Osun Heads to Court Over Frozen Government Accounts

The Osun State Government has commenced legal action against the Economic and Financial Crimes Commission (EFCC) following the freezing of its bank accounts, describing the move as unlawful and capable of disrupting governance and essential public services across the state.

Attorney-General and Commissioner for Justice, Oluwole Jimi-Bada (SAN), said Governor Ademola Adeleke had directed him to challenge the anti-graft agency's action at the Federal High Court. He argued that while the EFCC has powers to investigate financial transactions, it cannot freeze a state government's accounts without first obtaining a valid court order.

Jimi-Bada said the restriction followed a 'Post-No-Debit' directive reportedly issued by the EFCC to First Bank, where the state's accounts are domiciled. He warned that the action could hamper the day-to-day running of government and negatively affect the delivery of services to residents if left unchallenged.

Also reacting, Commissioner for Finance Sola Ogungbile alleged that security operatives visited the bank during the implementation of the directive, while insisting that state funds were not being diverted for Governor Adeleke's re-election campaign. The government urged the anti-graft agency to consider the wider implications of the account restriction on workers and the people of Osun State.

The lawsuit follows growing tension between the state government and the EFCC over the ongoing investigation into the state's finances, with the administration maintaining that the agency's actions are politically motivated ahead of the August 15 governorship election. The EFCC has maintained that the restriction forms part of an ongoing investigation.