Court Freezes Zamfara State Accounts in 20 Banks

Justice Nnamdi Dimgba of the Federal High Court in Abuja has
granted an order freezing the accounts of the Zamfara State
Government in 20 banks in the suit No. FHC/ABJ/CS/728/17, which was
filed by the Asset Management Corporation (AMCON) against the state
government, Prostar Electric Company Limited and the Central Bank
of Nigeria (CBN.

The order was sequel to the debts the state is oweing a number
of banks in the country running into over N600million.

The court has also restrained the defendants from transferring
or dealing with the monies belonging to the Zamfara State
Government and Prostar Electric in the 20 banks.

The banks include: Access Bank Plc, Central Bank of Nigeria,
Citibank Plc, Diamond Bank, Ecobank Plc, Fidelity Bank Plc, First
Bank of Nigeria Plc, First City Monument Bank, Guaranty Trust Bank,
Heritage Bank, Keystone Bank and Stanbic IBTC Bank.

The other banks are: Standard Chartered Bank Plc, Skye Bank Plc,
Sterling Bank Plc, Union Bank of Nigeria, United Bank of Africa,
Unity Bank, Wema Bank, and Zenith Bank.

The court specifically granted an order “restraining the
defendants jointly and severally, the directors, agents, servants,
privies, subsidiaries, successors-in-title or otherwise any other
person natural or artificial, howsoever called under the control of
the first and second defendants from transferring or otherwise
dealing with any and all of the monies standing to the first and
second defendants credit in the 20 banks or anywhere else up to the
amount of the claimants claim in the sums of $3,475,960.00 and N250
million, only pending the hearing and determination of this
suit.”

The judge also granted an order restraining the 20 banks
“whether by themselves, agents, servants, privies, trustees,
nominees, proxies or otherwise any person natural or artificial
howsoever called from honouring any instruction authored by the
first and second defendants individually and or in association with
other persons and or allowing the first and second defendants in
whatever form or description with the said banks, pending the
determination of the suit.”

The 20 banks are also prohibited by the court from making
further payments to Zamfara State Government in respect of its
share of the London/Paris Club debt refund maintained by the banks,
pending the determination of the substantive suit.

The banks were also directed to file and serve on the
applicant’s counsel within seven days of services of the order on
it, an affidavit disclosing the first and second defendants balance
on accounts held with the said banks as at the date of the
order.

All third parties that are contractually obligated are directed
to pay all or any sum outstanding for contracts and sale of goods
already executed and for which payments are due to the first and
second defendants into the honourable court to be deposited into an
interest yielding account in the name of the Chief Registrar of the
court.

Justice Nnamdi Dimgba of the Federal High Court in Abuja has
granted an order freezing the accounts of the Zamfara State
Government in 20 banks in the suit No. FHC/ABJ/CS/728/17, which was
filed by the Asset Management Corporation (AMCON) against the state
government, Prostar Electric Company Limited and the Central Bank
of Nigeria (CBN.

The order was sequel to the debts the state is oweing a number
of banks in the country running into over N600million.

The court has also restrained the defendants from transferring
or dealing with the monies belonging to the Zamfara State
Government and Prostar Electric in the 20 banks.

The banks include: Access Bank Plc, Central Bank of Nigeria,
Citibank Plc, Diamond Bank, Ecobank Plc, Fidelity Bank Plc, First
Bank of Nigeria Plc, First City Monument Bank, Guaranty Trust Bank,
Heritage Bank, Keystone Bank and Stanbic IBTC Bank.

The other banks are: Standard Chartered Bank Plc, Skye Bank Plc,
Sterling Bank Plc, Union Bank of Nigeria, United Bank of Africa,
Unity Bank, Wema Bank, and Zenith Bank.

The court specifically granted an order “restraining the
defendants jointly and severally, the directors, agents, servants,
privies, subsidiaries, successors-in-title or otherwise any other
person natural or artificial, howsoever called under the control of
the first and second defendants from transferring or otherwise
dealing with any and all of the monies standing to the first and
second defendants credit in the 20 banks or anywhere else up to the
amount of the claimants claim in the sums of $3,475,960.00 and N250
million, only pending the hearing and determination of this
suit.”

The judge also granted an order restraining the 20 banks
“whether by themselves, agents, servants, privies, trustees,
nominees, proxies or otherwise any person natural or artificial
howsoever called from honouring any instruction authored by the
first and second defendants individually and or in association with
other persons and or allowing the first and second defendants in
whatever form or description with the said banks, pending the
determination of the suit.”

The 20 banks are also prohibited by the court from making
further payments to Zamfara State Government in respect of its
share of the London/Paris Club debt refund maintained by the banks,
pending the determination of the substantive suit.

The banks were also directed to file and serve on the
applicant’s counsel within seven days of services of the order on
it, an affidavit disclosing the first and second defendants balance
on accounts held with the said banks as at the date of the
order.

All third parties that are contractually obligated are directed
to pay all or any sum outstanding for contracts and sale of goods
already executed and for which payments are due to the first and
second defendants into the honourable court to be deposited into an
interest yielding account in the name of the Chief Registrar of the
court.