*Fed Govt may block Oct funds, cites court order
Uncertainty yesterday hung over the release of October share of Rivers State by the Federation Account Allocation Committee (FAAC).
It emerged that the funds’ remittance is contingent on the decision of the Court of Appeal on the matter.
The appellate court yesterday reserved judgments in six separate cases arising from the face-off between Rivers State Governor Siminialayi Fubara and the State House of Assembly led by Martins Amaewhule (as Speaker). ...CONTINUE READING
The October allocations to the 36 states, the Federal Capital Territory and the 774 local governments are currently being processed for disbursement but the Office of the Accountant General of the Federation (OAGF) hinted that it would be guided by whatever court order subsists at the time of disbursement.
The implication is that Rivers may not receive its share if the Court of Appeal rules against it within the next one week.
The preparation of the mandate typically takes between three and seven working days.
Once it is finalised, it will be forwarded to the Central Bank of Nigeria (CBN) which will then handle the disbursement.
The six appeals before the Court of Appeal are in respect of two judgments of a Federal High Court in Abuja.
A three-member panel of the court, presided over by Justice Hamman Barka, told parties yesterday after listening to their final lawyers’ submissions, that judgments in the appeals would be delivered on a date to be communicated to them.
The first appeal is on CA/ABJ/CV/1303/2021 filed by the Governor of Rivers State against the October 30 judgment delivered by Justice Joyce Abdulmalik of the Federal High Court, Abuja.
The court issued an order consolidating all the six appeals.
The other five are: CA/ABJ/CV/1287/2024 filed by the Government of Rivers State; CA/ABJ/CV/1196/2024 also filed by the Government of Rivers State; CA/ABJ/CV/1277/2024 filed by the Rivers State Independent Electoral Commission; CA/ABJ/CV/1293/2024 filed by the Accountant General of Rivers State and CA/ABJ/CV/1360/2024 filed by one of Rivers State’s bankers – Zenith Bank.
Justice Abdulmalik, in the October 30 judgment, restrained the CBN and the Accountant General of the Federation from further releasing financial allocations to the Rivers State Government pending when a lawful appropriation act is passed by a validly constituted State House of Assembly.
She restrained Access Bank and Zenith Bank from allowing the Rivers State Government and the governor to make withdrawals from the state’s funds being held in the banks.
The Rivers State House of Assembly and Amaewhule (as Speaker) had in the suit alleged, among others, unauthorised withdrawal and continued withdrawal of funds from the Rivers State Consolidated Revenue Funds Account by Governor Fubara.
Listed as defendants in the suit marked: FHC/ABJ/CS/984/2024 are the CBN, Zenith Bank, Access Bank, the Accountant General of the Federation, the Governor of Rivers State, the Accountant General of Rivers State, Justice S. C. Amadi (Chief Judge of Rivers State), Justice Adolphus Enebeli (retired) who is the Chairman of the Rivers State Independent Electoral Commission and the Rivers State Government.
Justice Abdulmalik held that the decision of Governor Siminalayi Fubara to present the Rivers State’s 2024 Appropriation Bill to a four-member Assembly, that was not properly constituted, should not be allowed to stand.
The judge noted that the issue about the legality of the budget purportedly passed by four members of the Rivers State House of Assembly, which Fubara claimed he had assented to, was declared invalid in a January 22 judgment by Justice James Omotosho of the Federal High Court in Abuja.
She also noted that in the same judgment, which was affirmed by the Court of Appeal in a judgment on October 10, Justice Omotosho found that Amaewhule is the authentic Speaker of the Rivers State House of Assembly.
Justice Abdulmalik said Fubara’s decision to present the 2024 Appropriation Bill of Rivers State before only four members of the state’s Assembly amounted to a gross violation of Section 91 of the Constitution.
The judge added that the decision of the four members of the House Assembly purporting to have passed the Rivers State’s Appropriation Bill 2024, which Fubara said he had assented to, could not and must not be allowed to stand, having been passed in clear violation of Sections 91 and 96 of the Constitution as it has been set aside by an order of the court which was recently affirmed by the Court of Appeal.
She held that Sections 91 and 96 of the Constitution is a precondition without which the powers of the fifth defendant to present the 2024 financial year estimate of the revenue and expenditure before the House of Assembly cannot be properly exercised in accordance with section 121(1) of the Constitution
Justice Abdulmalik said: “Since there is nothing in the counter affidavits of all the defendants to suggest that the fifth defendant complied with the provisions of section 120(2)(3)&(4) and section 121(1) of the Constitution in presenting the Rivers State’s Appropriation Bill in respect of the 2024 financial year before a validly constituted House of Assembly, this court has an enormous duty to protect and guide the Constitution from unwarranted assault to curb the excesses of powers and infraction of constitutional order.
“Where there is dereliction of constitutional order as in this instant case, this court will surely not shy away from its sacred constitutional responsibility to do what it considered just in the circumstances,” she said.
Justice Abdulmalik proceeded to grant all the reliefs sought by the plaintiffs.
