Detectives have traced $ 3 million of the controversial London-Paris Club loan refund to a governor.
The cash is believed to be part of the N19billion illegally deducted from the refund by the Nigeria Governors Forum (NGF)
This is according to Economic and Financial Crimes Commission (EFCC) sources
A report by The Nation indicates that eagle-eyed EFCC officials have traced $ 3 million of the controversial London-Paris Club loan refund to a governor.
Acording to the report, he cash is believed to be part of the N19billion illegally deducted from the refund by the NGF.
We gathered that the cash was found in the account of a member of the House of Representatives who got it through a proxy, the lawmaker’s brother.
The $3million is being spent on building a 100-room hotel in Lagos, which the governor may forfeit to the federal government.
Also, the EFCC has placed a restriction on N8billion and $80million in the naira and dollar accounts of the NGF.
A source quoted in the report, said: “The EFCC is still investigating the N19billion allegedly diverted from the loan refund. The commission has so far interrogated 15 companies, more than 10 individuals and over eight bureaux de change used to divert the cash.
“The latest bend of the investigation is the discovery of $3million linked with another governor who benefited from the illegal deduction. The governor had engaged a member of the House of Representatives(who was also a former commissioner) to launder his share.
”The lawmaker was said to have wired the $3million into his brother’s account before moving it into his own.
“Upon interrogation, one of the suspects admitted that the cash was for the ongoing construction of a 100-room hotel for the governor.
“About $500,000 of the $3million has been recovered by the EFCC. It is a scam in which many people benefited and a sizeable number of proxies used to launder the funds.
“We will do our best to recover the already diverted part of the $3million. We may also apply for the forfeiture of the hotel to the federal government.”
The source adde that the EFCC has placed a Post No Debit restriction on the NGF’s account with N8billion and domiciliary account with $80million.
“Out of the $86million, $3million was wired to the governor through a proxy and another $2million shared out.
“The EFCC is ready to lift the restriction on the two accounts of the NGF on a condition that the consultants and legal advisers who deserve to be paid will be given what they are entitled to in line with the agreement signed with the NGF.
“We want the NGF to involve the EFCC in the disbursement to avoid another diversion of the cash. As it is now, consultants and legal advisers are complaining that they are being shortchanged by the governors,” the source said.