₦27 Billion Fraud: Witness Reveals How Taraba LG Funds Were Allegedly Withdrawn

A Federal Capital Territory High Court heard on Monday that millions of naira allegedly released to local governments in Taraba State were withdrawn from a private company’s account and handed to government officials.

The developments were disclosed by the third prosecution witness (PW3), Taiwo Johns, while testifying in the ongoing trial of former Taraba State Governor, Darius Ishaku, and a former permanent secretary in the state’s Bureau for Local Government and Chieftaincy Affairs, Bello Yero.

Naija News reports that the Economic and Financial Crimes Commission (EFCC) is prosecuting the duo over an alleged ₦27 billion fraud.

Johns, who was led in evidence by EFCC counsel, Rotimi Jacobs, appeared before Justice S.C. Oriji of the FCT High Court.

He told the court that several amounts allegedly described as federal government subventions were transferred by local governments into the account of his company, P3 Cornerstone.

According to him, whenever the money was received, he reported the transactions to officials of the Ministry of Local Government and Chieftaincy Affairs.

He said he was subsequently instructed on several occasions to withdraw the money in cash or transfer it to designated accounts.

Johns told the court that on October 11, 2019, Yoro Local Government Area allegedly deposited ₦50 million into P3 Cornerstone’s account.

He said he reported the transaction to the permanent secretary of the Ministry of Local Government and Chieftaincy Affairs, who instructed him to withdraw the money.

The witness also mentioned another transaction involving ₦58.5 million, which he said was deposited into the company’s account.

He said the transaction was reported to the permanent secretary and Babangida Hassan, the director of finance.

Johns further referred to Exhibit 11, which contained a ₦64.95 million cheque from Gassol Local Government dated November 5, 2019.

He said ₦1.45 million was transferred to P3 Cornerstone on the same day and later paid into the emirate and traditional council account.

According to him, the account was used to pay salaries, allowances and medical expenses of emirs and chiefs.

The witness also gave evidence on transactions involving Ardo Kola and Gassol local governments.

“There is a manager’s cheque of Ardo Kola local government on November 28, 2019, of ₦55 million,” Johns told the court.

“On the same date, ₦62 million entered P3 Cornerstone from Gassol Local Government.”

He said ₦50 million from the Gassol transaction was withdrawn and handed over to the permanent secretary at a United Bank for Africa (UBA) branch.

Johns added that another portion of the money was transferred to a person identified as Prince.

“On the same date, November 29, 2019, Prince received ₦5.6 million. The balance was cashed and handed over to the Perm Sec and Dare Lawal in UBA,” he said.

The witness further told the court that on December 2, 2019, Gassol Local Government deposited ₦17,378,542 and ₦13,120,051 into P3 Cornerstone’s account.

He said he reported the transactions to Hassan, the director of finance, who instructed him to withdraw the money.

“I withdrew the money: ₦30,498,593. I handed it over to the director of finance and Dare Lawal,” Johns told the court.

He added that the money was handed over to the permanent secretary and Dare Lawal on the instruction of the permanent secretary.

Johns also testified about transactions involving P3 Cornerstone in March and September 2020.

He told the court that on March 23, 2020, the company received ₦11.35 million, ₦75 million and ₦2,500,036.25.

He said another ₦20,470,036.25 was deposited into the company’s account on March 24, while an additional ₦1,500,036.25 was also received.

The witness further told the court that on September 14, 2020, P3 Cornerstone received ₦39,999,300.45.

He said ₦39,999,500 was also received from Zing Local Government on the same day.

According to him, the company also received ₦7.85 million from Yoro Local Government on September 14, 2020.

Johns said the funds were subsequently withdrawn and handed over to the permanent secretary, while some portions were transferred to Prince.

However, he told the court that he did not know the specific purpose for which the subventions were meant.

Following his testimony, the EFCC tendered additional documents before the court.

The documents were admitted in evidence and marked as Exhibits 13, 14 and 15.

Justice Oriji adjourned the case until October 6, 2026, for continuation of the witness’s evidence.