The reliefs granted included:
*A declaration that the 1st defendant (Central Bank of Nigeria) is not entitled to release any amount, money, fund or revenue standing to the credit of Rivers State in the Consolidated Revenue Fund of Rivers State domiciled at the Central Bank of Nigeria including all allocations and revenue receipts including from the Federation Account Allocation Committee (FAAC) due to Rivers State from the Federation Account or from any other source to the 2nd defendant (Zenith Bank) or any other bank, being the commercial bankers of Rivers State Government or any other person until the fund has been duly charged with the relevant expenditures by an Appropriation Law duly made by the House of Assembly of Rivers State.
*A declaration that the 1st, 2nd and 3rd defendants (CBN, Zenith and Access) by themselves or by their servants or agents are not entitled to release or permit the withdrawal of any amount, money, fund or revenue standing to the credit of Rivers State, Rivers State Government, Rivers State Government institutions or agencies (funded through appropriations in the Appropriation Law made by the House of Assembly of Rivers State) including Rivers State Independent Electoral Commission (the 7th defendant) for any purpose whatsoever until an Appropriation Law has been duly Made by the House of Assembly of Rivers State.
*A declaration that the Appropriation Bill for the Financial year beginning from 1st January 2024 and ending 31st December 2024 not having been presented by the 5th defendant (Fubara) and passed into law or made an Appropriation Law by the House of Assembly of Rivers State, the power of the Governor of Rivers State (the 5th defendant) to authorize or continue to authorize withdrawal of moneys, fund or revenue from the Consolidated Revenue Fund of Rivers State domiciled in the Central Bank of Nigeria (the 1st defendant) or from any moneys, fund or revenue standing to the credit of Rivers State or Rivers State Government (from whatsoever source derived), domiciled in, held by or in the custody of the 1st, 2nd, 3rd or 4th defendant (Accountant General of the Federation);ceased and it is no longer available to be exercised with effect from the 1st day of July 2024 by the 5th defendant or any other person acting on his behalf or deriving authority from the 8th defendant (the Chief Judge) or the office of the governor of Rivers State, including the 6th, 7th, 8th, 9th and 10th defendants.
* A declaration that it is illegal, unlawful, unconstitutional and a subversion of the Constitution of the Federal Republic of Nigeria 1999 (as amended) for the 5th defendant to withdraw, authorize or continue to authorize withdrawal of moneys, fund or revenue from the Consolidated Revenue Fund of Rivers State, no matter where domiciled or any moneys, fund or revenue belonging to Rivers State or standing to the credit of Rivers State Government no matter where it is kept, or for the 1st, 2nd, 3rd and/or 4th defendants by themselves or by their servants or agents to release, continue to release, withdraw or permit the withdrawal of any moneys, fund or revenue in the Consolidated Revenue Fund of Rivers State or belonging to Rivers State, no matter by whatever name called with effect from the 1st day of July 2024 when the constitutional power of the 5th defendant to authorize withdrawal of such moneys, funds or revenue in the absence of an Appropriation Law ceased absolutely.
*A declaration that it is illegal, unlawful, unconstitutional and a subversion of the Constitution for the 1st, 2nd, 3rd and/or 4th defendants by themselves or by their servants or agents to release monies to, to permit withdrawal, continue to release or to continue to permit withdrawal of moneys, funds or revenue at the instance of or by the 5th, 6th, 7th, 8th, 9th or 10th defendants in respect of or for the purported purpose of the proposed conduct of Local Government Councils election for Rivers State or for the purpose of funding tribunals, including Election Tribunals or Election Appeal Tribunals for the said election.
*An order of injunction restraining the 1st, 2nd, 3rd and/or 4th defendants by themselves or by their servants or agents from releasing any moneys, funds, or revenue of Rivers State or Rivers State Government, its ministries, departments or agencies or withdrawing or permitting the withdrawal of any such moneys, funds or revenue from the Consolidated Revenue Fund or from any Account kept in respect of moneys, funds or revenue due to, or belonging to Rivers State or in respect of any moneys, fund or revenue of Rivers State or due to Rivers State or Rivers State Government to/by the 5th, 6th, 7th, 8th, 9th and/or 10th defendants or on the authorization of or at the instance of any of them, individually or jointly until an Appropriation Law for the 2024 Financial Year has been duly made by the House of Assembly of Rivers State.
*An order of injunction restraining the 5th, 6th, 7th, 8th, 9th and/or 10th defendants, by themselves or by their servants and/or agents from authorizing the withdrawal of, withdrawing , or demanding for the release of moneys, fund or revenue from the Consolidated Revenue Fund of Rivers State/Rivers State Government or any moneys, fund or revenue due to or belonging to Rivers State or Rivers State Government until an Appropriation Law for the 2024 Financial Year has been duly made by the House of Assembly of Rivers State.”
We’ll be guided by court order, says OAGF
Speaking to The Nation yesterday in Abuja, spokesman for the OAGF, Bawa Mokwa, said the OAGF would obey the court on releasing or not releasing the state’s share.
When asked about earlier reports suggesting that Rivers State might miss out on the October FAAC allocation entirely, Mokwa declined to provide a definite answer. Instead, he maintained that the OAGF’s actions would be guided by prevailing court order.
He had earlier been quoted emphasising that the office is closely monitoring the legal proceedings. “We know the Appeal Court will be diligent in handling the case,” he said.
He was quoted to have said: “What I got is that the October 2024 FAAC has not been distributed yet. However, the Federal Government will obey the court order on the matter of Rivers State allocation.”
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