Court Freezes Bank Accounts of Northern State Government, Gives Reason

Court Freezes Bank Accounts of Northern State Government, Gives Reason

  • The Benue state government's bank accounts have been frozen over an alleged N333 million debt incurred in 2008
  • AMCON secured the court order freezing the bank accounts at the Federal High Court in Abuja on Wednesday, October 27
  • The court also ordered the freezing of the bank accounts of a firm that reportedly obtained the loan on behalf of the Benue government

FCT, Abuja - A Federal High Court in Abuja has made an interim order freezing bank accounts of the Benue state government over its involvement in securing an alleged N333 million loan in 2008.

The Cable reported that Inyang Ekwo, the presiding judge, gave the order on Wednesday, October 27, following an ex-parte motion filed by the Asset Management Corporation of Nigeria (AMCON).

AMCON Debt: Court Freezes Bank Accounts of Benue State Government
A Federal High Court in Abuja grants an interim order freezing bank accounts of the Benue state government over a N333 million loan. Photo credit: Benue State Government
Source: Facebook

Legit.ng gathers that the judge also directed that the bank accounts of a firm named HPPS Multilink Services Ltd be frozen pending the hearing and the determination of the substantive suit.

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While AMCON is the claimant, the mentioned company and the Benue state government are first and second respondents, respectively, Leadership also reported.

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The ex-parte motion dated and filed on Thursday, September 30, was moved by Darlington Ozurumba, counsel to AMCON.

In the affidavits in support of the suit, AMCON described the loan as a toxic loan of eligible bank assets transferred to it by law to recover.

AMCON told the court that the firm had collected a N333 million loan in 2008 to purchase 5,000 pieces of motorcycles to the Benue state government and its workers through the Nigeria Labour Congress (NLC).

The loan was for the agreed period of 24 months at the interest of 19 per cent per annum.

All the bank accounts of the Benue state government, including the JAAC Bank Accounts (Joint Accounts Allocation committee), Internal Generated Revenue Accounts, were affected by the interim order.

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The matter has been adjourned till Tuesday, November 2 for mention.

AMCON takes over former Kwara governor's properties over N5bn debt

In other news, AMCON has taken over a mansion and other properties belonging to Abdulfatah Ahmed, former governor of Kwara state, over a N5 billion debt.

The Federal High Court in Lagos gave AMCON the order on Wednesday, September 22.

Legit.ng gathers that Jude Nwauzor, AMCON’s spokesperson, said the former governor, who is one of the founders of the Rescue Nigeria Project (RNP), is a high-profile obligor of AMCON. He said despite holding “one of the highly exalted political offices” in the country, Abdulfatah remained recalcitrant over the repayment of his obligation.

AMCON accused of demolishing property worth over N400m

Meanwhile, the founder of the United Network of Youth for Peace and Diplomacy, Mojisola Ogundiran, has alleged that AMCON seized her family's property business by deceiving the court.

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Ogundiran said the property, situated in Durban, Wuse 2, Abuja, was seized following a debt issue involving her late father and a first-generation bank. She stated her dad obtained a loan of N40 million from the lender, out of which he later paid N5 million.

The debt was later bought over by AMCON at N20 million. The debt issue has been on before her father passed away in 2015. Ogundiran stated she filed a lawsuit against the government agency to stop it from forcefully taking over their property which has become a source of livelihood for her.

Source: Legit

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