Ex-Kwara governor failed to repay N1bn SUBEB loan—witness

By Sola Ojo, Abuja

A fourth prosecution witness (PW4), Lanre Daibu, testified on Thursday before Justice Mahmud Abdulgafar at the Kwara State High Court in Ilorin, that Ademola Banu, former Finance Commissioner, directed the release of N1 billion from the 2013 Universal Basic Education Commission (UBEC) Matching Grant fund.

The amount was to pay teachers’ and pensioners’ salaries in January 2015. However, the loan was not repaid before the Kwara State Universal Basic Education Board (SUBEB) was dissolved.

The Economic and Financial Crimes Commission (EFCC) is prosecuting former Kwara State Governor, Abdulfatah Ahmed, and Banu on an amended 14-count charge. The charges involve the alleged stealing and mismanagement of UBEC funds totalling N5.78 billion, according to EFCC Head of Media and Publicity, Dele Oyewale.

Daibu, ex-Chairman of SUBEB, testified under questioning by prosecution counsel Rotimi Jacobs, SAN.

“My lord, the second defendant, Banu, called me on phone that the state government needed money to pay salaries of its workforce and pensioners,” he said.

“The Board sat on the issue and concluded that such requests must be in writing and not telephone conversation. I, therefore, called the Honourable Commissioner to put it into writing.”

He added, “The reason we insisted that such a request should be in writing was to ensure that we get commitment from the state government as to when they are going to pay back the loan. In the letter signed on behalf of the second defendant, they promised to pay back in a month or two. However, they did not repay the loan till the Board was dissolved.”

Daibu also said, “I was reluctant to grant the request because I was fully aware that the state government has no right to borrow or spend UBEC Matching Grant, meant to be used for the purposes stated in the Action Plan.”

He noted that a letter, marked “Exhibit 4,” from the Kwara State Ministry of Finance showed the then-governor approved the loan. Daibu could not complete his tenure as SUBEB Chairman due to the board’s dissolution.

The fifth prosecution witness (PW5), Benjamin Sehinde Fatigun, a retired permanent secretary in the Ministry of Finance, confirmed Ahmed authorised the loan.

“There was an approval from the then governor of Kwara State, Alhaji Abdulfatah Ahmed that the State Universal Basic Education Board should lend the Kwara State Government the sum of N1 billion to augment the payment for civil servants and retirees,” he said.

“I got the approval from the Honourable Commissioner for Finance, that is the second defendant and the fund was transferred to the state’s salary account.”

Under cross-examination by defence counsel Kamaldeen Ajibade, SAN, and Gboyega Oyewole, SAN, Fatigun explained the state’s financial struggles.

“My lord, a letter emanated from the Ministry of Finance to the Office of the Executive Governor of the state that we have challenges in paying salaries and SUBEB was suggested as a way out and I explained in the statements I made with the EFCC how the sum of N1 billion was released,” he said.

The case was adjourned to Friday, 11 April 2025, for further hearing.