The controversy surrounding the Osun account freeze has taken another turn. This follows the state government’s lawyer saying neither the government nor First Bank received a court order. Importantly, there was only the EFCC directive restricting access to its statutory allocation account.
According to The Punch, counsel to the Osun State Government, Prof. Mubarak Adekilekun (SAN), made the claim on Channels Television’s Politics Today on Friday. He argued that the law requires a court order to be properly served. Only then can such a restriction be enforced.
Adekilekun said First Bank forwarded the EFCC’s letter to the state government but confirmed that no court order accompanied it.
He maintained that although the Economic and Financial Crimes Commission has powers to act where it suspects financial wrongdoing, those powers must be exercised in line with the Money Laundering law.
Osun account freeze sparks legal disagreement
Adekilekun rejected the argument that the EFCC could simply place a Post No Debit restriction on the state’s account. He said this could not be done solely using powers granted to its chairman.
He said the relevant law requires a court order to be served on the affected party. In particular, this applies to the financial institution holding the account.
The senior lawyer also dismissed suggestions that the account itself was being used for suspicious transfers. He said it primarily receives statutory allocations from the Federation Account.
His argument does not necessarily mean no court order was later obtained. Rather, his position is that no such order was served with the initial restriction communicated to the bank.
Falana defends EFCC’s powers
Adekilekun’s interpretation differs from that of human rights lawyer Femi Falana. Falana has argued that the EFCC did not necessarily act outside the law.
Falana said existing court decisions recognise the commission’s power to temporarily restrict an account for up to 72 hours where suspicious transactions are being investigated. However, he said this is provided it subsequently approaches a court.
He cited a 2022 Court of Appeal decision involving the Benue State Government and the EFCC in support of that position.
The disagreement has therefore shifted part of the controversy from politics to the legal procedure surrounding the restriction.
Tinubu orders reversal
President Bola Tinubu has since directed the EFCC to approach the court and have the restriction lifted. He cited concerns over the timing of the action ahead of the August 15 Osun governorship election.
The intervention came as criticism grew over the commission’s decision to act only days before voters head to the polls.
Asked whether Osun would continue with its legal challenge despite the President’s directive, Adekilekun said the final decision would rest with the state government.
He nevertheless suggested that the legal questions raised by the case were significant enough to be tested in court.
The dispute is now centred not only on why the EFCC restricted the accounts. It is also centred on whether the required legal procedure was followed when the restriction was first imposed.
