The Nation Newspaper

Tag: fraud

  • ‘Preach against fraud, corruption, dishonesty’

    The Amir Sahib, Ahmadiyya Muslim Jama’at Nigeria, Dr. Mash’hud Fashola, has said the nation’s problem is caused by dishonesty, corruption and fraud.

    He said religious leaders should preach against them.

    Fashola spoke in Ibadan, Oyo State capital, after a two-day visit to the Akinyele Circuit of Ahmadiyya Muslim Jama’at.

    He said religious leaders should bury their sectional, denominational and religious differences to take the country out of its predicament.

    The Amir Sahib, a former head of Department of Economics, University of Lagos, Akoka, said: “Religion has failed in Nigeria because some of our religious leaders are preaching something else, instead of preaching truthfulness, honesty and piety needed for nation-building.

    “Imagine a contractor who collected N250 million for a project that could be executed with N50 million. These are some of the things affecting the country.

    “Our hypocrisy knows no bound. We are religious but not God-fearing. Our religious leaders are expected to change the people. We can challenge the government to move the nation forward.”

    He said the solution to the nation’s problems starts from churches and mosques, noting that religious leaders should unite to demand good governance.

    According to him, “our religious leaders should stop honouring wealthy people, who made their wealth from corrupt, fraudulent and other questionable means.

    “These people should be encouraged to give their stolen wealth to the poor. The truth is, Nigerians are more fraudulent than Europeans who don’t attend churches and mosques.

    “It is a pity that our youths are very lazy. What we should be preaching to them is hard work.”

    Fashola hailed the Catholic bishops for their visit to the Presidency on the country’s situation and for condemning stealing, looting and killings.

    He urged the government to ensure that Nigerians have access to food and job, saying these would reduce insecurity and crime.

    The Islamic leader, who also visited the University of Ibadan, where he was received by the Deputy Vice Chancellor (Administration), Prof. Ambrose Emilolorun-Ayelari, praised the leadership of the institution for ensuring a peaceful atmosphere.

    He implored the university not to relent in promoting morality among youths.

  • EFCC indicts ex-NEMA DG, six directors for N2.5b ‘fraud’

    A former Director-General of the National Emergency Management Agency (NEMA) and six directors have been indicted in an alleged N2.5billion fraud in the agency.

    The Economic and Financial Crimes Commission (EFCC) has recommended that the six directors suspected to enable it complete its probe of the agency.

    The NEMA board is statutorily chaired by the Vice President. Immediate past Vice President Namadi Sambo chaired the last board of the agency.

    Sambo met with President Muhammadu Buhari at the Presidential Villa, a few days ago. It was not clear at the weekend if the meeting was in connection with the March 1 report of the EFCC on NEMA, which has been sent to the government.

    The agency has recommended trial for those found wanting after its probe.

    Apart from former DG Sani Sidi Mohammed, the others indicted are Director of Finance and Accounts Akinbola Hakeem Gbolahan; Ag. Director, Special Duties, Mr. Umesi Emenike;  Director, Risk Reduction, Mallam Alhassan Nuhu; Pilot in-charge Air Ambulance and Aviation Unit, Mr. Mamman Ali Ibrahim; the Chief Maintenance Officer Mr. Ganiyu Yunusa Deji; and Director of Welfare Mr. Kanar Mohammed.

    The NEMA Board, chaired by Vice President Yemi Osinbajo, may meet tomorrow to consider EFCC’s preliminary report on the alleged corrupt practices.

    The EFCC is said to have presented its preliminary findings to the board in anticipation of its endorsement to enable the agency carry out a comprehensive probe of the alleged looting.

    An  EFCC source said the  investigation bordered on “alleged case of conspiracy, abuse of office, misappropriation and diversion of public funds reported to the office of the Vice-President against the former director-general, Sani and others and forwarded to the commission for discreet investigation.”

