The request for the deduction of $318 million from the Federation Account as authorized charges to a judgment creditor has set governors on a collision course with the Federal Authorities.
The cash is to be deducted over a 10-year interval, from the account of the 774 Native Authorities Areas.
These making the request have requested Finance, Finances and Planning Minister Mrs Zainab Ahmed to situation a promissory observe pending the dedication of authorized points surrounding the controversial situation.
The judgment creditor, Dr. Ted Iseghohi Edwards’ claimed, by his counsel, Ikechukwu Ezechukwu (SAN), that he obtained a Garnishee Order absolute attaching funds of Native Governments within the custody of the Central Financial institution of Nigeria (CBN).
He stated he rendered Authorized and consultancy charges to the 774 native authorities councils in getting refunds of First Line Cost/ Paris Membership Deductions.
In line with him, he provided the providers by a mandate from the late Chairman of Board of Trustees of the Affiliation of Native Authorities of Nigeria (ALGON), U.Okay Ibrahim.
He stated the Garnishee Order adopted the selections of each the FCT Excessive Court docket and the Federal Excessive Court docket which entered judgments in his favour for the sum of $318million (N152, 640,000,000)
He stated the Federal Authorities has agreed to pay lower than the total judgment debt.
He claimed that President Muhammadu Buhari had since December 2020, accepted the cost of the $318million by the issuance of a Promissory Be aware as a result of the nation is in monetary straits.
The deduction of the N152.6billion will likely be made out of the accounts for the following ten (10) years.
However the governors and ALGON have requested the Minister to remain motion on the promissory notes pending the dedication of all authorized points on the judgment debt.
In a March twenty ninth, 2021 to the President, ALGON stated it by no means gave Dr. Ted Iseghohi Edwards, any engagement or instruction or energy of lawyer to signify it.
It additionally stated no native authorities within the nation gave any mandate to Dr. Ted Iseghohi Edwards.
The governors on Monday took up the battle towards the discharge of the cash.
Performing underneath the auspices of the Nigeria Governors Discussion board (NGF), the governors stated no matter affected native governments has implications for states by advantage of Part 162(5) of the 1999 Structure.
The NGF’s counsel, Femi Falana (SAN) in an April 19 letter to the Minister stated: “The Nigeria Governors’ Discussion board (NGF) has engaged our providers to’ problem the selections of the Court docket regarding or linked with funds of Authorized and Consultancy charges arising from London Membership Debt, Purchase Again and London Membership Debt Exit Fee, which is the fulcrum of the judgment of the Federal Excessive Court docket, Abuja in Swimsuit No: FHC/ABJ/CS/130/13 — LINAS INTERNATIONAL LIMITED & ORS.V. THE FEDERAL GOVERNMENT OF NIGERIA & ORS.
“As you already know, the declare of Dr. Ted Iseghoni Edwards arose from authorized providers he allegedly rendered to the Affiliation of Native Governments of Nigeria (ALGON).
“Consequently, we’ve got ready all of the Court docket processes difficult the judgments of Courts and looking for for Keep of execution and/or injunction pending attraction.
“We now have been unable to file because of the ongoing strike by the Judiciary Employees Union of Nigeria (JUSUN), which has occasioned a whole shut-down of our Courts. Discover connected herewith copies of the processes already ready and awaiting the re-opening of the Courts for submitting.
“Our consideration has been drawn to a letter from the agency of Ikechukwu Ezechukwu, SAN & Co dated 8” April, 2021 urging you to situation promissory notes to Dr. Ted Iseghoni Edwards.
“We respectfully urge you to not accede to the request as a result of these promissory notes are to be deducted from the accounts of the States for the following ten (10) years. It’s due to this fact expedient to await the end result of authorized steps being taken by the States as represented by the NGF.
“Part 162(5) of the 1999 Structure of the Federal Republic of Nigeria (as amended) mandates any quantity standing to the credit score of native governments to be paid on to the states for the good thing about their native authorities councils. The states due to this fact have a duty to make sure that funds standing to the credit score of the native authorities councils are protected as custodians of such funds.
