How Kogi LG Funds Were Moved by Companies Using Paper Transactions - EFCC Investigator

An investigator from the Economic and Financial Crimes Commission (EFCC) explained on Tuesday how three companies handled Kogi State local government funds. They allegedly tried to cover up the money movements through what he called "in-and-out" transactions.

These transactions reportedly happened during former Governor Yahaya Bello's time in office. He, along with two others, is facing charges for diverting billions of naira from Kogi State funds at the FCT High Court in Abuja.

EFCC detective John Justice testified as the 20th prosecution witness in the corruption trial of Mr Bello and his co-defendants. He said some records showed that the companies withdrew local government funds as cash, but there was no trace of the actual recipients.

Mr Justice stated that further investigations revealed that funds were transferred directly to different accounts through paperwork. This was instead of being fully disbursed in cash, as some records suggested.

The investigator described the in-and-out transactions as when a customer enters a bank. They fill out a withdrawal slip for one account and a deposit slip for another, moving the same amount of money between accounts on paper. In this way, the customer does not physically take any cash.

He added that reviewing CCTV footage from the banks showed that the transactions were just paper transactions and not actual cash withdrawals.

"We invited the banks (Access and Zenith) because of the large amounts being withdrawn. We asked for the CCTV footage, and it showed that the customers were not taking cash out of the banks.

"The banks clarified that those transactions were treated as in and out. When we asked them what they meant, they explained that the customer walked into the bank, filled a cheque withdrawal, and filled a deposit slip to a different account," Mr Justice said.

Mr Justice identified the companies involved as Hazyman Investment Limited, Bimas Ventures Limited, and Fazad. The EFCC suspects that the local government funds sent to these companies are part of N110.4 billion that Mr Bello and his co-defendants, Umar Shuaibu Oricha and Abdulsalami Hudu, allegedly diverted from Kogi State's treasury from January 2016 to January 2024.

The three men face 16 charges of criminal breach of trust involving N110.4 billion allegedly taken from Kogi State's treasury. The EFCC claims some of these funds were used to buy properties in expensive areas of Abuja.

The agency also accused Mr Bello, who is planning to run for the Kogi Central Senatorial District seat in 2027 on the All Progressives Congress platform, of using part of the diverted funds to pay his children's school fees in dollars.

Despite this, Mr Bello and his co-defendants, whom the EFCC said conspired with him, have denied all the allegations.

Mr Justice described himself as an experienced expert in Asset Tracing, Procurement Fraud, and Anti-Money Laundering. He provided an overview of the EFCC's investigations into the former governor.

He said the EFCC received intelligence about the activities of Kogi State local governments, and the three companies frequently appeared in the investigation. Mr Justice and his team, led by Emeka Okonjo, conducted a BVN search on the companies. They found that Yakubu Siyaka was one of the people behind the companies.

He mentioned that the team also contacted Access and Zenith banks for transaction tickets from the companies. The banks' responses indicated that Keyless Nature benefited from these transactions.

Mr Justice said the team analyzed the companies' account statements, which showed that many of the inflows came from Kogi State local governments every month. He noted that a BVN search on Keyless Nature showed a link to Abba Adaudu.

"Analysis of the accounts revealed that these companies were receiving money from Kogi State. Most of the transactions were treated as cash withdrawals," the witness said.

Trial judge Maryann Anenih adjourned the case until November 24. In February, the EFCC presented account statements for 13 companies, including those mentioned by the witness on Tuesday.

The investigator's testimony lines up with that of a compliance officer who reported numerous transfers from some Kogi State local governments to the companies' accounts. Mr Adaudu's name has come up in several witness testimonies. For example, bureau de change operator Jamiu Abdullahi said he received N1.4 billion through his accounts from Mr Adaudu between December 15, 2021, and February 21, 2022, during Mr Bello's term.

A bureau de change operator testified this month about his involvement in paying the dollar school fees for Mr Bello's children at the American International School Abuja. The prosecution believes these funds came illegally from Kogi State's treasury, which Mr Bello and his co-defendants deny.