N20b Salary Loan: Court Freezes Kogi’s Bank Account

A Federal High Court in Lagos on Tuesday froze a Kogi salary
bailout account domiciled in a new generation bank over a N20
billion loan obtained from the bank.

Justice Tijjani Garba Ringim made the order pending the
conclusion of an investigation or possible prosecution by the
Economic and Financial Crimes Commission (EFCC).

The agency approached the court via an ex-parte application
brought pursuant to Section 44(2) of the Constitution and Section
34(1) of the EFCC Act.

Its counsel, Mr A. O. Muhammed, informed the court that the
order was necessary to preserve the res and abate further
dissipation of the funds in the account.

Moving the application, Muhammed alleged that the N20b loan was
meant to augment the salary payment and running cost of the state
government but was kept in an interest yielding account with the
bank.

He added that instead of using the money for the purpose it was
meant for, the Kogi State Government instructed the bank to
transfer the money from the loan account and place same in a fixed
deposit account.

According to the agency, the bank is yet to present any credible
evidence to show that the facility is well secured.

Granting the application, Justice Ringim ordered the EFCC to
publish the order in a national newspaper and make a quarterly
report to the court on the progress of its investigation.

The judge adjourned the matter till December 1, for the report
of Investigation.

The EFCC’s allegations were made in its 13-paragraph affidavit
in support of the ex-parte motion deposed to by a member of a team
of investigators attached to the Chairman Monitoring Unit Lagos of
the EFCC.

The document averred that the Commission received credible and
direct intelligence which led to the tracing of funds reasonably
suspected to be proceeds of unlawful activities warehoused in the
account with the name Kogi State Salary Bailout Account

He said the Commission acted on the said intelligence and
assigned same to the Chairman Monitoring Unit, where it was
discovered that on April 1, 2019, the management approved an offer
of an N20billion bailout loan facility for the Kogi State
Government.

According to the deponent, on June 19, 2019, fiscal year, the
Kogi State Government, Ministry of Finance and Economic
Development, Office of the Commissioner, applied for a credit
facility of N20billion with an interest rate of nine per cent for a
tenure of 240 months from the bank”.

The agency added that the said facility was meant to augment the
salary payment and running cost of the state government.

It stated further that on June 26, 2019, the credit facility
offer was accepted vide a memorandum of acceptance signed by
Governor Yahaya Bello; Asiwaju Asiru Idris, the Commissioner of
Finance Kogi State; and one Alhaji Momoh Jibrin, Accountant
General, Kogi State.

It averred that before the said application for a loan, the Kogi
State Government on the 19th June 2019 vide a letter to the Manager
of the bank in Lokoja applied for an account opening in the Bank
with the name Kogi State Salary Bailout Account with Alhaji Momoh
Jubril, Accountant General of the State and Elijah Evinemi Ag.
Director Treasury as the signatories to the said account.

“That upon the opening of the said account disbursed salary
intervention loan to the tune of N20billion to the account.

“That rather than use the intervention funds for the purpose for
which it was granted, the State Government proceeded to open a
fixed deposit account No. 0073572696.

“That on the 25 day of July 2019, the bank acting on the
instruction of the Kogi State Government transferred the money from
the loan account and placed same on the 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 of 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
billion, 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.

“That without freezing the nominated accounts, there is no
better way of preserving res”.

A Federal High Court in Lagos on Tuesday froze a Kogi salary
bailout account domiciled in a new generation bank over a N20
billion loan obtained from the bank.

Justice Tijjani Garba Ringim made the order pending the
conclusion of an investigation or possible prosecution by the
Economic and Financial Crimes Commission (EFCC).

The agency approached the court via an ex-parte application
brought pursuant to Section 44(2) of the Constitution and Section
34(1) of the EFCC Act.

Its counsel, Mr A. O. Muhammed, informed the court that the
order was necessary to preserve the res and abate further
dissipation of the funds in the account.

Moving the application, Muhammed alleged that the N20b loan was
meant to augment the salary payment and running cost of the state
government but was kept in an interest yielding account with the
bank.

He added that instead of using the money for the purpose it was
meant for, the Kogi State Government instructed the bank to
transfer the money from the loan account and place same in a fixed
deposit account.

According to the agency, the bank is yet to present any credible
evidence to show that the facility is well secured.

Granting the application, Justice Ringim ordered the EFCC to
publish the order in a national newspaper and make a quarterly
report to the court on the progress of its investigation.

The judge adjourned the matter till December 1, for the report
of Investigation.

The EFCC’s allegations were made in its 13-paragraph affidavit
in support of the ex-parte motion deposed to by a member of a team
of investigators attached to the Chairman Monitoring Unit Lagos of
the EFCC.

The document averred that the Commission received credible and
direct intelligence which led to the tracing of funds reasonably
suspected to be proceeds of unlawful activities warehoused in the
account with the name Kogi State Salary Bailout Account

He said the Commission acted on the said intelligence and
assigned same to the Chairman Monitoring Unit, where it was
discovered that on April 1, 2019, the management approved an offer
of an N20billion bailout loan facility for the Kogi State
Government.

According to the deponent, on June 19, 2019, fiscal year, the
Kogi State Government, Ministry of Finance and Economic
Development, Office of the Commissioner, applied for a credit
facility of N20billion with an interest rate of nine per cent for a
tenure of 240 months from the bank”.

The agency added that the said facility was meant to augment the
salary payment and running cost of the state government.

It stated further that on June 26, 2019, the credit facility
offer was accepted vide a memorandum of acceptance signed by
Governor Yahaya Bello; Asiwaju Asiru Idris, the Commissioner of
Finance Kogi State; and one Alhaji Momoh Jibrin, Accountant
General, Kogi State.

It averred that before the said application for a loan, the Kogi
State Government on the 19th June 2019 vide a letter to the Manager
of the bank in Lokoja applied for an account opening in the Bank
with the name Kogi State Salary Bailout Account with Alhaji Momoh
Jubril, Accountant General of the State and Elijah Evinemi Ag.
Director Treasury as the signatories to the said account.

“That upon the opening of the said account disbursed salary
intervention loan to the tune of N20billion to the account.

“That rather than use the intervention funds for the purpose for
which it was granted, the State Government proceeded to open a
fixed deposit account No. 0073572696.

“That on the 25 day of July 2019, the bank acting on the
instruction of the Kogi State Government transferred the money from
the loan account and placed same on the 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 of 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
billion, 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.

“That without freezing the nominated accounts, there is no
better way of preserving res”.