    Some of the alleged sharp practices uncovered by the EFCC are:

    • whereabouts of N166m out of N285m realised from the commercialisation of NEMA’s air ambulance;
    • alleged short-change of Federal Inland Revenue Service (FIRS) with N354, 900, 105. 24;
    • N238million NEMA cash placed in a fixed deposit  account by a director;
    • interest on a fixed deposit diverted by a director;
    • some directors have about five to 20 accounts;
    • NEMA funds moved into personal accounts of directors;
    • frivolous emoluments claims that were wrongly processed by directors and some officials of the agency;
    • about N66m out of N280m meant for displaced traditional rulers in the Northeast still unaccounted for; and
    • curious deposit of suspicious funds in domiciliary accounts of top directors

    The report said: “From the investigation carried out so far, officials could not account for funds transferred from NEMA account to their personal accounts.

    “Moreover, the funds were being withdrawn in cash and, in some cases, transferred to family members. Also, it was discovered that some of these funds were placed in fixed deposit; both the principal and the interest were withdrawn in cash by the depositor.

    “Furthermore, the issue of companies incorporated by the officials of NEMA who are public servants is against the Public Service Rules. This is more so as the companies are active and still receiving funds, in some cases from NEMA.

    “There were frivolous emoluments claims that were wrongly processed by directors and some officials of the agency.

    ”Against this background, EFCC is of the opinion that placing the officials involved under suspension will assist the successful completion of our investigation. This is the only way the commission can have unfettered access to all the necessary documents that will aid our investigation. It is therefore recommended that the officials who are already indicted in the case be placed on suspension pending the conclusion of the investigation.

    “The aspect of fake IDP camps and relief materials are still being investigated.  Investigation is still on-going and further developments will be communicated.”

    The EFCC’s fact-sheet indicated what each of the officers will account for.

    The report said: “The brief facts of the case as contained in the petition alleged that former Director-General Sani Sidi while in office misappropriated public funds and perpetrated corrupt acts in NEMA. It further alleged that he conspired with some officers within the Agency, especially in the Department of Finance and Accounts, that shortchanged the Federal Inland Revenue Service (FIRS) to the tune of over N354,900, 105.24.”

    Part of the report states: “From the investigation so far conducted, the ex-DG maintains 20 different accounts in various banks; he is the promoter of Major Enterprises Ltd and Khayas Alliance Farms Ltd;   his Standard Chartered Bank US dollar account recorded the following cash deposits ($ 164,000) and (£58,800) which were flagged as suspicious transaction.

    “The Director of Finance and Accounts, Gbolahan is the owner and promoter of the company, Ridges and Tillages Limited. He maintains multiple accounts with which he receives suspicious cash transfers totalling N27, 650, 00.”

    On Acting Director, Special Duties, Umesi Emenike the EFCC said: “Prior to his appointment as the Ag. Director of Special Duties, he was Zonal Coordinator of the South-South and the Deputy-Director Training.

    “While he was Zonal Coordinator of the South-South, Zonal Office, he coordinated the affairs of Six (6) States Emergency Management Agencies namely: Cross River, Rivers, Akwa Ibom, Edo, Delta and Bayelsa.

    “The fund meant for programmes and maintenance of the Zone was paid into the suspect’s personal accounts instead of the Zonal office’s accounts. These funds were withdrawn in cash, transfers and through ATM machines. There is no evidence to show that these funds were utilised for the benefits of NEMA.

    “Patrick Ewama, who was the Zonal Accountant of the suspect made several cash lodgments and  withdrawals from the accounts of the suspect.

    “The suspect maintains 14 accounts in various banks and cash lodgments and transfers were made into the accounts from both NEMA and other sources, out of which about N238million which was received from NEMA into the suspects’ account for activities of NEMA, was placed on fixed deposit and both the principal and interest were utilised by the suspect”:

    The Director, Risk Reduction in NEMA, Mr. Alhassan Nuhu has been asked to account for the N15million he transferred into the account of the Director of Finance.

