The Federal High Court in Lagos yesterday heard that a former Oyo State Governor Rashidi Ladoja allegedly did not remit N1.9 billion realised from the sale of the state’s shares when he was in office, the Nation newspaper reports.
The Economic and Financial Crimes Commission (EFCC) told the court that the money allegedly went to Ladoja, his family and friends and was not refunded.
An EFCC investigator, Abubakar Madaki, who testified in Ladoja’s trial, accused the former governor of unilaterally giving instructions in 2007 that the shares be sold at discounted rates.
He said the shares, worth N6.6 billion, were sold at discounted rates without the State Executive Council’s (Exco’s) resolution.
According to the investigator, Ladoja engaged Fountain Securities as a portfolio manager to sell the shares at a discounted rate, adding that the shares were acquired by McLace Securities.
“In the course of our investigation, about N500 million was recovered from McLace Security, Fountain Securities and other stockbrokers.
“The balance could not be recovered because some of those who purchased the shares were not even stockbrokers, as highlighted by the report of the Nigerian Stock Exchange (NSE).
“Part of the proceeds was used to offset the (cost of) four cars given to the first accused (Ladoja), which he confirmed. Also, the first accused has not refunded the value of the cars, neither did his family members and associates refund what was given to them; all these were part of the proceeds.
“I can name the cars for clarity. There is a jeep; there is a bus and there are two cars, out of the cars supplied to members of the House of Assembly loyal to the first accused when he was governor.
“All these were paid for with the proceeds of the shares. The first accused confirmed this in his statement; he promised to make a refund then but as at today, he has not done so.”
Recall that Insideoyo.com had earlier reported that Ladoja’s trial for alleged N4.7 billion fraud involving state funds.
EFCC charged him along with his Commissioner for Finance, Waheed Akanbi.
Prosecuting lawyer Olufemi Olabisi said Madaki tendered the letter allegedly written by Ladoja to approve the shares’ sale, which was admitted in evidence.
The defendants pleaded not guilty to the charge.
Justice Mohammed Idris adjourned the matter till May 30 and 31.