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Bank challenges N3.1b disclosure order against Zamfara State funds

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United Bank for Africa

United Bank for Africa

United Bank for Africa (UBA) yesterday challenged the garnishee proceeding filed by Ecobank against Zamfara State government over N3.1 billion debt at the Federal High Court, Lagos.

The bank challenged the proceedings through a preliminary objection. As a result, the court fixed January 17 to hear the objection and all other pending applications.

Ecobank had commenced the garnishee proceeding against the state, seeking to recover the debt.Joined as defendants in the suit are Zamfara State’s Attorney-General, Zamfara State Ministry of Finance, Federal Ministry of Finance, Accountant-General of the Federation, Attorney-General of the Federation and Central Bank of Nigeria.

Meanwhile, Ecobank on December 8, 2016, filed a fresh application for an order nisi, against UBA, compelling it to disclose fresh sums of money standing in the name of the judgment debtor and domiciled with the bank.

At the resumed hearing of the case yesterday, Mr. Kunle Ogunba (SAN) announced appearance for Ecobank, Mrs. V.C. Ibezue appeared for the first to third judgment debtors and Mr. A. Uwaka appeared for UBA.Mrs. Nkechi Ogbonna appeared for Union bank, Mr. Femi Onibalusi appeared for FCMB and Mr. O.A Owolabi appeared for Skye Bank.

Ogunba then informed the court that the business for the day was for hearing of their application on why the garnishee order nisi made on December 8, 2016, should not be made absolute against UBA.

In response, counsel to UBA, (Uwaka) also informed the court that the bank had initiated a preliminary objection filed on December 13, 2016, over disclosure of the funds domiciled with it, and had served same on the judgment creditor.

Uwaka added that the judgment creditor had in response, served him with a counter affidavit, for which he required time to respond.In his preliminary objection, Uwaka is opposing the disclosure of the funds of Zamfara State Government domiciled with UBA, on the grounds that the consent of the Attorney General had to be first sought and obtained before a disclosure.

Following the development Justice Babs Kuewumi fixed January 17 for hearing of all pending applications. He also discharged Union Bank from the proceedings and urged it to regularise its position with the judgment creditor, after the banks counsel, Mrs. Ogbonna had disclosed they had only N170.88k belonging to Zamfara State.

Justice Okon Abang had in September 2015, ordered the defendants to pay the judgment sum of N3.1 billion to Ecobank, being its outstanding indebtedness to the bank.

The judge had issued the order while delivering judgment in a suit filed by Ecobank Nig. Ltd against the Zamfara State Government over the indebtedness. Following the transfer of Abang from the Lagos jurisdiction of the court, Justice Kuewumi, assumed jurisdiction in the suit. The plaintiff (Ecobank) subsequently, commenced a garnishee proceeding against the defendants, joining more than 15 banks as garnishees.The garnishee proceedings were taken out against the banks, compelling them to disclose and remit the total funds of Zamfara State domiciled with the bank.

Some of the banks listed as garnishees include: UBA, Fidelity Bank, First City Monument Bank, Skye Bank, Union Bank, Zenith Bank, Diamond, Stanbic IBTC,Meanwhile, all defendants in the substantive suit were now listed as judgment debtors while the plaintiff (Ecobank) is the judgment creditor.
The judgment creditor is seeking an order of court, directing the banks to furnish it with all funds and credit balances in the account of Zamfara State.

At the last adjourned date on November 1, 2016, the court had discharged four garnishees from the proceeding for disclosing funds of the judgment debtor with their banks, and made the order absolute. The banks are UBA, Fidelity, Diamond and Stanbic IBTC.The court had also granted a prayer by Ecobank, compelling the garnishees to continuously disclose through monthly or quarterly statements, accounts standing in the name of Zamfara State.


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United Bank for Africa

1 Comment
  • Mazi JO

    Well, hear the objections. But UBA should know that challenging regulation procedures has its assumptions. Transparency for whatever reasons has to show all stops.