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N4.3bn shares fraud: Witness fingers Ladoja, GTBank, others

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6 years ago

March 22, 2018

Olu Emmanuel

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By Odunewu Segun

A witness in a money laundering case involving former governor of Oyo state, Rasheed Ladoja and the Economic and Financial Crimes Commission (EFCC), Yinka Fatoki, has fingered GTBank and some others.

Fatoki, a witness of the anti-graft agency disclosed this during the resume trial of the case at a Federal High Court sitting in Ikoyi on Tuesday, March 20.

The anti-graft agency had re-arraigned Ladoja over alleged conversion of a sum to the tune of N4.7billion from the state treasury to his personal use.

Ladoja was dragged before Justice Idris alongside his former Commissioner for Finance, Waheed Akanbi on an eight counts charge of money laundering and unlawful conversion of public funds.

The Commission particularly accused them of converting N1, 932,940,032.48 owned by the state to their personal use through the Guaranty Trust Bank account of a company, Heritage Apartments Limited, despite knowing that it was proceed of crime.

The EFCC also alleged that Ladoja removed £600,000 from the state coffers in 2007 and sent same to Bimpe Ladoja in London.

The former governor was also accused of buying an armoured Land Cruiser jeep with N42 million for himself using public funds.

EFCC said he converted N728, 600,000 and another N77, 850,000 at different times in 2007, and allegedly transferred N77, 850,000 to Bistrum Investments, which he nominated to help him purchase a property named Quarter 361 in Ibadan, Oyo State capital.

In his testimony, Fatoki who is the Executive Secretary of the Oyo State Bureau of Investment and Public, Private Partnership, argued that state officials allegedly got “gifts” running into millions of naira from the portfolio manager.

Fatoki specifically said in 2007, when he took charge as the Acting Director of Investment Promotion in the Ministry of Commerce, and while serving as the Desk Officer for Oyo’s holdings in public quoted equities, the state executive council reached a decision to sell off the state’s shares.

According to the witness, “In 2007, there was a decision by the state to sell some of the shareholdings in about seven banks, including First City Monument Bank, UBA, Skye Bank, Stanbic IBTC, Standard Chartered Bank and Guarantee Trust Bank. Fountain Securities Ltd was appointed the Portfolio Manager.

“The shares were sold at a discount, with the proceeds amounting to N4.3billion.”

He said the Christopher Alao-Akala administration ordered an investigation on the transaction, and a stockbroker, GTI Securities, was appointed to review Fountain Securities’ report on the transactions.

“N180 million, which was part of the proceeds of the shares sales, was not remitted to the state,” Fatoki disclosed.

Meanwhile, while being cross-examined by Ladoja’s lawyer, Bolaji Onilenla, the witness told the court that he was not part of those who authorized the sale of the shares.

Fatoki added that, “Fountain Securities had been the state’s portfolio manager since 2001.

The matter has been adjourned until April 12 and 13, 2018 for continuation of trial.