Court orders freez of Oyo govt’s accounts over N3.5bn debt
The Federal High Court sitting in Abuja has ordered banks to freez Oyo State’s accounts for failure to settle N3.5 billion judgement debt in full since 2019.
The order given by Justice A. O. Ebong was based on a garnishee proceeding initiated by ex-council chiefs in Oyo State, who were sacked on May 29, 2019 by Governor Seyi Makinde.
The sacked local government chairmen and councillors had, in 2021, got a ₦4,874,889,425.60 judgment against Makinde and other officials/agencies of the state.
READ ALSO: Kano Guber: Supreme Court to begin hearing on Thursday
The other officials/agencies listed with Mr Makinde as judgment debtors, by virtue of the May 7, 2021 judgment of the Supreme Court, are 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.
The garnishee proceeding was intended by the ex-council chiefs, led by Bashorun Majeed Ajuwon, to recover the balance of ₦3,424,889,425.60 which is outstanding from the actual judgment sum, from which Makinde paid only ₦1.5 billion in 2022.
What was outstanding in respect of the Supreme Court judgment was ₦3,374,889,425.60, but the Court of Appeal in Abuja added ₦50 million, which it awarded as cost against Makinde and others in a judgment on December 8, dismissing their appeal.
The banks in which the state government’s accounts were blocked are 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.
Justice Ebong delivered the ruling on December 15 on a motion marked: BW/M/85/2023 but its certified true copy, CTC, was gotten on Monday.
He ordered the garnishees (the banks) to file affidavits and attend the court on the next adjourned date to show cause why the garnishee orders nisi hereby granted should not be made absolute.
The judge awarded ₦300,000.00 as cost against the judgment debtors; ordered that a copy of the order be served on Mr Makinde and others and adjourned till January 5, 2024 for hearing.
Recall that on May 7, 2021 when the Supreme Court gave judgment, voiding Makinde’s sack of elected local government chairmen and councillors in Oyo State, the apex court gave similar judgment in respect of Katsina State and ordered both states to pay the salaries and allowances of the effected ex-council chiefs.
Justice Ejembi Eko, who delivered the lead judgment in the Oyo State case, condemned the decision by Mr Makinde to unlawfully sack the elected council chiefs before the end of their tenure.
But, while the Katsina State Government had since paid its ex-council chiefs, who were unlawfully sacked, the Oyo State Government had failed to pay the ex-council chiefs in the appeal marked: SC/CV/556/2020.
