BANKING SAGA!!! COURT STRIKES OUT FG’S 793.2 MILLION DOLLARS SUIT AGAINST 7 BANKS…
CHRISTIAN ROWLAND reporting live for ODOGWU MEDIA.. From Lagos. A Federal High Court judge, Justice
Chuka Obiozor, in Lagos, struck out a suit filed by the Federal
Government seeking to recover 793.2 million dollars allegedly kept by seven
commercial banks in violation of the Treasury Single Account (TSA) policy.
The defendants are: Diamond
Bank,First Bank, Skye Bank, Fidelity Bank, United Bank for Africa (UBA),
Sterling Bank and the defunct Keystone Bank (now Heritage Bank).
Counsel to FG, Prof. Yemi
Akinseye-George (SAN), who has consequently filed a motion of discontinuance in
accordance with Order 50, Rule 2, Subsection 1, of the Federal High Court Civil
Procedure Rules 2009, told the court the court that he had instruction from the
Attorney-General of the Federation to discontinue the case in the “overall interest
of the public”.
The federal government had in the
suit alleged that the banks connived with some government agencies to illegally
conceal 793.2 million dollars meant to have been transferred to the TSA
domiciled in the Central Bank of Nigeria.
The banks who were represented by Mr
Seyi Sowemimo (SAN)-(Fidelity Bank), Dr Ajibola Muraina (UBA), Mrs Abimbola
Akeredolu(SAN)-(Sterling Bank), Mr Babatunde Ogungbamila (Keystone Bank), Mr
E.A Okorie (First Bank) and Mr N.A Oragwu (Diamond Bank) denied the allegation.
In a reply to the federal
government’s notice of discontinuance on Tuesday, the defendants demanded
between N10 million and N20 million as costs from the plaintiff, but While
striking out the suit, Obiozor ordered the federal government to pay N200,000
as cost to all the banks except Skye Bank which had no representation in court.
Obiozor said “I have considered the
reason given for the discontinuance, the demand, as it were, of public
interest.
“I have also considered the fact
that when a notice of discontinuance is duly and validly filed, it cannot be
recalled, as the suit ceases to exist, the moment it is effectively
discontinued subject to the payment of costs.
“I find that as I have not
adjudicated on claims in the action before me for a pronouncement on the merits
of the issues arising therefrom.
“The proper order to make, with
respect to this matter, is one striking out this suit and not of dismissal and
I so hold.
“In the instant case before me, the
matter is yet to proceed to trial, I do not find that the justice of this case
demands that this matter should be dismissed.”
On costs, the judge ruled:
“Nevertheless, I shall not turn a blind eye to the effect of the interim order
on the defendants.
“This case cannot now go on, I find
no reason not to compensate the defendants with costs at least to those of them
who have appeared in this matter.
“I find the request for N10 million
or N20 million as costs to the defendant not to be founded on with respect to
established principles.
“The defendants deserve compensation
which I assess and put at N200,000 against and in favour of and to be paid to
each of the first, second, fourth, fifth, sixth and seventh defendants.
“In the final analysis, the suit is
hereby struck out and the plaintiff shall not re-list this suit without the
prior leave of court.
“The interim order of this court
made on the 20th of July 2017, is hereby set aside, truncated and discharged.”
Written and edited by Christian Rowland,
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BANKING SAGA!!! COURT STRIKES OUT FG’S 793.2 MILLION DOLLARS SUIT AGAINST 7 BANKS…
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Wednesday, August 09, 2017
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