A Federal Capital Territory High Court in Abuja issued an order to freeze Oyo state government’s accounts in four banks due to N3.4 billion debt.
According to the News Agency of Nigeria, the order was given by Justice A. O. Ebong in response to a motion ex-parte for a garnishee order brought by the former council members and chairs, who were represented by Bashorun Majeed, Bosun Ajuwon, and Idris Okusesi.
The impacted banks are First Bank, United Bank for Africa (UBA), Wema Bank, and Zenith Bank.
Judge Ebong gave the banks a deadline to provide justification for overturning the order.
The decision on the motion with the markings: FCT/HC/BW/M/238/2023 was made by the judge on March 2 and a certified true copy was sighted on Sunday in Abuja.
According to court documents, the money would be used to pay off the remaining sum of N3,374,889,425.60 from a judgment debt owing by a few former local government chairpersons and councillors who were fired by Oyo State Governor, 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.
The decision states: “A garnishee order nisi is hereby given to attach the accounts of the judgment debtors with garnishees Nos. 1 to 4 in the motion ex-parte, for the purpose of settling the judgment debt outstanding in the sum of N3,374,889,425.60 as awarded by the court and conceded by the judgment debtors in Exhibit 11 attached to the applicant’s motion.
The garnishees (first through fourth) must submit affidavits and appear in court on the following postponed date to provide justification for not having the order nisi rendered absolute.
“As required by law, service of a copy of this order nisi shall be made upon the judgment debtors. This matter is hereby deferred to the 4/4/2023 for continuation.”
It was reported that the judgment creditors have since achieved service of copies of the order on the judgment debtors as ordered by the court.
The state’s Attorney General, Commissioner for Local Government and Chieftaincy Affairs, Accountant General, Speaker of the House of Assembly, and Oyo State Independent Electoral Commission are all listed as judgment debtors with the Oyo State Governor.
The OYSIEC-conducted election on March 12 saw the ex-chairpersons and council members chosen for a three-year term.
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 remove LG executives from their positions, after learning that Mr. Makinde, who took office on May 29, 2019, intended to fire them.
In its judgment on 6 May 2019, the Oyo State High Court declared Sections 11 and 12 of the state’s Local Government Law 2001 as unconstitutional, on the grounds that it 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 challenged 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-member Supreme Court panel led by Justice Kudirat Kekere-Ekun rendered its verdict on May 7, 2021, allowing the appeal designated as SC/CV/556/2020 and overturning the Court of Appeal’s ruling.
The ex-chairpersons and councillors who were wrongfully fired by the governor must get their wages and allowances from May 29, 2019, to May 11, 2021, when their term should have ended, according to the court, which fined Mr. Makinde N20 million in costs.
The Supreme Court strongly criticized Mr. Makinde in the lead opinion written by Judge Ejembi Eko, concluding that he had acted arbitrarily and undemocratically.