Sterling Bank, Kogi Join Forces Against EFCC Over Messy N20bn Scam

By Tosin Olatokunbo

Nigerians are waiting earnestly to see whether the combined forces of Sterling Bank Plc and Kogi state government will triumph over the Economic and Financial Commission, EFCC over allegation that the Lender and the Governor Yahaya Bello-led administration conspired to divert close to N20 billion bail out fund meant for workers salary.

The EFCC, had on Tuesday, obtained a restraining order from a Federal High Court in Lagos freezing one of the accounts of the state government in the new generation.

The anti-graft agency had in an ex parte application brought before the court in pursuant to section 44 (2) of the Constitution and section 34(1) of the EFCC Act, alleged that N20 billion bail-out fund meant to augment salary payment and running cost of the state government was kept in an interest-yielding fixed deposit account with Sterling Bank.

Referencing the Abubakar Suleiman-led commercial bank, the antigraft agency said the bank must provide credible evidence to show that the N20 billion facility is well secured.

While ruling on the matter, the presiding Justice Tijjani Ringim granted the order, pending the conclusion of the investigation or possible prosecution.

The state government has since denied the allegation, accusing the EFCC of trying to destroy the reputation of the Governor Yahaya Bello’s-led administration.

The commissioner of Victor Fanwo who spoke on behalf of the state accused the EFCC of obtaining the order through false pretense.

Fanwo said “The EFCC has accused us wrongly and the intent is to drag our image in the mud. We shall challenge the EFCC at the Court to substantiate their blatant allegation.

“We are not fighting the EFCC but we need to test the allegations they have made before a court of competent jurisdiction in the light of verifiable facts at our disposal.

Sterling Bank on its part has denied that the state opened a fixed deposit account with the bail-out fund.

The lender in a letter to the state government said “We are equally surprised and dismayed at the media’s narration of the events surrounding the transactions referenced and are disheartened at the characterization implied in these narrations,” the letter reads.

“As an ethical and law-abiding organization, we are confident that our conduct on these accounts and related transactions are fully beyond reproach, and are cooperating fully with the authorities in their inquiries on the Kogi State bailout accounts.

“With this correspondence, we wish to reaffirms 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.

“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 bailout facility.”

The bank noted that the salary in the Kogi bailout accounts as at August 31 include: Kogi state bailout account 1 (0072969301) #NilBalance; Kogi state salary bailout account 2 (0073522756) N999,190.50; Kogi state government salary account (0073499012) N44,816,195.24

Governor Belo while speaking on the issue described the allegation as the handiwork of his political enemies. Bello who spoke at a press conference in Lokoja said the EFCC has been hijacked by some politicians, who he accused of trying to destroy his reputation as one of the fiscally responsible governors in the country.

He described the allegation as “a coordinated hostile action. But added that “We remain concerned that a Federal Agency of the calibre and responsibilities of the EFCC which is charged to combat financial fraud is the one engaging in fraud and misrepresentation of facts for the purpose of securing needless Orders meant to ridicule a court of competent jurisdiction while simultaneously attempting to drag the pristine white robes of the most transparent and accountable state government in Nigeria, to with, the Kogi State Government led by His Excellency, Governor Yahaya Bello in their barrel of palm oil.”

Governor Bello said “While we are yet to conclude on the EFCC’s motive for this dishonourable act, we cannot but wonder if the ‘new’ EFCC is now lending its machineries for the use of politicians and detractors to tarnish the image of a State that has enjoyed the confidence and commendation of domestic and international partners as a bastion of accountability and integrity.”