The defendants were arraigned at an Apo District High Court of the Federal Capital Territory, Abuja.
They were accused of misusing N578 million (N557,995,065) donated by the Bayelsa State Government for the purchase of arms.
According to the charge, the fund was diverted into separate accounts owned by the defendants, where it generated an interest of N16,412,315.
The generated interest was allegedly used for the defendant’s personal objectives.
The charge also alleged that the defendants lied to officials of the Independent Corrupt Practices and other related offences Commission, ICPC, when they told two of the commission’s staff upon enquiry about the diverted funds, that the generated interest was used for official purposes.
The defendants pleaded not guilty to the charge.
Messrs Ehindero and Obaniyi were first arraigned in 2012 by the ICPC for the alleged offences.
They, however, filed a preliminary objection, challenging the competence of the charge against them and asked the trial court to suspend their trial pending the determination of the appeal at the higher court.
Following an order of the Supreme Court in December, however, the defendants were told to return to the trial court and face the charge against them.
After taking their pleas, the court admitted the defendants on bail, based on the previous conditions and adjourned the matter to June 19.