Court sets aside date for suit on N20 billion warehoused in Sterling Bank Plc

IKOYI, Lagos – October 15, 2021 has been set aside for hearing of the application for N20 billion loan belonging to the Kogi State Government allegedly warehoused in Sterling Bank Plc. According to the EFCC, the Kogi State Government warehoused the funds  contrary to Section 8(a) and 1(1) of the Advance Fee Fraud and other Fraud Related Offences Act No. 14 of 2006 and punishable under section 1(3) of the same Act, and Section 390 (7) of Criminal Code Act Laws of the Federation 2004.

Justice Chukwujekwu Aneke of the Federal High Court  has set aside 15^th  October 12021 to hear the application filed by the Economic and Financial Crimes Commission, EFCC. Professor Sam Erogbo (SAN), counsel to the Kogi State Government had told the court that the freezing order obtained by the EFCC, was illegal.

This is coming after Justice Tijjani Ringim had on August 31, granted an Exparte application for an interim forfeiture of the sum of N19, 333, 333, 333.36 billion allegedly warehoused in Sterling Bank account number  0073572696.

 Justice Ringim  gave the order after entertaining arguments from lawyer to the EFCC, Abbas Muhammed, who had argued that the application was brought pursuant to section 44(2) of the Constitution and section 34(1) of the EFCC Act and under the inherent jurisdiction of the court,  and that it was necessary  to preserve the ‘Res’ and abate further dissipation of funds in the account.

The EFCC had in an affidavit said it received a credible intelligence which led to the tracing of funds reasonably suspected to be proceeds of unlawful activities warehoused in account No. 0073572696 domiciled in Sterling Bank, Plc with the name, Kogi State Salary Bailout Account.

The deponent insisted that the anti-graft agency acted on the said 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 N20,000,000,000.00 bailout loan facility for Kogi State Government.

The deponent explained that on  June 19, 2019, the Kogi State Government, through  Ministry of Finance and Economic Development, Office of the Honourable Commissioner,  applied for credit facility  to the tune of  N20  billion with an interest rate of 9 per cent for a tenure of 240 months from Sterling Bank Plc and that the facility was meant to augment the salary payment and running cost of the State Government.

On June 26, 2019, the credit facility offer was accepted vide a memorandum of acceptance signed by the Governor of Kogi State, Yahaya Bello, the Commissioner of Finance, Asiwaju Asiru Idris, and one Alhaji Momoh Jibrin, Accountant General, Kogi State.

According to EFCC, the Kogi State Government on June 19, 2019, vide a letter to the Manager, Sterling Bank Plc, Lokoja, applied for an account opening in the Bank with the name Kogi State Salary Bailout Account with Alhaji Momoh Jubril, Accountant General of the State and Elijah Evinemi Ag. Director Treasury as the signatories to the said account.

“That upon the opening of the said account with No. 0072969301, Sterling bank Plc disbursed salary intervention loan to the tune of N20,000,000,000.00 to the account. That rather than use the intervention funds for the purpose for which it was granted, the State Government proceeded to open a fix deposit account No. 0073572696. On the 25th 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 aforementioned fixed deposit account.

“That the said account sought to be frozen received the sum of Twenty Billion Naira, (N20, 000,000,000) on the 25th July 2019. That as at 1st day of April 2021, the balance standing to the credit of the said fixed deposit account was N19, 333, 333, 333.36 billion.

“That the Commission has the statutory mandate to prevent the commission of economic and financial crimes within the shores of the Federal Republic of Nigeria. That investigation in this matter is still ongoing and this application is pertinent to secure the funds in the said account to prevent them from being dissipated. Without freezing the nominated accounts, there is no better way of preserving the “res”.

Ruling on the application, Justice Ringim granted the request and ordered the EFCC to publish the order in a national newspaper and make a quarterly report to the court on the progress of its investigation.

However, during the sitting today before Justice Aneke, Professor Erogbo (SAN) counsel to the Kogi State Government told the court that his client has filed processes against the interim order granted by Justice Ringim and that the EFCC has equally filed a counter to the processes.

Justice Aneke has adjourned the matter till October 15, for a hearing of all applications.