The Federal High Court sitting in Abuja has restrained the Federal Government from going ahead to deduct $418million from bank accounts of 36 state governments.
Justice Inyang Ekwo issued a restraining order against the Federal Government on Friday following an ex parte application brought by the counsels to the 36 states, Jibril Otukepa and Ahmed Raji.
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While moving the application, Okutepa who led the legal team of the states told the judge that the states would be completely crippled if the federal government should go ahead to deduct the huge amount from the bank accounts of their clients.
The senior lawyers told the judge that the Federal Government predicted the plan to deduct the $418 million from the state account monthly to service debts for contract allegedly executed for the states.
However, Otukepe said that the 36 states Attorney Generals have scrutinized the purported contract and judgement found that the states were not parties to court action that resulted to judgement debt.
He further submitted that the purported contract claimed to have been executed for the states are known to any of the 36 state governments and is, therefore, a phony contract.
The Judge fixed the matter for November 30th and ordered the plaintiff’s lawyer to serve all processes on the defendants before the adjourned date.
