‘N110.4bn fraud’: Companies used ‘in-and-out’ transactions to move Kogi LG funds, witness tells court

An Economic and Financial Crimes Commission (EFCC) investigator has told an Abuja high court in Abuja how three companies allegedly used “in-and-out” transactions to move funds received from local governments in Kogi state without physically withdrawing the money.

John Justice, the 20th prosecution witness in the trial of Yahaya Bello, former governor of Kogi, and two co-defendants, said the EFCC examined bank records and closed-circuit television (CCTV) footage after recording large cash withdrawals in the companies’ accounts.

Testifying on Tuesday, Justice said footage obtained from Access Bank and Zenith Bank showed that customers did not leave the banks with the cash recorded in the transactions.

“We invited the banks (Access and Zenith) because of the voluminous nature of the withdrawals. We requested CCTV footage of the banks, and it revealed that the customers were not taking the cash out of the banks,” he narrated.

“The banks explained that those transactions were treated as in and out. When we asked the banks what they meant, they explained that the customer walked into the bank, filled a cheque withdrawal and filled a deposit slip to a different account.”

He identified the companies as Hazyman Investment Limited, Bimas Ventures Limited and Fazad.

According to the witness, the transactions involved customers filling out withdrawal slips for one account and deposit slips for another, allowing the same amount to be transferred between accounts without the cash being physically handled.

Justice said the investigation began after the EFCC received intelligence about the activities of Kogi local governments in Kogi state.

His team, which operated under the commission’s procurement and fraud section headed by Emeka Okonjo, conducted bank verification number (BVN) searches on the companies and requested transaction records from Access Bank and Zenith Bank.

He said the searches identified Yakubu Siyaka among the companies’ alter egos, while the banks’ responses showed that Keyless Nature also benefited from the transactions.

The team obtained and analysed the companies’ account statements, which, according to Justice, showed regular inflows from local governments in Kogi state.

“Analysis of the accounts revealed that these companies were receiving inflow from Kogi State. Most of the transactions were treated as cash withdrawals,” he said.

He added that a BVN search on Keyless Nature established a link to Abba Adaudu, Bello’s associate.

The EFCC alleged that the funds transferred to the companies were part of the N110.4 billion Bello allegedly diverted from the state treasury during his tenure as governor between January 2016 and January 2024.

Bello is standing trial alongside Umar Shuaibu Oricha and Abdulsalami Hudu on 16 counts of criminal breach of trust over alleged diversion of N110.4 billion. The defendants have pleaded not guilty.

The EFCC alleged that some of the funds were used to acquire properties in highbrow areas of Abuja and pay upfront school fees for Bello’s children.

Bello, who is seeking election to represent Kogi central senatorial district in 2027 on the platform of the All Progressives Congress, has denied the allegations, alongside his co-defendants.

The testimony follows earlier proceedings in which the EFCC tendered account statements belonging to 13 companies, including some of those mentioned by Justice.

Justice’s evidence also follows testimony from a compliance officer who detailed transfers from Kogi local governments into company accounts.

Adaudu’s name has featured in previous witness accounts. Jamiu Abdullahi, a bureau de change operator, told the court that he received N1.4 billion through his accounts from Adaudu between December 15, 2021, and February 21, 2022, to purchase US dollars.

Maryann Anenih, the trial judge, adjourned the case to November 24 for continuation.