An Abuja division of the federal high court has threatened to freeze Adamawa State Government’s accounts over its refusal to pay back N84 million debt it borrowed from the Asset Management Corporation of Nigeria (AMCON) six years ago.
While AMCON is the plaintiff/claimant, the Governor of Adamawa State, the attorney general of the state, the Commissioner of Health, the permanent secretary of the ministry of health and the ministry of health are the 1st to 5th defendants respectively.
Justice Inyang Ekwo gave the state government a one-month ultimatum to settle with AMCON or risk the court granting AMCON’s request seeking to freeze the state government accounts. He then adjourned till January 11, 2022, according to the News Agency of Nigeria.
Paul Okache, AMCON’s lawyer, had alleged that in July 2015, the state ministry of health had approached Union Bank Plc for an Overdraft facility.
After several requests, the bank obliged and raised the overdraft facility. Mr Okache told the court that despite numerous requests by the bank, the facility and the accrued interest is yet to be paid.
He said the respondents then engaged the services of Abbas El-yakub & co to demand payment of the facility.
AMCON, through its lawyer, instituted a suit marked: FHC/ABJ/CS/387/2021 against the defendants seeking an order of the court to freeze the state government’s accounts because of its inability to pay back the debt.
On June 24, 2021, Justice Ekwo granted AMCON’s ex-parte application which sought an interlocutory order to freeze the respondents/debtors accounts in 17 commercial banks.
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