Oyo state government has reacted to a garnishee order of the court on its Local Government accounts.
The Attorney General of the State and Commissioner for Justice, Prof Oyelowo Oyewo, SAN, on Monday said cash swap policy disrupted the payment plans of the state
Recall that a High Court of the Federal Capital Territory, Abuja, has issued an order attaching funds standing to the credit of the Oyo State Government and its agencies in four banks.
Justice A. O. Ebong issued the order while ruling on a motion ex-parte for garnishee order filed by the ex-chairpersons and councillors led by Bashorun Majeed, Bosun Ajuwon and Idris Okusesi.
The affected banks are First Bank, United Bank for Africa, Wema Bank and Zenith Bank.
Oyelowo Oyewo said: “The state is not in disobedience of the court order.
“Out of N4.2b, we have paid N1.5bn and we were also in the process of paying. But because of the cash swap policy, that disrupted our plans, so, the finances were disrupted and we could not.
“We are not in disobedience of the Court and we are going to go to the court, and also we observed that the Federal Capital Territory does not have jurisdiction on that matter, but these are matters that will be brought before the court.
“Oyo State is amenable to instalmental payment and even the judgements that were given during Ajimobi’s administration, we are still paying them. The obligation that the payment has is spread across the spectrum.
“At the end of the day, the court will give a hearing and we are amenable to instrumental payment and we are still going to go to court and quash the order.”
The funds, according to court filings, are to settle the outstanding balance of N3,374,889,425.60 from the judgment debt owed some former local government chairpersons and councillors sacked on 29 May 29 2019 before the end of their tenure by governor Seyi Makinde of Oyo state.