Legal Nigeria

N333m Debt: Court Lifts Freezing Order On Benue’s Salary Accounts

By Unini Chioma 

A Federal High Court in Abuja on Friday lifted the interim freezing order made in respect of the salary accounts of the Benue State Government. Justice Inyang Ekwo made the order after listening to lawyer to Benue State, Terkura Pepe (SAN), who complained that the order made by the court on October 26 freezing all bank accounts of Benue government over an unpaid N333million debt, has incapacitated the state.

Justice Ekwo, who said the lifting of the freezing order was to last for 14 days, directed Benue State to explore out of court settlement of its indebtedness to Asset Management Corporation of Nigeria (AMCON). The judge then adjourned further hearing in the case till November 22. Following an ex-parte application by AMCON, the court ordered the interim freezing of all bank accounts operated by Benue State and a firm, HPPS Multilink Services Ltd over a debt of N333m which arose from a loan obtained from Bank PHB Plc (now Keystone Bank) on January 31, 2008.

At the hearing of the case on November 4, Pepe said it was urgent that the court hears his client’s application to lift the order. He said the Benue State Government has been completely shut down by the interim order issued by the court. In an affidavit filed for Benue State, it was state that “the said sweeping order freezing and attaching all bank accounts of Benue State Government is so far-reaching that the Consolidated Revenue Account of Benue State has been frozen.

“There are incessant security challenges in Benue State like in all parts of Nigeria, and funds are required to meet these challenges. Salaries of workers and pensions in the state cannot be paid due to the interim order. The entire Executive, Judicial and Legislative arms of Benue State Government have also been crippled by the interim order, as judges, judicial workers, legislators and staff or parliament cannot be paid until the interim order is vacated. Benue State Government has been incapacitated by the interim order. The state cannot respond to any of the sundry security challenges and fulfill its daily operational needs. It is in the interest of justice for the motion on notice filed by the Benue State Government to be heard urgently or given accelerated hearing, before the next adjourned date of 22/11/2021.”

Benue State, in a separate court document, denied being part of the loan arrangement, which was said to have been obtained “for the purpose of purchasing 5,000 pieces of motorcycles to its workers through the Nigeria Labour Congress of its state, vide an irrevocable standing payment order (ISPO}.” It denied guaranteeing the recovery of any contract sum in the contract between HPPS Multilink Services Nigeria Limited and the Nigeria Labour Congress.

“Benue State Government did not issue any ISPO Irrevocable Standing Payment Order, in favour of HPPS Multilink Services Nigeria Limited. Benue State Government was neither party nor privy to any arrangement between Bee and Bee Investment Enterprise and HPPS Multilink Services Nigeria Limited.”