Alleged N3.2b fraud: Banker gives evidence against Kalu as prosecution closes case

A Federal High Court in Lagos has adjourned the N3.2 billion fraud case against a former governor of Abia, Orji Uzor Kalu, until March 19 and March 20 for the prosecution to close its case.
The Economic and Financial Crimes Commission had on October 31, 2016 brought a 34-count charge bordering on N3.2 billion fraud against Kalu and his former Commissioner for Finance, Ude Udeogu and Kalu’s company —  Slok Nigeria Ltd.
All the accused had pleaded not guilty to the charges.
At Wednesday’s proceedings, EFCC Prosecutor, Rotimi Jacobs (SAN), called his fourth witness, who mounted the witness box and opted to sworn on the Holy Quran.
In his evidence-in-chief, the witness introduced himself as Abdulfatai Adebola, a compliance officer with Fidelity Bank.
He told the court that his scope of duty involves reviewing and monitoring customers’ transactions to look out for money laundering.
The witness disclosed that the EFCC wrote a letter to Fidelity Bank requesting for the account statement of Government House, Abia State.
He said the required documents including the certificate of identification, were made available to the commission.
The witness also told the court that the daily transactions of the bank are usually uploaded to the bank database and posted across all branches.
According to him, the account was in Manny Bank (now Fidelity Bank) following a merger.
Adebola listed out 29 cheque withdrawals made by one M.A Udoh from the Abia State Government House’s account.
Jacobs asked the witness: When did the statement stop and why?
Witness: It stopped on Janusry 4, 2005; the other transactions of 2005 were omitted by us, we hope to print them and send to the commission.
Jacobs: Where are the cheques from?
Witness: From consolidated Fidelity Bank Plc because Fidelity Bank and Manny Bank were fused into Fidelity Bank.
Gordy Uche (SAN) also cross-examined the witness: Have you ever worked in Manny Bank?
Witness: No, I haven’t.

Uche: You were not the “imputer” or “authorizer” of those entries, were you?
Witness: No, I wasn’t.
Uche: Did you know the purpose of all the withdrawals?
Witness: It was not stated in the statement.
Uche: Confirm to this court that you were not the account officer but simply printed out the statement based on EFCC’s request.
Witness: That is true.
Joseph Ochu and Kingsley Nwofo (SAN), counsel to the second and third defendants respectively did not cross-examine the witness.
No re-examination was taken and the witness was discharged.
Jacobs requested for two further dates to enable the prosecution to close its case.
Justice Idris adjourned until March 19 and March 20 for the prosecution to close its case.
Orji Uzor Kalu was alleged to have utilised his company to retain in the account of a First Inland Bank (now FCMB), the sum of N200 million.
The sum is alleged to have formed part of funds illegally derived from the coffers of the Abia State Government.
Slok Nigeria Ltd and a man, Emeka Abone, who is still at large, were also alleged to have retained in the company’s account the sum of N200 million on behalf of the first accused (Kalu).
They allegedly used Many Bank, (now Fidelity Bank Plc), Spring Bank Plc, the defunct Standard Trust Bank and Fin Land Bank, now First City Monument Bank.
The accused were alleged to have retained about N2.5 billion in different accounts which funds were said to belong to the Abia Government.
Cumulatively, the accused were alleged to have diverted over N3.2 billion from the state government’s treasury during Kalu’s tenure as governor.
The offences contravened the provisions of Sections 15(6), 16, and 21 of the Money Laundering (Prohibitions) Act, 2005.
The offences also violated the Money Laundering Act of 1995 (as amended) Act No.9 of 2002 and Section 477 of the Criminal Code, Law of the Federation, 1990.