Witness Claims Tax Consultant Adhered to CBN Guidelines in N1.1b Kogi Payment

A representative for the Economic and Financial Crimes Commission (EFCC), Mr. David Ajoda, informed the High Court of the Federal Capital Territory (FCT) in Abuja that the Kogi State Board of Internal Revenue (KSIRS) allocated N1,164,929,569 as commission to a tax consultant over a span of eight months.

Ajoda indicated that these payments occurred between January and August 2019, coinciding with the period when the Kogi State Internal Revenue Service (KSIRS) engaged the tax consultant. He testified on Friday as part of the ongoing corruption trial involving former Kogi State governor, Yahaya Bello, along with two others. He also mentioned that the tax consultant withdrew N952.4 million from an account at Sterling Bank during the same eight months, which resulted in a remaining balance of N212,525,569. It was noted that the withdrawals were executed by a person identified as Phillip Unar.

As a compliance officer with Sterling Bank, Ajoda gave evidence for the EFCC against Yahaya Bello, Umar Shuaib Oricha, and Abdulsalami Hudu in relation to the corruption allegations. Although he provided account details for the tax consultant that were accepted by the court, he acknowledged that he was unaware of the specifics of the business agreement between the Kogi State Internal Revenue Service and the consultant.

The witness revealed that before the tax consultant was engaged by the Kogi tax board, the account had over N2 million present, and surmised that deposits into the account significantly increased once the tax consultancy services commenced. During cross-examination by Joseph Daudu SAN, representing Yahaya Bello and Umar Shuaib Oricha, Ajoda conceded that the name “Kogi State Government” did not appear in the bank records.

He further admitted that the account belonged to a customer, who could make withdrawals without hindrance, provided they were legally compliant. Ajoda acknowledged that according to regulations from the Central Bank of Nigeria (CBN), individuals are permitted a maximum withdrawal of N5 million, while corporate bodies can withdraw up to N10 million per transaction. He confirmed that the consultant did not violate any CBN rules concerning the numerous withdrawals and thus no suspicious activity reports were issued against them.

Additionally, the banker conceded that Yahaya Bello's name and those of his co-defendants did not appear on the bank statement as recipients of any funds withdrawn. He clarified there is a distinction between the Kogi State Government and the Kogi State Internal Revenue Service, stating that they operate as separate entities. In the meantime, Justice Maryann Anenih has scheduled further proceedings for February 10.