The Osun State Government has commenced legal action against the Economic and Financial Crimes Commission (EFCC) following the restriction placed on some of its bank accounts.
Naijaonpoint reports that the state government described the action as unlawful, warning that it could disrupt public administration and the delivery of essential services.
The Attorney General and Commissioner for Justice, Oluwole Jimi-Bada, disclosed on Wednesday that Governor Ademola Adeleke had directed him to institute a suit before the Federal High Court challenging the anti-graft agency’s decision.
Jimi-Bada said the government received information that the EFCC had directed First Bank to place a Post-No-Debit restriction on several accounts belonging to the state.
According to him, the directive prevents withdrawals and other debit transactions from being carried out on the affected accounts.
The Attorney General acknowledged the commission’s power to investigate financial transactions but maintained that it could not freeze government accounts without judicial authorisation.
Jimi-Bada said, “I have the mandate of the governor to proceed to the Federal High Court to challenge this move.
“EFCC can investigate the accounts, but it can’t freeze the accounts without an order of court.”
He argued that the restriction could hamper the government’s ability to meet its obligations and administer the state effectively.
“This step will affect government running, but we will challenge the move and ensure that the agency acts within the ambit of the law,” he added.
The commissioner did not disclose when the suit would be filed or the specific reliefs the state government would seek from the court.
Finance Commissioner Alleges Bank Staff Arrests
The Commissioner for Finance, Sola Ogungbile, also reacted to the development, alleging that police officers visited the main branch of First Bank in Osogbo and arrested some members of staff.
He did not provide further details about the identities of the affected workers or the reasons for their reported arrests.
Ogungbile also dismissed claims that state resources were being diverted to finance Adeleke’s re-election campaign.
He insisted that public funds were not being used for political activities and urged the EFCC to consider the consequences of restricting accounts used for government operations.
According to him, residents who depend on salaries, public programmes and other state-funded services could be affected if the restriction remains in place.
Before the accounts were reportedly restricted, Adeleke had raised the alarm over an alleged plan by the EFCC to freeze accounts belonging to the state government and senior officials.
In an earlier statement issued by the Commissioner for Information and Public Enlightenment, Kolapo Alimi, the governor claimed the move lacked legal justification.
He also alleged that the action was aimed at disrupting government activities ahead of the August 15 governorship election.
“The plot to freeze the state government accounts is meant to paralyse government activities ahead of the August 15 governorship election,” Adeleke said.
The governor maintained that the EFCC could not impose such restrictions without following due judicial process.
The EFCC had directed First Bank to place a Post-No-Debit restriction on the Osun State Government’s statutory allocation account as part of an ongoing investigation.
The commission said the directive was issued pursuant to provisions of the EFCC Establishment Act and the Money Laundering Prevention and Prohibition Act.
