An FCT High court has ordered First bank to appear before it over N3.4bn judgement debt owed by Oyo state government.
The court also ordered United Bank for Africa (UBA), WEMA Bank, and Zenith Bank to appear alongside First Bank.
The court on March 2, granted an order Nisi to garnishee accounts of the Oyo State government which resides in the four banks.
The court granted the order following an ex-parte application brought before it by ex-chairmen and councilors in the state.
The funds are to be paid to the Judgment creditors (the ex-chairmen and councilors) by the State government and it agencies (the Judgment debtors) to settle the outstanding balance of N3,374,889,425.60 owe by the Judgment debtors.
Justice Ebong while ruling on the ex parte application, ordered the banks (the third party which are the garnishee) to give reasons why the “order Nisi” should not be made “order absolute”.
The judge said “A garnishee order nisi is hereby granted to attach the judgment debtors’ accounts with garnishees Nos. 1 to 4 in the motion ex-parte, for the purpose of settling the judgment debt outstanding in the sum of N3,374,889,425.60 as awarded by the Supreme Court and conceded by the judgment debtors in Exhibit 11 attached to the applicant’s motion.
“The garnishees (1st to 4th) shall file affidavits and attend court on the next adjourned date to show cause why the order nisi should not be made absolute.
“A copy of this order nisi shall be served on the judgment debtors as required by law. This matter is hereby adjourned to 4/4/2023 for continuation.” The ruling reads.
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Background
The ex-chairmen and councilors were elected for a three-year term in office on March 12, 2018 following an election conducted by the Oyo State Independent Electoral Commission, INEC.
They were hinted that they would be sacked when Governor Seyi Makinde assumes office in May 2019.
They approached the High court in the State, challenging the constitutionality of sections 11 and 12 of the state local government law of 2001, which stated how the governor along with the state House of Assembly can dissolve local government executives.
On May 6, 2019, in the ruling of the Oyo State High court, declared the section of the constitution unconstitutional, stating that it violated the section 7(1) of the constitution.
Despite the ruling, On May 29, 2019, after resumption, Governor Makinde sacked the them while they went to appeal at the court of appeal.
On July 15, 2020, the court of appeal set aside the judgement of the lower court which encouraged them to move the case to the Supreme Court.
The Supreme Court on May 17,2021 also set aside the ruling of the appellate court.
The sum of N20 million was awarded by the five-member panel of justice Kudirat Kekere Ekun, to Seyi Makinde, while the Supreme Court also Order that the ex-chairmen and councilors be paid their entitled salaries and allowances from May 29, 2019 to May 11, 2021.
Justice Ejembi Eko in the lead judgement said that the elected governors have constituted themselves into species most dangerous to democracy in the country
The ex-chairmen and councilors in a bid to ensure the payment, filed a garnishee proceeding through their lawyer, Musibau Adetunbi, SAN, as the state Governor failed to pay the judgement sum.
