Court Freeze Oyo State Govt Accounts In 10 Banks Over N3.5bn Debt

The Oyo State Government’s accounts at ten commercial banks across the nation have been placed on hold by an order issued by a High Court located in the Federal Capital Territory (FCT), Abuja.

Judge A. O. Ebong issued the order in a decision on a garnishee proceeding brought by former Oyo State council leaders who were fired by Governor Seyi Makinde on May 29, 2019.

In 2021, a judgement of N4,874,889,425.60 was obtained by the dismissed chairmen and council members of local government against Makinde and other state officials and agencies.

According to the Supreme Court’s May 7, 2021 ruling, the Attorney General, the Commissioner for Local Government and Chieftaincy Affairs, the Oyo State Accountant-General, the Speaker of the House of Assembly, and the Oyo State Independent Electoral Commission (OYSIEC) are the other officials/agencies listed alongside Makinde as judgement debtors.

The ex-council leaders, led by Bashorun Majeed Ajuwon, planned to use the garnishee proceeding to obtain the remaining N3,424,889,425.60 (N3.5 billion) from the actual judgement sum, of which Makinde only paid N1.5 billion in 2022.

The amount that remained unpaid for the Supreme Court ruling was N3,374,889,425.60. However, on December 8, the Court of Appeal in Abuja dismissed the appeal of Makinde and others and awarded N50 million as costs.

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 are the banks where the state government’s accounts have been blocked.

On December 15, Justice Ebong rendered a decision on a motion designated as BW/M/85/2023; however, the certified true copy (CTC) of the ruling was made public on Monday.

He directed the banks, who were the garnishees, to submit affidavits and appear in court on the following postponed date to provide justification for why the garnishee orders should not be made final.

The judge directed that a copy of the order be served on Makinde and others and postponed the hearing until January 5, 2024. She also awarded N300,000 as costs against the judgement debtors.

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