Following an extensive investigation by this medium that Commerce and Mortgage Bank (CMB), situated t Charlotte Street Freetown, played an integral role in an alleged sophisticated financial crime syndicate involving the Freetown City Council (FCC), with allegations that bank staff did not merely facilitate but actively conspired with FCC employees to siphon millions of leones in public funds.

The Anti-Corruption Commission (ACC) investigation uncovered what it described as a “coordinated scheme” involving FCC staff and CMB bankers, in which public revenue meant for the FCC was systematically diverted into the Freetown City Football Club (FCFC) account. The account, originally intended for sporting activities, was allegedly used as a conduit to divert taxpayer money between January and March 2025.

While the alleged fraud involved a network of FCC staff, the role of CMB’s internal operatives has drawn particular scrutiny from investigators. ACC Commissioner Francis Ben Kaifala described the banking employees as being in “collusion” with council staff.

The investigation detailed how CMB employees allegedly helped facilitate fraudulent withdrawals from the FCFC account. Documents in the possession of this medium, alongside statements from the ACC, indicate that CMB staff were allegedly instrumental in the use of forged signatures to gain unauthorized access to funds.

It was also revealed that CMB employees allegedly aided in the unauthorized charging and use of additional cheque books for the FCFC account, which had been authorized for legitimate sporting activities.

“Let this serve as a warning to other banks in Sierra Leone,” Commissioner Kaifala stated. “If any bank is found to be complicit in fraudulent acts, they will face the full force of the law.”

The findings have also drawn attention to broader governance and internal-control issues at the bank. Sources have pointed to the 2024 Auditor General’s report, which criticized CMB for failing to meet certain regulatory standards, citing issues including manual loan grading, unresolved reconciling items and IT security lapses.

These concerns have raised questions about whether weaknesses in the bank’s internal controls made the alleged fraud possible or easier to perpetrate.

The ACC has already taken steps in the matter, recovering NLe3,000,000 from CMB to reimburse the FCC. The Commission is also actively considering prosecuting the implicated CMB staff for their alleged roles in the criminal enterprise.

According to the investigation, the alleged scheme involved altering payment instructions on cheques meant for the Council. FCC staff would allegedly divert cheques by adding the words “Football Club” to the payee line. Once deposited into the football club’s account, the funds were allegedly withdrawn and shared by those involved, with claims of active collaboration by CMB staff.

Alex Emile Studa-Vincent Esq. is the Managing Director of Commerce Mortgage Bank.

Responding to the allegations, Mr. Sidikie Tommy, Esq who doubles as the legal practitioner, on behalf of Commerce and Mortgage Bank (CMB), rejected the claim that bank staff colluded with FCC officials to divert public funds.

His central position is that there was no collusion between CMB staff and FCC personnel. He argued that the bank’s employees processed cheques presented through the normal banking process, while the alleged fraud was perpetrated by individuals within FCC who prepared and signed the instruments.

He nevertheless acknowledged that the ACC identified shortcomings in the bank’s due diligence, particularly the failure of some bank staff to question discrepancies, including alterations or additions on cheques and the apparent similarity between the FCC and Freetown City Council Football Club accounts.

However, Mr. Tommy esq distinguished what he described as negligence or failure to exercise adequate due diligence from deliberate participation in the alleged fraud.

According to CMB’s response, its staff did not receive or benefit from any of the allegedly diverted funds. The bank maintains that the cheques were prepared and signed by FCC personnel and that the relevant signatures were those of FCC signatories, rather than CMB employees.

CMB further disclosed that three staff members who were investigated in connection with the matter were subsequently exited from the bank.

The bank also stated that it intends to pursue civil action against FCC personnel to recover monies that CMB says it was required to pay as a result of the matter.

CMB maintains that it has strengthened its internal controls to prevent similar incidents from occurring in the future and insists that it fully cooperated with the ACC throughout the investigation.

The competing positions now place renewed focus on the findings of the ACC investigation, the extent of CMB employees’ involvement, and whether the conduct identified by investigators amounts to deliberate collusion or failures in internal controls and due diligence.

This medium will provide further details on the matter in its next edition.