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Yuguda Garnishment: Court Orders Intercontinental And Fin Bank To Pay N561million

Source: ukpakareports.com

...Banks refuse to obey court order

The merry go round of unending problems for the Bauchi State Government appear on the verge of another new and dangerous turn. This is as a federal high court holden at Abuja, Nigeria ruled against the Yuguda administration in a garnishment proceedings on July 27th 2010. The Presiding Judge, I. N. Auta, in his ruling, ordered that the State accounts domiciled at the FIN bank and Intercontinental Bank be garnished, and for the amount of N561million be withdrawn and paid into the Judgment creditor's account, Puritano Nig Ltd; Account number 1081020000907 – code 032031089 Union Bank, Bauchi Branch. [under suit number: FHC/ABJ/CS/344/2010].

The Yuguda administration, following its quarrels with the administration that preceded it [the Mu'azu administration], decided to not honor any of the contractual agreements reached during the previous administration. And one of the contractors who had fallen under the axe of the Yuguda/Mu'azu quarrel was Puritano Nig Ltd, an electrical contractor who has already been issued a certificate of completion by the Bauchi State government.

In his efforts to collect payment from the Bauchi State government, the managers of Puritano Nig Ltd sought relieve from the judiciary. The suit was filed on May 17th 2010 for garnishment of Bauchi State funds. And a motion of notice dated 8th of June 2010 was filed on the 9th of June 2010.

On the 27th of July 2010, the court gave its ruling. It ruled “that the order nisi be and is made absolute against the 6th garnishee and Intercontinental Bank Plc; that the sum of N561,164,559.71 is to be attached and paid into the Judgment Creditor's account Puritano Nig Ltd; Account number 1081020000907 – code 032031089 Union Bank, Bauchi Branch; that the Intercontinental Bank Plc, have already blocked the sum of N49,201,652 .52 belonging to the defendant, the court therefore also attached that the amount and is to be paid into the Account of the Judgment Creditor”.

With the judgment, the two banks were ordered to make the payment. However information available to ukpakareports.com reveal that the management of both financial institutions received immediate instructions from the Yuguda administration demanding that they not make the payments as Ordered by the Courts. And so the two banks obliged. Reacting, the attorney's to the Contractor served the two banks “form 48” [indicating a warning] and this was followed by a “form 49” [indicating contempt]. Both banks are slated to appear in court on August 2, 2010 at the Federal High Court in Abuja to show reasons why they should not be jailed for contempt of court.

On the verge of a dangerous turn, the Yuguda administration appears blinded by the prospects of an embarrassing court verdict on August 2, 2010. This is as it has become evident that the two Banks has gone against the judgment of the Courts. The two banks, on their part, find themselves between a hard place and a rock. They have the weight of nursing Bauchi State government accounts against the weighty gavel of the Law.

Ukpakareports.com made attempts at reaching the Bauchi State government through the Secretary to State Government but did not get a response. Our text message were sent to the SSG via this number 0806 535 1414.

Stay tuned.

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