Akinkunle Olunloyo, the son of Victor Omololu Olunloyo, a former governor of Oyo State, has been arraigned before an Igbosere Magistrates’ Court, in Lagos over alleged money laundering offence.

Online reports that the younger Olunloyo was arraigned on Monday, 30 April, for allegedly defrauding a financial institution of N40 million, thereby standing trial on a two-count charge of conspiracy and fraud

Olunloyo, who is a former nightclub owner, was charged alongside his entertainment firm, Code Media Ltd, by the Police Special Fraud Unit (PSFU), Lagos.

According to Police Prosecutor Sylvester Azubuike, Mr. Olunloyo and others still at large, committed the offences in November 2014 in Lagos.

He said the accused fraudulently obtained N40 million under the guise of using it to renovate his company’s entertainment premises and hall.

According to the police, Mr. Olunloyo did not pay back the money, instead, he converted it to his own use.

The offences contravened Sections 312(1), (b), 312 (3) and 409 of the Criminal Law of Lagos State, 2011.

Mr. Olunloyo pleaded not guilty to the charges even as his lawyer, Seyi Soremekun, urged the court to grant him bail on self-recognisance or on liberal terms.

Mr. Soremekun said: “We were served with the charge this morning. The defendant has been attending meetings at the PSFU whenever required.”

In her ruling, the magistrate, O. Oshin, observed that the accused was already standing trial on another charge before her.

She granted the accused a bail of N500, 000 with one surety in the like sum and adjourned the case until June 5.

The accused father, ex-Governor Olunloyo became governor of Oyo State in October 1983, holding the office briefly until the military regime of Muhammadu Buhari took power in December 1983.

He later became a power-broker in the People’s Democratic Party (PDP) in Oyo State.