A prosecution witness in the trial of former Taraba State Governor Darius Ishaku has told the Federal Capital Territory High Court in Abuja how funds allegedly belonging to local governments were transferred into a private company’s account and subsequently withdrawn or transferred to designated accounts.
The witness, Taiwo Johns, a banker and the third prosecution witness (PW3), gave the testimony on Monday while appearing before Justice S.C. Oriji in the ongoing trial of Mr Ishaku and a former Permanent Secretary in the Taraba State Bureau for Local Government and Chieftaincy Affairs, Bello Yero.
The Economic and Financial Crimes Commission (EFCC) is prosecuting the defendants over an alleged N27 billion fraud.
Led in evidence by prosecution counsel, Rotimi Jacobs, SAN, Johns told the court that several sums described as Federal Government subventions were paid by local governments into the account of his company, P3 Cornerstone.
He said that after the funds were received, he reported the transactions to officials of the Taraba State Ministry of Local Government and Chieftaincy Affairs.
According to him, he was subsequently instructed on several occasions to withdraw the funds in cash or transfer them to accounts designated by the officials.
Johns told the court that on October 11, 2019, Yoro Local Government deposited N50 million into P3 Cornerstone’s account.
“The transaction is from Yoro Local Government on October 11, 2019. Yoro Local Government made a lodgment of N50m into P3 Cornerstone,” he said.
He said he reported the transaction to the Permanent Secretary in the Ministry of Local Government and Chieftaincy Affairs and was instructed to withdraw the money.
“On the same day the amount was reported to the Perm Sec, they asked me to make a withdrawal of the amount, which I did, and the Perm Sec came to the bank. I handed it to the Perm Sec and Dare Lawal,” Johns said.
The witness also testified about another N58.5 million transaction, which he said was deposited into the P3 Cornerstone account.
He said the transaction was reported to the Permanent Secretary and Babangida Hassan, then Director of Finance.
“The sum of N58,500,000 was deposited and I reported it to the Permanent Secretary and Babangida Hassan, the Director of Finance,” he said.
Johns said he was again instructed to withdraw the money and hand it over to the Permanent Secretary and Dare Lawal.
The witness also referred the court to Exhibit 11, which he said contained a cheque for N64.95 million issued by Gassol Local Government on November 5, 2019.
He said N1.45 million was also transferred to P3 Cornerstone on the same date and subsequently paid into an emirate and traditional council account.
Johns explained that the account was used for the payment of salaries, allowances and medical expenses of emirs and chiefs.
He further testified about transactions involving Ardo Kola and Gassol local governments.
“There is a manager’s cheque of Ardo Kola Local Government on November 28, 2019, of N55m. On the same date, N62m entered P3 Cornerstone from Gassol Local Government,” he said.
According to the witness, N50 million from the Gassol transaction was withdrawn and handed over to the Permanent Secretary at a United Bank for Africa branch.
He said another N5.6 million was transferred to a person identified as Prince on November 29, 2019.
“The balance was cashed and handed over to the Perm Sec and Dare Lawal in UBA,” Johns said.
He also referred the court to Exhibit 9, which he said contained details of further transactions involving Gassol Local Government.
According to him, on December 2, 2019, N17,378,542 and N13,120,051 were lodged into P3 Cornerstone’s account by Gassol Local Government.
He said he reported the transactions to the company’s Director of Finance, Babangida Hassan, who instructed him to withdraw the money.
“I reported the case to my Director of Finance, Babangida Hassan. He instructed me to withdraw the money: N30,498,593. I handed it over to the Director of Finance and Dare Lawal,” he said.
Johns said the money was handed over to the officials following an instruction from the Permanent Secretary.
The witness also gave evidence on transactions involving P3 Cornerstone in March and September 2020.
He told the court that on March 23, 2020, the company received N11.35 million, N75 million and N2.5 million.
He further said N20.47 million and N1.5 million were received into the company’s account on March 24, 2020.
Johns also testified that on September 14, 2020, P3 Cornerstone received N39,999,300.45, while another N39,999,500 was received from Zing Local Government on the same day.
He added that Yoro Local Government paid N7.85 million into the company’s account on the same date.
According to the witness, the funds were subsequently withdrawn and handed over to the Permanent Secretary, while some amounts were transferred to a person identified as Prince.
Johns, however, told the court that he did not know the specific purpose for which the subventions paid into the company’s account were intended.
Following his testimony, Jacobs tendered additional documents in evidence.
The documents were admitted and marked as Exhibits 13, 14 and 15.