N3bn Fraud Trial: Witness details ‘suspicious’ cash transfers, withdrawals of Kogi’s local government funds

A bank official on Tuesday detailed how large sums of money allegedly originated from various Local Government Areas (LGAs) in Kogi State were funnelled through suspicious cash lodgments spanning years into private bank accounts during former Governor Yahaya Bello’s tenure.

Ofure Achille, a staff member of an Access Bank branch in Lokoja, the Kogi State capital, gave the details at the Federal High Court in Abuja while testifying as the seventh prosecution witness in the money laundering trial of Ali Bello, a nephew of former Governor Bello.

Ali, the Chief of Staff to incumbent Governor Usman Ododo, is standing trial on money laundering charges involving the alleged diversion of about N3 billion belonging to Kogi State and its local governments.

He faces 18 counts of money laundering alongside his alleged conspirators—Abba Adaudu, Yakubu Siyaka Adabenege, Iyada Sadat, and Rashida Bello—who are named in the complex web of massive “suspicious” cash deposits and withdrawals.

Access Bank official Ms Achille, who served as the Head of Operations of the Lokoja branch between 2015 and 2023 – a period that coincided with former Governor Bello’s eight-year tenure—told the court on Tuesday that her bank flagged multiple suspicious transactions involving inflows and rapid cash withdrawals from accounts linked to companies allegedly used by the defendants.

Led in evidence by EFCC’s prosecution lawyer, Rotimi Oyedepo, a Senior Advocate of Nigeria (SAN), Ms Achille said some transactions involving hundreds of millions of naira were reported to the Nigerian Financial Intelligence Unit (NFIU).

She told the trial judge, Obiora Egwatu, that the transactions were flagged and reported to the NFIU because they did not match the financial profiles of the holders of the recipient accounts.

Responding to a question regarding one of the accounts, called E-traders account operated by Jamilu Abdulahi, she said, “I have seen the account before, and there were multiple cash lodgments. On 29 and 30 December 2021, N30 million was deposited each day. On 31 January 2022, a cash deposit of N40 million was made. Then, on 1 February, another N30 million was deposited in cash.”

“When an account receives large cash deposits or withdrawals that do not align with the economic background of the account holder, the bank is obligated to file a report,” she said, explaining why the bank flagged many transactions involving the defendants and submitted Suspicious Transactions Reports (STRs) concerning them to the NFIU.

Giving further details about reporting the suspicious transactions—a mandatory requirement under the anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations—Ms Achille noted that Access Bank used an electronic system for the process.

“It’s a system where we input the name and account number, the amount involved, and the reason the transaction is made. In Abdulahi’s case, the transactions seemed suspicious, and we filed a report with the NFIU.”

She confirmed similar patterns of cash withdrawals from accounts operated by Ali’s co-defendants, Yakubu Isiaka and Iyadi Sadat. She also said that another defendant, Abba Adaudu, made similar deposits into Mr Abdulahi’s account.

Other transactions

Ms Achille, who has worked at Access Bank since 2008 and now works in the operations department, where she is authorised to oversee cash transactions, named some of the accounts that allegedly received suspicious funds from different local governments of Kogi State.

According to her, there was evidence of funds coming from different local government areas (LGAs) of Kogi State being deposited into and withdrawn from the accounts of Fazab Business Enterprise and Hyzman Ary Construction Limited.

She also said after money was withdrawn from the accounts, additional cash was usually lodged shortly thereafter through deposit slips.

Referencing pages 721–738 of Exhibit N, Ms Achille testified about lodgments into Ary Construction and Integrated Services from local governments in Kogi.

“The first lodgment into the account was on 29 August 2017 — N10,000. But that same day, there were several inflows from different Kogi LGAs. By the close of business on that date, the balance stood at N171,347,600,” she said.

“On 30 August 2017, more inflows were recorded, bringing the total to about N257,016,400. That same day, about 24 cash withdrawals were made from the account. This means that by the end of that day, N200 million had been withdrawn, leaving a balance of N21,015,400. All these transactions took place at Access Bank’s Lokoja branch.”

She added that by 7 September 2017, another withdrawal was made, following a previous balance of N4,600,319.66.

The witness said that on 14 October 2019, a credit inflow of N250 million was received from Stardvest Construction Works Limited. “Before the credit, the account had a balance of just 45.52 kobo. On the same day, N150 million was withdrawn, leaving a balance of N100,000,945.52. Then, on 16 October 2019, four withdrawals were made, leaving a balance of N300,945.52.”

When asked by the EFCC counsel whether the entire N250 million was withdrawn between 14 and 16 October, she answered: “Yes.”