“We have to inform you of your sacred responsibility of staying motion on this matter in view of the injunctive reliefs sought within the processes to be filed in Court docket on these issues.
“Whereas extending the assurances of our highest regard, we hope that you’ll train restraint by resisting any urge to situation promissory notes to anybody (together with Dr. Ted Iseghohi Edwards, Mr. Ned Munir Nwoko, Panic Alert Safety Techniques, Dr. George Uboh, Riok Nigeria Ltd, Prince Orji Nwafor-Orizu & Barrister Bello Olaitan Busayo) pending the dedication of those actions by the Court docket.”
In an April eighth 2021 letter to the Minister of Finance, Mr. Ikechukwu Ezechukwu, (SAN), who’s the counsel to Dr. Ted Iseghohi Edwards demanded issuance of the promissory notes to his shopper.
The letter reads partially: “We’re counsels to Dr. Ted Iseghohi Edwards (Judgment Creditor) herein known as our shopper.
“Our shopper obtained a Garnishee Order absolute attaching the funds belonging to Native Governments within the custody of the Central Financial institution of Nigeria in satisfaction of a Judgment debt as per Judgments of each the FCT Excessive Court docket and the Federal Excessive Court docket of Nigeria which entered Judgment in favour of our shopper for the sum of $318,000,000.00.
“On the occasion of the Federal Authorities, this Judgment was compromised to the impact that the Federal Authorities conform to pay lower than the total Judgment debt. Mr. President has since December 2020 accepted the cost of this sum by issuance to our shopper a Promissory Be aware as a result of the Nation is in monetary straits.
“For the reason that approval of Mr. President, you, because the Minister liable for finishing up the Presidential approval, have refused to hold out your official reasonability as a Public Officer hiding underneath the cloak of awaiting for consent and responses of the judgment debtors.
“We hereby demand on behalf of our shopper your quick compliance with the Presidential approval and impact the satisfaction of our compromised Judgment debt by issuing our shopper with Promissory Notes as proved.
TAKE NOTICE that within the gentle of the Lawyer-Basic’s press convention on Tuesday sixth day of April 2021 debunking all allegation within the social media regarding the judgment debt, we will after seven (7) days of the date of the receipt of this letter by your ministry you failed, refuse or neglect to adjust to the presidential directive, our shopper can have no selection than to hunt treatment within the Court docket claiming his complete judgment debt and 10% curiosity per 30 days till the liquidation thereof.“
The letter to the Minister was copied the Director-Basic Debt Administration Workplace (DMO) on April eighth, 2021.
The letter to the DMO reads “We act for Dr. Ted Iseghohi Edwards. Discover enclosed a letter we wrote on behalf of our shopper to the Hon. Minister of Finance and copied to the Hon. Lawyer Basic of Federation.”
In a March twenty ninth letter to the President, ALGON stated it was against the cost of the N152.6billion to Ted Iseghohi Edwards.
It additionally stated it didn’t enter into any consultancy or authorized engagement with Dr. Ted Iseghohi Edwards.
It stated: “There isn’t any proof wherever the Native Governments engaged Ted Edwards to get well Paris Membership Refunds on their behalf. No engagement or instruction letter, energy of lawyer or letter of authority was issued by a single native authorities to him.
”We should make it abundantly clear that any cost to Dr. Ted Iseghohi Edwards by the Federal Ministry of Finance, Finances and Nationwide Planning from the Native Governments’ Allocations with out the consent or authority of any Native Authorities Councils will likely be an illegality and a transparent violation of the precept of tier autonomy over authorities funds enshrined within the structure and acknowledged by the Supreme Court docket.
“It may additionally open a floodgate of claims by native governments throughout the nation towards the Federal Ministry of Finance and every other Ministry or Company that facilitates such unlawful and fraudulent cost.
