The Federal High Court sitting in Abuja, has ordered the Asset Management Corporation of Nigeria (AMCON) to unfreeze 17 bank accounts belonging to the Benue State Government over alleged indebtedness.
Justice Inyang Ekwo made the order while ruling in a suit, marked FHC/ABJ/AMC/74/2021, with AMCON against HPPS Multilink Service Ltd and Benue State Government.
The order of the court followed of a memorandum of undertaking filed by counsel to the Benue State government, Douglas Pepe, SAN, dated January 25, 2022, the SUN reported.
According to the memorandum of undertaking, it was agreed by parties that all other accounts of the Benue State Government frozen by the court vide interim order of October 26, 2021, are to be unfrozen, while the account with Zenith Bank Plc shall remain frozen in the sum of the disputed debt, pending the determination or resolution of the dispute.
In the affidavit verifying the said memorandum of undertaking, Pepe averred that the freezing of all the state’s bank accounts in all the banks in Nigeria has occassioned a lot of hardship for the state. That while the court has freed some of the state’s bank accounts in UBA Plc, Access Bank Plc and Fidelity Bank Plc, other accounts used to finance various sectors of government have remained frozen in all the banks affected.
That parties had agreed that the state supply only one account with enough funds to satisfy the disputed debt in this case, so that the said account can be frozen specifically by the court for the purpose of the demand in this case.
That the state undertakes to lawfully and amicably resolve the issues raised in the claim to the satisfaction of the court, and to offset whatever liability is established against her at the trial.
In the suit, AMCON claimed that the Benue State government was indebted to it to the tune of N784 million, being the current loan exposure with interest. Alternatively, the corporation is claiming the sum of N506 million, being the outstanding indebtedness of the defendants as at the acquisition of the debt on January 1, 2021, in respect of N333 million outstanding loan granted to the first defendant (HPPS Multilinks Services Ltd) by Bank PHB (now Keystone Bank Plc) and guaranteed by the Benue State government since July 31, 2008.
HPPS Multilinks Services Ltd had applied for the loan through its Board resolution dated July 31, 2008 and was granted the sum of N333, 000, 000 in 2008 vide executed standing payment order and memorandum of acceptance dated July 31, 2008.
The Benue state government guaranteed the said loan of the firm vide a letter of irrevocable payment order dated April 1, 2008 issued to the then eligible bank, Bank PHB Plc and the direct supplier of the motorcycles, Bee &Bee Investment Limited, together with request of approval of ISPO from the governor.
That by the said agreement of the parties, the tenure of the loan was for a period 20 months with an accruable interest of 19 % per annum.
AMCON further claimed that the state government gave a guarantee of a Direct Debit Order from its JAAC account and other accounts of the state government.
The said contract, it averred, was to supply 5,000 pieces number of motorcycles to the Benue state government and its workers through the Nigerian Labour Congress of its state.
However, counsel to the state government, Douglas Pepe (SAN), informed the court that his client has paid the debt since December 3, 2010.
In support of its claim, the state government tendered a letter from UBA dated November 22, 2021 and addressed to the Benue state Commissioner, Ministry of Finance and Economic Planning titled” NEFT Deduction in favour HPPS Multilinks Services Limited for the period year 2010 in respect of Motorcyle loan”.
The letter signed by two bank officials stated that the sum of N665.395,739.00 has been transferred into the bank account of HPPS Multilinks Services Limited through National Electronic Funds Transfer (NEFT) on December 3, 2021.
