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FG suit against 36 govs over LG funds begins

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The Federal Government has approached the Supreme Court with a suit seeking to compel governors of the 36 states of the federation to grant full autonomy to the local governments in their domains.

The suit, marked SC/CV/343/2024, was filed by the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), on behalf of the Federal Government.

The Federal Government is urging the apex court to issue “an order prohibiting state governors from unilateral, arbitrary and unlawful dissolution of democratically elected local government leaders for local governments.”

In the suit predicted on 27 grounds, the Federal Government accused the state governors of gross misconduct and abuse of power.

The FG, in the originating summons, prayed the Supreme Court to make an order expressly stating that funds standing to the credit of local governments from the Federation Account should be paid directly to the local governments rather than through the state governments.

The justice minister also prayed for “an order of injunction restraining the governors, their agents and privies from receiving, spending or tampering with funds released from the Federation Account for the benefits of local governments when no democratically elected local government system is put in place in the states.”

The Federal Government further sought “an order stopping governors from constituting caretaker committees to run the affairs of local governments as against the Constitutionally recognised and guaranteed democratically system.”

The originating summons was backed by a 13-paragraph affidavit deposed to by one Kelechi Ohaeri of the Federal Ministry of Justice.

Ohaeri, in the affidavit, averred that the AGF instituted the suit against the governors under the original jurisdiction of the Supreme Court on behalf of the Federal Government.

He said,“The Constitution of Nigeria recognises federal, states and local governments as three tiers of government and the three recognised tiers of government draw funds for their operation and functioning from the Federation Account created by the Constitution.

“By the provisions of the Constitution, there must be a democratically elected local government system and the Constitution has not made provisions for any other systems of governance at the local government level other than a democratically elected local government system.

“In the face of the clear provisions of the Constitution, the governors have failed and refused to put in place a democratically elected local government system even where no state of emergency has been declared to warrant the suspension of democratic institutions in the state.

“The failure of the governors to put democratically elected local government system in place is a deliberate subversion of the 1999 Constitution which they and the President have sworn to uphold.

“All efforts to make the governors comply with the dictates of the 1999 Constitution in terms of putting in place a democratically elected local government system has not yielded any result and to continue to disburse funds from the Federation Account to governors for non-existing democratically elected local government is to undermine the sanctity of the 1999 Constitution.

“In the face of the violations of the 1999 Constitution, the Federal Government is not obligated under Section 162 of the Constitution to pay any state, funds standing to the credit of local governments where no democratically elected local government is in place.”

The AGF, therefore, urged the apex court to invoke sections 1, 4, 5, 7 and 14 of the Constitution to declare that the state governors and state Houses of Assembly are under obligation to ensure a democratic system at the third tier of government in Nigeria and to also invoke the same sections to hold that the governors cannot lawfully dissolve democratically elected local government councils.

Furthermore, he urged to invoke sections 1, 4, 5, 7 and 14 of the Constitution to declare that “the dissolution of democratically elected local government councils by the governors or anyone using the state powers derivable from laws enacted by the state Houses of Assembly or any Executive Order is unlawful, unconstitutional, null and void.”

The apex court has fixed Thursday, May 30 for hearing.

Meanwhile, the Nigerian Union of Local Government Employees hailed the move by the Federal Government, saying it would join the lawsuit as a concerned party.

 

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FG sues MultiChoice, CEO over DStv, GOtv price hike

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The Federal Competition and Consumer Protection Commission (FCCPC) has filed charges against MultiChoice Nigeria and its CEO, John Ugbe, for allegedly breaching regulatory directives and hindering an ongoing investigation.

 

A statement issued on Wednesday by Ondaja Ijagwu, FCCPC’s Director of Corporate Affairs, revealed that the charges stem from MultiChoice’s decision to increase subscription rates for its DStv and GOtv packages despite an explicit directive from the commission to suspend the hike.

 

On February 24, MultiChoice officially announced a subscription price increase set to take effect on March 1. This move, coming almost a year after the previous price hike, triggered public backlash, prompting the FCCPC to intervene. In response, the commission instructed Ugbe to appear for an investigative hearing on February 27 to discuss the price increase.

 

 

Despite this directive, MultiChoice proceeded with the hike as scheduled, prompting the FCCPC to take legal action.

 

The commission has filed charges against the company and its CEO at the Federal High Court in Lagos, citing three counts of violations under the Federal Competition and Consumer Protection Act (FCCPA) of 2018. These charges include: Obstructing the Commission’s Inquiry by implementing the price increase against regulatory orders (Section 33(4)). Impeding the Investigation by disregarding the suspension order (Section 110). Misleading the Commission by going ahead with the increase without proper clearance (Section 159(2).

 

The FCCPC emphasized that MultiChoice’s actions amounted to a deliberate attempt to undermine regulatory authority and disrupt fair competition. By implementing the price hike ahead of the March 6 hearing, the commission argued, MultiChoice not only defied regulatory processes but also violated consumer rights and fair market practices.

 

 

In addition to the legal charges, the FCCPC is exploring further enforcement actions, including sanctions and penalties, to ensure that MultiChoice complies with regulations and maintains accountability.

 

The commission reiterated its commitment to protecting Nigerian consumers from exploitative business practices, asserting that it would continue to enforce fair market principles and ensure legal compliance among dominant market players.

