26 Aug 2009

Further arrests for fraud tipped in Nigeria

1:50 pm on 26 August 2009

Special fraud police in Nigeria are preparing to make further arrests of business tycoons who have failed to repay billions owed to banks.

A deadline is about to expire for those owing money to return it to the troubled banks.

The government was forced to rescue five banks and sack their entire leadership teams last week to save the banks from collapse.

Some senior bankers are in custody but two chief executives are on the run.

The BBC reports they are wanted in connection with accusations of money laundering, insider trading, capital market manipulation and abuse of credit process.

Last week, the central bank governor shamed some of the wealthiest people in Africa by naming them for not paying back massive loans.

Anti-fraud officials say some of the money has been returned, but huge amounts remain outstanding.

The deadline for repayment expires at midnight on Tuesday (2300 GMT).