Justice Chukwujekwu Aneke of a Federal High Court in Lagos will on November 3, 2021, deliver ruling in a suit by Asset Management Corporation of Nigeria (AMCON) against Bauchi State Government. On the said date, the judge is expected to decide whether or not to vacate a freezing order placed on about 20 bank accounts belonging to the Bauchi State Government. The freezing order was made by a vacation judge, Justice Tijjani Ringim, during the court’s long vacation.
Justice Aneke fixed the matter for ruling after listening to submissions of AMCON’s lawyer, Olugbuyiro Akinola, and that of Bauchi State, Sylvester Elema (SAN). AMCON had in suits numbers; FHC/L/AMC/64/2021, FHC/CS/AMC/66/2021, and FHC/L/AMC/67/2021 alleged that Bauchi state government borrowed the money from Equatorial Trust Bank (now Sterling Bank Plc).
Defendants in the suits are: the Attorney-General of Bauchi State, Bauchi State Government, the Accountant-General, Bauchi State, the Chief Administrative Officer of Hospital Management Board, Bauchi State, the Chief Accountant Hospital Management Board Branch, Bauchi State, and the Amalgamated Union of Pubic Corporation, Civil Service, Technical & Recreational Services Employees (AUPCTRE) Employees (AUPCRE) Hospital Management Board, Bauchi State.
AMCON had prayed the court to freeze the State’s bank accounts with Central Bank of Nigeria and 20 other banks. Justice Ringim had on August 30, 2021, granted a motion ex-parte dated July 19, 2021, filed by AMCON, praying the court to restrict the respondents either directly or indirectly from transferring, withdrawing, or dealing with or disposing of any of the monies standing to the credit of the respondents in the Central Bank of Nigeria to the total outstanding debt of N271, 489, 820.75.
Justice Ringim also directed the Central Securities Clearing Systems Plc to provide information and details of the respondents’ companies and interests, including stocks, shares securities, and dividends to AMCON or its counsel. The court further made an order compelling all the banks involved to disclose and produce bank details, statements of accounts, bank balances, and monies standing to the credit of the respondents.
In an affidavit, AMCON through his lawyer disclosed that the Amalgamated Union of Public Technical and Recreational Services Employees and the Hospital Management Board, Bauchi State obtained loan facilities in eight batches from Equatorial Trust Bank limited (Now Sterling Bank Plc.). He averred that eight loan facilities were offered to the defendants on February 3, 2009, in the sum of N15,000,000.00 each making a total of 120,000,000.00 at the contractual rate of 22 per cent each per annum for 16 months for the purpose of acquiring assets.
He added that the defendants are indebted to AMCON in the sum of N293,997,934.16 million as of 30th of June 2021, plus accrued interest at 17percent being the principal sum and accrued interests. In one of the suits, AMCON is also claiming N346, 611,547.34 million being the sum owed by the state government, which arose from the credit facility extended to Bauchi State by Equatorial Trust Bank (now Sterling Bank Plc), which the state government allegedly failed or refused to liquidate.
AMCON is also demanding for the sum of N100 million as general damages for breach of contract and for the cost of filing the suit. However, Bauchi State Government, in an application to vacate the freezing order, challenged the jurisdiction of the court arguing that the amount of money stated in the said order as the outstanding debt was false and manifestly inflated.
The state through its lawyer, Sylvester Elema (SAN) stated that both parties in the suit met on August 24, resolved the subject matter of the suit, a fact that was allegedly hidden from the court as at the date the orders were made. ‘’It, therefore, follows that the said orders made by this court on 30th August 2021 are not valid in law since the said orders are not supported by the provisions of Section 49, 50 and 50A of the AMCON Act 2010’’, the silk said.
