Ex-governor, two others re-arraigned over alleged N11.5bn fraud

The Economic and Financial Crimes Commission, EFCC, on Monday
re-arraigned a former governor of Oyo State, Adebayo Alao-Akala, and
two others in an Oyo State High Court sitting in Ibadan over alleged
N11.5 billion fraud.

The News Agency of Nigeria, NAN, reports that the other defendants are
a former Oyo State Commissioner for Local Government and Chieftaincy
Matters, Sen. Hosea Agboola, and an Ibadan-based businessman, Femi
Babalola.

The defendants are facing an 11-count charge of conspiracy, awarding
contract without budgetary provision, obtaining by false pretence,
acquiring property with money derived from illegal act and concealing
the ownership of such property, among others.

EFCC's counsel, Dr B. Ubi, told the court that when Alao-Akala was the
governor of Oyo State, he awarded a road contract worth N8.5 billion
between 2007 and 2009 to Pentagon Engineering Services.

Ubi alleged that the firm owned by Babalola handled the contract on
behalf of the 33 local governments without budgetary provision.

The counsel further claimed that Alao-Akala ordered the supply of
drilling machines on behalf of the 33 local governments in the state
to the tune of N3.5 billion.

He also alleged that Alao-Akala conspired with Ayoola to withdraw N2.9
billion from Oyo State Local Government Joint Account.

The prosecutor told the court that Alao-Akala also illegally acquired
some property on Old Bodija road, off Rotimi Williams road, when he
was the governor of the state.

He said that the offences contravened Section 22 (4) of the Corrupt
Practices and Other Related Offences Act and Section 1 (18) of the
Advanced Fee Fraud Act.

The defendants, however, pleaded not guilty to the charges.

A Senior Advocate of Nigeria and counsel to Alao-Akala and Babalola,
Mr Hakeem Afolabi, prayed the court to exercise its discretion in
granting bail to the defendants.

Afolabi said that the charge before the court was not a fresh one but
a re-arraignment.

He said the matter was first filed on Oct. 11, 2011, before Justice
Moshood Abas and bail was granted after the defendants met the
conditions.

NAN recalls that the defendants had also appeared before Justice
Akintunde Boade and Justice Bayo Taiwo who was recently transferred
out of Ibadan Division.

Afolabi said that Alao-Akala was granted bail in the sum of N5 million
with two sureties in like sum while the other defendants were granted
bail in the sum of N3 million each with two sureties in like sum.

Afolabi urged the court to allow the defendants to enjoy the earlier
bail condition granted to the defendants.

Another Senior Advocate of Nigeria and counsel to Ayoola, Mr. Richard
Ogunwole, aligned with the submission of Alao-Akala's counsel.

The EFCC counsel said he would not oppose the bail applications.

Justice Muniru Owolabi granted the defendants' prayers and adjourned
the case till April 16 for trial.