A Federal High Court in Abuja has restrained President Muhammadu Buhari, the Attorney General of the Federation (AGF) and seven others from proceeding with their planned deduction of about $418 million from the accounts of the 36 States in settlement of alleged debt from the Paris Club Refund and judgements got By some individuals and firms against the Association of Local Government of Nigeria (ALGON).
Justice Inyang Ekwo issued the order on Friday after listening to Jibrin Okutepa (SAN) and Ahmed Raji (SAN) who argued the states’ ex-parte application.
Otukepa, who led the legal team of the states told the court that the 36 states would be completely crippled if the Federal Government go-ahead to deduct the huge amount from the bank accounts of the States.
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He said the Federal Government claimed that the planned monthly deduction, scheduled to commence at the end of November was to settle debts for contracts allegedly executed for the states.
Otukepa however said that the 36 States’ Attorneys-General have read the purported judgment displayed the Federal Government and found that the states were not parties to the court cases which led to the judgment debt.
He also submitted that the purported contract claimed to have been executed for the states were not known to any of the 36 state governments and is, therefore, a phoney contract.
Okutepa added that the Federal Government was the only party to the court case that brought the judgment and therefore such judgment is not binding on the state government.
In a brief ruling, Justice Ekwo issued an interim order restraining the Federal Government, other defendants in the cases, including all financial institutions from proceeding to effect the planned deduction pending the hearing of pending motion.
The judge then adjourned further hearing till November 30.