Witness Testimony in Alleged ₦27 Billion Fraud Trial Highlights Public Sector Governance Risks

The trial of former Taraba State Governor Darius Dickson Ishaku and former Permanent Secretary Bello Yero has entered another significant phase, with a prosecution witness alleging that funds earmarked for a Christmas food distribution programme were channelled through a private company account before being withdrawn in cash.

The Economic and Financial Crimes Commission (EFCC) is prosecuting both men on a 15-count charge involving allegations of criminal breach of trust, conspiracy and the diversion of public funds amounting to approximately ₦27 billion. The defendants have pleaded not guilty to the charges.

Appearing before the Federal Capital Territory High Court in Abuja, the third prosecution witness, Taiwo Johns, testified that multiple payments from several local government councils in Taraba State were credited to the account of a private company, P3 Cornerstone Nigeria Limited, where he served as a signatory. According to the witness, the transactions were carried out on the instructions of senior officials within the state’s Bureau for Local Government and Chieftaincy Affairs.

Johns told the court that after the funds were received, he withdrew substantial sums in cash and handed them over in accordance with directives allegedly issued by senior officials. He described several transactions involving payments from different local government councils, stating that the funds were not retained by the company but were withdrawn shortly after receipt and delivered to designated individuals.

The witness further alleged that some of the electronic payment descriptions referred to the procurement and distribution of Christmas food grains. However, he testified that the monies were not ultimately used for that stated purpose. His evidence forms part of the prosecution’s effort to establish the alleged diversion of public funds through unofficial payment channels.

The proceedings also addressed an application by counsel for the first defendant seeking permission for Ishaku to travel abroad for medical treatment. With no objection raised by the prosecution, the court granted the application and adjourned the matter for the continuation of the prosecution’s case.

The case remains one of the EFCC’s high-profile public sector corruption prosecutions and continues to draw attention to governance, financial oversight and accountability within public institutions. The allegations remain before the court, and no findings have yet been made on the defendants’ criminal liability.

Compliance Takeaways

Embed governance and accountability. Strong governance frameworks, supported by independent oversight and leadership accountability, are fundamental to safeguarding public resources and maintaining public trust.

Strengthen controls over public expenditure. Public sector organisations should ensure that all disbursements are supported by transparent approval processes, documented procurement records and clear audit trails.

Scrutinise payments to third parties. Transfers of government funds to private entities should be subject to enhanced due diligence, independent verification and ongoing monitoring to mitigate fraud risks.

Reduce reliance on cash transactions. Large cash withdrawals weaken financial transparency and increase the risk of misappropriation. Organisations should encourage secure, traceable electronic payment methods wherever possible.

Enhance segregation of duties. Critical financial functions, including payment authorisation, fund transfers and reconciliations, should be allocated to different officers to reduce opportunities for abuse.

Strengthen internal audit and oversight. Regular audits, transaction testing and exception reporting can help identify unusual payment patterns and control deficiencies before losses escalate.

Promote an ethical reporting culture. Effective whistleblowing mechanisms and staff awareness programmes remain essential tools for detecting suspected fraud and financial misconduct at an early stage.