima) as the president of NASME had not lapsed by effusion of time since August 18, 2023, having been appointed for a term of two years at the Annual General Meeting of NASME held on August 19, 2021, by virtue of Section 10(iv) of the NASME Constitution and Article 4.2 of the Bye-Law, 2020 of NASME.
The court was also urged to determine whether the appointment of the third defendant, Dr Oko Aja, as chairman of the unilaterally constituted electoral committee of NASME by the second defendant without a functional Governing Council was not unlawful, ultra vires, null and void in the circumstance, among others.
The claimants also requested that the entire proceedings of the purported Annual General Meeting of NASME held on May 18 be declared unconstitutional, unlawful and illegal in the circumstance.
They called for a restraining order against Yarima and any other person or persons appointed by him from further parading himself or themselves as the president and members of the Governing Council or executive committee of NASME, among other requests.
Attempts to get Dr. Yarima’s reaction on the allegation were unsuccessful, he did not take calls to his phone, neither did he reply text messages sent to him.
