INGRA knocks Kogi Govt for freezing Local Govt. Account

A Non-Governmental Organization Initiative for Grassroot Advancement, INGRA, has faulted Kogi State Government for freezing the Local Government account in the State.

It would be recalled that the Kogi State Government through the Commissioner for finance Asiwaju Asiru Idris had in a statement on Thursday announced that no imprest or any form of payment should be made to anyone from Government Account henceforth.

Our Kogi State Correspondent, reports that reacting to this development, the Executive Director of INGRA Hamza Aliyu in a statement on Thursday called on the Kogi State House of Assembly to immediately look into this order with a view to assessing its worthyness and constitutionality so as to not put the State into a constitutional crisis

According to him, the State has the power to freeze it own account, adding that, freezing the accounts of the Local Governments which under Section 7 of the Nigeria Constitution as amended, is clearly not within the powers of the Kogi State Government.

The statement reads in part "This order on the face of it does not seem to be out of place considering the fact that a new government will be sworn in on the 27th January 2024. 

"It would seem a proactive move to prevent any “unforeseen tampering with Government funds” before the new administration takes over. A rather protective and preemptive move.

"However, the question to be asked is does the State Government have the powers to FREEZE accounts belong to other tiers of government or other arms of government?

 "And what does this FREEZING mean for the Kogi Workers, Kogi State House of Assembly and the Judiciary? Will their salaries be affected? There are different government agencies empowered by law to freeze bank accounts, such as the Central Bank of Nigeria, Economic and Financial Crimes Commission (EFCC) and other anti-graft agencies, however due legal process must be followed for the act to be lawfully done. 

 "Order of CourtThe Court of Appeal has in the recent case of Polaris Bank Ltd V. Yayamu Global Services Ltd & Anor (2022) held that it is settled and sacrosanct that for a bank to freeze, place a caution or any form of restraints on its customer's account, there must be a Court order.Doing otherwise will amount to the bank taking the laws into its own hands. 

"See the case of GTB v. Registered Trustees of Network of People Living with HIV AIDS in Nigeria (NEPWHAN) (2021) Duty of the BankThe bank is estopped from feigning ignorance or claiming that it had no duty to confirm if the directive to freeze an account is made pursuant to a court’s order. In GUARANTY TRUST BANK PLC v. ODEYEMI OLUYINKA JOSHUA (2021), the Court of Appeal held that the bank must ensure that there is an order of Court before it proceeds to freeze the account of any person. 

"The State can give an order freezing its own accounts, that is its rights. But freezing the accounts of the Local Governments, is clearly not within the powers of the State Government".

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