Gov Yahaya Bello challenges EFCC suit on N20bn bailout loan

Governor Yahaya Bello of Kogi State has challenged the Economic and Financial Crimes Commission (EFCC) suit on the N20 billion bailout loan alleged to be disbursed to the Kogi State government, but which the commission further alleged is being lodged at the Sterling Bank Plc.

At the resumed sitting, the Federal High Court in Lagos accepted the request by counsel to the Kogi State Government, Professor Sam Erugo (SAN), for time to study the case. The court presided by Justice Chukwujekwu Aneke, accordingly adjourned proceedings to October 15 for hearing of all applications on the N20 billion bailout loan of the Kogi State government, purportedly deposited at Sterling Bank Plc.

The presiding judge, Justice Chukwujekwu Aneke, adjourned sitting after taking the application of counsel to the Kogi State Government, Professor Sam Erugo (SAN), that he needed time to study the counter affidavit filed by the Economic and Financial Crimes Commission (EFCC) to the processes.

A vacation judge, Justice Tijjani Ringim, had on August 31, granted an exparte application for an interim forfeiture of the N20 billion after taking arguments from counsel to the EFCC.

At the end of the vacation, the suit was reassigned to Justice Aneke.

Counsel to the Kogi State government, Professor Erogbo (SAN), at the resumed sitting on Tuesday, notified the court of a processes challenging the interim order granted by Justice Ringim filed by his client; including the counter objections to the processes filed by the EFCC. He, thereafter, requested for more time to respond to the EFCC objections.

Counsel to the EFCC, Rotimi Oyedepo, acknowledged being served the processes, adding that he had also filed counter arguments.

The EFCC had sought an order of the court on August 31 in an ex-parte application brought pursuant to section 44(2) of the Constitution and section 34(1) of the Economic and Financial Crimes Commission Act for the freezing the said account.

Counsel to the EFCC, Abass Muhammad, had argued that the order was necessary to preserve the ‘res’ and prevent further dissipation of the funds in the account.

Muhammad had submitted that the N20 billion bailout loan meant to augment payment of salaries and running cost of the State Government was deposited in an interest-yielding account in Sterling Bank.

The EFCC counsel argued  that instead of using the money for the purpose it was meant, Sterling Bank Plc, acting on the instruction of the Kogi State Government, transferred the money from the loan account and placed some in a fixed deposit account.

Muhammad maintained that Sterling Bank Plc has not presented any credible evidence to show that the facility is well secured.

The presiding judge, Justice Tijjani Ringim, in his judgement, granted the order to freeze the account, pending the conclusion of investigation or possible prosecution by the EFCC.