LGA Funds: Court deals another blow to state governors

The Federal High Court on Monday declined to restrain the Nigerian Financial Intelligence Unit (NFIU) from implementing its recent guidelines on local government funds.
The judgment by John Tsoho of the Abuja Division marked yet another setback to the nation’s 36 governors in their effort to keep control of local government finances in their respective states.
In a guideline that took effect on June 1, the NFIU directed banks not to honour transactions in the joint accounts of state and local governments. It said such accounts should only be used to distribute allocations to accounts of local governments directly.
The Nigeria Governors Forum (NGF) recently sued the NFIU, saying the directive was illegal because it contradicted the Constitution.
The Constitution prescribed joint ownership of account between a state and all local government areas under it, but there have been claims that the governors have been mismanaging the funds by bullying local authorities into silence.
At the resumed hearing on the matter on Monday, Mr Tsoho declined to allow the governors continue to draw funds from local government accounts until the matter had been concluded by the court, which could take several months or even years.
Further hearing on the matter could not continue on Tuesday, after the lead lawyer for the governors, Lateef Fagbemi, failed to appear in court on excuses that he was handling another matter at the Presidential Election Petitions Tribunal.
Although there was an initial agreement by all parties to wait for Mr Fagbemi, who had promised to appear in court before noon, the court eventually adjourned the matter when he did not show up.
A further hearing had been adjourned till October 23 for all applications, including one challenging the court’s jurisdiction, to be heard.
The NFIU had on May 6 issued ‘Guidelines to Reduce Vulnerabilities Created by Cash Withdrawals from Local Government Funds throughout Nigeria,’ which sought to stop governors from tampering with funds meant for local government areas forthwith.
Despite the stiff opposition by the governors, including several meetings with President Muhammadu Buhari, the guidelines took effect from June.

Comments

Post a Comment

Popular posts from this blog

PDP condemns closure of AIT and Ray Power, says its an attempt to gag the media

Press statement from the PDP The Peoples Democratic Party (PDP) condemns, in its totality, the unrelenting attempt by the All Progressives Congress (APC)-controlled federal government to cage the media as being witnessed in the ferocious attacks on Africa Independent Television (AIT) by government agencies, particularly the National Broadcasting Commission (NBC). The party says it is evident that the attack on AIT is targeted at intimidating and gaging the media, repress constitutionally guaranteed freedom of speech and stifle public opinion, particularly as related to the determination by Nigerians to retrieve the stolen Presidential mandate at the tribunal. This clamp down on AIT as well as earlier siege on other media houses and journalists under the APC administration, ostensibly point to a plot to frighten and asphyxiate the media, shut down outlets perceived to hold dissenting views and ultimately foist a siege mentality on our citizenry to restrain their demand
Read more

Cabinet Delay May Send Nigeria Back Into Recession – Experts

 Here are strong indications that the economy may slide back into another round of recession, given the apparent stagnation of government activities and the uncertainties surrounding its policy direction and priorities. It could be recalled that the 2019 presidential election was held on February 23 and the incumbent, President, Muhammadu Buhari, was declared the winner within a couple of days after the election. On May 29, he was formally sworn in as President for his second four-year tenure. However, there are apprehensions that the economy is currently at a standstill following the prolonged absence of ministers to drive government’s policies and programmes. In 2015 when President Buhari was first elected into office, he spent six months before appointing a cabinet, a situation that was largely responsible for plunging Nigeria into a recession the following year. Experts fear that the nation may be headed on a similar path as the President does not seem to be in a hur
Read more

POLITICS: Court Orders INEC To Issue Certificate Of Return To Okorocha

Image
 A Federal High Court in Abuja has ordered the Independent National Electoral Commission (INEC) to issue a certificate of return to former Imo State governor, Rochas Okorocha. Justice Okon Abang on Friday ruled that the having been declared by the Returning Officer as the winner of the February 23 senatorial election for Imo West Senatorial District (Orlu Zone), INEC has no reason not to issue him certificate of return. Justice Abang overruled the submission by candidates of the PDP, Jones Onyeriri and APGA, Osita Izunaso that the matter ought to be taken to the election petitions tribunal since it has become a post-election matter which robbed the court of jurisdiction under sections 285, 251(1) of the 1999 Constitution. The judge held that petitions to the election tribunal under Section 133 of the Electoral Act should be made by the losers, and not the person declared winner whether under duress or not. “The reliefs sought by the plaintiff (Okorocha) does not relate to
Read more