A Federal Capital Territory (FCT) High Court, Wednesday, vacated its order freezing the account of Delta State government containing proceeds of the refund of excess deductions on foreign loans and miscellaneous charges also known as Paris Club Refund domiciled with Zenith Bank Plc.
The order of the court was sequel to an application filed and argued before the court by counsel to Delta state government, Alex Izonyi. (SAN).
Izonyi urged the court to unfreeze the account on the grounds that erstwhile consultant to Delta state government on the refund of the excess deductions, Mauritz Walton Nigeria Ltd, obtained the interim order freezing the state’s bank account by failing to disclose to the Court that its contract with the state was terminated before the payment of the Paris club refunds were made to the state.
While seeking the interim order, Mauritz Walton Nigeria Ltd had claimed that through its efforts, Delta state government was paid 25 per cent of $363.7m as Paris-Club Refunds but refused to pay the 30 percent service charge due therein.
It had also claimed that if not retrained by the Court, Delta state government would dissipate and deplete the sum of $27.3m and N3bn due to it but which still lies in the custody of the state.
However, in his ruling, the presiding judge, Justice Yusuf Halilu upheld the submission of Izonyi and discharged the order freezing the account.
The judge said he would not have granted the interim order freezing the state’s bank account had Mauritz Walton Nigeria Plc. not concealed the disengagement letter written to it by Delta state government and the letter of passionate appeal it wrote to the state governor, Ifeanyi Okowa, demanding the payment for only the services it rendered before the termination of the contract.
On the issue of jurisdiction also raised by Delta state government claiming that the FCT High Court lacked the power to hear and determine the substantive suit, Justice Halilu ruled in favour of Mauritz Walton Nigeria Ltd.
He said that since the recovery of the excess deductions were to be carried out in Abuja in conjunction with the Ministry of Finance, Debt Management Office, and Office of the Accountant-General of the Federation all in Abuja, the Court had proper jurisdiction in the matter.
Justice Halilu adjourned till August 28th, 2017 for continuation of hearing on the substantive suit.
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