Court fixes December 13 for continuation of hearing on Paris Club Refund suit filed by states against FG

Federal High Court sitting in Abuja has fixed December 13 for continuation of hearing in the legal battle instituted by 36 states of the Federation against the Federal Government challenging the move by the latter to deduct the sum of $418 million dollars from their bank accounts.

The argument over the planned deduction of the sum from states’ allocations had stalled the October 2021 sharing of revenue as states had gone to court challenging Federal Government’s decision to deduct the sum from the their allocations without their approval.

Presiding over Tuesday’s hearing, Justice Inyang Ekwo declined to vacate a restraining order issued against Federal Government stopping the bid to deduct $418 million Paris Club refund from bank accounts of the 36 states of the federation.

The Judge held that the order shall subsist until the motion for interlocutory injunction filed by the states against the Nigerian government is determined.

At Tuesday’s proceeding, Justice Ekwo permitted the plaintiffs, (36 states) to regularize their processes that were filled out of time.

Meanwhile, some of the defendants made desperate efforts to argue their motions praying the court to discharge the restraining order granted in favour of the states against the deduction of the money by the federal government.

Counsel to two of the defendants Wole Olanipekun and Olusola Oke, made efforts through oral applications for the court to discharge the order.

They argued that by the practice direction of the court, the restraining order ought to last for 14 days and that it should be deemed as expired and no longer in existence.

However, counsel to the states Jibrin Okutepa read out the order in the open court and submitted that until the motion for interlocutory injunction is settled, the interim order shall be in force and binding on all parties.

Justice Ekwo however counseled parties in the matter to thread softly adding that the matter will be diligently determined.

The sum is planned to be deducted by federal government to pay contractors who worked for the state governments in the Paris club refund.

It would be recalled that Nigeria Governors’ Forum (NGF) had accused the Attorney-General of the Federation (AGF) and Minister of Justice, Abubakar Malami SAN, of working against the public’s interest by insisting on the payment of $418 million to private consultants from the accounts of state governments.

The consultants are claiming a percentage of Paris Club refunds as payment for services allegedly rendered to the states and local government by way of loan cancellation.

In a statement signed by the spokesman of the Office of the Attorney-General of the Federation, Umar Gwandu, AGF Malami suggested the states and local governments had acted in bad faith for taking the case to court.

The deductions were ratified by several court judgements, the AGF said and the Federal Government only had to step in to avoid forfeiting any of its assets since it was also a defendant in the lawsuits against the states.