Osun Statutory Allocation Account Freeze: No Court Order Issued - EFCC

• The EFCC's PND Directive froze Osun state government's statutory allocation account without a court order, but President Bola Tinubu has since ordered the vacation of the freeze.
• Counsel to the Osun State Government claims that no court order was served on the state government or First Bank.
• Critics argue that the directive may have been issued without proper legal authority, raising compliance concerns.
• The controversy highlights the need for lawyers to review their clients' financial arrangements and ensure compliance with relevant laws.

Counsel to the Osun State Government claims that no court order was served on the state government or First Bank.

The Osun state government's statutory allocation account was frozen by the Economic and Financial Crimes Commission (EFCC) under a directive known as the 'PND Directive', though President Bola Tinubu has since ordered the EFCC to vacate the freeze order. However, counsel to the Osun State Government, Prof. Mubarak Adekilekun (SAN), claims that no court order was served on the state government or First Bank to justify this restriction. This assertion was made by Adekilekun during an appearance on Channels Television's Politics Today last Friday. The controversy surrounding the EFCC's actions has sparked debate about the legal basis for the directive and its implications for the state government's financial arrangements.

The PND Directive is a regulatory measure aimed at restricting access to certain accounts suspected of being involved in illicit activities. However, critics argue that this directive may have been issued without proper legal authority, raising concerns about its compliance with existing laws and regulations. In the context of the Osun state government's statutory allocation account, the EFCC's actions may be seen as an overreach of their powers, potentially exposing the state government to financial risks and liabilities. The lack of a court order to justify the restriction has further fueled these concerns. The EFCC has defended its power to impose a Post-No-Debit (PND) restriction for up to 72 hours before seeking a court order, citing provisions of the EFCC Act and the Money Laundering (Prevention and Prohibition) Act 2022, a position affirmed by a 2022 Court of Appeal judgment.

The Osun account freeze controversy highlights the need for lawyers to be aware of the potential compliance exposure arising from regulatory directives like the PND Directive. As counsel to the state government, Prof. Mubarak Adekilekun's assertion that no court order was served on the state government or First Bank underscores the importance of verifying the legal basis for such restrictions. Lawyers must advise their clients to review their financial arrangements and ensure compliance with relevant laws and regulations to avoid potential liabilities.

Lawyers should be aware of the potential compliance exposure arising from the EFCC's directive, which may have been issued without proper legal authority, and advise clients to review their financial arrangements accordingly.

Source: Original reporting via TheNigeriaLawyer