The Akwa Ibom state government said it had filed a N50bn lawsuit in opposition to the economic and financial Crimes commission for freezing its accounts.
In line with the government, the lawsuit is a response to the illegal freezing of its accounts by the Federal government agency for 72 hours, noting that the development crippled both the economy and the reputation of the state.
The case is contained in suit No: FHE/UY/CS/137/18 between the attorney general of Akwa Ibom state as claimant, and the economic and financial Crimes commission, attorney general of the Federal, Zenith bank plc, Skye bank plc and United bank for Africa plc as defendants.
The claimant requested, “whether the accounts of Akwa Ibom state government held with banks or financial institutions fall inside the financial crimes enforcement purview of section 34 of the economic and financial Crimes commission (established) Act 2004, or
“Whether the account of Akwa Ibom state government with a bank or financial institution can be subjected to a freezing order pursuant to section 34 of the Economic and Financial Crimes Commission (established) Act 2004.”
The writ of summons dated August 17, 2018, issued via chief Assam Assam (SAN) of Lex Fori partners, and made available to journalists in Uyo on Saturday, asked the defendants to cause an appearance to be entered within 30 days after service or risk judgement given in their absence.
The attorney general and Commissioner for Justice, Mr Uwemedimo Nwoko, revealed that the anti-graft agency did not have constitutional powers to freeze any state government’s account in Nigeria.
He stated, “there may be no basis even in the constitution of Nigeria or any other permitting law made by anybody whether the national assembly or the state assembly or another convention that authorises any federal agency or any agency to close down the account of a state government as done by the EFCC.
“I need to state absolutely that even if there was to be an investigation that the EFCC was carrying out about whether there has been any fraud committed against Akwa Ibom state in that circumstance, it have to be the government of Akwa Ibom that should be the sufferer, so there was no foundation for freezing the accounts.”
He said the freezing of the state government’s accounts for 72 hours hampered the economic, security and business operations inside the state, including that a few prospective investors within the state diverted their investments elsewhere, thereby subjecting the state to massive economic loss.
“That singular strive of freezing the accounts of the state government was shutting down the state. Akwa Ibom state was brought down on its knees; it was an attempt to paralyse and completely demobilise the activity of the state.
“We couldn't reply to economic, security and business exigencies. most significantly, the investors that were coming to Akwa Ibom began to have a second notion and became concerned about the status of their investment.
“Individuals who were on their way to the state began to go back. So, we suffered unquantifiable losses,” he said.
Nwoko, who described the EFCC’s denial of the freezing of the state account as a face-saving approach, added that the state authorities had proof to show that its accounts have been frozen.
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