Ask ZiVA 728x90 Ads

 

Paris Club Refund: Court Freezes Bank Accounts Of Abia, Cross River And Delta States

Court

SAN FRANCISCO, August 07, (THEWILL) – The Federal Capital Territory (FCT) High Court has ordered the freezing of the Paris-London Club Refund bank accounts of Abia, Cross River, and Delta states.

This was ordered by Justice Yusuf Halilu sequel to an affidavit in support of an ex-parte originating summons sworn to by Dr. Maurice Ibe, Chairman and Managing Director of Mauritz Walton Nigeria Ltd,.

The suit was as a result of the debt owed by the three states to the firm for consultancy to pursue the refund of excess deductions on foreign loans and miscellaneous charges in exchange of certain percent of any fund recovered.

Ibe claimed that Abia state government owes Mauritz Walton Nigeria Ltd the sum of $11,325,000 and N1.72bn; Cross River state government owes the sum of $8,050,000 and N1.2bn; While, Delta state government owes $27,274,135 and N3bn.

He said Abia state government had engaged Mauritz Walton Nigeria Ltd on the 3rd of November, 2014 to pursue the refund of excess deductions on foreign loans and miscellaneous charges in exchange of 30 percent of any fund recovered.

Similarly, Cross River government engaged the same consultancy firm on the same date for the same purpose in exchange of 20 percent of any fund recovered while Delta state government also engaged the services of Mauritz Walton Nigeria Ltd in exchange of 30 percent of any fund recovered.

In the affidavit, Ibe declared that there is an urgent need for the court to direct the third defendants (United Bank for Africa Plc and Zenith Bank Nig. Plc) in the case between Mauritz Walton Nigeria Ltd and the three state governments to, in the interim, stop further disbursement of the money already in or accruing to the Paris-London Club Refund accounts of the three states.

The Court then ordered the banks to set up an escrow account where the funds in the respective bank accounts will be deposited pending the hearing and determination of the Motion on Notice.

Justice Halilu adjourned the suit to 7th September, 2017 for hearing.