Debt Palaver : Court Orders CBN To Attach Zamfara State Govt Accounts

Debt Palaver : Court Orders CBN

To Attach Zamfara State Govt

Accounts

May 18 , 2015 • By admin pmnews

Akin Kuponiyi

A Federal High court sitting in Lagos ,

southwest Nigeria , has ordered that the

account of Zamfara State Government

domiciled with Central Bank of Nigeria be

attached to satisfy a judgement debt of

N741 ,804 , 941. 50.

The order of the court was sequel to an

application filed and argued before the court by

Barrister Oluwakemi Balogun ( SAN ) .

In an affidavit sworn to by a legal practitioner ,

Mr Onah Marcellus, the deponent averred that

Ministry of Finance Zamfara State issued an

irrevocable standing payment order ( ISPO) for

the payment of the sum of N308 ,200 , 00 in

favour of the judgement creditor , First Bank of

Nigeria Plc.

Onah averred further that the claim in this case

was in the sum of N 586, 489 ,631 .97 being what

is outstanding and now being claimed from the

debtors.

Having regard to the letters of guarantee dated

22nd February, 2008 issued by Zamfara State

Hospital Services Management Board in favour

of Fist Bank guaranteeing the monthly

deduction of N17 , 122, 222 .22 for a period of 18

months under an irrevocable standing payment

order and the subsequent reliance thereof , the

bank released the sum of N260 million to a

limited liability company Al -Excel Nigeria

limited to finance the purchase of 4000 units of

Honda CG 125 motorcyles for members of the

Zamfara State Hospital Services Management

Board. Therefore the hospital management

board and Zamfara State Government are

bound to pay the debt plus interest availed the

company but it has refused to make payment

despite repeated demands.

Consequently, the bank urged the court to

enter judgement against the defendants jointly

and severally in the sum of N586 , 489, 631 ,97

plus interest at the rate of 18 percent per

annum from 29 th of April 2013 , until judgement

and thereafter at the same rate till the entire

judgement is fully liquidated .

On the 17 th of October 2014 the court entered

judgement jointly and severally against the

judgement debtors based on the claim of the

bank.

By virtue of the judgement of the court , the

judgement sum stood at N 741, 804 , 941. 50

being the summation of the sum claimed and

interest accruing thereon

However , the judgement sum is outstanding as

the defendants have failed, refused and

neglected to pay the judgement sum .

On 22nd October 2014 the bank filed an

application praying for an order attaching the

account of the defendants in various

commercial banks in Nigeria to the extent of

the judgement sum.

The order was granted by the court, but it was

only Diamond Bank that disclosed that

Zamfara State Goverment maintains account

with credit balance of N113 , 344. 86 which was

paid to the judgement creditor .

Consequently, Mr Onah averred that Zamfara

State Goverment maintains accounts with

Central Bank into which the monthly statutory

allocation from the Federal government is paid.

He, therefore , urged the court to grant the

application to attach the account of the

defendants with the Central Bank of Nigeria as

there is no other means to pay the judgement

sum.

In his ruling , the presiding Judge Mohammed

Yunusa , while adjourning till 24 June, 2015 for

the defendants and Central Bank of Nigeria to

show report of compliance , granted the order

attaching the funds in accounts maintained

with CBN by the defendants .