The investigation is said to focus on multiple financial transactions suspected to have violated public finance regulations and due process requirements governing the management of local government resources.
The Chairman of the Association of Local Governments of Nigeria (ALGON) in Edo State and acting Chairman of the Etsako East Local Government Area, Sunday Akiotu, is being interrogated by operatives of the Nigeria Police Force Special Fraud Unit (SFU) over allegations of financial misconduct involving local government funds, SaharaReporters has learnt.
Sources familiar with the investigation told SaharaReporters that Akiotu is currently facing questioning over alleged transfers of council funds from official local government accounts into personal bank accounts and accounts allegedly linked to associates.
The investigation is said to focus on multiple financial transactions suspected to have violated public finance regulations and due process requirements governing the management of local government resources.
Although authorities have yet to officially disclose the full details of the allegations, sources said investigators are scrutinising financial records, bank transactions and payment trails connected to the Etsako East Local Government administration.
SaharaReporters further gathered that some senior officials of the Edo State Government, including the Secretary to the State Government (SSG), had allegedly mounted pressure on the police hierarchy in an attempt to secure Akiotu’s release.
“Several calls have been made to senior police officers, including the Commissioner of Police, to intervene in the matter,” a source familiar with the investigation said.
SaharaReporters had March 20, exclusively reported that the Police Special Fraud Unit had invited Akiotu and three senior officials of Etsako East Local Government for questioning over allegations of illegal financial transfers, misappropriation of public funds and related offences.
The officials invited alongside Akiotu included the Director of Finance, Ohiafi Kehinde Andrew; the Head of Department, Budget, Planning and Statistics, Otairu Gospel; and the Director of Administration and General Services, Ahonsi Charles.
According to sources, the police investigation was triggered by petitions submitted by concerned civil society organisations, which alleged widespread financial irregularities in the management of the council’s finances.
The petitioners accused the council leadership of criminal conspiracy, misappropriation of public funds, procurement fraud, money laundering, abuse of office and diversion of local government resources.
At the centre of the allegations are claims that funds belonging to Etsako East Local Government were systematically diverted through private accounts and corporate entities in transactions allegedly carried out without transparency, competitive procurement processes or lawful approvals.
Investigators are reportedly examining transactions allegedly linked to Akiotu and some of his associates as part of efforts to determine the scope of the suspected financial infractions.
Sources familiar with the case alleged that more than N100million may have been involved in the transactions under investigation, covering both statutory allocations to the council and internally generated revenue.
The petitioners further alleged that some of the funds were routed through two private companies, EXPESON Logistics and Filmanson Nigeria Limited, which they claim have no verifiable record of executing legitimate contracts on behalf of the local government.
According to the petitioners, investigators are expected to determine whether the companies were used as conduits for the movement of public funds.
The case has also reportedly assumed a political dimension.
Sources alleged that Edo State Governor, Monday Okpebholo, and the state chairman of the All Progressives Congress (APC), Jarret Tenebe, had been shielding Akiotu from police scrutiny.
“The police invited him months ago but he failed to honour the invitation. There are allegations that powerful political interests have been working behind the scenes to prevent the investigation from progressing,” one source familiar with the matter told SaharaReporters.
However, neither Governor Okpebholo nor APC chairman Tenebe has publicly responded to the allegations.
The Special Fraud Unit, a specialised investigative arm of the Nigeria Police Force responsible for handling complex financial crimes, economic fraud and abuse of office cases, is said to be expanding its investigation to determine whether other individuals may have played roles in the alleged transactions.
Police sources said the investigation would be conducted professionally and in accordance with the law.
“No one has been charged to court at this stage. Investigations are ongoing and decisions will be taken based on the outcome of the findings,” a source familiar with the probe said.
Efforts by SaharaReporters to obtain official comments from the leadership of the Special Fraud Unit were unsuccessful.
Calls and a text message sent to the verified phone number of the Commissioner of Police overseeing the unit, CP Olawo, were not responded to as of the time this report was filed.