A key witness in the ongoing trial of former Kwara State Governor Abdulfatah Ahmed and ex-Finance Commissioner Demola Banu has revealed that a N1 billion loan obtained from the Kwara State Universal Basic Education Board (SUBEB) in 2013 was used to pay workers’ salaries and pensions.
The witness, Alhaji Lanre Daibu, former Chairman of SUBEB, made the disclosure during his testimony on Thursday in the Kwara State High Court. Daibu is the fourth prosecution witness in the case brought by the Economic and Financial Crimes Commission (EFCC) against Ahmed and Banu. The case involves allegations of N5.78 billion fraud by the two former officials.
According to Daibu, the loan was requested by Banu, who approached SUBEB in 2013 citing the state government’s financial difficulties. The loan was intended to settle salary arrears and pension payments.
“The then Commissioner of Finance, Mr. Ademola Banu, approached the board for the N1 billion loan, adding that the state government was faced with paucity of funds and needed the loan to pay workers and pensioners,” Daibu testified.
He further explained that the board, after receiving a written commitment from the state government, approved the loan. “Before the release of the loan, the board asked the state government how it was going to repay the loan, and it replied that the loan would be repaid from the monthly revenue allocation,” Daibu said.
However, Daibu stated that the loan was not repaid before he left office, as the board was subsequently dissolved.
During cross-examination, Ahmed’s defense lawyer, Kamaldeen Ajibade (SAN), asked Daibu whether his statement to the EFCC was made under caution, to which Daibu confirmed that it was. He also clarified that the N1 billion loan was transferred directly to the state’s salary account, not to the personal accounts of the defendants.
Another key witness, Benjamin Fatigun, a retired permanent secretary in the Ministry of Finance, also testified, confirming that the SUBEB loan was recommended to address salary shortfalls in 2015. Fatigun explained that the state had experienced unstable monthly federal allocations, which made it difficult to meet salary obligations. He affirmed that the N1 billion loan was deposited into the state’s salary account and not the personal accounts of the accused individuals.
The trial continues as the EFCC pursues charges against the former governor and finance commissioner for their alleged roles in the N5.78 billion fraud case.
