By Jerry Uwah
Lagos Th e federal government yesterday fi led papers in a Federal High Court in Lagos, alleging that various government officials are abusing the Treasury Single Account policy by colluding with seven commercial banks in Nigeria to hide the sum of $793,200,000 in various bank accounts. Responding to government request, the court ordered the aff ected commercial banks to temporarily remit the hidden money into an account with the Central Bank of Nigeria (CBN). Justice Chuka Obiozor, ordered the seven banks to remit the amounts allegedly kept illegally in their custody to the designated federal government’s Asset Recovery Dollars Account domiciled with the Central Bank of Nigeria (CBN).
Th e aff ected banks are United Bank for Africa; Diamond Bank Plc; Skye Bank Plc; First Bank; Fidelity Bank Plc; Keystone Bank Limited; and Sterling Bank Plc. Papers fi led in court by counsel for the AttorneyGeneral of the Federation, Prof. Yemi Akinseye-George, SAN, indicated that a total of $367.4 million was illegally hidden by three government agencies in UBA, while a sum of $41 million was illegally kept in a NAPIMS fi xed deposit account with Skye Bank.
Th e court papers further stated that $277.9millon was hidden in Diamond Bank; $18.9 million in First Bank; $24.5 million in Fidelity Bank; $17 million in Keystone Bank; and $46.5 million in Sterling Bank. A lawyer from AkinseyeGeorge’s law fi rm, Vincent Adodo, who deposed to a 15-paragraph affi davit in support of an ex parte application fi led by the AGF, stated that seven banks colluded with federal government offi cials to hide the funds in breach of the government’s TSA policy.
Th e funds, he said, were revenues, donations, transfers, refunds, grants, taxes, fees, dues, tariff s etc, accruable to the federal government from diff erent ministries, departments, parastatal and agencies. Adodo claimed the banks failed to remit the funds to the TSA domiciled in the CBN in violation of the guidelines issued by the Accountant General of the Federation, which fi xed September 15, 2015 as the deadline for such funds to be moved.
He said: “Th e 1st to 7th respondents (banks), in collaboration with and/or collusion with unknown offi cials of the Federal Government, conspired to disobey the relevant constitutional provisions, thereby depriving the Government of the Federal Republic of Nigeria of funds belonging to it, which are needed urgently to fund pressing national projects under the 2017 budget.” Among the allegedly culpable government agencies is National Petroleum Developing Company.
Moving the ex parte application yesterday, AkinseyeGeorge said it would best serve the interest of justice for Justice Obiozor to order the banks to remit the funds to the federal government, to prevent the funds from being moved or dissipated. “Th e withheld funds are urgently required for the implementation of the 2017 budget. Th e budget has a lifespan of 12 months and we are already in the middle of the year.
By hiding these hidden funds, the federal government is being forced to borrow money from these commercial banks at exorbitant interest rate,” Akinseye-George said. After listening to the SAN, Justice Obiozor granted the interim orders. He directed that the order should be published in a national daily newspaper. Th e court, subsequently adjourned till August 8, 2017, for anyone interested in the funds to appear before him to show cause why the interim orders should not be made permanent.
