Court Stops FG from deducting $418m from accounts of 36 states

Court Stops FG from deducting $418m from accounts of 36 states

Justice Inyang Ekwo of the Federal high court Abuja on Friday stopped the federal government from going ahead to deduct $418million dollars from the bank account of the 36 states governments

The Judge issued a restraining order against the federal government following an exparte application argued by counsel to the 36 states Jibrin Otukepa and Ahmed Raji both Senior Advocate of Nigeria

While moving the application. Otukepa who led the legal team of the states told the Judge that the states would be completely crippled if to federal government should go ahead to deduct the huge amount from the bank accounts of its clients.

The Senior lawyers told the Judge that the federal government predicted the plan to deduct the $418million from the state account monthly to service a debt for contracts allegedly executed for the states.

However Otukepa said that the 36 states Attorneys General have scrutinized the purported contract and judgment and found that the states were not parties to court action that resulted to the judgment debt.

He further submitted that the purported contract claimed to have been executed for the states are not known to any of the 36 state governments and is therefore a phony contract.

The Senior lawyer further told the court that the federal government was the only party to the court case that brought the judgment and therefore such judgment is not binding on the state government.

After listening to the arguments of the 36 states, Justice Ekwo ordered the federal government not to go ahead to make any deduction from the state account in respect of the purported court judgment until all issues relating to it are fully determined.

Defendants in the suit are the Attorney General of the Federation AGF, Finance Minister, Accountant General of the Federation and all banks in Nigera among others.

The Judge fixed the matter for November 30th and ordered the plaintiffs lawyer to serve all processes on the defendants before the adjourned date.

By PRNigeria