The Sterling Bank connection
Ask EFCC where it found its ‘missing’ money – Kogi
Bawa must be careful with a fighter like Bello – Lawyer
Investigation not concluded – EFCC
In a total change of position, the Economic and Financial Crimes Commission, on October 15, 2021, withdrew the suit seeking the forfeiture of N20 billion bailout funds purportedly granted to the Kogi State Government.
Trouble started on August 31, 2021, when Tijani Ringim, a Lagos High Court judge, ordered the suspension of the Kogi State account domiciled in Sterling Bank Plc, following an ex parte application brought by the EFCC.
The commission had alleged that the money, which was meant for the payment of salaries in the state, was instead kept in an interest-yielding account with the name ‘Kogi State Salary Bailout Account.’
However, at the resumption of proceedings on Friday, Kemi Pinheiro, counsel to the EFCC, moved an application dated October 13, seeking discontinuance of the matter.
The application, titled, ‘Notice of discontinuance’ stated that “the applicant, the Economic and Financial Crimes Commission has resolved to discontinue this matter in SUIT NO: FHC/L/CS/1086/2021 pending before this Honourable Court against the Respondent’s Account herein.”
According to the EFCC counsel, one of the grounds of the application was that N19.3 billion would be returned to the Central Bank of Nigeria.
The EFCC counsel said, “That the management of Sterling Bank Plc, where account No 0073572696 with the name Kogi salary bailout account is domiciled, has since acknowledged the existence of the said account in their book but claimed same was a mirror account.
“That the sum of N19.3 billion is still standing in the credit of the account frozen, pursuant to the order of this honourable court.
“That the management of Sterling Bank Plc, where account No 0073572696 is domiciled, has, pursuant to a letter dated Sep.21, 2021, signed by its managing director, indicated intention to return the total sum of N19,333,333,333.36 back to the Central Bank of Nigeria.
“That it is expedient for the instant suit to be discontinued and the account unfrozen to enable the management of Sterling Bank Plc, effect the transfer/return of the sum to the coffer of the Central Bank of Nigeria where the said bailout funds were disbursed.”
Granting EFCC’s application, Chukwujekwu Aneke, the presiding judge, said, “I have listened to the submission of the learned silk for the application, Mr. Kemi Pinheiro SAN, vis-a-vis perused the motion to withdraw. My humble opinion is that application is meritorious and ought to be granted. Accordingly, the application is granted as prayed.”
Responding, Sam Erogbo, counsel to the Kogi State Government, commended the EFCC for its “professional approach”.
However, investigations by The Point show that the alleged sum of N19, 333,333,333.36, which Sterling Bank has undertaken to transfer to the CBN does not belong to the Kogi State Government.
This was also clearly stated by the state government in a press statement on Sunday, signed by the Commissioner for Information, Kingsley Fanwo.
“IF BAWA 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, HE MUST GET HIS FACTS CORRECT
“
Fanwo clarified that the state “did not enter into any agreement, either with Sterling Bank or the EFCC, to return any bailout funds to the CBN as portrayed.”
Documents obtained by The Point revealed that, buoyed by the strength of its innocence, the Kogi State Government, through the Secretary to the State Government, Dr (Mrs) Folashade Ayoade, on September 6, 2021, demanded for a retraction and public apology from the EFCC, in her letter referenced S/GO/KGS/ADM/293/VOL.11/XXX.
In the letter, addressed to the EFCC chairman, Abdulrasheed Bawa, she noted that “the false narrative in the said affidavit in support is not only defamatory to the person of the governor whose government has received a lot of commendation from both local and international organisations for its transparent and prudent management of resources, but is also most unfortunate.”
On September 15, Bawa, in his response, through Abdulkarim Chukkol, Director of Operations, said the EFCC “only obtained a freezing order on the account pending the conclusion of its investigation.”
Further documents at the disposal of The Point, showed that the Kogi State Commissioner for Finance, Budget and Economic Planning, Mukadam Asiwaju Asiru Idris, on October 4, challenged the Managing Director of Sterling Bank, Abubakar Suleiman, to make further clarifications in respect of the alleged fixed deposit account.
Part of the letter reads, “It is in the light of the above that we demand that your bank explain in writing the following to us:
“a. Why there is a fixed deposit account titled ‘Kogi State Salary Bailout Account’ with a credit balance of N19, 333,333,333.36 which you have now undertaken to refund to the CBN.
“b. On whose instruction and mandate the account was opened.
“c. Why the account was described to us as an internal (mirror) account opened for the management of the Kogi State Bailout Facility whereas it was a real account with a credit balance.
“d. Who has been drawing the monthly credit interest from the said fixed deposit account?
“e. Who authorized the transfer of the sum of N666, 666,666.64 (which the EFCC stated was transferred) from the sum of N19,333,333,333.36.
“f. Where was the said sum of N666, 666,666.64 (which the EFCC stated was transferred from the sum of N19, 333,333,333.36) transferred to?
“g. Why your Enejo Ibrahim in his extra-judicial statement to the EFCC confirmed that our bailout funds was transferred from our account number 0072969301 with your Bank to a fixed deposit account whereas the bailout funds to your knowledge were transferred to our salary account with your bank and other banks.
“11. Please note that since the news of the Order broke out, the Kogi State Government has been subjected to immense ridicule, hatred and negative comments. The Governor has been inundated with calls and messages with myriads of negative comments and insults hurled at his person and those of his appointees.
