Between Bello and Bawa: Who Blinks First?

Kogi State Governor, Yahaya Bello and the Chairman of the Economic and Financial Crimes Commission, Abdulrasheed Bawa, have drawn a battle line, writes Emameh Gabriel

Abdulrasheed Bawa, Chairman of the Economic and Financial Crimes Commission (EFCC) will have his real baptism of fire when he meets Governor Yahaya Bello of Kogi State in court next week over allegation of diversion of N20 billion bailout fund Kogi State Government secured from Sterling Bank in 2019.

The stakes are high for Abdulrasheed Bawa. As an experienced detective, who has learnt the ropes, there is no doubt that the anti-graft steersman is conscious of what he stands against- it would take more than paper work to incriminate someone of Governor Bello’s status, given the influence the latter wields as a serving governor and the financial strength at his disposition, that is if the allegation raised against the Government of Kogi State is anything to go by.

It is a tall order for Bawa and his team at the EFCC. His competence is on the scale and he knows this. Bawa is conscious of the fact that all eyes are on him. He can’t afford any damage to his reputation just few months after assuming office. The public must not get a wrong perception of him as a clueless detective and busybody or a hired bully. Nonetheless, this case will be one of his best shots- trapping a big fish in the agency’s net and not allowing it slip out of his finger either due to poor homework or other forces beyond him.

This is what is expected of him if he must go after a ruthless fighter like Governor Bello, a young and powerful man of his generation and one who calls the shots at Lugard House, Lokoja.

The news that N20 billion loan obtained by the government of Kogi State to augment salary in the state and to run other costs was diverted into a strange account has brought Bello and Bawa to the spot, setting off a battle of titans.

Last week, a Federal High Court sitting in Lagos ordered the freezing of a bailout salary account allegedly opened by Kogi State Government domiciled in Sterling Bank. Justice Tijjani Ringim had granted the order to freeze the account pending the conclusion of an investigation or possible prosecution by the anti-graft agency over the diversion of N20 billion loan obtained from the bank.

The agency had approached the court for the order in an ex-parte application brought in pursuant to section 44 (2) of the Constitution and section 34(1) of the Economic and Financial Crimes Commission Act.

Counsel to the EFCC, Abass Muhammed, told the court that the order was necessary so as to preserve what was left over in the account. In his submission, Muhammed had informed the court that the N20 billion loan meant to augment the salary payment and running cost of the State Government was kept in an interest-yielding account with Sterling bank.

He noted that instead of using the loan for the purpose it was granted, Sterling Bank Plc acting on the instruction of the Kogi State Government transferred the money from the loan account and placed same in a fixed deposit account. He also noted that Sterling Bank Plc was yet to present any credible evidence to show that the facility was well secured.

The EFCC had in a 13-paragraph affidavit in support of the ex-parte originating summons deposed to by a member of a team of investigators attached to the Chairman Monitoring Unit Lagos of the EFCC, had stated “that the Commission received a credible and direct intelligence which led to the tracing of funds reasonably 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

The Commission said it acted on the intelligence and assigned same to the Chairman Monitoring Unit, where it was discovered that on April 1, 2019, the management of Sterling Bank Pic approved an offer of N20bn bailout loan facility for the Kogi State Government.

According to the EFCC, in the June 19, 2019 fiscal year, the Kogi State Government, Ministry of Finance and Economic Development, Office of the Honourable Commissioner, had applied for a Credit facility of Twenty Billion Naira N20, 000,000,000, with an interest rate of 9 percent for a tenure of 240 months from Sterling Bank Plc.”

A facility was meant to offset salary in the state, payment and government’s running cost. However, upon the opening of the said account with No. 0072969301, Sterling bank Plc disbursed salary intervention loan to the tune of ₦20,000,000,000.00 to the account.

But rather than utilise the intervention funds for the purpose for which it was granted, the State Government proceeded to open a fix deposit account No. 0073572696.

The Commission had further alleged that on the 25 day of July, 2019, Sterling Bank Plc acting on the instruction of the Kogi State Government transferred the money from the loan account and placed same on the said fixed deposit account and on 25th July in the same year, the controversial account received the sum of Twenty Billion Naira, (N20, 000,000,000).

The EFCC had also alleged that as at 1st of April, 2021 the balance standing to the credit of the said fixed deposit account was ₦19, 333, 333, 333.36 billion, which suggests that the sum of ₦666,666,666.64 billion has been deducted from the said funds and were not used for the payment of the salary.

Bello Fumes, Threatens Legal Action

Meanwhile, the Kogi State Government in a swift reaction had threatened to sue the Economic and Financial Crimes Commission (EFCC) over the allegation, saying such account does not exist and allegation were laced with concocted lies.

The Commissioner for Information and Communication, Mr. Kingsley Fanwo told THISDAY that the EFCC failed to carry out its homework and was out to create issues where there is none. He said available documents and evidence of transaction with the bank in question speak contrary to EFCC’s claims. “We are going to meet in court,” he told THISDAY.

To corroborate his claim, Mr Fanwo provided documents of all transactions between the government and Sterling Bank, salaries schedules during the period in question and a document detailing balance of N40 million in the original account the money was lodged into by Sterling Bank in 2019 before it disbursed. “We never operated any different account and there is no such money anywhere. So we were surprised to hear the EFCC alleging that we had such money in a fixed account,” he said.

Earlier at a press conference in Abuja, last week, the government which was represented by some of its appointees, denied the allegations and threatened to fight the case till a reasonable conclusion.

Kingsley Fanwo who led the team from the state at the press conference, said the state does not operate any fixed account with Sterling Bank as suggested by the commission to the court which birthed the ex parte order.

Mr Fanwo countered and further disclosed that the state has approximately N46 million across its three operational accounts with the alleged bank. He said the EFCC has failed in its primary assignment and accused it of misleading the court as well as the public.

