Mr Obiano faces nine charges of diversion of over N4 billion from the Anambra State Government’s security votes account in his last five years in office.
Two witnesses narrated to the Federal High Court in Abuja on Wednesday their roles in the movement of funds from the Anambra State Government’s security votes account to private companies’ accounts during the administration of former Governor Willie Obiano.
Ugochukwu Chinedu Otubelu, a former employee of Fidelity Bank who appeared in court as the third prosecution witness, managed the state’s security votes account as a relationship officer at the bank at the time.
Mr Otubelu worked at Fidelity Bank between 2 November 2008 and 24 March 2023. He told the court he was a relationship manager at the bank’s Public Sector Department managing the state’s security vote account when he oversaw payments from it to the account of six companies.
Hayatu Hassan, a Bureau De Change (BDC) operator who testified as the fourth prosecution witness, told the court of how his company received funds allegedly sourced from the Anambra State Government’s security vote account. He said he helped to change the money denominated in naira to dollars.
Mr Obiano is facing nine charges of diversion of over N4 billion (N4,006,573,350) from the state’s account dedicated to security funds in his last five years in office.
The defendant, the Anambra State governor from March 2014 to March 2022, allegedly directed the diversion of the money from the state’s account between April 2017 and March 2022.
The Economic and Financial Crimes Commission (EFCC) accused him of spending the money for “purposes unrelated/unconnected with the security affairs of Anambra State”.
EFCC further alleged that the funds were diverted through companies “that had no business relationship with the Anambra State Government. It said the funds were then converted to dollar and handed over to the then-governor in cash.
The former governor allegedly stole the money over five years by instructing his Chief Protocol Officer/Deputy Chief of Staff, Uzuegbuna Okagbue, to transfer various sums of money from the state on various occasions.
But Mr Obiano denied all nine charges during his arraignment in January.
During Wednesday’s court session, Mr Obiano’s defence team suggested that the accounts of the companies that received funds from the state’s security votes accounts were “discreet”, given that it had to do with security matters.
Banker’s testimony
Led in evidence by EFCC’s prosecuting lawyer, Sylvanus Tahir, a Senior Advocate of Nigeria (SAN), the former Fidelity Bank employee, Mr Otubelu, took the court through how he regularly paid funds from the security votes account of the state government to the accounts of six companies.
He identified the recipients of the funds as Youdoo Ventures, Nazdal Ventures, Moment of Peace Ventures, Easy Diamond Integrated Link Limited and C.I Party Ventures Nigeria Limited.
Alongside the state government’s security votes account, Mr Otubelu said, he managed the accounts of the six companies.
According to the witness, the signatories to the security vote accounts were the Principal Secretary to then-Governor Obiano, Willy Nwokoye, and then Accountant at the state Government House in Awka, the state capital, Theophilus Nweze.
“I interfaced with them mostly on a daily and weekly basis in processing their transactions.
“I gave them feedback on those transactions,” the News Agency of Nigeria (NAN) quoted the witness as telling the court on Wednesday.
He said he used to visit on a weekly basis the then governor’s principal secretary, Mr Nwokoye, at his office at the end of each week’s transactions for account balancing and to receive instructions for the following week’s transactions.
“He would give me instruments through cheque for the transaction to be processed on the security vote account,” the witness said.
He said he sometimes received cheques from Mr Nwokoye and would later deliver cash to him.
Mr Otubelu confirmed that funds from the security votes account went into the six companies’ accounts. But he said the money did not go to the account holders.
The witness said that sometime around July 2021, the bank’s compliance officer called to notify him of an invitation from the EFCC regarding an ongoing investigation into the administration of the Anambra State Government’s security votes account.
The prosecuting counsel, Mr Tahir, tendered documents relating to those accounts.
The judge, Inyang Ekwo, admitted them as exhibits and marked them PW3 A1 to A215.
Defence lawyer Onyechi Ikpeazu, also a SAN, said he would raise his objections against the admissibility of the documents at the end of the trial in compliance with the procedure adopted by the judge.
Cross-examination of banker
Under cross-examination by the defence, the witness admitted that the state government was neither part of any of the six accounts nor did it open them.
He also said that the state government did not directly operate the six accounts.
Fielding further questions, he said the six accounts were used for discreet security transactions.
Asked to explain what he understood by “discreet security transactions,” Mr Otubelu said, “As at the time the accounts were needed, there was a lot of insecurity in the state to the extent that we, the bank workers, did not go to work.
“There was high tension of insecurity all over the state.”
“Am I right to say that the security operatives did not operate regular bank accounts?” Mr Ikpeazu, the defence lawyer, also asked.
The witness said in response, “In the course of my duty, the security agencies were basically paid in cash.”
The witness admitted that he took cash to the former governor on a few occasions, usually during his meeting with the security operatives.
He said the army, navy, civil defence personnel, and the state director of the State Security Service (SSS) were usually at such meetings.
He said representatives of vigilante groups established by the communities and churches also attended such meetings.
He, however, agreed that the state government participated in their funding and expenses as security operatives.
The witness admitted that while he managed the six companies’ accounts, the companies and their directors did not benefit from the funds passing through the companies’ accounts.
“Not even a kobo because the transactions done for the week would be reconciled with the Principal Secretary,” he said.
After re-examination by the prosecution, the judge discharged Mr Otubelu from the witness box.
BDC testimony
Mr Hadejia, the BDC operator who testified as the fourth prosecution witness, told the court he operated five Bureau de Change(BDC) companies, namely Seltris BDC Limited, Seltris Limited, Commaught International Services Limited, Holdall Limited, and Norricelea Limited.
He said, in total, he helped to provide the dollar equivalent of N222.371 million to the Government of Anambra State during Mr Obiano’s administration.
He said during interrogation, an EFCC investigator confronted him with documents showing that his company, Commaught International Services Limited, had payments from the state government’s account in seven transactions.
“Two different transactions were in February 2018, about N172.371 million, and it was for $465,000,” he said.
He added, “The other one was in March 2018 for N50 million and it was for $135,000, making a total of $600,000, and naira equivalent of N222, 371,000.
“I sold the dollars to Ayuba Tanko, another BDC operator. As soon as the transaction was done, I handed over the dollars to Ayuba Tanko. I didn’t know it was from the Anambra State Government,” he said.
The judge discharged the witness after he fielded cross-examination questions from the defence lawyer.
PREMIUM TIMES reported how the EFCC opened the prosecution’s case earlier, calling two witnesses on Tuesday.
Mr Ekwo adjourned the trial till 7, 8, 9 and 10 October.
