EX-KWARA GOVERNOR USED SUBEB LOAN TO PAY SALARIES

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Alhaji Lanre Daibu, a former chairman of the Kwara State Universal Basic Education Board, testified before a Kwara State High Court on Thursday that the state government at the time used a N1 billion loan from the board in 2013 to cover employee wages and pensions.

This was revealed by Daibu, the fourth prosecution witness in the current trial of former Finance Commissioner Demola Banu and former Governor Abdulfatah Ahmed. The case was in the Economic and Financial Crimes Commission’s N5.78 billion fraud case against the two former officials.

According to him, Banu, the Finance Commissioner at the time, asked the board for the loan, stating that the state was having financial difficulties and need money to pay pensions and wage arrears.

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.”