    The EFCC said: “The suspect (Nuhu) maintains five accounts in various banks.  In one of his accounts, it was discovered that N15 million was received from NEMA and later transferred into the account of another director.

    “The suspect and the DFA could not give satisfactory account on all the funds deposited into the suspect’s account from NEMA. He moved NEMA funds into his company account, Dambo Farms Limited.

    Concerning NEMA Pilot in-charge of Air Ambulance and Aviation Unit, Mr. Mamman Ali Ibrahim, the EFCC alleged that although he was employed by the agency to set up an Air Ambulance Unit and Helicopter emergency services in 2014, he commercialised the unit.

    The report said: “The Air Ambulance Unit was established under the Nigeria Civil Aviation to embark on evacuation of critical and noncritical missions. The suspect’s letter of employment clearly indicates his functions and entitlements as a flight captain.

    “He commercialised both the air ambulance and the helicopter, claiming that the directive to commercialise the flight came from the office of the Vice-President and the Accountant-General of the Federation.

    “A total of N285 million was realised from the commercialisation of the aircraft, N63 million was paid to the AGF while N11 million was paid to NEMA and the balance is yet to be accounted for.

    “A total of N45 million was paid into Aerocare West Africa Limited, a company belonging to the suspect, by NEMA and the suspect in turn transferred it to family members.

    “Though he mentioned some members of his crew as beneficiaries of the funds, the account of the former DG, Sani Sidi, witnessed so much inflow of foreign exchange believed to have been derived from the commercialization of the air ambulance since all transactions appeared to be in cash.”

    The allegations against the Chief Maintenance Officer, NEMA/in-charge of fuel supply to the generators, Mr. Ganiyu Yunusa Deji,  he maintains six accounts in various banks.

    The EFCC accused the Director of Welfare, Mr. Kanar Mohammed, of paying the agency’s funds into his accounts.

    The report said: “He joined the service of NEMA in December 2011 as Assistant Director, Training and has served as the Agency’s North-East Zonal Coordinator with office in Maiduguri.

    He maintains six accounts in different banks and had received so much funds from NEMA to the accounts.

    “One of such funds was N214million from NEMA, which was received from the office of the Secretary to the Government of the Federation to be distributed to the displaced traditional rulers within the Northeast region.

    An EFCC source said: “The amount in question is over N2.5billion. We have interrogated all the affected suspects and they have made useful statements. We have more to unearth but we cannot achieve much because the affected directors are in charge of vital documents.

    “So far, we have recommended that these government officials be suspended pending the conclusion of a comprehensive investigation.”

    A NEMA source said all the allegations amounted to a plot to witch-hunt some members of the management staff and implicate the former DG.

    The source said: “The former DG, Sani Sidi Mohammed, did a good job in disaster management which the present management has not been able to match. They are just desperate to deal with him for committing no fraud.

    “The ex-DG served the nation selflessly and responded to major disasters with efficiency, especially attacks by Boko Haram insurgents. The records are there. He also got so many international awards for his performance.

    ”All our emergency vehicles and air ambulance services have been grounded since this administration came on board. They want to use the probe by the EFCC to cover up their lapses.

    “The EFCC should also interact with our union leaders to know the exact situation in NEMA.”

    Another NEMA source said: “I think the new board has its own agenda for our agency. The workers are watching and we will respond appropriately. Most of these directors are innocent of the allegations against them.”

  • Couple declared wanted for ‘fraud’

    Enugu State Police Command has declared a couple wanted for alleged N63 million forgery and fraud in a mortgage  institution.

    Spokesman Ebere Amaraizu said in a statement in Enugu yesterday that the Criminal Intelligence and  Investigations Department had begun investigation  into the matter.

    He said the wife, Mrs. Chinyere Amalunweze, 36, an indigene of Umuegbu Ego village, Nnobi community in Idemili South Local Government of Anambra State is fair in complexion and a former worker of a mortgage  institution.

