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Reading: Oyo Government Accounts in Four Banks Blocked by Court Due to “N3.4 Billion Debt”
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Oyo Government Accounts in Four Banks Blocked by Court Due to “N3.4 Billion Debt”

Ehabahe Lawani
Ehabahe Lawani 13 Views

The court fined the governor, Seyi Makinde, N20 million as costs.

A interim block of cash in four banks run by the Oyo State Government and its agencies has been ordered by Judge A. O. Ebong of the Federal Capital Territory High Court, Abuja, awaiting when it can explain why the funds in those institutions aren’t being credited to some judgement creditors.

After deciding on a motion ex-parte for a garnishee order submitted by the former chairs and council members, including Misters Bashorun Majeed, Bosun Ajuwon, and Idris Okusesi, Judge Ebong issued the order.

The impacted banks include First Bank, United Bank for Africa (UBA), Wema Bank and Zenith Bank.

Justice Ebong gave the banks a deadline to provide justification for overturning the order.

According to court documents, the money would be used to pay off the remaining sum of N3,374,889,425.60 from a judgement debt owing to several former local government chairpersons and councillors who were fired by Governor of Oyo State Seyi Makinde on May 29, 2019, before the end of their terms.

The garnishee action was started on behalf of the chairpersons and councillors by their attorney, Musibau Adetunbi, in response to a ruling they obtained on May 7, 2021, from the Supreme Court against the governor and six other people.

According to the decision, a garnishee order is hereby granted to attach the judgement debtors’ accounts with garnishees Nos. 1 through 4 in the motion ex-parte in order to settle the outstanding judgement debt in the amount of N3,374,889,425.60, as determined by the Supreme Court and admitted by the judgement debtors in Exhibit 11 attached to the applicant’s motion.

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The garnishees (first through fourth) must submit affidavits and appear in court on the next postponed date to provide justification for not having the order nisi rendered absolute.

According to information obtained, the judgement creditors have subsequently served copies of the order on the judgement debtors in accordance with the court’s directive.

Named as judgement debtors alongside the Oyo State Governor is the state’s Attorney General, the Commissioner for Local Government and Chieftaincy Affairs, the Accountant General, the House of Assembly, it’s Speaker and the Oyo State Independent Electoral Commission (OYSIEC) (OYSIEC).

The ex-chairpersons and councillors were chosen in the election conducted by OYSIEC on 12 March 2018 for a three-year tenure.

They filed a lawsuit in Oyo State’s High Court to challenge the constitutionality of Sections 11 and 12 of the Oyo State Local Government Law 2001, which gave the governor and the House of Assembly the authority to fire LG executives in the state, after learning that Mr. Makinde, who took office on May 29, 2019, intended to fire them.

The Oyo State High Court ruled on May 6, 2019, that Sections 11 and 12 of the state’s Local Government Law 2001 were unconstitutional because they violated Section 7(1) of the Constitution.

Despite the judgment’s continued validity, Mr. Makinde fired the chairpersons and council members on May 29, 2019, and then he appealed the decision.

The impacted authorities filed an appeal with the Supreme Court of India against the Court of Appeal’s ruling on 15 July 2020, which set aside the High Court’s verdict.

A five-judge Supreme Court panel led by Justice Kudirat Kekere-Ekun granted the appeal and overturned the Court of Appeal’s ruling in its ruling on May 7, 2021.

The court sentenced Mr. Makinde to pay N20 million in costs.

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