Court stops CBN from allocating funds to Rivers

The federal high Court in Abuja has stopped the Central Bank of Nigeria (CBN) from releasing monthly financial allocations from the Federation Account to the Rivers state government.

The ten defendants in the suit are CBN, Zenith Bank, Access Bank, Accountant General of the Federation, Rivers state governor, Accountant General of Rivers, Rivers state Independent Electoral Commission, Hon Justice S. C. Amadi, Chief judge of Rivers state, Justice Adolphus Enebeli chairman of RSIEC and Rivers state government.

Delivering judgement Justice Joyce Abdulmalik held on Wednesday that the receipts and disbursements of monthly allocations since January this year by governor Siminalayi Fubara are a Constitutional somersault and aberration that must not be allowed to continue.

Justice Abdulmalik in the order held that the presentation of the 2024 budget by Fubara before a 4-member Rivers House of Assembly was an affront to the constitutional provision.

Specifically, the judge said that Fubara’s action in implementing an unlawful budget having not been passed by the appropriate House of Assembly smacked gross violations of the 1999 Constitution he swore to protect.

The judge therefore restrained CBN, Accountant General of the Federation, Zenith Bank and Access Bank from further allowing Fubara to access money from the Consolidated Revenue and Federation Account.

Delivering judgement in a suit filed by the Rivers House of Assembly with Rt Hon. Martin Chike Amaewhule as its SpeakerSpeaker, Justice Abdulmalik held that the CBN was under obligation to ensure that the right thing was done before money from consolidated revenue and the Federation Account are released to the beneficiaries.

The judge said that the action of the 4-member House of Assembly being held on to by Governor Fubara as a yardstick to justify unlawful budget had since been nullified and set aside by the federal high court and the Court of Appeal both in Abuja.

Justice Abdulmalik held that the judgement of the Rivers State High Court, which gave power to the governor to implement the 2024 budget, had also been set aside by the Court of Appeal.

“Appropriation Bill for January to December 2024, being operated by the 5th defendant (Fubara), having not been charged by the lawful House of Assembly, is illegal and a subversion of the 1999 Constitution.

“It is mandatory to present the appropriation bills before the appropriate Houses of Assembly before legitimate disbursement and withdrawal can be made.

“In the instant case, the 5th defendant (Fubara) has not presented any budgetary appropriation known to law to any legitimate House of Assembly. Sections 120, 122 and 197 of the Federal Republic of Nigeria have not been complied with.

“It is unwarranted assault to the Constitutional Order for anybody, including the 5th defendant, to be allowed or permitted to continue to breach and violate sections 91 and 96 of the Constitution to implement a budget that was not approved by the Legislative Arm.

“Every individual must be subject to the rule of law. Using an illegally constituted House of Assembly to disburse public funds must not be allowed.”

Justice Abdulmalik subsequently issued an order of injunction that restrained CBN, Zenith Bank, Access Bank and the Accountant General of the Federation from permitting the withdrawal or use of the funds from the consolidated revenue account and the Federation account by the Rivers State Government until the budget of the state is passed by the appropriate House of Assembly.

She also issued another order of injunction that restrained Fubara, the Accountant General of the state and their agents from authorising the withdrawal of money from the Rivers state bank accounts domiciled at Zenith Bank and Access Bank until the budget of the state is passed by the appropriate House of Assembly.

The judge held that the House of Assembly under Rt Hon. Martin Chike Amaewhule remains the legitimate House of Assembly given the Federal High Court judgement, which nullified and set aside the House of Assembly of Victor Oko Jumbo led 4-member House of Assembly and upheld the same by the Court of Appeal in Abuja.

Earlier, several objections raised against the hearing of the suit in Abuja, locus standi of the plaintiffs, lack of reasonable cause of action, among others, were dismissed by the judge for being unmeritorious.

The two plaintiffs in the suit are Rivers State House of Assembly and Rt Hon Martin Chike Amaewhule.