N20bn Bail Out Loan: Court set October 15 for hearing of EFCC suit against Kogi

The Federal High Court in Lagos has set October 15 as the date for hearing all applications relating to an N20 billion bailout loan allegedly held by Sterling Bank Plc on behalf of the Kogi State government.

Following an application by counsel to the Kogi State Government, Professor Sam Erugo (SAN), who told the court that he needed time to study the counter affidavit filed by the Economic and Financial Crimes Commission (EFCC) to the processes, Justice Chukwujekwu Aneke set the date for Tuesday.

After hearing arguments from the EFCC’s counsel, vacation judge Justice Tijjani Ringim granted an exparte application for an interim forfeiture of the sum on August 31.

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The case was reassigned to Justice Aneke after the vacation, and at the resumed hearing on Tuesday, counsel for the Kogi State government, Professor Erogbo (SAN), told the court that his client had filed processes challenging Justice Ringim’s interim order.

The EFCC had also filed counter objections to the processes, he told the court.

The lawyer then requested that the court extend his time to respond to the EFCC’s counter-processes.

Rotimi Oyedepo, counsel for the EFCC, admitted in court that he had been served with the processes and that he had also filed documents in response to the arguments raised.

After hearing both sides, Justice Aneke adjourned the case until October 15, when all applications will be heard.

The EFCC had sought the order in an ex-parte application filed on August 31 under Section 44(2) of the Constitution and Section 34(1) of the Economic and Financial Crimes Commission Act, as well as the court’s inherent jurisdiction.

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Abass Muhammed, counsel for the EFCC, told the court that the order was required to preserve the ‘res’ and prevent further dissipation of the funds in the account.

Muhammed informed the court in his submissions that the N20 billion loan intended to supplement the State Government’s salary payment and operating costs was kept in an interest-bearing account with Sterling Bank.

He went on to say that instead of using the funds for the intended purpose, Sterling Bank Plc, on the instruction of the Kogi State Government, transferred some of the funds from the loan account to a fixed deposit account.

He concluded by stating that Sterling Bank Plc has yet to present any credible evidence demonstrating the facility’s security.

Justice Tijjani Ringim granted the order to freeze the account pending the conclusion of the investigation or the possibility of EFCC prosecution.

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Justice Ringim granted the application and ordered the EFCC to publish the court order in a national newspaper. He also requested that the commission submit a quarterly report to the court on its investigation’s progress.