 

 

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Court orders seizure of N1.37bn Kaduna fund ‘hidden’ in Sterling Bank

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A Federal High Court in Kaduna has ordered the interim forfeiture of N1.37 billion Kaduna State fund allegedly hidden in a Sterling Bank account with no proper documentation,.

 

The judge, H. Buhari, issued the forfeiture order on February 28, following an ex parte application by the Independent Corrupt Practices and Other Related Offences Commission (ICPC), which had previously filed the motion on February 14.

 

The fund was said to have been misappropriated from the Kaduna State Government’s coffers during the tenure of former Governor Nasir El-Rufai.

 

 

According to the ICPC, the fund, originally allocated for light rail project was diverted during El-Rufai’s administration. The controversial transfer was uncovered after the ICPC traced the funds to a private account.

 

According to the anti-graft agency, the diverted money was funneled through Indo Kaduna MRTS JV Nig. Ltd, a joint venture formed in 2016 between the Kaduna State Government and Indian investors.

 

ICPC’s lawyer, E.O. Akponimisingha, represented the agency during the hearing, which was conducted without the presence of any opposing parties.

 

 

In granting the forfeiture, the court ordered the ICPC to publish a public notice in two national newspapers, inviting anyone with a legitimate claim to the funds to present their case in court. Further proceedings have been scheduled for April 8, 2025.

 

The scandal dates back to December 2016 when, despite the Indo Kaduna MRTS JV Nig. Ltd not being formally incorporated until May 2017, Governor El-Rufai approved payments to the company. Between December 2016 and January 2017, a total of N11.1 billion was transferred to the company’s Sterling Bank account. The ICPC’s investigation revealed that N1.37 billion of this sum was illegally diverted into a private account.

 

In justifying the forfeiture, the ICPC emphasized that the redirection of the funds into public projects aligns with the broader public interest, particularly in enhancing governance and accountability. The commission further asserted that this action would not violate any constitutional rights and would instead serve the greater good by recovering the misappropriated funds.

 

 

The investigation was launched after a petition was filed by lawyer M. Yahaya from NUS’ AB Chambers in Abuja, detailing concerns of severe financial mismanagement during El-Rufai’s administration. Other officials from the former governor’s administration are also facing allegations of fraud and corruption, with some already facing charges before various tribunals and anti-corruption bodies.

 

While the former governor and his associates maintain their innocence, calling the ICPC’s actions “oppression” and an “abuse of power,” they argue that the seizure of funds tied to the light rail project could harm foreign investments in the state.

 

The case is ongoing, and further developments are expected following the adjournment to April 8.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Court Stops Senate Committee From Probing Natasha Akpoti.

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The federal high court in Abuja has issued an order preventing the senate committee on ethics, privileges, and public petitions from proceeding with disciplinary actions against Natasha Akpoti-Uduaghan.

 

Obiora Egwuatu, the presiding judge, granted the order on Tuesday following an ex parte application submitted by Akpoti-Uduaghan’s legal representatives, the senator representing Kogi central.

 

 

Akpoti-Uduaghan was summoned to appear before the senate’s disciplinary committee after a confrontation with Senate President Godswill Akpabio on February 20.

 

 

The senator disrupted plenary proceedings by rejecting her designated seat, disregarding Akpabio’s directive, and persistently raising a point of order despite being overruled.

 

The senate later referred Akpoti-Uduaghan to the committee on ethics, privileges, and public petitions for a disciplinary review.

 

On February 28, during an interview on Arise TV, the senator claimed that her ordeal in the senate started after she rejected “sexual advances from the senate president”.

 

NULL AND VOID’

 

The legal team representing Akpoti-Uduaghan includes Sanusi Musa, M. J. Numa, Y. M. Zakari, B. J. Tabai, Tijanni Jimol, and M. C. Bekee.

 

The defendants in the suit are clerk of the national assembly, the senate, senate president, and chairman of the senate committee on ethics.

 

According to court documents obtained by TheCable, Akpoti-Uduaghan requested the court to issue an order stopping the senate and the ethics committee from “proceeding with the purported investigation” against her.

 

She further asked the court to declare that any action taken during the pendency of the suit is “null, void and of no effect whatsoever”.

 

 

Additionally, Akpoti-Uduaghan sought permission for the defendants to be served with the originating summons and related documents through substituted means.

 

 

“AN ORDER OF THIS HONOURABLE COURT granting an Interim Injunction restraining the 2nd Defendant/Defendant’s Committee on Ethics, Privileges and Code of Conduct headed by the 4th Defendant from proceeding with the purported investigation against the Plaintiff/Applicant for alleged misconduct sequel to the events that occurred at the plenary of the 2nd Defendant on the 20th day of February, 2025, pursuant to the referral by the 2nd Defendant on 25th February, 2025 pending the hearing and determination of the Motion on Notice for interlocutory injunction,” part of the application reads.

 

In his ruling, the judge directed the defendants to show cause within 72 hours after being served with the order, explaining why an interlocutory injunction should not be granted against them.

 

Egwuatu also approved the request for substituted service on the defendants.

 

The case was adjourned to March 10 for the defendants to present their case on why the applicant’s reliefs should

not be granted.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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