Kogi Doesn’t Operate Fixed Deposit Account With Us, Says Sterling Bank

Sterling Bank says the Kogi state government does not operate a
fixed deposit account with the lender.

The bank made this known in a letter addressed to the
commissioner of finance, budget and economic planning on
Monday.

The letter is 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, a federal high court sitting in Lagos froze a Kogi
state salary bailout account domiciled in Sterling Bank Plc, over a
N20 billion loan obtained from the bank.

EFCC informed the court that the N20 billion loan meant to
augment salary payment and running cost of the Kogi state
government was kept in an interest-yielding fixed deposit account
with Sterling Bank.

The anti-graft agency said Sterling Bank Plc is yet to present
any credible evidence to show that the facility is well
secured.

The commission, in a 13-paragraph affidavit in support of the
motion, said 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’.

But in the letter, Sterling Bank said Kogi state government does
not operate a fixed deposit account within its company.

It said there is no mandate from the state government requesting
the creation of a fixed account.

The bank said the account with number 0073572696 identified by
the EFCC is an internal account operated for the purpose of
managing the Kogi state bailout facility.

“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,”
the letter reads.

“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 reaffirms 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 noted that the salary in the Kogi bailout accounts as
at 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.

Sterling Bank says the Kogi state government does not operate a
fixed deposit account with the lender.

The bank made this known in a letter addressed to the
commissioner of finance, budget and economic planning on
Monday.

The letter is 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, a federal high court sitting in Lagos froze a Kogi
state salary bailout account domiciled in Sterling Bank Plc, over a
N20 billion loan obtained from the bank.

EFCC informed the court that the N20 billion loan meant to
augment salary payment and running cost of the Kogi state
government was kept in an interest-yielding fixed deposit account
with Sterling Bank.

The anti-graft agency said Sterling Bank Plc is yet to present
any credible evidence to show that the facility is well
secured.

The commission, in a 13-paragraph affidavit in support of the
motion, said 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’.

But in the letter, Sterling Bank said Kogi state government does
not operate a fixed deposit account within its company.

It said there is no mandate from the state government requesting
the creation of a fixed account.

The bank said the account with number 0073572696 identified by
the EFCC is an internal account operated for the purpose of
managing the Kogi state bailout facility.

“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,”
the letter reads.

“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 reaffirms 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 noted that the salary in the Kogi bailout accounts as
at 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.