Court threatens to freeze Adamawa salary accounts over N84m debt

A federal high court in Abuja has threatened to freeze the Adamawa government’s salary accounts over the inability of the state to repay N84 million loan obtained in 2015.

Inyang Ekwo, the presiding judge, adjourned the matter till January 11, 2022, to give the state government time to settle the issue with the Asset Management Corporation of Nigeria (AMCON).

Ekwo said granting the order might affect a majority of the civil servants especially as Christmas approaches.

“This adjournment is at the instance of the defendant and a gracious adjournment to allow them to pay the staff for Christmas. This shall be the last adjournment,” the judge said.

AMCON had sued the governor of Adamawa and the attorney-general (AG) of the state as first and second defendants in a writ of summons marked FHC/ABJ/CS/387/2021 dated and filed on June 24.

The state commissioner of health, permanent secretary of the ministry of health, and the ministry of health were also joined as third to fifth defendants, respectively.

AMCON, through its counsel, Paul Okache, claimed that the fifth defendant (the ministry of health) sought Union Bank Plc for an overdraft facility in July 2015.

Okache said the ministry is yet to repay the money and the accrued interest despite several demands by the bank.

AMCON, through an ex-parte application in June, sought an interlocutory order to freeze the state’s accounts in not less than 17 commercial banks.

But the state government had filed a preliminary objection challenging the jurisdiction of the court to hear the matter, saying such case should be filed at the state where the cause of action took place.

The judge had given them a time to resolve the matter and adjourned the case.

Okache informed the court at the resumed session on Friday that the settlement option had failed due to the defendants’ “lack of sincerity”.

But Fabaryu Thliza, the state government’s lawyer, indicated that the settlement process was underway and that her client had constituted a five-member committee.

“We could not call the claimant because we are yet to finish with terms of settlement,” she said.

The judge then asked her the date of the last sitting.

“It was October 6, my lord,” Thiza responded.

“You think this is a joke? Tell me why I should not take the application of the plaintiff,” Ekwo asked.

Thliza, however, appealed to the court to give her client more time to engage in the terms of settlement.

“I give you for this Christmas so that the salaries of staff can be paid. I give you till 11th January, 2022,” the judge said.