Justice Yusuf Halilu of the Federal Capital Territory (FCT) High
Court has adjourned to August 23, 2017 for ruling on a motion by
the Government of Delta State, praying the court to vacate the
ex-parte order freezing its Paris-Club bank account.
The Delta State Paris-Club bank account was ordered to be frozen
on the 3rd of August, 2017 by Justice Halilu amid allegations that
the state government was depleting the funds kept in the account
through unlawful payments to family members, friends, and cronies
of the governor, Ifeanyi Okowa, in the guise of settling the fees
for consultancy services in the fund’s recovery at the expense of
the real consultant progenitor, Mauritz Walton Nigeria Ltd.
However, counsel to Delta state government, Alex Izonyi (SAN),
approached the court to vacate its ex-parte order freezing the
Paris-Club account of the state on the grounds that it lacked
jurisdiction on the matter.
Izonyi had argued that since it was agreed between the
government of Delta state and Mauritz Walton Nigeria Ltd that
periodic updates of its consultancy services on the back duty
reconciliation and recovery of excess deductions on foreign loans
in the sum of $365m on behalf of the Delta state were to be given
in Asaba, the state capital, the High Court of the FCT had no power
to freeze the account.
On their part, counsels to Mauritz Walton Nigeria Ltd, Charles
Ude and Kenneth Nkwocha urged the Court to preserve its order in
relation to the sum of $27.3m and N3bn due to their client out of
the fund standing to the credit of the Government of Delta state by
virtue of proceeds of the Paris-London club refund pending the
hearing and determination of the substantive suit.
Citing Order 9, Rule 3 of the FCT High Court which states that
“all suits for the specific performance or breach of contract ,
shall where the contract ought to have been performed or where the
defendant resides or carries on business in the Federal Capital
Territory be commenced and determined in the High Court of the FCT,
Abuja”, Charles Ude argued that since the recovery of the excess
deductions were to be carried out in Abuja in conjunction with the
Ministry of Finance, Debt Management Office, and Office of the
Accountant-General of the Federation all in Abuja, the Court had
proper jurisdiction to order the freezing of the Paris-Club account
of the state.
Meanwhile, at the resumed hearing of the case yesterday, counsel
to Delta state government was absent in court, and Justice Halilu
adjourned ruling for the second time without giving any reason. He
had previously adjourned ruling from Tuesday 15th August, 2017 to
Monday 21st August.
Asked to comment on the delayed ruling, Charles Ude declined
comment, stressing that it would amount to subjudice.
However, investigation reveals that some state governments who
were yet to also settle their consultancy fees for the recovery of
the excess deduction are rallying support for Delta state
government.
It was gathered that Abia state has also approached the court to
vacate a similar order freezing its own Paris club account.
However, Cross River state government has opted for out of court
settlement with Mauritz Walton Nigeria Ltd.
Justice Yusuf Halilu of the Federal Capital Territory (FCT) High
Court has adjourned to August 23, 2017 for ruling on a motion by
the Government of Delta State, praying the court to vacate the
ex-parte order freezing its Paris-Club bank account.
The Delta State Paris-Club bank account was ordered to be frozen
on the 3rd of August, 2017 by Justice Halilu amid allegations that
the state government was depleting the funds kept in the account
through unlawful payments to family members, friends, and cronies
of the governor, Ifeanyi Okowa, in the guise of settling the fees
for consultancy services in the fund’s recovery at the expense of
the real consultant progenitor, Mauritz Walton Nigeria Ltd.
However, counsel to Delta state government, Alex Izonyi (SAN),
approached the court to vacate its ex-parte order freezing the
Paris-Club account of the state on the grounds that it lacked
jurisdiction on the matter.
Izonyi had argued that since it was agreed between the
government of Delta state and Mauritz Walton Nigeria Ltd that
periodic updates of its consultancy services on the back duty
reconciliation and recovery of excess deductions on foreign loans
in the sum of $365m on behalf of the Delta state were to be given
in Asaba, the state capital, the High Court of the FCT had no power
to freeze the account.
On their part, counsels to Mauritz Walton Nigeria Ltd, Charles
Ude and Kenneth Nkwocha urged the Court to preserve its order in
relation to the sum of $27.3m and N3bn due to their client out of
the fund standing to the credit of the Government of Delta state by
virtue of proceeds of the Paris-London club refund pending the
hearing and determination of the substantive suit.
Citing Order 9, Rule 3 of the FCT High Court which states that
“all suits for the specific performance or breach of contract ,
shall where the contract ought to have been performed or where the
defendant resides or carries on business in the Federal Capital
Territory be commenced and determined in the High Court of the FCT,
Abuja”, Charles Ude argued that since the recovery of the excess
deductions were to be carried out in Abuja in conjunction with the
Ministry of Finance, Debt Management Office, and Office of the
Accountant-General of the Federation all in Abuja, the Court had
proper jurisdiction to order the freezing of the Paris-Club account
of the state.
Meanwhile, at the resumed hearing of the case yesterday, counsel
to Delta state government was absent in court, and Justice Halilu
adjourned ruling for the second time without giving any reason. He
had previously adjourned ruling from Tuesday 15th August, 2017 to
Monday 21st August.
Asked to comment on the delayed ruling, Charles Ude declined
comment, stressing that it would amount to subjudice.
However, investigation reveals that some state governments who
were yet to also settle their consultancy fees for the recovery of
the excess deduction are rallying support for Delta state
government.
It was gathered that Abia state has also approached the court to
vacate a similar order freezing its own Paris club account.
However, Cross River state government has opted for out of court
settlement with Mauritz Walton Nigeria Ltd.