The Economic and Financial Crimes Commission (EFCC) is prosecuting Ahmed and Banu on a 14-count amended charge bordering on the alleged misappropriation and theft of UBEC funds totaling N5.78billion.
A witness in the ongoing trial of the former Kwara State Governor, Alhaji Abdulfatah Ahmed, and his former Finance Commissioner, Ademola Banu, on Thursday told a Kwara State High Court sitting in Ilorin, the state capital, that the state government under Ahmed failed to repay a N1 billion loan obtained from the Universal Basic Education Commission (UBEC) Matching Grant fund.
Testifying before Justice Mahmud Abdulgafar, the Fourth Prosecution Witness (PW4), Mr. Lanre Daibu, a former Chairman of the Kwara State Universal Basic Education Board (SUBEB), said the loan, approved in January 2015, was meant to pay salaries and pensions but was never repaid until the dissolution of the board.
The Economic and Financial Crimes Commission (EFCC) is prosecuting Ahmed and Banu on a 14-count amended charge bordering on the alleged misappropriation and theft of UBEC funds totaling N5.78billion.
Led in evidence by EFCC counsel, Rotimi Jacobs (SAN), Daibu stated, “My lord, the second defendant, Banu, called me on phone 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, therefore, 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.”
He explained that the board was hesitant to grant the request because the funds were earmarked for specific projects under UBEC's Action Plan, and not meant to cover state salaries or pensions.
“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 said.
Daibu further told the court that a document marked “Exhibit 4” from the Ministry of Finance indicated that Governor Ahmed gave formal approval for the loan.
He added that he was unable to complete his tenure as SUBEB Chairman due to the abrupt dissolution of the board.
Corroborating Daibu’s testimony, the Fifth Prosecution Witness (PW5), Mr. Benjamin Sehinde Fatigun, a retired permanent secretary in the state’s Ministry of Finance, confirmed that Governor Ahmed approved the controversial N1 billion loan.
“There was an approval from the then governor of Kwara State, Alhaji Abdulfatah Ahmed that the State Universal Basic Education Board 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,” Fatigun said.
During cross-examination by defence counsels Kamaldeen Ajibade (SAN), and Gboyega Oyewole (SAN), Fatigun admitted that the Ministry of Finance had alerted the governor in writing about the inability to meet salary obligations, prompting the request for a loan from SUBEB.
“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 N1billion was released,” Fatigun explained.
Justice Abdulgafar adjourned the case until Friday, April 11, for continuation of hearing.