Court dismisses stay of proceeding in suit seeking to halt funds allocation to Rivers LGs

Justice Joyce Abdulmalik of the Federal High Court in Abuja has dismissed objections by the Rivers State government against hearing a suit aimed at suspending all expenditures by Governor Siminalayi Fubara.

The defendants in the case include the Central Bank of Nigeria (CBN), Zenith Bank, Access Bank, and the Accountant-General of the Federation, alongside Governor Fubara, the Rivers State Accountant-General, the Rivers State Independent Electoral Commission (RSIEC), and other state officials.

Justice Abdulmalik ruled that the state government’s applications to halt proceedings until the appeal is heard lacked merit, describing them as “frivolous, vexatious, unwarranted, and mischievous.” This ruling allows the court to move forward with the case despite pending appeals.

The Rivers House of Assembly and Mr. Martin Amaewhule, as the 1st and 2nd plaintiffs, had sued the Central Bank of Nigeria (CBN) and nine others in the suit marked FHC/ABJ/CS/984/24.

The plaintiffs, through their lead counsel, Joseph Daudu, SAN, filed the suit dated July 14 but submitted it on July 15.

The assembly and Mr. Amaewhule, a faction lawyer allied with Mr. Nyesom Wike, the state’s former governor and current FCT Minister, sought an order of interlocutory injunction restraining the CBN, commercial banks, and the AGF from honouring any financial instructions issued by Fubara regarding the state’s funds.

However, the Rivers State House of Assembly, led by Mr. Oko Jumbo, filed a notice of change of counsel on August 6.

The Oko Jumbo-led assembly, loyal to Governor Fubara, told the court that Amaewhule was not the lawful speaker of the assembly, as his seat had been declared vacant on December 13, 2023, following his defection from the Peoples Democratic Party (PDP) to the All Progressives Congress (APC).

The assembly, therefore, argued that Amaewhule was not authorised to file the suit and had decided to change its counsel.

“The 1st plaintiff herein has changed their counsel, J.B. Daudu, SAN, of J.B. Daudu & Co., and now briefs S.A. Somiari, SAN, MCIArb (UK), of Sammie Somiari & Associates for legal representation in this suit,” the Oko Jumbo-led assembly stated.

Justice Abdulmalik dismissed the application for a change of counsel after it was moved by Somiari.

The judge also rejected oral applications by the defence lawyers, including Femi Falana, SAN, representing the 7th and 9th defendants, who sought an adjournment to respond to the plaintiffs’ processes.

Falana argued that he had just received a bundle of documents from the bailiff a few minutes before the proceeding and needed more time to respond.

The Rivers government had objected to the suit being heard in Abuja, but the court overruled the objection.

This prompted the state government to approach the Court of Appeal for intervention.

The state filed an appeal marked CA/ABJ/CV/1197/2024 and sought a motion for the Federal High Court to stay proceedings until the appeal was determined.

Justice Abdulmalik, after considering all applications and motions on the substantive matter, reserved judgment for a date to be communicated to the parties.