Court Freezes Oyo State Government’s Accounts in Ten Banks

Court freezes Oyo govts accounts in 10 banks — Daily
Court freezes Oyo govts accounts in 10 banks — Daily

A High Court of the Federal Capital Territory, FCT, Abuja, has issued an order attaching the accounts of the Oyo State Government in ten commercial banks across Nigeria. The order, issued by Justice A. O. Ebong, stems from a ruling on a garnishee proceeding initiated by ex-council chiefs in Oyo State, who were dismissed on May 29, 2019 by Governor Seyi Makinde.

The sacked local government chairmen and councillors secured a judgment against Makinde and other state officials/agencies, totaling N4,874,889,425.60 in 2021. The judgment debtors, as listed by the Supreme Court’s ruling on May 7, 2021, include the Attorney-General, Commissioner for Local Government and Chieftaincy Affairs, Accountant-General of Oyo State, Speaker of the House of Assembly, the House of Assembly, and the Oyo State Independent Electoral Commission (OYSIEC).

With the intent to recover the outstanding balance of N3,424,889,425.60 (N3.5 billion) from the judgment sum, the ex-council chiefs, led by Bashorun Majeed Ajuwon, pursued a garnishee proceeding. According to their claim, Makinde had only paid N1.5 billion in 2022, leaving N3,374,889,425.60 outstanding. Additionally, the Court of Appeal in Abuja levied a N50 million cost against Makinde and others, further complicating the legal proceedings.

Following Justice Ebong’s ruling on Dec. 15, the state government’s accounts in Zenith Bank, United Bank of Africa (UBA), Wema Bank, First Bank of Nigeria, Ecobank, Guaranty Trust Bank, Access Bank, Polaris Bank, Jaiz Bank, and Union Bank were ordered to be frozen. The certified true copy of the ruling was obtained on Monday, and the banks were directed to file affidavits and attend the court on the next adjourned date to show cause why the garnishee orders nisi should not be made absolute.

In addition, the judge awarded a cost of N300,000.00 against the judgment debtors, ordered that a copy of the order be served on Mr. Makinde and others, and set the next hearing for Jan. 5, 2024.

Recalling the Supreme Court’s judgment on May 7, 2021, which voided Makinde’s sack of elected local government chairmen and councillors in Oyo State, it is worth noting that the apex court also ruled in favor of the affected ex-council chiefs in Katsina State. Justice Ejembi Eko, leading the judgment in the Oyo State case, criticized Makinde’s decision to unlawfully sack the elected council chiefs before the end of their tenure.

While the Katsina State Government promptly paid its ex-council chiefs who were unlawfully dismissed, the Oyo State Government has failed to do so in the appeal marked: SC/CV/556/2020. This ongoing legal saga raises questions about the implications of the judiciary’s intervention in the affairs of state governments, particularly in matters concerning elected officials and their tenure.

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