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Kogi Bail Out Scandal: If The Governor Can't Be Punish Because Of Immunity, What About The Bank?

The CBN has confirmed, Kogi borrowed 20bn from the sterling bank for workers' salary and took the money and fixed it in another account. The EFCC traced the money and froze the account. Sterling has now transferred the money to the CBN. So Kogi has an interest yielding N20bn hole in Sterling.

The EFCC has a letter from CBN affirming that the money is with CBN. But when this thing broke Kogi government threatened fire and brimstone. They said it was a lie. Now, is the CBN lying? The governor has immunity, but what about the bank? How can you warehouse a loan meant for workers' salaries in another account? Some somethings should not be explained to somebody who comes online to discuss issues.

But in case you don't understand what transpired, go through this. Before Buhari came to power, there was a global economic recession that made it difficult for all federating units to pay the salaries of workers. The Federal government led by Goodluck Jonathan then borrowed externally to bridge gaps and one of the mechanisms for States was a bailout structure to enable them clear outstanding arrears.

The bailout meant states could take commercial loans from banks secured by an FGN guarantee to pay back the bank directly from the respective states' allocations over the term. Governor Wada who preceded Bello got approval for N50bn from the Federal Government but could not get funding from any bank before he left office. When Governor Bello came he reasoned that since it was a loan he did not need all of N50bn, so he took only N20bn in 2019 to pay worker's salaries.

Sterling Bank Plc should return the money with the accumulated interest to CBN and the bank should be sanctioned appropriately to act as a deterrent to others. Considering the trauma the Workers in the state are going through over delayed or unpaid salary, one can conclude that they are insensitive to the plights of these people.

Content created and supplied by: Rukkyupdates (via Opera News )

CBN EFCC Kogi Sterling


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