JUSTICE Chuka Obiozor of the Federal High Court today in Lagos ordered seven commercial banks in Nigeria to temporarily remit $793, 200, 000 which they allegedly kept illegally to the federal government’s assets recovery dollar account with the Central Bank of Nigeria.

The banks are keeping the money despite the federal government’s Treasury Single Account, TSA, policy which required them to remit the money to CBN since 2015. The implicated government agencies include National Petroleum Developing Company, NPDC, and National Petroleum Investment Management Services, NAPIMS.

Court documents filed by Prof. Yemi Akinseye-George, SAN, counsel for attorney general of the federation, showed that a total of $367.4million was illegally kept by three government agencies in United Bank of Africa, UBA, while a total of $41m was kept in a NAPIMS fixed deposit account with Skye Bank.

The document showed that $277.9million is in Diamond Bank; $18.9million in First Bank; $24.5million in Fidelity Bank; $17million in Keystone Bank while $46.5million is in Sterling Bank.

Vincent Adodo, lawyer with Akinseye-George’s law firm, who deposed to a 15-paragraph affidavit in support of an ex parte application filed by the AGF, stated that seven banks connived with federal government officials to keep the funds in breach of the government’s TSA policy.

The monies are revenues, donations, transfers, refunds, grants, taxes, fees, dues, tariffs etc accruable to the federal government from different ministries, departments, parastatals and agencies.

The banks failed to remit the funds to the TSA domiciled in the CBN is in violation of the guidelines issued by the accountant general of the federation which fixed September 15, 2015, as the deadline for such funds to be moved.

The document alleged that “the banks in collaboration with and/or collusion with unknown officials 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.”

Akinseye-George in his ex parte application on Thursday, July 20, said it would best serve the interest of justice for the judge to order the banks to remit the funds to the federal government to prevent the funds from being moved or dissipated.

“The withheld funds are urgently required for the implementation of the 2017 budget. The 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 exhorbitant interest rate,” Akinseye-George argued.

The judge in granting the interim orders also directed that it should be published in a national daily newspaper.

The case has been adjourned August 8, for owners of the money to appear before the court and explain why the interim orders should be vacated.

—  Jul 20, 2017 @ 16:05 GMT