The Osun State Government has commenced legal proceedings against the Economic and Financial Crimes Commission (EFCC) over the alleged freezing of some of its bank accounts.
The state government described the EFCC’s action as unlawful, warning that the restriction could disrupt the administration of the state and affect the delivery of essential public services.
The Attorney General and Commissioner for Justice, Oluwole Jimi-Bada, disclosed the development on Wednesday, saying Governor Ademola Adeleke had directed him to approach the Federal High Court to challenge the anti-graft agency’s action.
Jimi-Bada said the state government was informed that the EFCC had issued a “Post No Debit” directive to First Bank, where several government accounts are domiciled, thereby restricting transactions on the accounts.
While acknowledging the EFCC’s authority to investigate financial transactions, the Attorney General argued that the commission could not freeze state government accounts without 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 said.
Jimi-Bada warned that the restrictions could have serious implications for the day-to-day running of government and the provision of services to residents.
“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 during the development and arrested some members of the bank’s staff.
Ogungbile also dismissed allegations that government funds were being used to finance Governor Adeleke’s re-election campaign, insisting that public resources were not being diverted for political purposes.
He urged the EFCC to consider the wider implications of restricting the accounts, particularly the potential impact on governance and the welfare of residents who depend on government services.
The development followed earlier concerns raised by Governor Adeleke over an alleged plan by the EFCC to freeze all accounts belonging to the Osun State Government and some senior government officials.
In a statement issued by the Commissioner for Information and Public Enlightenment, Kolapo Alimi, Adeleke had described the reported move as lacking legal justification and alleged that it was intended to disrupt government activities 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 governor said.
Adeleke maintained that the EFCC lacked the legal authority to freeze state government accounts without following due judicial process.
The state government has now commenced the legal challenge, with the Attorney General insisting that the court should determine the legality of the EFCC’s action.
