‘N333m debt’: Benue, AMCON sign MoU as court unfreezes state accounts

A federal high court in Abuja has ordered the unfreezing of bank accounts belonging to the Benue state government.

Inyang Ekwo, presiding judge, gave the order after the adoption of a Memorandum of Undertaking (MOU) by lawyers representing parties in the suit.

Ekwo had, on October 27, ordered that bank accounts of the state be frozen in the interim after an ex-parte motion brought by the Asset Management Corporation of Nigeria (AMCON).

AMCON told the court that the first respondent (HPPS Multilink Services Ltd, a firm), which has its office in Kaduna state, had collected a N333 million loan facility from Bank PHB Plc (now Keystone Bank Ltd) on January 31, 2008 “for the purpose of purchasing 5,000 pieces of motorcycles to the 2nd defendant and its workers through the Nigeria Labour Congress of its state vide an irrevocable standing payment order (ISPO)”.

“That the loan was for the agreed period of 24 months at the interest of 19 percent per annum.”

However, the plaintiff said the state government is yet to pay back the loan, which now amounts to N784,340,428.03.

The judge had also directed that the bank accounts of HPPS Multilink Services Ltd, a firm, be frozen pending the hearing and the determination of the substantive suit.

On November 6, the court temporarily ordered the unfreezing of the banks following a plea by the counsel to the Benue government, asking for the interim order to be set aside because it has “incapacitated” the state.

The judge then ordered parties to come up with a resolution.

At the court session on Monday, Terkura Pepe, Benue state counsel, adopted the MoU dated January 25 but filed January 26.

Val Igboanusi adopted on behalf of the plaintiff (AMCON) and A.T Kehinde adopted for Fidelity Bank Plc, while C. O. Nwosisi adopted for GTBank Plc.

Counsel for the other banks also adopted on behalf of their clients.

In his ruling, the judge ordered the unfreezing of all Benue government accounts in various banks, except Zenith Bank account.

He ordered that Zenith bank with account No. 1013470079 designated as Benue Government Ecological Account should remain frozen in the sum of the disputed debt vide interim order of the court pending the determination of the case.

“Pursuant to discussions and agreement by the parties, all other accounts of the Benue government frozen by this court vide interim order of Oct 26, 2021, are to be unfrozen while Account No. 1013470079 with Zenith Bank Plc, designated Benue Government Ecological Account shall remain frozen in the sum of the disputed debt, pending the determination or resolution of the dispute,” Ekwo held.

The judge adjourned the matter until March 2.