EX-KWARA GOV DIVERTED SUBEB LOAN TO PAY SALARIES — EFCC WITNESS
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A former Chairman of the Kwara State Universal Basic Education Board, Alhaji Lanre Daibu, on Thursday told a Kwara State High Court that a N1bn loan obtained from the board in 2013 was used by the then state government to pay workers’ salaries and pensions.
Daibu, the fourth prosecution witness in the ongoing trial of ex-governor Abdulfatah Ahmed and former Finance Commissioner, Demola Banu, disclosed this while testifying in the Economic and Financial Crimes Commission’s N5.78bn fraud case against the two former officials.
He said the then Finance Commissioner, Banu, approached the board for the loan, explaining that the state was experiencing financial hardship and needed funds to settle salary arrears and pensions.
He said, “The then-Commissioner of Finance in the state, Mr Ademola Banu, approached the board for the N1 billion loan, adding that the state government was faced with paucity of funds and the need to request for a N1 billion loan from the SUBEB account to pay the state workers and pensioners.
“Thereafter, the board met and sought commitment of the state government’s request in written form, before the release was approved by the board.”
He added, “Before the release of the loan, the board asked the state government how it was going to repay the loan, and it replied that the loan would be repaid from the monthly revenue allocation.”
Daibu, however, added that “the loans were not repaid before I left office because the board was dissolved.”
During cross-examination, Daibu confirmed to Ahmed’s lawyer, Kamaldeen Ajibade (SAN), that his statement to the EFCC was made under caution, as a suspect.
Answering another question, the former SUBEB chairman also said that “the N1bn loan was transferred to the salary account of the state government” and not to either of the personal accounts of the defendants.”
Also testifying, a retired permanent secretary in the Ministry of Finance, Benjamin Fatigun, said the ministry had recommended the SUBEB loan to address salary shortfalls caused by unstable monthly federal allocations in 2015.
“There were issues in the payment of salaries in 2015. Monthly FAAC allocation to the state’s government, as at that time, was unstable,” he said.
He also said that SUBEB was identified as a quick fix to rescue the government from the situation.
Benjamin also said the N1 billion loan from SUBEB was paid into the state’s salary account and not personal accounts of the first and second defendants.
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