Osun State Government: EFCC Freezes Account Without Court Order

• The EFCC restricted access to the Osun State Government's statutory allocation account, citing suspected financial offences.
• Counsel for the state government disputed this claim, stating that no court order was served on the state or First Bank.
• Adekilekun emphasized that a court order is required before imposing such restrictions, though the current Section 28 of the Money Laundering (Prevention and Prohibition) Act, 2022, allows for temporary freezes pending a court order.
• The controversy highlights the importance of complying with the requirement for a court order in such cases.

Adekilekun emphasized that a court order is required before imposing such restrictions, though the current Section 28 of the Money Laundering (Prevention and Prohibition) Act, 2022, allows for temporary freezes pending a court order.

The Economic and Financial Crimes Commission (EFCC) recently restricted access to the statutory allocation account of the Osun State Government, citing suspected financial offences. However, counsel for the state government, Prof. Mubarak Adekilekun (SAN), disputed this claim, stating that no court order was served on the state or First Bank alongside the directive. The EFCC's letter to the bank was transmitted to the state government, but First Bank confirmed that no court order was attached.

Adekilekun emphasized that a court order is required before imposing such restrictions, though the current Section 28 of the Money Laundering (Prevention and Prohibition) Act, 2022, allows for temporary freezes pending a court order. He argued that the EFCC's powers must be read alongside this provision, which mandates a court order to be served on the affected party for restrictions beyond 72 hours.

The controversy surrounding the Osun account freeze highlights the importance of complying with the requirement for a court order in such cases. According to Section 28 of the Money Laundering (Prevention and Prohibition) Act, 2022, the Commission may freeze an account for up to 72 hours pending the obtaining of a court order for a longer restriction. This provision is crucial in ensuring that the EFCC's powers are exercised within the bounds of the law.

The issue has sparked debate among legal experts, with some arguing that the EFCC has the authority to freeze state government accounts without a court order for a limited period. However, others contend that the commission must adhere to the provisions of the Money Laundering (Prevention and Prohibition) Act, 2022, and obtain a court order for restrictions beyond 72 hours.

The Osun account freeze controversy underscores the need for clarity on the legal framework governing the EFCC's powers. The incident highlights the potential risks of non-compliance with the requirement for a court order, which can lead to legal challenges and disputes.

As the debate continues, lawyers must note that the EFCC's power to freeze state government accounts for periods exceeding 72 hours is subject to obtaining a court order, as stipulated in Section 28 of the Money Laundering (Prevention and Prohibition) Act, 2022. This provision serves as a crucial safeguard against potential abuses of power and ensures that the commission exercises its authority within the bounds of the law.

Lawyers should note that the Economic and Financial Crimes Commission's (EFCC) power to freeze a state government account is subject to obtaining a court order, as stipulated in Section 7 of the Money Laundering Act. The recent controversy over the Osun account freeze highlights the importance of complying with this requirement to avoid potential legal challenges.

Source: Original reporting via Osun State Government