    Amaraizu said the husband, Mr. Tony Amalunweze, 38, from Umulumgbe community in Udi Local Government of Enugu State, who lives at 2a, Akpugo Street, Independence Layout, Enugu, is dark in complexion.

    “They were alleged to have been involved in a case of conspiracy, forgery and fraud in which they defrauded a mortgage institution of N63 million and escaped.

    “The command is asking the public with information about how they can be traced, to report to the nearest police station,” he said.

     

  • Youths protest alleged fraud at Ekiti varsity

    Youths, mainly students from Ekiti State, under the umbrella of Nigeria Youths Coalition (NYC), yesterday protested at the Economic and Financial Crimes Commission (EFCC), Ibadan regional head office.

    They alleged financial misappropriation at the Federal University, Oye-Ekiti (FUOYE), Ekiti State.

    The youth, led by Comrade Shina Awopeju (coordinator) and Comrade Tetteh Ebenezer (secretary), urged the EFCC to probe alleged financial misappropriation by the Vice Chancellor, Prof. Kayode Soremilekun.

    The protesters, in a five-page petition to the anti-graft agency, levelled five allegations against the vice chancellor.

    They are illegal purchase of Prado Sport Utility Vehicles at an inflated price of N25 million each, purchase of two Nigeria-used Toyota Camry car (2006 model) at N5.25 million and four Toyota Camry at N10.5 million.

    Others include payment of N40.1 million into a bank account belonging to Kodelac Nigeria Ltd in Ile-Ife, Osun State, without following procurement guidelines of payment.

    The youth alleged that N19.1 million was paid twice for a two-block laboratory at Ikole campus.

    The group alleged that N1.98 million was paid into an unknown account operated by the university in a commercial bank, for an unknown contract.

    The petition alleged that a fairly-used (Tokunbo) CRV car was bought at N23.9 million for the Governing Council chairman, which the chairman rejected.

    Addressing reporters, Awopeju said the group comprised students and youths from Ekiti State.

    He dismissed the insinuation that the body was being used to fight the vice chancellor, saying their action was to support the the Federal Government’s anti-corruption war.

    The Vice Chancellor, Prof. Kayode Soremilekun, dismissed the allegations yesterday, saying they were lies.

    He said: “It’s all lies. We are already under investigation by the EFCC and ICPC. If they have good intention, why go that far? It was the handiwork of a principal officer who was suspended. The petition has been flying around for some time now.”

  • 82-year-old remanded for alleged N41m fraud

    In Ibadan Chief Magistrates’ Court in Oyo State has remanded an 82-year-old, Prince Aminu Musa Oyebamiji, at Agodi Prison, for alleged N41 million fraud.

    The suspect was arraigned on a three-count charge of felony to wit obtain money under false pretence.

    The offences were said to be punishable under Section 516 of the Criminal Code Cap 38 Vol. 11 Laws of Oyo State, Nigeria 2000.

    The charge sheet said the offences were committed in June 2015 in Alalubosa, Ibadan.

    Oyebamiji and others were accused of obtaining money from Mr. Adeniyi Aderemi on the pretence of awarding him a contract to rehabilitate Ahoda through Baminco Nigeria Ltd, from Agip Company.

    The offence, according to the charge sheet, is punishable under Section 419 of Criminal Code Cap 38, Vol 11 Laws of Oyo State Nigeria, 2000.

    The third count said Oyebamiji and members of his group on the same date, time and place stole N41 million, belonging to Aderemi.

    The suspect was said to have committed an offence punishable under Section 390 (9) of Criminal Code Cap 38 Vol 11 Laws of Oyo State Nigeria, 2000.

    The suspect pleaded not guilty.

    Chief Magistrate Jejelaye Ogunbona granted the accused bail at N2.5 million with two sureties.

    He said the sureties must be well-known in the community, preferably landlords, who must be ready to deposit the Certificate of Occupancy (C of O) or conveyance of the property with the registrar.

    He adjourned till May 3 for further hearing.

