Nigeria court gives ex-governor bail in graft case

LAGOS, Aug 2 (Reuters) A Nigerian court granted bail today to a former state governor charged with graft and money-laundering.

Chimaroke Nnamani, former governor of the southeastern state of Enugu, is one of five ex-governors charged in July with looting public funds in an anti-corruption drive that has raised hopes the new government is serious about tackling graft.

Justice Peter Olayiwola of the Lagos Federal High Court said Nnamani should leave travel documents with the court, write an undertaking to make himself available for prosecution and report once a month to police. His trial is set to resume in October.

In addition, two guarantors who own property in upmarket areas of Lagos have to deposit (788,000 dollars) each as bail bond to secure his freedom.

The courts set similar bail conditions for the four other accused governors after prosecution lawyers argued that one of them, Joshua Dariye of the central state of Plateau, had a record of jumping bail. He is a fugitive from British justice.

Nnamani is yet to meet the bail conditions and was returned to prison today. One of the other four has met his and was freed yesterday.

The Economic and Financial Crimes Commission (EFCC) has filed 34 charges of theft and money laundering against Nnamani, who it alleges stole (42.2 million dollars) between 1999 and 2003, and an additional 17.2 million dollars in March this year just before elections that marked the end of his tenure.

Nnamani, who lost his immunity from prosecution when his tenure ended on May 29, has denied all the charges.

Nigeria is rated by independent watchdog Transparency International as one of the world's most corrupt countries.

It is the eighth biggest oil exporter in the world, but endemic corruption has prevented Nigeria from translating its oil wealth into development. Most of it's 140 million people live in poverty and public services are shambolic.

Nigeria's 36 state governors have discretionary powers over millions of dollars of public funds and immunity from prosecution while in office.

Many plundered public coffers with impunity, and the sight of some of them in the dock has had a big impact in Nigeria.

Former President Olusegun Obasanjo created the EFCC in 2003, but its efforts to tackle graft generated controversy because critics said it targeted only Obasanjo's opponents or those not useful to him, while sparing his allies.

President Umaru Yar'Adua, who succeeded Obasanjo on May 29, has promised zero tolerance for corruption, and campaigners say the conduct of the five trials will be a test of the new government's resolve.

REUTERS PD RN1945