AGF stops Rivers allocations, Appeal Court reserves judgement on matter

AGF stops Rivers allocations, Appeal Court reserves judgement on matter

 

The Office of the Accountant General of the Federation has stopped payment of federal allocations to the Rivers State Government in compliance with a court judgement.

This came as the Court of Appeal in Abuja heard the appeal challenging the verdict on Friday.

A three-member panel of the Court of Appeal led by Hamma Barka, on Friday, reserved judgement on the state government’s appeal against a lower court’s decision stopping the Central Bank of Nigeria (CBN) from releasing the South-South state’s monthly allocations.

Rivers State Governor Siminalayi Fubara and the state government had filed the appeal to challenge the 30 October judgement of the Federal High Court in Abuja.

In the now disputed verdict, the Federal High Court judge, Joyce AbdulMalik, described the disbursement of monthly allocations to the state since January as a clear constitutional breach that must not be tolerated.

The judge subsequently barred the CBN, the Accountant General of the Federation, the state’s bankers – Zenith Bank and Access Bank – from allowing the state government to access funds from the Consolidated Revenue and Federation Account.

Governor Fubara and the Rivers State Government had promptly appealed against the decision.

Other appellants are the Accountant-General of Rivers State and Zenith Bank Plc.

Appeal hearing

At the hearing of the appeal, on Friday, the governor, through his lawyer, Yusuf Ali, a Senior Advocate of Nigeria (SAN), prayed a three-member panel of the court led by Hamma Barka, to vacate the order issued by the Federal High Court in Abuja on 30 October.

Ali and lawyers to other appellants urged the court to allow his client’s appeal and nullify the lower court’s order.

But the Martin Amaewhule-led faction of the Rivers State House of Assembly, which obtained the Federal High Court judgement, asked the court to dismiss the appeal.

They made their submissions in court through their team of lawyers led by Joseph Daudu, a SAN too.

The factional members of the Rivers State House of Assembly, who are loyal to the immediate past governor of the state and current Minister of the Federal Capital Territory (FCT) Nyesom Wike, had persuaded the lower court to withhold all federal monthly allocations meant for Rivers State.

They predicated their case on the grounds that Governor Fubara refused to comply with an order of court that directed him to represent the 2024 Appropriation Bill of the state before them.

Governor Fubara had insisted that the Amaewhule-led group had since ceased to be lawmakers in the state.

He alleged that, having defected from the Peoples Democratic Party, PDP, which sponsored their election, to the All Progressives Congress (APC).

After the parties adopted their respective written addresses, the Court of Appeal panel said the date of judgement would be communicated to parties.

Before the postponement, the court merged a total of five appeals relating to the case into one on Friday.

Meanwhile, the Office of the Accountant General of the Federation (OAGF) announced on Friday that it halted the disbursement of October revenue payment to Rivers State, citing the Federal High Court judgement.

Bawa Mokwa, the spokesperson for the OAGF, who spoke to journalists, emphasised that the Federal Government would respect the court order with due diligence until a contrary order is issued.

“What I got is that the October 2024 FAAC has not been distributed yet. However, the federal government will obey the court order on the matter of Rivers State’s allocation,” he said.

The OAGF’s spokesperson further noted that due diligence would be followed “as long as there is no contrary order,” adding that “the process of disbursement of the October 2024 monthly allocation is going.”

The development comes amid ongoing the protracted political battle between Governor Fubara and the Minister of Federal Capital Territory (FCT), Nyesom Wike.

The Martin Amaewhule-led faction of the Rivers State House of Assembly is loyal to Mr Wike, a former Rivers State Governor.

(NAN)