The Osun State Government has commenced legal action against the Economic and Financial Crimes Commission, EFCC, following the freezing of its bank accounts.
The Osun State Government also described the EFCC move as unlawful and capable of disrupting government operations.
The state’s Attorney General and Commissioner for Justice, Oluwole Jimi-Bada, announced on Wednesday that Governor Ademola Adeleke had directed him to institute proceedings before the Federal High Court to challenge the anti-graft agency’s action.
Jimi-Bada disclosed that “the state government received information that the EFCC had issued a “Post No Debit” directive to First Bank, where several government accounts are maintained, effectively restricting transactions on the accounts”.
He maintained that “although the EFCC possesses the authority to investigate financial transactions, it does not have the power to 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 order of court,” he stressed.
According to the Attorney General, the restriction on the accounts could significantly affect the day-to-day administration of government and the delivery of public services across the state.
“This step will affect government running but we will challenge the move and ensure that the agency acts within the ambit of the law.”
Also reacting, the Commissioner for Finance, Sola Ogungbile, alleged that police officers visited the main branch of First Bank in Osogbo and arrested members of the bank’s staff during the development.
Ogungbile further rejected suggestions that state resources were being used to finance Governor Adeleke’s re-election campaign, insisting that public funds were not being diverted for political activities.
He appealed to the anti-graft agency to consider the broader implications of the account restriction on governance and the welfare of residents who depend on government services.
Before the accounts were reportedly frozen, Governor Adeleke had raised concerns over what he described as plans by the EFCC to freeze all Osun State Government accounts, as well as those of senior government officials.
In a statement issued earlier by the Commissioner for Information and Public Enlightenment, Kolapo Alimi, the governor described the reported action as lacking legal justification and alleged that it was intended to disrupt government activities ahead of the August 15 governorship election.
He said, “The plot to freeze the state government accounts is meant to paralyse government activities ahead of the August 15 governorship election.”
He maintained that the EFCC had no legal authority to freeze a state government’s accounts without due judicial process.