EFCC Investigates N117b Money Laundering By Rivers State Government

EFCC Shortlists Four Persons For The Investigation Of N117B Laundering.

The Economic Financial Crimes Commisssion is probing Rivers state finance for suspicious transactions worth N117b by the government in the last three years.

The large fund was intermittently withdrawn over the counter by a state official designated for the purpose, EFCC sources said at the weekend.

There were indications that the withdrawals from the state accounts were laundered by some state officials.

The state government yesterday however described the probe as a “political witch-hunt” and vowed not to be intimidated.

Four suspects have been shortlisted for interrogation in connection with the massive withdrawals. They include an official in charge of Finance and Accounts at the Government House in Port Harcourt and a cashier.

The EFCC already detained a bank’s Managing Director (MD), who admitted that N5.2billion was realised as charges for the “controversial” transactions.

According to the sources, the withdrawals were made in tranches of N10million with as many as 50 cheques cashed in a day.

The sources said it was a case of “gross violation” of the Money Laundering (Prohibition) Act of 2011.

One of the sources said: “Based on intelligence report, the EFCC swung into action.

“Our findings indicated that the withdrawals were made in cash from the state accounts mostly by one person. There are no records of what the cash was used for. We are working on clues that it was diverted.

“The EFCC team has obtained all the records of the withdrawals, including date and time. For instance, on June 8, 2015 barely few days in government, about 45 cheques amounting to N450million were cashed over the counter for no justifiable purpose.

“Also, on June 9, 2015 about 50 cheques amounting to N500million were withdrawn. We will soon release the details of findings by our team.”

Another source spoke of how a bank chief was quizzed last Thursday and released on administrative bail.

“But he was asked to come back on Friday and we have been interacting with him up till Sunday. He admitted that all the withdrawals were made over the counter in cash.

“He also said the bank benefited about N5.2billion from the charges collected on the transactions,” the source said.

Another source said the bank was guilty of “lack of Suspicious Transaction Report(STR)” and violation of Money Laundering (Prohibition) Act 2011, especially sections on special surveillance on certain transactions and Limitation to make or accept cash payment.

Meanwhile there are also suspicions by Rivers state government and individuals , suggesting that the investigation is political.

See individual tweets below

Governor Wike, a lawyer is arguing that the EFCC as a federal agency has no business with state funds as this is the responsibility of the State House of Assembly as justification for his inability to account for N177billion the Federal Government gave Rivers State through him

— Daddy D.O🇳🇬 (@DOlusegun) August 27, 2018

Constitutionally EFCC does not have the jurisdiction to investigate a State, however, it can investigate an Indigene of the state concerning its finances, but has to be given mandate by the State House of Assembly. He is speaking from an informed position of the Law. https://t.co/CLoDIukuiA

— @YBGauje (@YBGauje) August 27, 2018