FG Backtracks, Says FAAC Allocation To Rivers State Not Stopped

The Federal Government has denied reports that it stopped the disbursement of funds to Rivers State.

Recall that the Office of the Accountant General of the Federation (OAGF) had earlier on Friday announced that it halted the disbursement of October revenue payment to Rivers State, citing the Federal High Court judgement.

Bawa Mokwa, the spokesperson for the OAGF, who spoke to journalists on Friday, emphasised that the federal government would respect the court order halting allocation with due diligence until a contrary order is issued.

“What I got is that the October 2024 FAAC has not been distributed yet. However, the federal government will obey the court order on the matter of Rivers State’s allocation,” he said.

The OAGF’s spokesperson further noted that due diligence would be followed “as long as there is no contrary order,” adding that “the process of disbursement of the October 2024 monthly allocation is going.”

The development comes amid ongoing the protracted political battle between Governor Fubara and the Minister of Federal Capital Territory (FCT), Nyesom Wike.

Speaking later to Saturday Tribune, Bawa Mokwa, Director of Press in the office of the Accountant General of the Federation stated that “disbursement of October allocation to states and local governments by FAAC is ongoing.”

He explained that “Rivers State will benefit because of a subsisting appeal/stay of execution order.”

Meanwhile, the Court of Appeal, Abuja Division on Friday, reserved judgements in five separate appeals arising from the judgements of a Federal High Court in Abuja on the Rivers State government political crisis.

One of the appeals is against the judgement of the High Court which stopped the Central Bank of Nigeria (CBN) from releasing federal allocation to Rivers State.

The presiding Justice of the Court of Appeal, Abuja Division, Justice Hamma Barka reserved the judgements to a date that would be communicated to the parties after all processes filed in the appeals were adopted by counsel.

The appeals are, CA/ABJ/CV/ 1277/2024, CA/ABJ/CV/ 1303/2024, CA/ABJ/CV/1293/2024, CA/ABJ/CV/1287/2024 filed against the judgements of the Federal High Court, Abuja delivered on October 30, 2024 and appeal number, CA/ABJ/CV/ 1196/2024 against the judgement delivered by same Federal High Court on October 2, 2024.

Earlier, while adopting his briefs of argument in the appeal, Yusuf Ali, SAN representing the Governor of Rivers state, Siminalayi Fubara in appeal number CA/ABJ/CV/1303/2024 prayed the court to consolidate the five appeals, a request the court granted.

It would be recalled that Justice Joyce Abdulmalik of a Federal High Court, Abuja had, in a judgement delivered on 30th October stopped the Central Bank of Nigeria (CBN) from further releasing monthly financial allocations to Rivers State government.

The court held that the receipt and disbursement of monthly allocations since January this year by Governor Fubara is a constitutional summersault and aberration that must not be allowed to continue.

Justice Abdulmalik who issued the order in a judgment in the suit filed by the Rivers State House of Assembly and Rt Hon. Martin Chike Amaewhule as its Speaker, held that the presentation of the 2024 budget by Fubara before a four-member Rivers State House of Assembly was an affront to the constitutional provision.

The Judge specifically held that Fubara’s action in implementing unlawful budget smacked gross violations of the 1999 Constitution he swore to protect and consequently restrained the apex bank, the Accountant General of the Federation, Zenith Bank and Access Bank from further allowing Fubara to access money from the Consolidated Revenue and Federation Account.

Justice Abdulmalik held that the action of the four-member Rivers State House of Assembly being held on to by Governor Fubara as yardstick to justify unlawful budget had since been nullified and set aside by the Federal High Court, Abuja and the Court of Appeal, Abuja Division.

According to the Judge, the judgment of the Rivers State High Court, which gave power to the governor to implement the 2024 budget, had also been set aside by the Court of Appeal.

She said, the Appropriation Bill for January to December 2024, being operated by the 5th defendant (Fubara), having not been passed by the lawful House of Assembly is illegal unlawful and subversion of the 1999 Constitution.

According to the Judge, “It is mandatory to present Appropriation Bills before the appropriate Houses of Assembly before legitimate disbursement and withdrawal can be made.”

She also issued another order of injunction which restrained Fubara, Accountant General of the state and their agents from authorizing the withdrawal of money from the Rivers state bank accounts domiciled at the Zenith Bank and Access Bank until the budget of the state is passed by the appropriate House of Assembly.

The suit, which has the Rivers State House of Assembly and Rt Hon Martin Chike Amaewhule as plaintiffs, has the CBN, Zenith Bank, Access Bank, Accountant General of the Federation, Rivers State governor, Accountant General of Rivers, Rivers State Independent Electoral Commission, Hon Justice S. C. Amadi, Chief judge of Rivers state, Justice Adolphus Enebeli, chairman of RSIEC and Rivers State government as defendants.