“12. The Kogi State Government and indeed the Governor have been portrayed as corrupt with the resultant effect that the public now believe that rather than pay workers’ salaries with loans secured for that purpose, same was fixed for the purpose of generating interest for the Governor while some part of the loan was used for other illegal purposes.
“13. We are currently locked in a legal battle with the EFCC who has used this opportunity presented by your Bank to smear our reputation to which we have and are still expending great time and resources to repair.
“14. It is against the above background that we demand that you respond to our queries in paragraph 10 above within 48 Hours of receipt of this letter to enable us know the appropriate steps to take with respect to this matter.
“15. Please note that should we not receive your response within the time stated, we shall take all necessary legal steps including criminal, civil and regulatory measures to obtain necessary clarification in this matter.”
The argument put forward by Sterling Bank suggested that the account was an internal digit the organisation uses to monitor Kogi State account.
In its response on October 5, Sterling Bank noted that, “This is to confirm that Kogi State salary bail out account number 0073572696 exists in the Bank’s records and it is categorized under the account type Intervention Fund – Fixed Dep.BOI in the Bank’s ledger. The account was not opened by the Kogi State Government or at its instance.
“The account 0073572696 is an internal account (liability account), which was opened for internal administration and efficiency, solely to enable the Bank’s Core Banking Application automatically accrue for the interest payable (at 2%) to the Central Bank of Nigeria (CBN) in line with the terms of the Bail Out Facility, which provided for the 9% interest to be split as follows – 7% to Sterling and 2% to the Central Bank of Nigeria.”
Sterling Bank further clarified that, “The account is not an operational account but was opened for administrative purposes. The amount of N666, 666,666.64 represents 8 (eight) instalments of the principal amount and interest covering July 2019 to Feb 2020 that have been paid to the CBN. This is in line with the terms and of the on-lending facility, which provides that interest of 2% is due to CBN.”
Despite knowing this much, the Kogi State Government is worried that the EFCC failed and refused to bring these unassailable facts to the knowledge of the Federal High Court, which graciously and innocently granted it an ex-parte order with the aim of assisting the EFCC in the discharge of its duty to prevent the commission of crimes and prevent the dissipation of the proceeds of crime.
“NIGERIANS WOULD WANT TO KNOW IF THE EFCC HAS FOUND THE MONEY, IF SO, IN WHOSE CUSTODY WAS IT FOUND? HAVE CHARGES BEEN PREFERRED AGAINST THE CUSTODIAN OF THE SAID FUNDS. OR HAS THE EFCC ALSO ABANDONED THAT CHASE? NIGERIANS DESERVE TO KNOW THE TRUTH
“
“Despite the fact that the EFCC was under a legal duty compelled by the Order of the same Court that it makes periodic report to the Court on the progress made regarding the investigation of the alleged bailout funds, the EFCC violated the Order as it failed to report its findings to the Court; rather it unceremoniously withdrew the suit, as it peddled falsehood to the Court and the public.
“It is our belief that the unceremonious withdrawal of the suit by the EFCC without informing the Court of the facts stated in paragraph 3 above, is a deliberate and face-saving effort by the EFCC, which has throughout this episode engaged in very unprofessional and unethical conduct, all in a bid to ‘nail’ at all cost, the Kogi State Government and tarnish its image.
“Citizens of Kogi State and indeed Nigerians at large are urged to disregard this false narrative which is already been peddled by both the traditional and social media including by the EFCC on its verified official social media platforms. Nigerians should rather ask the EFCC to publish on its official platforms the report of its investigation as to the ownership of the said sum of N19,333,333,333.36 and the whereabouts of the sum of N666,666,666.64 which they alleged had been dissipated.
“Nigerians should further ask the EFCC whether a Commercial Bank could simply undertake to transfer a Customer’s money from the Customers’ account without the Order of any Court mandating such transfer or a forfeiture?
“Nigerians also deserve to know what becomes of the criminal allegation that the EFCC made when it informed the Federal High Court that the sum of N666, 666,666.64 out of the N20, 000,000,000.00 bailout loan had been dissipated and that same was being traced. Nigerians would want to know if the EFCC has found the money, if so, in whose custody was it found? Have charges been preferred against the custodian of the said funds. Or has the EFCC also abandoned that chase? Nigerians deserve to know the truth.
“Let it be known that the alleged sum of N19, 333,333,333.36, which Sterling Bank Plc has undertaken to the EFCC to transfer to the CBN does not belong to the Kogi State Government and it did not enter into any agreement either with Sterling Bank Plc or the EFCC to return any Bailout funds to the CBN as portrayed. Rather, we have as of October 2019 fully disbursed our bailout funds and are already religiously repaying the loan to Sterling Bank Plc,” Fanwo said.
A legal practitioner, Femi Sulaiman, said Bawa, as an experienced detective, who has learnt the ropes, should know that it would take more than paper work to incriminate someone of Governor Yahaya Bello’s status.
“His competence is on the scale and he knows this. Bawa should be conscious of the fact that all eyes are on him. He can’t afford any damage to his reputation just a 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,” Sulaiman said.
“If Bawa 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, he must get his facts correct,” he noted.
When The Point contacted EFCC’s spokesperson, Wilson Uwujaren, he refused to pick his telephone calls and ignored subsequent Short Message Service.
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