N20b bail out fund: Kogi govt accuse EFCC of falsehood, misrepresentation of facts »

…says action taints govt, threatens legal action against commission

Kogi State government have have accused the Economic and Financial Crimes Commission (EFCC) of falsehood and gross misrepresentation of fact over the information used to fraudulently secure a court order purportedly freezing of its account.

The Government noted that the commission largely through misrepresentation of facts secured the purported order freezing a non-existent account or a ‘mirror account’ created for administrative purposes by the Bank in respect of funds which had since the October 2019 been fully disbursed and utilized for the purpose for which it was borrowed.

These were stated In a press briefing on Thursday by the State’s Commissioner for Information and Communication Strategy, Mr. Kingsley Famwo alongside other members on the KGSG cabinet to counter the viral media reports involving an alleged order of the Federal High Court sitting in Lagos, freezing an account of the State government in Sterling Bank allegedly holding the state’s bailout funds

He stated that sections of the media ran with the EFCC’s fantastical tales unverified, unexamined and unchecked while they serially reported that the alleged funds in the alleged account was a loan sought and obtained by the Kogi State Government from Sterling Bank Plc in 2019 for the purpose of paying salaries to workers.

He said the media further reported that the fund were later deposited in a fixed deposit account upon the instruction of the Kogi State Government, and allegedly to yield interest and with parts of it dissipated for other unascertainable purposes other than payment of salaries.

The Commissioner who presented several documents stressed that the current balance in the said Kogi State Bail Out Account and as of the date of the alleged ex-parte Order was the sum of N999,190.50.

He added that the allegation that any part of the bailout fund was not used for the purpose for which it was secured was not only patently false but malicious and unsupportable by any records, including bank statements relating to all material times.

The state Commissioner pointed out that as of the 31st day of August 2021 when the Court Order to preserve the phantom sum of N19,333,333,333.36 was allegedly made, the Kogi State Salary Account No. 0073499012 where the sum of N19,999,000,000 was transferred to since 2019 for the payment of salaries had a credit balance of N44,816,195.24.

Showing a document by Sterling Bank Plc dated 1st September 2021, he noted that it confirmed in writing that the ‘the Kogi State Government does not currently operate or maintain a fixed deposit account with Sterling Bank.

Mr. Fanwo said the letter proceeded to clarify that all the balances in all the accounts operated by Kogi State Government was approximately N46 Million Naira as the letter also confirmed that account number 0073572696 cited in the alleged order of the Court was ‘an internal (mirror) account operated by the Bank for the purposes of managing the Kogi State Bailout Facility.

The State’s Commissioner placed on record that at no time during this entire concatenation of unfortunate events did the EFCC invite or question, much less seek clarification, from the Government or any of her officials in relation to such weighty matter while none of the media houses or platforms which initially broke the news so much as sought a comment from the government.

Mr. Fanwo said the event was neither happenstance nor coincidence, but a coordinated hostile action while expressing concern that a Federal Agency of the caliber and responsibilities of the EFCC, charged to combat financial fraud was 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 led by Governor Yahaya Bello in their barrel of palm oil.

He expressed concern whether the ‘new’ EFCC was 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.

Commissioner Fanwo said the state was the first to ever score 100% in the States’ Fiscal Transparency, Accountability and Sustainability programme of Nigerian states recalling that the state recently received commendations from the Office of the Accountant General of the Federation for being one of the very few States to have adopted the IPSAS Accrual Basis Accounting which is to enhance transparency, and accountability in financial reporting in the public sector.

He noted that While the extent of the damage caused by such unwarranted attack of the EFCC to the image of the State, and the reputation of the Governor and his entire team, including members of the financial team whose names have been mentioned and preserved forever on the internet in relation to this disgraceful episode, the Kogi State Government would seek appropriate redress and resist most vehemently the instant attempt and any further attempt to bring her into disrepute.

Mr. Fanwo urged Nigerians to know that the various news surrounding the alleged conversion of salary bail out funds in Kogi State were fake and the allegations and acts are those of malicious men and women employing the machineries of Government to do the bidding of their seen and unseen allies, while assuring citizens, partners, investors and the general public that Governor Yahaya Bello and his New Direction Administration remained committed to transparency, probity and accountability in office and would remain unrivalled in the country.