  • IOSCO seeks to protect aged investors from fraud, other risks

    THE International Oragnisa- tion of Securities Commissions (IOSCO), the global securities regulator, has launched a new report that seeks to protect ageing investors from financial fraud, unsuitable investment and other risks as part of efforts to safeguard senior investors from losing their hard-earned nest eggs.

    Its board on Monday published the report that examined the growing vulnerability of ageing investors to financial fraud and other risks and identified sound practices for enhancing their protection.

    The report- Senior Investor Vulnerability- revealed that seniors are at a higher risk than other investors of losing money to fraud or of being misled by others.  It also indicated that the biggest risks to senior investors are unsuitable investments, financial fraud and their diminished cognitive capability which affects their financial decision-making. Complex products, deficient financial literacy, and social isolation pose additional risks to senior investors.

    IOSCO noted that ageing populations are a challenge to investor protection, as ageing and associated levels of physical and cognitive decline increasingly debilitate the capabilities of investors worldwide. Research indicated that age-induced cognitive decline is linked to impaired financial decision-making. Some research also correlated ageing with increased susceptibility to financial exploitation and fraud. These vulnerabilities are growing just as many investors assume greater responsibility for their retirement and financial future.

    The IOSCO report explored the views and experiences of IOSCO members regarding senior investor vulnerability while providing a list and description of sound practices for both regulators and financial services providers. The report also included a non-exhaustive bibliography of literature that may be helpful to regulators and others.

    According to the report, the sound practices to be promoted by securities market regulators are     delivering of educational programmes and resources targeting senior investors, fostering the development of senior-focused expertise within existing regulatory, educational or advisory programmes, conducting research projects to better understand the risks and issues facing senior investors and the incidence and mechanics of investment fraud that affect seniors in their jurisdictions and development of guidelines and training programmes for personnel reviewing transactions conducted with senior investors.

    The sound practices to be promoted by financial services providers include offering support to senior investors experiencing a life event during the product lifecycle and providing training and support for employees of financial services firms.

    IOSCO is global body of securities regulators and its members regulate more than 95 per cent of the world’s securities markets in more than 115 jurisdictions. Nigeria is a member of both the board of IOSCO and its influential Committee on Retail Investors, otherwise known as Committee 8.

     

  • Fraud cases by bank staff rises — NDIC

    Nigeria Deposit Insurance Corporation (NDIC) says the number of fraud cases attributed to internal abuse by staff of banks increased from 231 in 2016 to 320 in 2017.

    Mr Mohammed Ibrahim, Head, Communications and Public Affairs of NDIC, said in a statement in Abuja on Sunday that the figure was in the organisation’s recent report on off-site supervision of the Deposit Money Banks (DMBs).

    “The report relied on a total of 286 responses received from 26 banks during the period and there were 22 NIL monthly responses from the banks as at year ended Dec. 31, 2017.

    “The 286 responses received from banks in 2017 cited 26,182 cases of fraud and forgeries which is 56.30 per cent higher compared to 16,751 cases reported in 2016.

    “Similarly, the amount involved in the fraudulent activities documented increased by N3.33 billion from the N8.68 billion reported in 2016 to N12.01 billion in 2017 or 38 per cent.

    “However, the expected/actual loss slightly-decreased by N24.42 million or 1.03 per cent from N2.39 billion in 2016 to N2.37 billion in 2017.”

    Ibrahim said Internet/Online-banking and ATM/Card-related fraud-types reported constituted 24,266 or 92.68 per cent of all the reported cases, resulting in N1.51 billion or 63.66 per cent of losses in the industry in 2017.

    He said the report also documented other miscellaneous crimes, such as fraudulent transfers/withdrawals, cash suppression, unauthorised credits and fraudulent conversion of cheques.

    Others are diversion of customer deposits, diversion of bank charges and presentation of forged or stolen-cheques.

    He said that 22 Licensed Commercial Banks and four Merchant banks rendered 286 returns on dismissed/terminated staff as a result of fraud and forgeries during the year under review.

