N20b Diversion: Kogi faults EFCC’s ‘fantastic tales’, set to institute legal action
The Kogi State Government has debunked what it described as “fantastic, unverified, unexamined and unchecked tales” by the Economic and Financial Crimes Commission EFCC, accusing it of diverting the sum of N20 billion meant for the payment of workers salaries in the state.
Information commissioner, Kingsley Fanwo who disclosed this at a press briefing Thursday in Abuja, said apart from other undisclosed measures, the state government would institute legal proceedings against the anti-graft agency
About two days ago, the media space was awash with news of an ex-parte Order of the Federal High Court, Lagos Division allegedly freezing the money in the Sterling Bank Account No. 0073572696 following an application by the EFCC.
Fanwo said the EFCC had fraudulently represented the account number to the court to be a fixed deposit account opened and operated by the Kogi State Government into which Bailout Funds approved by the Federal Government and sourced from the Bank were diverted and kept from their intended purpose, which is the payment of salaries to workers
He said; “The EFCC also swore under oath before the court that her own investigations confirmed part of the funds corresponding to the Biblical Mark of the Beast in the amount of N666,666,666.64 to have been misappropriated by the Kogi State Government.
“The Commission even swore that as of a specified date this year, to wit, April 1st 2021, which is, of course, the globally notorious April Fools’ Day, the sum of N19,333,333,333.36 was allegedly standing to the credit of the account into which we had allegedly diverted and fixed monies meant for the payment of salaries to our workers
The EFCC alleged to the court in self-righteous indignation that she sought an ex parte order to secure the balance of the alleged funds still in the account from further dissipation pending investigation and possible prosecution of unnamed malfeasors.
“Sections of the media ran with the EFCC’s fantastical tales – unverified, unexamined and unchecked. They serially reported that the alleged funds in the alleged account were a loan sought and obtained by the Kogi State Government from Sterling Bank Plc in 2019 for the purpose of paying salaries to workers which were later deposited in a fixed deposit account upon the instruction of the Kogi State Government, and allegedly to yield interest and with parts of it dissipated for other unascertainable purposes other than payment of salaries
“The sum of N19,999,000,000 of the said N20,000,000,000.00 was at various times between the said 23rd July 2019 and 25th September 2019 disbursed to Kogi State Salary Account No: 0073499012 with Sterling Bank and the United Bank for Africa Salary Account No: 102089595797 from where the funds were judiciously applied for the payment of salaries and allowances owed to the workers of the State. (Here is an attached schedule showing the disbursements from the Kogi State Salary Bail out Account.)
“The current balance in the said Kogi State Bail Out Account and as of the date of the alleged ex-parte Order is the sum of N999,190.50. Accordingly, the allegation that any part of the bailout fund was not used for the purpose for which it was secured is not only patently false, it is malicious and unsupportable by any records, including bank statements relating to all material times.
“That as of the 31st day of August 2021 when the Court Order to preserve the phantom sum of N19,333,333,333.36 was allegedly made, the Kogi State Salary Account No. 0073499012 where the sum of N19,999,000,000 was transferred to since 2019 for the payment of salaries had a credit balance of N44,816,195.24.
“That the allegation that the Kogi State Government authorised the opening of a fixed deposit account wherein it deposited the said Bailout a loan of 20billion for the purpose of generating interest for itself is false.
The Kogi State Government gave no mandate or instruction to Sterling Bank Plc to open a fixed deposit account on its behalf as it could barely meet the salary obligations for which the funds were received at the material time.
“That Sterling Bank Plc by its letter of 1st September 2021 confirmed in writing that the ‘the Kogi State Government does not currently operate or maintain a fixed deposit account with Sterling Bank’. Here is a copy of that letter.
The letter proceeded to confirm that all the balances in all the accounts operated by Kogi State Government were approximately N46 Million Naira. Finally, the letter confirmed that account number 0073572696 cited in the alleged order of the Court is ‘an internal (mirror) account operated by the Bank for the purposes of managing the Kogi State Bailout Facility’.
“This is neither happenstance nor coincidence, but a coordinated hostile action. We remain concerned that a Federal Agency of the calibre and responsibilities of the EFCC which is charged to combat financial fraud is the one engaging in fraud and misrepresentation of facts for the purpose of securing needless Orders meant to ridicule a court of competent jurisdiction while simultaneously attempting to drag the pristine white robes of the most transparent and accountable state government in Nigeria, to with, the Kogi State Government led by His Excellency, Governor Yahaya Bello in their barrel of palm oil.
“While we are yet to conclude on the EFCC’s motive for this dishonourable act, we cannot but wonder if the ‘new’ EFCC is now lending its machinery for the use of politicians and detractors to tarnish the image of a State that has enjoyed the confidence and commendation of domestic and international partners as a bastion of accountability and integrity.
“While we cannot estimate the extent of the damage caused by this unwarranted attack of the EFCC to the image of the State, and the reputation of the Governor and his entire team, including members of the financial team whose names have been mentioned and preserved forever on the internet in relation to this disgraceful episode, we believe, apart from other legal actions which will be taken against the EFCC, that this press release is most necessary to set the records straight and disabuse the minds of Nigerians who have received this fake news”, he stated.
