Sterling Bank Vs Kogi: No End To Controversial N20bn Bailout Fund

By Fola James

The Central Bank of Nigeria, CBN has received the disputed N19.3 billion said to have been deposited by the Kogi state government in a secret account with Sterling Bank Plc. The Governor Yahaya Bello-led bank had denied having any funds deposited with the commercial bank.

Recall that EFCC, had in September, asked a federal high court in Lagos to freeze the account in which the funds, said to be part of the bail out from the federal government to the state, was lodged.

The anti-graft commission, had also, last month asked the same court presided over by Chukwujekwe Aneke to unfreeze the account for Sterling Bank to be able to return the funds to the CBN.

Justice Aneke, in October, vacated the order of forfeiture he earlier placed on the N20 billion bailout funds, which has now make it possible for Sterling Bank to return the fund to CBN.

According to statement issued in Abuja by EFCC spokesman, Wilson Uwujaren, the commission said the apex bank has acknowledge the receipt of the funds, adding that the development has put paid to the controversy on whether such funds actually exist.

The Kogi state government had after the EFCC went to court, denied that it had such humungous fund lodged in any account, threatening to drag the anti-graft agency to court.

EFCC, however, said in the statement that the ”smear campaign of misinformation and unconscionable denials by the Kogi State government that no fund was recovered from its bailout account, has become futile after the fund was returned to the CBN by the commercial bank.

The commission said the state could no longer deny the source of the fund that has now been returned to the apex bank.

In a letter referenced, DFD/DIR/CON/EXT/01/099 and dated November 9, 2021 and addressed to the Executive Chairman, EFCC, Mr Bawa, reads,  the CBN said “We refer to your letter dated November 5, 2021 with Ref. No: CR:3000/EFCC/LS/CMU/REC-STE/VOL.4/047 on the above subject and wish to confirm the details of the receipt of the amount as stated below: Bank: Sterling Bank Plc; Amount: N19, 333, 333,333.36; Date of receipt: 04 November, 2021.”

Meanwhile, the Kogi state government has swiftly reacted to the matter, describing the action of the anti-graft agency as a ‘mischief’ and an “attempt to desperately wriggle out of a bad case with another mischief aimed, again, at misleading Nigerians.”

The Kogi State Government has reacted to a statement by the Economic and Financial Crimes Commission (EFCC) that said that the hidden Kogi salary bail-out funds have been returned to the Central Bank of Nigeria (CBN).

The Kogi State Government called the statement an “attempt to desperately wriggle out of a bad case with another mischief aimed, again, at misleading Nigerians.”

The statement signed by the state Commissioner for Information and Communication, Kingsley Fanwo said the EFCC “had not said anything different from what had been said so far on the controversial N20bn bail-out fund, the EFCC had finally exposed the fact that it had been pursuing a political agenda all along.”

The Kogi government “would prepare a comprehensive response to the latest of the desperate moves by the Commission to save its face in view of its obvious goof and unethical conduct in the matter in dispute.

“The press statement by the Commission is a malicious attempt to rope the state into a matter that ordinarily has nothing to do with our dear state.

“We maintain the unassailable truth that the Kogi State Government did not operate such account with the bank as affirmed in a letter by the bank. We sympathize with the EFCC as it has been a herculean task to cover the initial misinformation and deliberate deceit by the Commission. Kogites and indeed, Nigerians should rest assured that we will get to the root of this matter,” the state government said.