EFCC may freeze Benue, other state governments’ accounts

The Economic and Financial Crimes Commission (EFCC) may once again freeze the accounts of Benue State Government, following the judgment of the Appeal Court, Makurdi Division.

The Appeal Court on Friday overturned the judgment of the Federal High Court, Makurdi, restraining the EFCC, from freezing the account of Benue State Government, without a court order.

In a unanimous judgment delivered by Justice M.S. Hassan on Thursday, September 22, 2022, the appellate court, according to a statement by the anti-financial crimes commission, held that, the Commission has powers to place any account, including state governments’ accounts, on PND (Post No Debit) for 72 hours, for the purpose of investigations, without a court order.

The court also set aside the N50 million damages awarded against the EFCC by the lower court.

Justice Mobolaji Olajuwon of the Federal High Court, Makurdi, had on Tuesday, February 2, 2019 delivered a judgment, holding the EFCC from placing a PND on the account of Benue State government.

Dissatisfied with the judgment, the Commission approached the Court of Appeal.

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EFCC counsel, Steve Odiase, canvassed strong arguments against the earlier judgment and the appellate court held that, the EFCC acted within its powers to freeze the account of Benue State government.

The court also held that banks are legally bound to obey orders from the EFCC on PND.

The EFCC had on August 7, 2018 ordered the freezing of Benue State Government’s accounts in UBA and Fidelity banks.

However, the accounts were later unfrozen after a public outcry condemning the agency’s action.

Following the freezing of the accounts, the state government dragged the anti-graft agency to the court demanding N30 billion as damages suffered within the period of freezing the accounts.

The government had among other things prayed the court to declare that EFCC acted against the law when it directed the banks to freeze its accounts.