Justice Tijjani Garba Ringim of Federal High Court sitting in Lagos has ordered the freezing of a bank account belonging to the Kogi State government over a N20 billion loan obtained from Sterling Bank Plc.
Gatekeepers News reports that the account; 0073572696 would be frozen until the investigation or possible prosecution by the Chairman, Economic and Financial Crimes Commission (EFCC), Abdulrasheed Bawa is concluded.
The anti-graft agency had approached the court for the order in an ex-parte application brought pursuant to section 44(2) of the Constitution and section 34(1) of the Economic and Financial Crimes Commission Act and under the inherent jurisdiction of the court.
A. O. Mohammed, EFCC counsel, told the court the order was necessary so as to preserve the remaining and abate further dissipation of the funds in the account.
According to Mohammed, the N20 billion loan meant to augment the salary payment and running cost of the State Government was kept in an interest yielding account with Sterling bank. But instead of using the money for the purpose, Sterling Bank Plc acting on the instruction of the Kogi State Government transferred the money from the loan account and placed same in a fixed deposit account.
The EFCC in its 13-paragraph affidavit said it received a credible and direct intelligence which led to the tracing of funds reasonably suspected to be proceeds of unlawful activities warehoused in account No. 0073572696 domiciled in Sterling Bank, Plc with the name Kogi State Salary Bailout Account
“That upon the opening of the said account with No. 0072969301, Sterling bank Plc disbursed salary intervention loan to the tune of N20,000,000,000.00 to the account.
“That rather than used the intervention funds for the purpose for which it was granted, the State Government proceeded to open a fix deposit account No. 0073572696.
“That on the 25 day of July,2019 Sterling Bank Plc acting on the instruction of the Kogi State Government transferred the money from the loan account and placed same on aforementioned fixed deposit account.
“That the said Account sought to be frozen received the Sum of Twenty Billion Naira, (N20, 000,000,000) on the 25th July 2019.
“That as at 1st day of April, 2021 the balance standing to the credit of the said fixed deposit account was N19, 333, 333, 333.36 billion
“That we are still tracing what the sum of N666,666,666.64 b has been deducted from the said funds and were not used for the payment of the salary.
“That the Commission has the statutory mandate to prevent the Commission of economic and financial Crimes with the shores of the Federal Republic of Nigeria.
“That investigation in this matter is still ongoing and this application is pertinent to secure the funds in the said account to prevent them from being totally dissipated.”
Gatekeepers News reports that the matter was adjourned till December 1, for the report of Investigation.
