A Federal High Court sitting in Lagos has frozen Kogi State salary bailout account over a N20 billion loan obtained from the commercial bank where the account is domiciled.
Justice Tijjani Garba Ringim issued the order pending the conclusion of investigation or possible prosecution by the Chairman, Economic and Financial Crimes Commission, EFCC.
EFCC had approached the court for the order in an ex-parte application brought pursuant to section 44(2) of the Constitution and section 34(1) of the Economic and Financial Crimes Commission Act and under the inherent jurisdiction of the court.
A counsel from the agency, A. O. Muhammed, informed the court that the order was necessary to preserve and abate further dissipation of the funds in the account.
Moving the application, Mr. Muhammed told the court that the N20 billion loan meant to augment the payment of salary and running cost of the State Government was kept in an interest yielding account instead of using the money for the purpose it was meant for.
Justice Ringim ordered the EFCC to publish the order in a national newspaper and made quarterly report to the court on the progress of it’s investigation.
The matter was adjourned till December 1, for the report of Investigation.