The Osun State Government on Wednesday said it would challenge the Economic and Financial Crimes Commission in court over the freezing of its bank accounts, describing the action as illegal and capable of disrupting government activities.
The state’s Attorney General and Commissioner for Justice, Oluwole Jimi-Bada, said Governor Ademola Adeleke had directed him to institute legal action against the anti-graft agency.
Jimi-Bada disclosed that the EFCC issued a “Post No Debit” directive to First Bank, where the state government’s accounts are domiciled, effectively restricting transactions on the accounts.
He maintained that while the EFCC has the power to investigate financial transactions, it lacks the legal authority to freeze a state government’s accounts without obtaining a 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 an order of court,” he said.
The attorney general warned that the restriction could hamper government operations but vowed that the state would seek judicial intervention.
“This step will affect government running, but we will challenge the move and ensure that the agency acts within the ambit of the law,” he added.
Also speaking, the Commissioner for Finance, Sola Ogungbile, alleged that police operatives stormed the main branch of First Bank in Osogbo and arrested some bank officials.
Ogungbile also dismissed allegations that the Adeleke administration was using public funds to finance its re-election campaign, urging the EFCC to consider the impact of its action on governance and the welfare of residents.
The development comes hours after Governor Adeleke alleged that the EFCC was planning to freeze all Osun State Government accounts, as well as those of top government officials, ahead of the August 15 governorship election.
In a statement issued by the Commissioner for Information and Public Enlightenment, Kolapo Alimi, the governor described the reported move as unlawful and politically motivated.
According to Adeleke, freezing the state’s accounts would cripple government operations ahead of the election, insisting that the anti-graft agency has no legal powers to freeze the accounts of a state government without due process.
As of the time of filing this report, the EFCC had not responded to the allegations or the planned legal action by the Osun State Government.
