The Osun State Government has commenced legal action against the Economic and Financial Crimes Commission (EFCC) after the anti-graft agency reportedly placed a restriction on some of the state’s bank accounts, a development that has intensified political tension ahead of the August 15 governorship election.
The state Attorney General and Commissioner for Justice, Mr Oluwole Jimi-Bada, said Governor Ademola Adeleke had directed him to challenge the action in court, insisting that the EFCC lacked the legal authority to freeze government accounts without first obtaining a court order.
His reaction followed reports that the EFCC issued a “Post No Debit” directive to First Bank, where some of the state’s accounts are domiciled, effectively restricting transactions on the accounts.
Jimi-Bada maintained that while the anti-graft agency has the power to investigate financial transactions, it cannot lawfully freeze a state government’s accounts without judicial approval.
“I have the mandate of the governor to proceed to the Federal High Court to challenge this move. EFCC can investigate the accounts, but it can’t freeze the accounts without an order of court.
“This step will affect government running, but we will challenge the move and ensure that the agency acts within the ambit of the law,” he said.
The development came hours after reports emerged that the EFCC had placed one of the state’s operational accounts under restriction, prompting concerns over the possible impact on salary payments and other government obligations.
Also reacting, the Commissioner for Finance, Mr Sola Ogungbile, alleged that police operatives visited the main branch of First Bank in Osogbo and arrested some members of the bank’s staff.
Ogungbile denied allegations that state funds were being used to finance Governor Adeleke’s re-election campaign, urging the EFCC to consider the consequences of the account restriction on governance and the welfare of residents.
Earlier on Wednesday, Governor Adeleke had raised the alarm over an alleged plan by the EFCC to freeze all Osun State Government accounts, as well as the accounts of top government officials.
In a statement issued by the Commissioner for Information and Public Enlightenment, Mr Kolapo Alimi, the governor described the reported move as unlawful and politically motivated.
According to the statement, the planned restriction was aimed at paralysing government activities ahead of the governorship election.
“The plot to freeze the state government accounts is meant to paralyse government activities ahead of the August 15 governorship election,” the statement read.
The governor further argued that the EFCC has no constitutional or statutory powers to freeze the accounts of a state government without due legal process.
As of the time of filing this report, the EFCC had yet to issue an official response to the legal action announced by the Osun State Government.
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