    Ibrahim said out of the 26,182 fraud cases reported by the 26 Licensed Banks, 320 cases were attributable to internal collaboration by bank staff.

    “A total of 320 bank employees had their appointments either terminated or were summarily dismissed in 2017, as against 231 in 2016.

    “That represented an increase of 38.53 per cent in the total number of fraud cases reported in 2017.

    “However, the losses arising from the reported cases decreased from N760 million in 2016 to N682 million or about 11.43 per cent in 2017.”

    Ibrahim said that NDIC attributed the improvement to additional internal control measures adopted by the banks in the wake of the proactive corrective measures taken to ensure their compliance with good corporate governance principles.

    He said NDIC would investigate some banks for  inadequate rendition of returns on instances of fraud, forgeries and cases involving members of staff  dismissed or their appointments terminated on grounds of fraud.

    He said that NDIC made the decision in light of the increase the report revealed.

    He said that Section 35 and 36 of the NDIC Act No. 16 of 2006 (as amended) requires all DMBs to submit monthly information/returns on fraud and forgeries to the corporation.

    He said in spite of the Fidelity Insurance Cover taken by banks to address fraud perpetrated by staff, there was still need for the banks to further enhance their internal control and security measures.

    He said this was because of the rising trend of E-Channels (Online banking and Card-related) fraud and forgeries in the industry which remained a serious cause for concern to the organisation. (NAN)

  • Attendant in court for alleged N450,000 fraud

    Attendant in court for alleged N450,000 fraud

    A 28-year-old petrol attendant, Andrew Tawei, was yesterday arraigned at an Okitipupa Magistrates’ Court in Ondo State for alleged N450,000 fraud.

    The defendant of no fixed address is standing trial on a two-count charge of fraud and fraudulent conversion of another person’s money to personal use.

    The prosecutor, Zedekiah Orogbemi, told the court that the defendant, between December 2017 and February 2018 sold petrol at a filling station in Okitipupa and refused to remit the sales to the owner, Ayo Sabitu.

    Orogbemi said the defendant was arrested on March 2, around 8am at Ayeka in Okitipupa after he had fraudulently converted the money to personal use.

    The prosecutor said the offences were contrary to, and punishable under sections 390(9) and 383(1) of Criminal Code, Cap. 37, Vol.1, Laws of Ondo State 2006.

    The defendant, however, pleaded not guilty.

    The Magistrate, Mr. Banji Ayeomoni, granted the accused bail at N200,000 and a surety.

    He adjourned the case till March 22 for further hearing.

  • Alleged N4.478b contracts fraud: Eight firms indicted

    Alleged N4.478b contracts fraud: Eight firms indicted

    Eight companies which got N4.478 billion to supply 104 Unity Colleges Science Kits disappeared with the cash, The Nation has learnt.

    The Universal Basic Education Commission (UBEC) has written the Economic and Financial Crimes Commission (EFCC) to admit that the kits were not supplied.

    The anti-graft agency is probing top UBEC. officials for alleged diversion of a huge chunk of the N20 billion voted for contracts.

    One of the contracts is the supply of science and technical equipment and books.

    The movement of about eight suspects has been restricted to the country following the seizure of their passports.

    UBEC conducted an audit of the items supplied by the eight companies.

    In a March 1, 2018 letter to the EFCC, signed by an Assistant Director for Procurement, Benjamin A. Smart, UBEC confirmed that there was fraud in the contracts.

    The letter said: “The total cost of items not delivered by the eight companies is N4,478,683, 300”.

    The worth of the undelivered items and the companies allegedly involved are: L’enfant Enterprises Limited (N837,944,500); Callandar Investment (N639,474,000); Broomley Technologies (N533,516,500); Broomley Laboratories (N313,933,100); Benfield Nigeria Limited(N397,058,600); Adeyinka Ventures Limited (N764,671,300); Taiso Global (N565,179,800);  and Aristocrat SPC (N426,904,500).

