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The Africa Daily Post > News > Court blocks Oyo govt’s accounts in 4 banks over N3.4bn debt
News

Court blocks Oyo govt’s accounts in 4 banks over N3.4bn debt

Adekunle Owolabi
By Adekunle Owolabi Published March 28, 2023 2 Min Read
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Justice A. O Ebong of the Federal Capital Territory High Court in Abuja has granted a motion ex-parte for a garnishee order filed by ex-chairpersons and councillors, including Misters Bashorun Majeed, Bosun Ajuwon, and Idris Okusesi.

The order temporarily blocks funds in four banks operated by the Oyo State Government and its agencies, including First Bank, United Bank for Africa (UBA), Wema Bank, and Zenith Bank.

The funds are to settle an outstanding balance of N3,374,889,425.60 owed to former local government chairpersons and councillors sacked before the end of their tenure by Oyo State Governor, Seyi Makinde. The judgment debt was awarded by the Supreme Court on May 7, 2021, and the garnishee proceeding initiated by the ex-chairpersons and councillors is for the execution of the judgment.

The affected banks are ordered to show cause why the order should not be made absolute. Judgment debtors, including the Oyo State Governor, the Attorney General, the Commissioner for Local Government and Chieftaincy Affairs, the Accountant General, the House of Assembly, its Speaker, and the Oyo State Independent Electoral Commission (OYSIEC), have been served copies of the order. The case started when the ex-chairpersons and councillors sued to challenge the constitutionality of Sections 11 and 12 of the Oyo State Local Government Law 2001.

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Despite a judgment declaring the sections unconstitutional, the Governor sacked the officials. The Court of Appeal later set aside the judgment, but the Supreme Court allowed the appeal and awarded a cost of N20 million against Mr Makinde.

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Adekunle Owolabi
By Adekunle Owolabi
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Adekunle, a seasoned journalist renowned for his astute coverage of global affairs, has honed his craft across diverse newsrooms in Lagos, Johannesburg, and Abu Dhabi. Adept at navigating the complexities of political and international diplomacy, he consistently delivers insightful analysis and accurate reporting, earning him recognition as a trusted voice in the field
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