Alhaji Lanre Daibu, former Chairman of the Kwara State Universal Basic Education Board (KWSUBEB), testified at the Kwara State High Court on Thursday that a ?1 billion loan secured by the board in 2013 was utilised by the then-state government to offset salary arrears for workers and pensioners.

Daibu, appearing as a witness for the Economic and Financial Crimes Commission (EFCC), provided testimony in the ongoing trial of former Governor Abdulfatah Ahmed and ex-Finance Commissioner Demola Banu, who face charges of allegedly diverting ?5.78 billion from KWSUBEB funds.

The former chairman asserted that the loan was part of broader efforts to address financial obligations to public servants, though the EFCC contends the funds were mismanaged.

The ex-chairman of the board, who is also a lawyer, stated that the former governor and the ex-Finance Commissioner were not signatories to the SUBEB account.

Alhaji Daibu narrated to the court that the then Commissioner for Finance, Mr Banu, had approached the board to explain the paucity of funds in the government and the need to request a N1 billion loan from the SUBEB account to pay workers and pensioners.

He said the board had convened a meeting and sought a written commitment from the state government regarding the request before the release was approved.

The EFCC witness added that the state government had indicated that the loan would be repaid from the monthly revenue allocation. However, the money was not repaid before he left office and the board was dissolved.

During cross-examination, counsel for the former governor, Kamal Ajibade, suggested to Daibu that the statement he made to the EFCC was given under caution and that he was treated as a suspect by the EFCC.

Daibu also clarified that the N1 billion loan was transferred to the state government's salary account and not to the personal accounts of either defendant.

Additionally, during cross-examination by counsel for the first defendant, a retired Permanent Secretary in the Ministry of Finance, Mr Benjamin Seyinde Fatigun, stated that the ministry had generated a memo to the governor suggesting solutions for the state government due to difficulties in paying its workforce.

“There were issues with the payment of salaries in 2015. The monthly FAAC allocation to the state government at that time was unstable,” he said.

He further explained that SUBEB was identified as a quick fix to rescue the government from the situation, which was why the loan was borrowed to augment staff salaries, including those of civil servants, teachers, and pensioners.

Like Daibu, Benjamin confirmed that the N1 billion loan from SUBEB was paid into the state's salary account and not into the personal accounts of the first and second defendants.