How companies disbursed Kogi LG funds through ‘in-and-out’ paper transactions – EFCC investigator

An Economic and Financial Crimes Commission (EFCC) investigator narrated on Tuesday how three companies received some Kogi State local government funds and tried to hide the disbursements of the money through what he described as “in-and-out” transactions.

The transactions allegedly took place during the tenure of former Governor Yahaya Bello, who along with two others is facing charges of diverting billions of naira in Kogi State funds at the FCT High Court in Abuja

EFCC detective John Justice, who testified as the 20th prosecution witness in the corruption trial of Mr Bello and co-defendants, said some records showed that the companies withdrew the local government funds as cash without trace of the beneficiaries.

The witness said further investigations showed that funds were transferred straight to different accounts through paper transactions, rather than being completely disbursed in cash as indicated in certain records.

The in-and-out transactions, according to Mr Justice, refer to a practice where a customer goes into a bank and simultaneously fills out a withdrawal slip for one account and a deposit slip for another, moving the exact same amount of money between accounts on paper. In such transactions, the customer does not physically handle or leave with any actual cash.

The witness said a review of CCTV recordings of the banks revealed that the transactions were just paper transactions and not just cash withdrawals.

“We invited the banks (Access and Zenith) because of the voluminous nature of the withdrawals. We requested CCTV footage of the banks, and it revealed that the customers were not taking the cash out of the banks.

“The banks explained that those transactions were treated as in and out. When we asked the banks 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 listed the companies at the centre of the transactions as Hazyman Investment Limited, Bimas Ventures Limited and Fazad.

The EFCC suspects the LG funds transferred to the companies are part of N110.4 billion that Mr Bello, alongside his co-defendants – Umar Shuaibu Oricha and Abdulsalami Hudu – allegedly diverted from Kogi State’s coffers while he served as governor between January 2016 and January 2024.

The trio are facing 16 counts of criminal breach of trust involving N110.4 billion allegedly diverted from the Kogi State treasury.

EFCC alleged that part of the funds was used to buy properties in highbrow areas of Abuja.

The anti-graft agency also accused Mr Bello, who is vying for the Kogi Central Senatorial District seat in 2027 on the platform of the All Progressives Congress, of using part of the diverted funds to make upfront payments for his children’s school fees.

However, Mr Bello and his co-defendants, whom EFCC said conspired with him to commit the crimes, have denied the allegations.

Mr Justice, who described himself as an experienced Asset Tracing and Procurement Fraud and Anti-Money Laundering expert, gave an overview of EFCC investigations into the former governor.

He said the EFCC received intelligence regarding the activity of the Kogi State LGs, and three companies (mentioned earlier) were recurrent in the investigation process.

Mr Justice and his procurement and fraud section team headed by Emeka Okonjo carried out a BVN search on the companies, and found that Yakubu Siyaka was among the alter egos of the companies.

He said the team also wrote to Access and Zenith banks asking for tickets of the companies’ transactions.

According to him, the banks’ responses revealed that Keyless Nature benefitted from the transactions.

Mr Justice said the team received the companies’ statements of account, “they were analysed, and most of the inflow coming into these accounts was from LGs of Kogi State on a monthly basis.”

He said a BVN search conducted on Keyless Nature revealed a connection with Abba Adaudu.

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

Trial judge Maryann Anenih adjourned the case till 24 November.

In February, the EFCC presented the account statements of 13 companies, including the companies the witness mentioned on Tuesday.

The investigator’s testimony aligns with that of a compliance officer who detailed slews of transfers from some local governments in Kogi State to companies’ accounts.

Mr Adaudu’s name has featured in some witnesses’ testimony. For instance, a bureau de change operator, Jamiu Abdullahi, said he received N1.4 billion through his accounts from Mr Adaudu between 15 December 2021 and 21 February 2022, during Mr Bello’s time in office, to purchase US dollars.

A bureau de change (BDC) operator testified in previous proceedings this month explaining his roles in the payments of the dollar-denominated school fees of the children of Mr Bello at the American International School Abuja (AISA). The prosecution believes the funds were illegally sourced from Kogi State Government’s treasury, an allegation Mr Bello and his co-defendants have denied.

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