N20billion Kogi state government salary bailout loan: Court grants crime commission’s application

The Federal High Court sitting in Ikoyi, Lagos, on Friday, granted the application filed by the Economic and Financial Crimes Commission,(EFCC),seeking to discontinue the matter in suit number FHC/L/ CS, 1086/2021 involving the N20billion Kogi State Salary bail-out loan.

Penpushing reports that, Head of Media and Publicity of the commission said, the application, according to the agency counsel, Kemi Pinheiro,(SAN), is sequel to the decision of the management of Sterling Bank Plc to return the total sum of N19, 333,333,333.36 standing in the credit of the frozen account back to the Central Bank of Nigeria(CBN).

The statement recalled that, on August 31, 2021, Justice Tijani Garba Ringim, a vacation Judge, had ordered the freezing of the account, following an ex-parte application filed by the Economic and Financial Crimes Commission (EFCC).

Penpushing further reports that, the commission, in a 13-paragraph affidavit in support of the ex-parte application, had stated that it received a credible and direct intelligence, which led to the tracing of the funds reasonably suspected to be proceeds of unlawful activities in an account number 0073572696 domiciled in Sterling Bank, Plc with the name Kogi State Salary Bailout Account.

The counsel to the agency, A.O Mohammed moving the application for the interim forfeiture of the funds on August 31, 2021, had urged the court to grant the order so as to prevent further dissipation of the funds in the account.

Penpushing also reports that, Mohammed had also told Justice Ringim that 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.

“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 stated

Penpushing reports that, Mohammed further told the court that the bank had yet to present any credible evidence to show that the facility was well secured.

The judge, Justice Ringim after listening to the applicant’s counsel, had ordered the freezing of the account number 0073572696, and also directed the publication of the order in a national newspaper by the anti-graft agency.

Penpushing further reports that, at the last adjourned sitting, counsel to the Kogi State government, Prof. Sam Eguro,(SAN), had told Justice Aneke, whom the matter was re-assigned to, that his client had filed processes against the interim order granted by Justice Ringim, and that the agency  had equally filed reply to the same.

The Head Media Publicity of the commission in the statement said, Erogbo, had, therefore, told the court that he needed time to respond to the agency’s counter-claim and also asked for a short date to hear his applications.

Penpushing also reports that, in his response, counsel to the Economic and Financial Crimes Commission (EFCC), Rotimi Oyedepo, had admitted being served with the processes, and added that he had equally filed his counter.

The judge, Justice Chukwujekwu Aneke consequently adjourned to Friday for hearing of all applications, and at the resumed sitting, counsel to the agency, Kemi Pinheiro, told the court that the management of Sterling Bank Plc, where the account number 0063572696 with the name Kogi State Salary Bail-out account is domiciled had acknowledged the existence of the said account in its book, “but claimed the same was a mirror account.”

Penpushing reports that, he further told the court that the management of Sterling Bank, where account number 0073572696 with the name Kogi State Salary Bail-out account is domiciled had clarified the questions leading to the commencement of the suit.

The counsel further told the court that the sum of N19, 333,333,333.36 is still standing in the credit of the account frozen pursuant to the Order of this Honorable Court”, adding that  the management of Sterling Bank PIc, where account No. 0073572696 is domiciled has, pursuant to a letter dated 15 September, 2021, signed by its Managing Director ,indicated  intention to return the total sum of N19,333,333,333.36 back to the Central Bank of Nigeria.

Penpushing also reports that, he, therefore, prayed that it is expedient for the instant suit to be discontinued and the account unfrozen to enable the management of Sterling Bank PIc effect the transfer/ return of the sum of the sum of N19, 333, 333, 333.36 back to the coffer of the Central Bank of Nigeria , where the said bailout funds was disbursed.”

Meanwhile, the counsel to the respondent ,in his response acknowledged the notice of discontinuation, and in his ruling, Justice Aneke held that, “since this is what they are asking for, the application is therefore granted as plead.”

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