N20bn Kogi Bail-out Loan: Court Adjourns Till Oct.15 To Hear Applications

September 29, 2021
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FEDERAL High Court sitting in Ikoyi, Lagos has adjourned till October 15, 2021 for hearing of all applications filed by Economic and Financial Crimes Commission (EFCC) and Kogi State government over allegation of fraudulent transaction on a N20bn salary bail-out account domiciled in Sterling Bank by the State.

Justice Chukwujekwu Aneke, who is now in charge of the the case made the adjournment on Tuesday after counsel to Kogi State government, Prof Sam Erogbo, SAN, told the court that he needed time to enable him study the counter affidavit filed by the EFCC against the processes filed by his client and therefore asked for a short date to hear his applications.

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Justice Tijani Garba Ringim, who earlier handled the case, but it was later re-assigned to Justice Aneke, had On August 31, 2021, ordered freezing of the account, following an ex-parte application filed by the EFCC.

The EFCC, in a 13-paragraph affidavit in support of the ex-parte application, had claimed that it received a credible and intelligence, which led to the tracing of the funds 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.

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

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.
He said, “ 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.”

Mohammed further told the court that the Bank was yet to present any credible evidence to show that the facility was well secured.

After listening to the EFCC’s counsel, Justice Ringim had ordered freezing of the account number 0073572696, and also directed EFCC to publish the court order in a national newspaper.

The Commission was also ordered to make quarterly report to the court on the progress of its investigation.

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