Osun drags EFCC to court over account freeze

The Osun State Government has moved to challenge the EFCC in court after the agency reportedly placed a restriction on several government accounts kept with First Bank. The government described the action as unlawful, saying it could affect the smooth running of the state and the delivery of public services.

Attorney General Oluwole Jimi-Bada said the government received information that the EFCC instructed First Bank to place a “Post No Debit” restriction on the affected accounts, preventing transactions.

He said that although the EFCC has the legal authority to investigate financial activities, it cannot freeze the accounts of a state government without first obtaining approval from a competent court. Based on this position, the state has decided to seek legal redress at the Federal High Court.

Jimi-Bada said the account restriction could slow down government operations and interfere with essential services provided to residents across the state. He added that the government would pursue every legal means available to ensure the anti-graft agency acts within the limits of the law.

Also reacting, the Commissioner for Finance, Sola Ogungbile, alleged that police officers visited the main branch of First Bank in Osogbo during the incident and arrested some members of the bank’s staff.

Ogungbile also rejected claims that public funds were being used to support Governor Ademola Adeleke’s re-election campaign. He maintained that government resources were not being diverted for political purposes and urged the EFCC to consider the effect of the account restriction on governance and the welfare of residents.

Before the accounts were reportedly frozen, Governor Adeleke had warned of plans by the EFCC to place restrictions on all state government accounts as well as those belonging to some senior government officials.

In an earlier statement issued through the Commissioner for Information and Public Enlightenment, Kolapo Alimi, the governor described the planned action as lacking legal backing. He also claimed the move was intended to disrupt government activities ahead of the August 15 governorship election in the state.

The Osun Government maintained that the EFCC must follow due legal process before taking any action against state government accounts and said the court would determine the legality of the agency’s decision.