Osun drags EFCC to court over frozen govt accounts

The Osun State Government has vowed to challenge the Economic and Financial Crimes Commission (EFCC) in court after the anti-graft agency reportedly froze the state’s bank accounts less than two weeks before the August 15 governorship election.

Speaking on Wednesday, the state’s Attorney-General and Commissioner for Justice, Oluwole Jimi-Bada, said Governor Ademola Adeleke had authorised him to institute legal action against the EFCC, describing the agency’s action as unlawful and capable of disrupting government operations.

According to Jimi-Bada, the EFCC issued a “Post No Debit” directive to First Bank, where the state government’s accounts are domiciled, effectively restricting transactions.

He argued that while the EFCC has the authority to investigate financial transactions, it cannot freeze the accounts of a state government without first obtaining a valid court order.

“I have the mandate of the governor to proceed to the Federal High Court to challenge this move. The EFCC can investigate the accounts, but it cannot freeze them without a court order,” he said.

The Attorney-General warned that the restriction could significantly hamper the day-to-day running of government but insisted the state would pursue all legal avenues to ensure the anti-graft agency acts within the confines of the law.

He also dismissed suggestions that public funds were being diverted to finance Governor Adeleke’s re-election campaign, maintaining that government resources were not being used for political purposes.

The Commissioner for Finance, Sola Ogungbile, backed the Attorney-General’s position, alleging that police operatives stormed the main branch of First Bank in Osogbo and arrested some members of the bank’s staff in connection with the account restriction.

Ogungbile urged the EFCC to consider the wider implications of the action on governance and the welfare of Osun residents, insisting that freezing government accounts would only disrupt essential public services.

The latest development followed an earlier alarm raised by Governor Adeleke, who alleged that the EFCC was planning to freeze not only the state’s accounts but also those of top government officials ahead of the governorship election.

In a statement issued by the Commissioner for Information and Public Enlightenment, Kolapo Alimi, the governor described the alleged move as an attempt to paralyse government activities before the poll.

Adeleke maintained that there was no legal basis for freezing the accounts of a state government, insisting that the EFCC lacks the statutory powers to take such action without judicial authorisation.