An Abuja High Court has stopped the Imo State Government from withdrawing money from its account with the Central Bank of Nigeria (CBN) and 16 banks across the country; on account of a N1.5 billion debt owed a firm, E. F. Network Nigeria Limited.
Justice Bello Kawu, who ordered attachment of funds in the accounts, gave the affected banks 14 days within which to show cause why the Garnishee Order nisi should not be made absolute in satisfaction of the judgment sum contained in the Supreme Court judgment.
The order was sequel to a motion ex-parte for garnishee order nisi brought by a firm, E. F. Network Nigeria Limited and Gideon Egbuchulam.
The garnishee proceedings followed the judgment of the Supreme Court delivered on March 8, 2019, which ordered the Imo State Government to pay E. F. Network and Egbuchulam N1.5 billion as debt arising from the contract executed for the government.
The judge ordered that all money held by the state in its accounts with all the listed banks, should be attached for the purpose of satisfying the judgment of the Supreme Court delivered on March 8 (which affirmed the concurrent judgment of the Court of Appeal and the High Court of Imo State).
Meanwhile, the matter has been adjourned to May 3, for the banks to show cause and for hearing on whether or not the garnishee order should be made.
The debt was incurred during the administration of former governor Ikedi Ohakim, which the Rochas Okorocha administration succeeded, and had contracted E. F. Network for implementation of the state government’s Clean and Green Initiative, in pursuit of which the firm was awarded a contract to supply 10 million refuse bags and 40,000 plastic rolling containers at N42 per bag and N20 per plastic container.
By the contract, the Imo state governor and others, listed as appellants in the appeal, guaranteed payment though an Irrevocable Mandate of the payment of N35 million monthly to the contractor.
It was found that after the execution of the contract, the state government kept to the agreed schedule of payment for 12 months and subsequently stopped, leaving an outstanding balance estimated at N800 million.
