The Osun government EFCC lawsuit has begun after the state government instituted legal action against the Economic and Financial Crimes Commission (EFCC) over the reported freezing of its bank accounts.
The Osun State Government described the action as unlawful, arguing that it could disrupt governance and the delivery of essential public services across the state.
The state’s Attorney General and Commissioner for Justice, Oluwole Jimi-Bada, announced on Wednesday that Governor Ademola Adeleke had directed him to file a suit at the Federal High Court to challenge the anti-graft agency’s action.
According to Jimi-Bada, the state government received information that the EFCC had issued a “Post No Debit” directive to First Bank, where several government accounts are domiciled, preventing transactions on those accounts.
The Osun government EFCC lawsuit argues that while the commission has the authority to investigate financial transactions, it cannot lawfully freeze a state government’s accounts without first obtaining a court order.
“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,” Jimi-Bada said.
He warned that the restriction could significantly affect the day-to-day running of government and hinder the provision of services to residents.
“This step will affect government operations, but we will challenge the move and ensure that the agency acts within the ambit of the law,” he added.
Reacting separately, the Commissioner for Finance, Sola Ogungbile, alleged that police officers visited the main branch of First Bank in Osogbo and arrested some members of the bank’s staff during the incident.
Ogungbile also dismissed allegations that public funds were being used to finance Governor Adeleke’s re-election campaign, insisting that government resources were not being diverted for political purposes.
He urged the EFCC to consider the wider implications of the account restriction on governance and the welfare of residents who rely on government services.
Before the accounts were reportedly frozen, Governor Adeleke had alleged that the EFCC was planning to freeze the bank accounts of the Osun State Government and some top government officials.
In an earlier statement issued by the Commissioner for Information and Public Enlightenment, Kolapo Alimi, the governor described the reported move as lacking legal basis and alleged that it 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 Osun government EFCC lawsuit comes as the state insists that the anti-graft agency must comply with due judicial process before taking any action against government accounts.
BACKSTORY:
The dispute follows escalating tensions between the Osun State Government and the EFCC ahead of the state’s August 15 governorship election. Governor Ademola Adeleke had earlier alleged that the anti-graft agency was planning to freeze government accounts and those of senior officials, describing the move as politically motivated and capable of disrupting governance.
The controversy also comes after the Osun Government accused security agencies of targeting state officials through raids and arrests in the lead-up to the election. While the EFCC has statutory powers to investigate financial crimes, the Osun Government argues that freezing a state government’s accounts without prior judicial approval violates due process.
The legal action filed at the Federal High Court is expected to test the scope of the EFCC’s powers regarding state government accounts and could become a significant legal issue as political activities intensify ahead of the governorship poll.
