Seven banks ordered to forfeit the sum of $793m to the federal government lodged by unknown officials

SEVEN commercial banks have been ordered by a federal high court in Lagos to remit the sum of $793.2m to the federal government as it was lodged with them illegally by certain public officials in breach of the Treasury Single Account (TSA) policy.

Upon assuming office in 2015m, President Muhammadu Buhari introduced the TSA policy, ordering all ministries to have just one account. Prior to that several of them and their parastatals has numerous accounts, through which large sums were paid out without any proper trace of who the money was going to.

Yesterday, vacation judge, Justice Chuka Obiozor, made the interim order following an ex-parte application by the office of the attorney-general of the federation. He warned that the remittance order would be made permanent on August 8, unless cause was shown why it should not.

During the hearing, Professor Yemi Akinseye-George, the attorney-general's counsel, accused the commercial banks of illegally keeping the sums in their custody for unknown government officials. Justice Obiozor subsequently ordered the banks to remit the money to the designated Federal Government’s Asset Recovery dollars account domiciled with the Central Bank of Nigeria.

Among the banks affected by the order are United Bank for Africa (UBA), Diamond Bank, Skye Bank, First Bank, Fidelity Bank, Keystone Bank and Sterling Bank. According to court processes filed by Professor Akinseye-George, $367.4m was hidden by three government agencies in UBA, while $41m was kept in a National Petroleum Investment Management Services fixed deposit account with Skye Bank.

Documents revealed that $277.9m was in Diamond Bank, $18.9m in First Bank, $24.5m in Fidelity Bank, $17m in Keystone Bank, and $46.5m in Sterling Bank. The government's application was supported by a 15-paragraph affidavit deposed to by a lawyer from Professor Akinseye-George’s law firm, Vincent Adodo.

Mr Adodo averred that the banks colluded with federal government officials to hide the funds in breach of the TSA policy. He stated that the funds were revenues, donations, transfers, refunds, grants, taxes, fees, dues, tariffs etc accruable to the federal government from ministries, departments, parastatals and agencies.

“The first to seventh respondents in collaboration with and/or collusion with unknown officials of the federal government, conspired to disobey the relevant constitutional provisions, thereby depriving the government of the Federal Republic of Nigeria of funds belonging to it, which are needed urgently to fund pressing national projects under the 2017 budget,” Mr Adodo said.

Among the allegedly culpable government agencies is the National Petroleum Developing Company (NPDC). Moving the ex parte application yesterday, Professor Akinseye-George said it would best serve the interest of justice for Justice Obiozor to order the banks to remit the funds to the federal government, to prevent the funds from being moved or dissipated.