N20bn loan: EFCC withdraws forfeiture suit against Kogi govt

The Economic and Financial Crimes Commission (EFCC) has withdrawn a suit it filed against Kogi State Government seeking forfeiture of a N20 billion fund said to be ‘proceeds of unlawful activities’ warehoused in Sterling Bank.

The money was meant for the payment of Kogi State workers, but was alleged to have been domiciled in an interest yielding account with the bank.

Justice Chukwujekwu Aneke of a Federal High Court in Lagos granted the order of withdrawal on Friday sequel to a motion filed and argued by EFCC’s lawyer, Kemi Pinheiro (SAN).

At resumption of Friday’s proceedings, Pinheiro presented the EFCC’s grounds for discontinuance as contained in an application dated 13th October, 2021.

The motion titled ‘Notice of discontinuance’ stated that ‘the Applicant, the Economic and Financial Crime Commission has resolved to discontinue this matter in SUIT NO: FHC/L/CS/1086/2021 pending before this Honourable Court against the Respondent’s Account herein.”

Some of the grounds upon which the EFCC’s application of discontinuance is brought are: “That the Management of Sterling Bank where account No. 0073572696 with the name KOGI STATE SALARY BAIL OUT ACCOUNT is domiciled has clarified the questions resulting to the commencement of this suit

“That the management of Sterling Bank Plc., where account No. 0073572696 with the name KOGI STATE SALARY BAIL OUT ACCOUNT is domiciled, has since acknowledged the existence of the said account in their book but claimed same was a mirror account.

“That the sum of N19,333,333,333.36 is still standing in the credit of the account frozen pursuant to the Order of this Honourable Court.

“That the management of Sterling Bank Plc, where account No. 0073572696 is domiciled, has pursuant to a letter dated 21st September, 2021, signed by its Managing Director indicated intention to return the total sum of N19,333,333,333.36 back to the Central Bank of Nigeria.

“That it is expedient for the instant suit to be discontinued and the account unfrozen to enable the management of Sterling Bank Plc, effect the transfer/return of the sum of N19,333,333,333.36 back to the coffer of the Central Bank of Nigeria where the said bailout funds was disbursed.”

Granting the EFCC’s application, Justice Aneke held: “I have listened to the submission of the learned silk for the application, Mr. Kemi Pinheiro (SAN) vis-a-vis perused the motion to withdraw. My humble opinion is that the application is meritorious and ought to be granted. Accordingly, the application is granted as prayed.”

Kogi State Government’s lawyer, Prof. Sam Erogbo (SAN) commended the EFCC for its ‘professional approach’. He also sought for the vacation of the interim forfeiture order earlier granted by a vacation judge, Justice Tijjani Ringim, for the purpose of clarity.

The request was, however, turned down by Justice Aneke.