An Abuja division of the federal high court has threatened to freeze Adamawa State Government’s accounts over its failure to pay back N84 million debt it borrowed from the Asset Management Corporation of Nigeria (AMCON) six years ago.
While AMCON is the plaintiff/claimant, the Governor of Adamawa State, the attorney general of the state, the Commissioner of Health, the permanent secretary of the ministry of health and the ministry of health are the 1st to 5th defendants respectively.
Justice Inyang Ekwo gave the state government a one-month ultimatum to settle with AMCON or risk the court granting AMCON’s request seeking to freeze the state government accounts. He then adjourned till January 11, 2022, according to the News Agency of Nigeria.
Backstory
Paul Okache, AMCON’s lawyer, had alleged that in July 2015, the state ministry of health had approached Union Bank Plc for an Overdraft facility.
After several requests, the bank obliged and raised the overdraft facility. Mr Okache told the court that despite numerous requests by the bank, the facility and the accrued interest is yet to be paid.
He said the respondents then engaged the services of Abbas El-yakub & co to demand payment of the facility.
AMCON, through its lawyer, instituted a suit marked: FHC/ABJ/CS/387/2021 against the defendants seeking an order of the court to freeze the state government’s accounts because of its inability to pay back the debt.
On June 24, 2021, Justice Ekwo granted AMCON’s ex-parte application which sought an interlocutory order to freeze the respondents/debtors accounts in 17 commercial banks.
The state government through its lawyer, in turn, filed a notice of preliminary objection challenging the jurisdiction of the court to hear the matter. They argued that cases of that nature ought to be filed at the state high court where the cause of action took place. Consequently, the judge gave them time to go and resolve the matter among selves.
What happened in court
When the matter was called up on Friday, Mr Okache told the court that settlement among parties had failed due to a lack of seriousness on the part of the defendants.
Fabaryu Thliza, counsel to Adamawa state government, told the court that settlement processes are ongoing and that a five-man committee has been set up by the state government to that effect.
The judge who asked if she thinks the court was joking as he was upset with the response she availed, then ask her to give him reasons why he should not grant AMCON’s application and freeze the state government’s accounts.
Ms. Thliza in turn pleaded with the judge to grant her client more time to enable them complete the settlement terms.
In response, the judge said, “I give you this Christmas so that the salaries of staff can be paid. I will give you until January 11.”
Justice Ekwo said he was granting the prayer of the state government because of the majority of civil servants who will be affected by the freeze order especially as Christmas was near.
“This adjournment is at the instance of the defendant and a gracious adjournment to allow them, pay their staff for Christmas. This shall be the last adjournment,” Justice Ekwo warned.
