The Federal High Court in Lagos has granted an interim forfeiture order for seven commercial banks in the country to remit the sum of $793,200,000 allegedly kept in their custody illegally.
The court in its ruling on Thursday said the banks violated the constitution and the Treasury Single Account (TSA) policy of the Federal Government.
Presiding judge Chuka Obiozor ordered the seven banks to remit the money into the designated CBN asset recovery dollars account.
The affected banks are United Bank for Africa; Diamond Bank Plc; Skye Bank Plc; First Bank Limited; Fidelity Bank Plc; Keystone Bank Limited; and Sterling Bank Plc.
According to court papers filed by counsel for the Attorney General of the Federation, Prof. Yemi Akinseye-George (SAN), a total of $367.4m was illegally hidden by three government agencies in UBA, while a sum of $41m was illegally kept in a NAPIMS fixed deposit account with Skye Bank.
Furthermore, the papers revealed that $277.9m was hidden in Diamond Bank; $18.9m in First Bank; $24.5m in Fidelity Bank; $17m in Keystone Bank; and $46.5m in Sterling Bank.
A lawyer, Vincent Adodo, from Akinseye-George’s law firm, who deposed a 15-paragraph affidavit in support of an ex parte application filed by the AGF, said the banks connived with government officials hide the funds.
According to him, the said funds were revenues, donations, transfers, refunds, grants, taxes, fees, dues, tariffs etc accruable to the Federal Government from different ministries, departments, parastatals and agencies.
He said, “The 1st to 7th respondents (banks), in collaboration with and/or collusion with unknown officials of the Federal Government, conspired to disobey the relevant constitutional provisions, thereby depriving the Government of the Federal Republic of Nigeria of funds belonging to it, which are needed urgently to fund pressing national projects under the 2017 budget.”
Moving the ex parte application, Akinseye-George prayed the court to order the banks to remit the funds to the Federal Government, so as to prevent the funds from being moved.
“The withheld funds are urgently required for the implementation of the 2017 budget. The budget has a lifespan of 12 months and we are already in the middle of the year. By hiding these hidden funds, the Federal Government is being forced to borrow money from these commercial banks at exhorbitant interest rate,” Akinseye-George added.
Following the application, Justice Obiozor granted the interim orders and directed that the order should be published in a national daily newspaper.
He also adjourned the case till August 8, 2017, for anyone interested in the funds to appear before the court to show why it should not be forfeited permanently to the Federal Government.