    The companies could not be reached for comments last night.

    An EFCC source, who spoke in confidence, said: “UBEC wrote us based on documents collected from over 104 Federal Government Colleges and other schools.

    “We discovered that most of the contracts awarded to at least seven of these eight companies were not bidded for. There was alleged violation of due process.

    “We have pleaded on the accounts of the affected companies in line with the ongoing investigation.

    “Apart from UBEC, our detectives invited the principals of the 104 schools and their store officers to give account of the quantity of the items supplied. Some schools received about 30% of their equipment, some got 40% and some 50%.

    “About three to four schools in the Northeast, particularly those sited in Boko Haram insurgency axis, did not receive any science and technical equipment.

    “When we discovered that these equipment were not supplied, EFCC investigators decided to track the money paid by UBEC.  The detectives discovered that about N5 billion was paid out to some individuals with a strong suspicion that it might have been diverted and used for the 2015 general elections.”

    The source added: “We will soon release our findings on the textbook contracts awarded by UBEC within the same period.

    WHO GOT WHAT

    •L’enfant Enterprises Ltd (N837,944,500)
    •Callandar Investment (N639,474,000)
    •Broomley Technologies (N533,516,500)
    •Broomley Laboratories (N313,933,100)
    •Benfield Nigeria Ltd (N397,058,600)
    •Adeyinka Ventures Ltd (N764,671,300)
    •Taiso Global (N565,179,800)
    •Aristocrat SPC (N426,904,500)

  • EFCC re-arraigns Alao-Akala, two others for alleged N11.5b fraud

    EFCC re-arraigns Alao-Akala, two others for alleged N11.5b fraud

    THE Economic and Financial Crimes Commission (EFCC) has re-arraigned former Oyo State Governor Adebayo Alao-Akala and two others in the State High Court sitting in Ibadan over alleged N11.5 billion fraud.

    Other defendants are: a former Commissioner for Local Government and Chieftaincy Matters, Senator Hosea Agboola and an Ibadan-based businessman, Femi Babalola.

    The defendants are facing an 11-count charge of conspiracy, awarding contract without budgetary provision, obtaining by false pretence, acquiring property with money derived from illegal act and concealing the ownership of such property, among others.

    EFCC’s counsel Dr. B. Ubi told the court that when Alao-Akala was the governor, he awarded a road contract worth N8.5 billion between 2007 and 2009 to Pentagon Engineering Services.

    Ubi alleged, among others,  that the firm owned by Babalola handled the contract on behalf of the 33 local governments without budgetary provision.

    The counsel added that Alao-Akala ordered the supply of drilling machines on behalf of the 33 local governments for N3.5 billion.

    The prosecutor told the court that Alao-Akala also illegally acquired some property on Old Bodija Road, off Rotimi Williams Road, when he was the governor. He said the offences contravened Section 22 (4) of the Corrupt Practices and Other Related Offences Act and Section 1 (18) of the Advanced Fee Fraud Act.

    The defendants  pleaded not guilty to the charges.

    Hakeem Afolabi, SAN, who is a counsel to Alao-Akala and Babalola, prayed the court to exercise its discretion in granting bail to the defendants.

    Afolabi said the charge before the court was not a fresh one but a re-arraignment. He said the matter was first filed on October 11, 2011, before Justice Moshood Abas and bail was granted after the defendants met the conditions.

    The defendants had also appeared before Justice Akintunde Boade and Justice Bayo Taiwo, who was recently transferred out of Ibadan Division.

    Afolabi urged the court to allow the defendants to enjoy the earlier bail condition granted to the defendants.

    Mr. Richard Ogunwole, SAN, who is counsel to Ayoola, aligned with the submission of Alao-Akala’s counsel.

    The EFCC counsel said he would not oppose the bail applications.

    Justice Muniru Owolabi granted the defendants’ prayers and adjourned the case till April 16 for trial.