He said: “For the record, Kogi State Government vehemently denies having the sum of N19,333,333,333.36 or any other sum in a fixed deposit account with Sterling Bank Plc as alleged. The Kogi State Government states that it never gave any instruction to Sterling Bank Plc and the said Bank also did not fix on its behalf, any bailout fund or any other funds.

“The Kogi State Government states that as of the 23rd Day of July, 2019 when she utilized the monies for the payment of salaries and allowances to Kogi State civil servants and up to the 31st day of August 2021 when the purported court order was procured, it had approximately N46,000,000.00 cumulatively in the salary and bailout accounts it operates with Sterling Bank Plc,” he said, adding that the commission never called nor invite any of its officials for clarity at any point.

Similarly, in a document obtained by THISDAY, Sterling Bank in the signed document, said the account in question is “an internal (mirror) account operated by the Bank for purposes of managing the Kogi State,” an extract from a letter dated September 1.

The argument put forward by Sterling Bank suggests that the account is an internal digit the organisation uses to monitor Kogi State account.

“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.

“In light of the above submissions, permit us to respond to your enquiry as follows:

“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,” an extract from a letter dated September 1, and seen by this newspaper read.

Let’s Meet in Court, EFCC Tells Bello

Meanwhile the Economic and Financial Crime Commission has asked the Kogi State Government to go to court to seek redress. Spokesperson of the Commission, Mr. Wilson Uwujaren, who declined speaking further on the issue, told THISDAY that, the matter is before the court. “I cannot comment on it. I expect anyone that has issue with the Order, to approach the court,” he said.

Was Bello Confronted by the EFCC Before Approaching the Court?

The Kogi State Government has faulted the EFCC over what it described as a shock move and even threatened legal action against the commission as well as media houses who published the story without clarification from the government. He described the EFCC action as out of place. He wondered why the EFCC horridly went to court without giving the government the chance for fair hearing.

“We want to put it on record at this point that at no time during this entire concatenation of unfortunate events did the EFCC invite or question, much less seek clarification, from this Government or any of her officials in relation to such weighty matters. Also, none of the media houses or platforms which initially broke the news so much as sought a comment from us. No doubt our rights to fair hearing and the nation’s right to fair and accurate reportage did not matter in the circumstances of this shabbily designed but otherwise clinically executed hatchet job”, the state Commissioner for Information and Communication, Mr Kingsley.

“Having laid the facts bare before you gentlemen of the press, we are still shocked as to how the EFCC came about the patently false information upon which they have fraudulently or by misrepresentation of facts secured the purported order freezing a non-existent account or a ‘mirror account’ created for administrative purposes by the Bank in respect of funds which have since the October 2019 been fully disbursed and utilized for the purpose for which it was borrowed”, he queried.

When THISDAY contacted EFCC’s spokesperson, Wilson Uwujaren, he declined speaking, saying they are already in court.

Meanwhile a source from the EFCC who spoke with THISDAY in confidence, said the Kogi State Governor was in panic mood and described the press conference organized by the Governor as a stunt to get undeserved public sympathy.

“That is a typical of Nigeria politician. They come here when they are invited and go down on their knees begging but once they leave here, they chang. It is not the first time, so we are not surprise”.

He said, the EFCC will not act without confronting a suspect with evidence unless under difficult circumstances where concrete evidence must be obtained.

An Abuja based senior lawyer, Mr. Odeke Toluwa said the question on whether the EFCC notify the Government of Kogi State or not of its investigation does not arise. He said the Commission’s action was in line with the law..

He said: “The Court is empowered to make an interim forfeiture order of assets of an accused person even before conviction and without hearing him under section 27 (4) and section 30 of the Act.

He argued that it is clear from the provision of the law that the purpose of interim order of forfeiture is to temporarily vest possession of the booty of the purported crime to the government to prevent the accused person from tampering with or dissipating the proceeds of the crime. However, the court is expected to have been satisfied that there is prima facie evidence that the property concerned is liable to conviction before making such order on ex parte application.

He said “from the avalanche of authorities and the reasons adduced in support of forfeiture order, I am inclined to submit that the interim forfeiture against the N20 billion loan bailout of Kogi State purportedly diverted to another account by the Kogi State Government is sound in law. In any case, Kogi State can apply to the court within seven days to vary or discharge the order under Order 26(9) the Federal High Court Civil Procedure Rules, 2019. The court may in such applications, either refuse to vary or discharge the order or may vary or discharge the order with or without imposing terms as to costs or security, or otherwise, as seems just.

N19 Billion Abandoned

Kogi State Government has disassociated itself from the account and the money under contention. The EFCC has insisted that evidence before the commission shows that over N19 billion is warehoused in the controversial account. But, evidence provided by Sterling Bank indicts the EFCC as clueless. The bank has however contradicted itself when it confirmed that there is an existing account with similar account number provided by the EFCC but one thing the bank did not make clear is whether or not there is N19 billion in the said account it claimed to have opened without the knowledge of its customer (Kogi Government).

The position of the bank has caused eyebrows to raised. The EFCC said there is money domiciled in the controversial account and the bank has confirmed its existence. Kogi State had through the help of Sterling Bank exonerated itself from the allegation. If there is money lodged in the said account as EFCC had alleged, then this leaves a lot to be desired. This would the issue to be contended in the court when all parties involved in the matter meet.

QUOTE

a Federal High Court sitting in Lagos ordered the freezing of a bailout salary account allegedly opened by Kogi State Government domiciled in Sterling Bank. Justice Tijjani Ringim had granted the order to freeze the account pending the conclusion of an investigation or possible prosecution by the anti-graft agency over the diversion of N20 billion loan obtained from the bank