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A witness representing the Economic and Financial Crimes Commission (EFCC) has informed the Kwara High Court that the former governor Abdulfatah Ahmed failed to repay a N1 billion loan obtained from the Kwara State Universal Basic Education Board (SUBEB) in his ongoing N5.78 billion fraud case.
The witness, identified as Lanre Daibu, who previously served as chairman of the Kwara SUBEB, gave this testimony before Justice Mahmud Abdulgafar, on Thursday, April 10.
Ahmed, along with Ademola Banu, a former finance commissioner, is currently on trial facing a 14-count charge related to the alleged theft and misappropriation of N5.78 billion in public funds.
The former governor and Banu are accused of collaborating to divert funds from the Kwara State Universal Basic Education Board (SUBEB).
While being led in evidence by EFCC counsel Rotimi Jacobs during the court session, Daibu testified that in January 2015, Banu instructed the disbursement of N1 billion from the 2013 matching grant provided by the Universal Basic Education Commission (UBEC) to cover teachers’ salaries and pensioners allowances.
Daibu further stated that the state government failed to repay the loan before the board was eventually dissolved, prior to the end of its term.
He said, “My lord, the second defendant, Banu, called me on the phone saying that the state government needed money to pay salaries of its workforce and pensioners.
“The board sat on the issue and concluded that such requests must be in writing and not telephone conversation.
“I called the honourable commissioner to put it into writing.
“The reason we insisted that such a request should be in writing was to ensure that we get commitment from the state government as to when they are going to pay back the loan.
“In the letter signed on behalf of the second defendant, they promised to pay back in a month or two.
“However, they did not repay the loan till the board was dissolved.
“I was reluctant to grant the request because I was fully aware that the state government has no right to borrow or spend UBEC Matching Grant, meant to be used for the purposes stated in the Action Plan.”
He presented a letter from the Kwara State Ministry of Finance showing that the loan request had been approved by the state governor.
Additionally, Benjamin Sehinde Fatigun, a retired permanent secretary from the state’s ministry of finance, also testified, confirming that the governor gave his approval for the N1 billion loan.
He said, “There was an approval from the then governor of Kwara state, Alhaji Abdulfatah Ahmed that the State Universal Basic Education Board (SUBEB) should lend the Kwara state government the sum of N1 billion to augment the payment for civil servants and retirees.
“I got the approval from the honourable commissioner for finance, that is the second defendant and the fund was transferred to the state’s salary account.
“My lord, a letter emanated from the ministry of finance to the office of the executive governor of the state that we have challenges in paying salaries and SUBEB was suggested as a way out and I explained in the statements I made with the EFCC how the sum of N1 billion was released.”
However, the defendants pleaded not guilty to the charges levelled against them.
The judge then adjourned the case to Friday, April 11 for further hearing.
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