Sterling Bank Plc says the Kogi State Government does not operate a fixed deposit account with the bank.
Gatekeepers News reports that Sterling Bank Plc has disclosed that there was no mandate from the Kogi State Government requesting the creation of a fixed deposit account with its organisation.
The bank made this known in a letter addressed to the Commissioner of Finance, Budget and Economic Planning, on Monday.
This was in reaction to an investigation by the Economic and Financial Crimes Commission (EFCC) on a Kogi State salary bailout account domiciled in the bank.
On Tuesday, it was reported that Justice Tijjani Garba Ringim of Federal High Court sitting in Lagos ordered the freezing of a bank account belonging to the Kogi State government over a N20 billion loan obtained from Sterling Bank Plc.
EFCC told the court that the loan meant to augment salary payment and running cost of the state was kept in an interest-yielding fixed deposit account with the Bank.
The commission argued that the bank is yet to present any credible evidence to show that the facility is well secured.
The anti-graft agency in a 13-paragraph affidavit in support of the motion stated that it received credible and direct intelligence which led to the tracing of funds suspected to be proceeds of unlawful activities deposited in account No. 0073572696 domiciled in Sterling Bank Plc, with the name ‘Kogi State Salary Bailout Account’.
Sterling Bank has dismissed the allegation in a letter, noting that the Kogi state government does not operate a fixed deposit account within its company.
The bank argued that the account with number 0073572696 identified by the EFCC is an internal account operated for the purpose of managing the Kogi state bailout facility.
The letter read, “We are equally surprised and dismayed at the media’s narration of the events surrounding the transactions referenced and are disheartened at the characterization implied in these narrations.
“As an ethical and law abiding organization, we are confident that our conduct on these accounts and related transactions are fully beyond reproach, and are cooperating fully with the authorities in their inquiries on the Kogi State bailout accounts.
“With this correspondence, we wish to reaffirm Sterling’s commitment to upholding and maintaining the highest standards of professional conduct to your honorable self, the government, and the people of Kogi State.
“The Kogi State government does not currently operate or maintain a fixed deposit account with Sterling Bank.
“There is no mandate letter from the Kogi State government to open account number 0073572696 with Sterling.
“Sterling Bank account 0073572696 is an internal (mirror) account operated by the Bank for purposes of managing the Kogi state bailout facility.”
The bank added that the salary in the Kogi bailout accounts as of August 31 include: Kogi state bailout account 1 (0072969301) #NilBalance; Kogi state salary bailout account 2 (0073522756) – N999,190.50; Kogi state government salary account (0073499012) – N44,816,195.24.
