Appeal Court Questions Competence of Oyo Governor Makinde over N3.4 Billion Debt

The Court of Appeal in Abuja has cast doubt on the competence of an appeal filed by the Governor of Oyo State, Seyi Makinde, and several principal officers of the state. The appeal is in response to an order from the High Court of the Federal Capital Territory (FCT), instructing them to pay the outstanding balance of N3,374,889,425.60 (N3.4 billion) from a total debt of N4,874,889,425.60 (N4.9 billion). This debt arises from a judgement delivered by the Supreme Court on May 7, 2021.

During the commencement of the appeal proceedings, which has been marked as CA/ABJ/CV/595/2023, a three-member panel of the Court of Appeal questioned the suitability of the appeal, with the lawyer representing the appellants, Ayodele Akintunde (SAN), asked whether the Court of Appeal was the proper forum to review a case that had already been decided by the Supreme Court.

The court also questioned Akintunde about the time frame for full payment of the judgement debt, as stipulated by the Supreme Court. Additionally, the appellate court expressed reservations about a motion filed by the appellants requesting permission to pay the debt in installments, noting that the appeal itself challenges a similar payment plan ordered by the FCT High Court.

In response, Akintunde stated that the Supreme Court had originally ordered the Oyo State Government to make the payment within three months. He also clarified that the appeal does not directly contest the judgement of the Supreme Court, but rather the judgement of the High Court of Oyo State, which was subsequently registered in the FCT High Court. According to Akintunde, both parties involved have already reached a compromise on the judgement by taking certain steps.

The debt of N4,874,889,425.60 arose from a judgement against Makinde, the state’s Attorney General, the Accountant General, and four others. This judgement was brought forth by Chairmen and Councillors elected under the All Progressives Congress (APC) who were removed from office by Makinde on May 29, 2019, after assuming office.

The Supreme Court declared the ex-council chiefs, represented by 11 individuals led by Bashorun Majeed Ajuwon, as unlawful in its judgement. Furthermore, the court ordered the Oyo State Government to calculate and pay the ex-council chiefs their entitled salaries and allowances within three months of the judgement.

However, instead of complying with the judgement, the Oyo State Government only paid N1.5 billion. This prompted the judgement creditors to initiate a garnishee proceeding against Makinde and others before the FCT High Court.

On April 27, Justice A. O. Ebong of the FCT High Court issued a garnishee order absolute, directing Makinde and others to immediately pay the remaining balance of the judgement debt. The court further ordered that the remaining N2 billion be paid in quarterly installments of N500 million, with the first installment due on July 31, 2023. Makinde and the appellants are now contesting this order at the Court of Appeal.

During the hearing, lawyer to the ex-council chiefs, Musibau Adetunbi (SAN), expressed regret over the deaths of 26 of his clients due to poverty and lack of funds for their healthcare. He attributed this to Makinde’s failure to comply with the various court orders issued in their favor.

Adetunbi disputed the appellants’ argument that the judgement could not be enforced through garnishee proceedings because the judgement sum was not reflected. He pointed out a letter written on December 13, 2021 by the Attorney General of Oyo State, which stated that the salaries and allowances due to the ex-council chiefs amounted to N4,874,889,425.60. The letter also pledged to pay the entire amount within six months.

Adetunbi drew attention to a letter dated May 8, 2023, written by one of Oyo State’s bankers, First Bank, which stated that the N1,374,889,425.60 belonging to the state, and attached by the garnishee order, would have been paid if not for the pending appeal.

He argued against the appellants’ claim that the consent of the state’s Attorney General is necessary when dealing with funds belonging to a state or its agencies. Adetunbi contended that the conduct of the appellants, particularly the letter dated December 13, 2021, suggests that the Attorney General consented to the settlement of the debt.

Adetunbi firmly asserted that Makinde and the others intentionally failed to pay the money and urged the court to dismiss the appeal, given the appellants’ blatant disregard for the nation’s judicial process.

Following the arguments presented by both lawyers, the court announced that judgement will be reserved and communicated to the parties at a later date.

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