The Economic and Financial Crimes Commission have accused officials of Kogi State government of diverting the N20 billion bailout secured by the state government to pay workers.
Njenje Media News reports that the EFCC claimed that the money was diverted into an interest-yielding account.
It was learned that the money was put in Sterling Bank, with the account name: Kogi State salary bail-out account.
The Economic and Financial Crimes Commission is requesting a court order to ensure that the funds are forfeited and restored to the coffers of the Nigerian government.
The Federal High Court in Ikoyi, Lagos, presided over by Justice Chukwujekwu Aneke, deferred the hearing of all applications in respect of the money till October 15, 2021.
At the hearing, counsel for the Kogi State government, Prof. Sam Erogbo, SAN, informed Justice Aneke that his client had filed procedures against Justice Ringim’s interim order, and that the EFCC had also filed a reply.
He told the court that he needed time to respond to the EFCC’s counter-claim and also asked for a short date to hear his applications.
Consequently, Justice Aneke adjourned the matter till October 15, 2021, for hearing of all the applications.
Following an ex-parte suit filed by the EFCC, Justice Tijani Garba Ringim ordered the account to be frozen on August 31, 2021.
The EFCC, in a 13-paragraph affidavit in support of the ex-parte application, said the money was reasonably suspected to be proceeds of unlawful activities in an account No. 0073572696 domiciled in Sterling Bank, Plc with the name Kogi State Salary Bailout Account.
A. O. Mohammed, counsel for the EFCC, had urged the court to grant the Order to prevent further dissipation of the funds in the account, in moving the application for the interim forfeiture of the funds on August 31, 2021.
The N20 billion loan meant to augment the salary payment and running cost of the government was kept in an interest-yielding account with the bank, Mohammed had also told Justice Ringim.
“Instead of using the money for the purpose it was meant for, Sterling Bank Plc, acting on the instruction of the Kogi State Government, transferred the money from the loan account and placed it in a fixed deposit account.”
He also told the court that the bank had yet to present any credible evidence to show that the facility was well secured.
The Commission was also ordered to make a quarterly report to the court on the progress of its investigation.
The Kogi State government has denied the allegations.
