N53bn LG funds: Court halts payment to firm, to retain fund from CBN

A Federal High Court in Abuja has ordered the stay of execution of its judgment mandating the Federal Ministry of Finance and the Central Bank of Nigeria (CBN) to deduct N53 billion from local government area accounts and credit the account of Dogra Consulting Limited over breach of contract payment. Justice Okon Abang on Thursday […]

A Federal High Court in Abuja has ordered the stay of execution of its judgment mandating the Federal Ministry of Finance and the Central Bank of Nigeria (CBN) to deduct N53 billion from local government area accounts and credit the account of Dogra Consulting Limited over breach of contract payment.

Justice Okon Abang on Thursday also ordered the CBN to deposit the sum in cheque into the account of the court with the UBA Plc within 14 days through the Chief Registrar pending the determination of the appeal entered by the CBN.

“The CBN cannot be allowed to keep the judgment sum since it is a judgment debtor to transact business with it,” Justice Abang said.

“Judgement creditor is at liberty to seek to enforce its judgement if CBN fails to comply with the subsisting order of court at the expiration of 14 days deadline, I so hold,” he added.

The court had on May 17 held that the Ministry of Finance and CBN breached the terms of the December 1, 2010, agreement with Incorporated Trustees of ALGON on an Irrevocable Standing Payment Order to the ministry to pay Dogra from the funds standing to the credit of the LGAs for its supply of Plexi Breast Self-Examination Kits (Plexi Chek) to the 774 LGAs.

The court found that in the agreement, Dogra was to be paid $147,500,000, which represents 50 per cent it contributed to the contract and 20 per cent of the contract sum, which it charged as consultancy fee for the supply.