Abuja — The Economic and Financial Crimes Commission (EFCC) has stopped the disbursement of N1 billion unsecured loan to politicians in Ondo State, it emerged on Wednesday.

The EFCC Head of Media and Publicity, Femi Babafemi, said the Commission took the "preventive decision" after it received a petition from a concerned indigene of the state.

Two months ago in Akure, the EFCC picked up the state's Accountant General, Folake Ogunnika, and quizzed her based on a petition alleging a plot to disburse the loan.

A week later, the Commissioner of Finance and three Directors in the ministry were also arrested.

The petition was lodged by Oladele Yusuf, who alleged that despite the ruling of the Ondo State Election Petitions Tribunal which annulled the election of Governor Segun Agagu, he approved the loan for his appointees.

Yusuf alleged that Agagu used the loan to bribe politicians in the event that he loses his appeal against the tribunal ruling.

He pleaded with the EFCC to ensure that the state's funds are not mismanaged, saying he foresees a situation where the money would not be recovered if Agagu is eventually removed from office by the Court of Appeal.