A Federal High Court sitting in Lagos has frozen a Kogi salary bailout account domiciled in a new generation bank over a N20 billion loan obtained from the bank.
Justice Tijjani Garba Ringim made the order pending the conclusion of an investigation or possible prosecution by the Economic and Financial Crimes Commission (EFCC).
The agency had approached the court via an ex-parte application brought pursuant to Section 44(2) of the Constitution and Section 34(1) of the EFCC Act.
Counsel to EFCC, Mr 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, Muhammed alleged that the N20b loan was meant to augment the salary payment and running cost of the state government but was kept in an interest yielding account with the bank.
He added that instead of using the money for the purpose it was meant for, the Kogi State Government instructed the bank to transfer the money from the loan account and place same in a fixed deposit account.
According to the agency, the bank is yet to present any credible evidence to show that the facility is well secured.
Granting the application, Justice Ringim ordered the EFCC to publish the order in a national newspaper and make a quarterly report to the court on the progress of its investigation.
The judge adjourned the matter till December 1, for the report of Investigation.