The judge of Taraba State High Court II, Pelibus Andertu, Tuesday convicted Philip Timothy and Rimamsonchiti Bako who were arraigned by the Economic and Financial Crimes Commission (EFCC) on a two-count charge of conspiracy, criminal breach of trust and fraudulent diversion of funds.
The accused were staff of Ussa Local Government Area, Taraba State, and served in the National Union of Local Government Employees, NULGE as Chairman and Secretary, respectively. They were arraigned on July 27, 2011.
Mr. Andertu found the two accused guilty of the charges levelled against them and sentenced them to a jail term of six months with an option of N500,000 fine each. They were also ordered to pay the value equivalent to the motorcycles involved in the scam.
The former NULGE officials were arrested following a petition by a new generation bank, alleging that sometime in 2007, officials of the union in Ussa Local Government Area, Taraba state, requested for a loan of N20 million for the purchase of motorcycles for its members. The loan was granted by the bank after the management of the local government guaranteed it.
The bank alleged that the terms of repayment had indicated that the union will pay the bank N23.4m spread over a period of 18 months.
However, only N15m was paid at the expiration of the tenure of the facility, leaving a balance of N8.3m.