Court Freezes FG’s $793m in 7 Banks

Ladipo Sanusi/

Justice Chuka Obiozor of a Federal High Court in Lagos has ordered seven commercial banks to, in the interim, remit the sum of $793, 200, 000 to the Federal Government.

The money was allegedly unlawfully withheld by the banks from the federation account.

The Court has ordered the banks to remit the money to a designated account at the Central Bank of Nigeria tagged: “CBN OAGF FBN Asset Recovery USD Account No: 901-10302-2-5033-56 (IBAN GB73GTB160830310302168) at the Guaranty Bank UK Limited”.

The Managing Directors of the banks were also directed to stop all outward payments from the subject accounts pending the final determination of the substantive suit.

Justice Obiozor’s orders were sequel to the granting of an ex-parte motion filed by the Federal Government and the Attorney General of the Federation, Abubakar Malami (SAN), seeking an interim order compelling the banks to remit the fund to government coffers.

The motion was brought pursuant to Sections 6 (6) (a); 80 and 162 of the Constitution; Order 26 Rule 8 of the Federal High Court Civil Procedure Rules 2009; Section 333 (a) and (b) of the Administration of Criminal Justice Act (ACJA) 2015 and Section 17 (1) and (3) of the Advance Fee Fraud and other related offences Act 2006.

Arguing the Exparte motion today, Prof. Yemi Akinseye-George (SAN), who represented the Federal government, said that the banks had flouted the extant policy of the Treasury Single Account (TSA) of the Federal Government by keeping the money in various designated accounts.

According to him, the withheld funds are urgently needed by the government to fund the 2017 budget. He urged the court to grant the application.

After listening to the submissions of Akinseye-George, Justice Obiozor granted the application.

The judge equally directed the publication of the orders in a national newspaper to serve as an invitation to anyone apart from the Federal Government who has interest in the funds to show cause within 14 days why a final order should not be made remitting the money to the government.

Further hearing in the matter has been adjourned till August 8.

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