The Osun State Government has commenced legal action against the Economic and Financial Crimes Commission over the alleged freezing of its bank accounts, describing the move as unlawful and disruptive to governance.
The Osun State Government has dragged the Economic and Financial Crimes Commission (EFCC) before the Federal High Court following the alleged freezing of its bank accounts.
The state’s Attorney General and Commissioner for Justice, Oluwole Jimi-Bada, disclosed on Wednesday that Governor Ademola Adeleke had directed him to institute legal proceedings against the anti-graft agency.
Jimi-Bada said the state government received information that the EFCC issued a “Post No Debit” directive to First Bank, where several government accounts are domiciled, thereby restricting transactions on the accounts.
He argued that while the EFCC has the power to investigate financial transactions, it lacks the authority to freeze a state government’s accounts without first obtaining a valid 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 said.
The Attorney General warned that the restriction could significantly disrupt the day-to-day administration of government and affect the delivery of essential 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,” he added.
Also reacting, the Commissioner for Finance, Sola Ogungbile, alleged that police officers visited the main branch of First Bank in Osogbo and arrested some bank staff during the development.
Ogungbile dismissed claims that state resources were being used to fund Governor Adeleke’s re-election campaign, insisting that public funds were not being diverted for political purposes.
He appealed to the EFCC to consider the wider implications of the account restriction on governance and the welfare of residents dependent on government services.
Prior to the reported freezing of the accounts, Governor Adeleke had raised concerns over alleged plans by the EFCC to freeze all Osun State Government accounts, including those of top government officials.
In an earlier statement issued by the Commissioner for Information and Public Enlightenment, Kolapo Alimi, the governor described the alleged move as lacking legal basis and aimed at crippling government operations 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,” the statement read.
He maintained that the EFCC has no legal authority to freeze government accounts without due judicial process.