She also testified that on 22 October 2019, there was another credit inflow of N250 million in two batches — N100 million and N150 million. “On the same day, 11 separate cash withdrawals were made from the account. Similar transactions occurred on 23 and 29 October,” she said.

The witness was also referred to pages 544–719 of Exhibit M – the statement of account of Killest Nature Limited.

Ms Achille testified that on 30 September 2021, there were inflows from various Kogi LGAs into the entity’s Access Bank account in Lokoja.

“Before the lodgment, the account had a zero balance. After the deposits, the balance stood at N82,473,766.62. The funds were later transferred to Killest’s account with Fidelity Bank, leaving a balance of N3,303,712.87,” she said.

She added that between 23 and 26 November 2021, the account received another N79,170,000 from various LGAs in Kogi. The exact amount was transferred to the Killest Nature Limited of Fidelity Bank account between 17 and 24 December 2021.

“Again, on 27 January 2022, another N79,170,000 was deposited from different LGAs in Kogi, into the Access Bank account (account number: 1496568739),” she added.

The witness also referenced cheque copies for a fund transfer from Vifaz Multi-Viz Investment Company Limited to Ary Construction and Integrated Services. She told the court that the beneficiary of a N9.4 million transfer was one Iyadi Sadat.

There are other trials

The trial is one in a series of financial crime cases arising from former Governor Bello’s administration.

Ali faces another prosecution before another judge of the Federal High Court in Abuja on charges of diverting N10 billion in Kogi State’s funds.

Former Governor Bello, his uncle, is standing trial on N80 billion money laundering charges before another judge of the same court, and in another case for N110 billion fraud before the FCT High Court in Abuja.

Three key recipient firms’ accounts

Ms Achille had told the court on Monday, when she opened her testimony, that the third and fourth defendants, Yakubu Isiaka and Iyadi Sadat, operated three corporate accounts domiciled at her branch: Fazab Business Enterprise, Hyzman, and Ary Construction Services. She named the three firms as beneficiaries of alleged suspicious deposits of funds, which the EFCC claimed originated from the local governments in Kogi State.

“They are operators of three corporate accounts in my branch,” she said. When presented with a document marked as Exhibit EN relating to the Hyzman account, she confirmed having interacted with the accounts in her line of duty.

She testified that Mr Isiaka managed the Fazab and Hyzman accounts, while Ms Sadat managed the Ary Construction Services account.

While speaking to Exhibit E, covering pages 117 to 166 and specifically page 120, she noted a pattern of inflows and withdrawals in the Hyzman account. “On 5 June, there were eight withdrawals. On 31 August, 17 withdrawals. Between 2 and 4 September 2020, there were 36 withdrawals,” she said.

She also confirmed similar activity on other dates. “On 9, 12 and 13 April 2021, there were about 17 withdrawal transactions. And on 3 and 4 April 2021, there were about four withdrawals.”

READ ALSO: Stakeholders call for deeper collaboration in fight against corruption

Speaking on the Fazab Business Enterprise account, pages 143 to 145 of the exhibit, Ms Achille said, “On 30 November 2020, there were eight withdrawals. Between 1 and 3 February 2021, six withdrawals were recorded. From 1 to 3 November, there were 24 withdrawals, and between 4 and 5 January 2022, there were eight withdrawals.”

Ms Achille stated that “the large cash deposits were later made “by one Abba Adauda,” one of the defendants, into an account “allegedly belonging to Jamilu Abdulahi,” a Bureau de Change operator.

“On 19 and 25 August 2021, N100 million was lodged into the account. On 8 October, there was a N60 million deposit. On 4 November, another N134 million was deposited. On 8 November, N130 million came in. On 9 November, there was a transfer of N139.5 million, followed by N25 million on 10 November, and N200 million on 30 November, all in cash and allegedly deposited by Abba Adaudu,” she said.

The witness added that Abba Adaudu made a cash deposit of N220 million into the E-trader’s account (belonging to Jamilu Abdulahi) on 1 December 2021 and two separate cash deposits of N60 million each on 29 and 30 December 2021.

“On 31 January 2022, N160 million each was recorded. On 1 and 8 February, there were 11 deposits totalling N110 million and N130 million respectively. On 21 March, N77 million was deposited, and on 10 March, N122 million. On 5 April 2022, N150 million was also deposited and narrated as Abba K,” she added.

Adjournment

After Ms Achille completed her evidence-in-chief, the defence lawyers requested an adjournment to cross-examine her.

Trial judge Egwuatu fixed 17 and 18 June and 1 and 2 July for further proceedings.