BREAKING: Paris Club Refund: Court Restrains FG From Deducting Monies Meant For 36 States To Settle $418m Debt

A federal high court sitting in Abuja has stopped the federal government from deducting monies due to the 36 states of the federation with a view to settling debts relating to the Paris Club refund, pending determination of the suit.

Presiding judge Inyang Ekwo granted 3 out of 4 orders sought in the exparte motion filed by J.S Okutepa SAN on Friday, on the behalf of the 36 state Attorneys General.

On Friday, he prayed the Court for the following reliefs:

“AN ORDER of Interim Injunction restraining the Federal Government of Nigeria acting through all or any of the 1st to 7th Defendants or any of its agencies or any other persons whomsoever, from approving the deduction or deducting any money accruing or due to all or any of the 36 States of the Federation
(hereinafter referred to as the
Plaintiffs/Applicants/States/States of the Federation) from the Federation Account for the payment of any judgment debt in the sum of 418 Million Dollars in relation to the Paris Club Refund or any other matter ancillary thereto without the express consent of the States of the
Federation and the appropriation of the said monies by the Houses of
Assembly of the various States of the Federation pending the hearing and determination of the Motion on Notice for Interlocutory Injunction.

“AN ORDER of Interim Injunction restraining the Federal Government or
any of its agencies or any other person whomsoever, acting on their behalf
from deducting or further deducting any money from any amount due to
all or any of the States of the Federation from the Federation Account for the payment of any Judgment Debts amounting to the sum of 418 Million Dollars purportedly arising from contracts and suits in relation to the Paris
Club Refund or any other matter ancillary thereto contrary to the Appropriation Laws of the various States of the Federation pending the hearing and determination of the Motion on Notice for Interlocutory
Injunction.

“AN ORDER of Interim Injunction restraining any or all of the 21st to 43rd
Defendants from accepting, giving value, discounting and/or honouring
in any form or manner whatsoever, any Promissory Notes issued by
and/or with the approval of all or any of the 1st to 7th Defendants to the
9th to 19th Defendants, their attorneys, assigns, agents, creditors or any
other person deriving any form of interest from all or any of them in
relation to any Promissory Notes issued in relation to the purported Judgment Debt amounting to the sum of 418 Million Dollars purportedly arising from contracts and suits in relation to the Paris Club Refund or any matter ancillary thereto, against the accounts and interests of the
Plaintiffs without the express consent of the States and appropriation of the said monies by the Houses of Assembly of the various States pending the hearing and determination of the Motion on Notice for Interlocutory Injunction.

“AN ORDER of this Honourable Court mandating the 1st to 7th Defendants
to refund any money purported to have been deducted from monies accruing or due to the 36 States of the Federation from the Federation Account for the liquidation of the purported judgment debts without the express consent of the States and the appropriation of the said monies the Houses of Assembly.”

The lawyer argued that the development had led the states to put up a stiff opposition.

He said the states were not party to any contract resulting in such debts.

“That’s why we ran to your court,” the SAN said.

He however drew back on the 4th prayer, adding that ” they(FG) have not deducted. They will start deducting this November.”

In his ruling, Ekwo refused to grant the 4th prayer following the disclosure that deduction was yet to be made.

He subsequently adjourned the matter.

“Order as prayed except prayer 4 which the court cannot grant.

“Matter is adjourned to November 30 for motion on notice, ” the judge ruled.

He ordered the applicant to serve the processes on the defendants.

President Muhammadu Buhari, Central Bank of Nigeria, Debt Management Office, Attorney General of the Federation, Accountant General of the Federation, are part of the list of defendants which include several banks, individuals and companies.