Court orders finance ministry, CBN to deduct N53bn LG funds to pay firm

A Federal High Court in Abuja has ordered 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 also awarded N50,000 each against the
Incorporated Trustees of the Association of Local Governments of
Nigeria (ALGON), Suleja LGA, Accountant General of the Federation,
Ministry of Finance and the CBN in favour of Dogra Consulting.

Justice Abang, on Friday, also 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.

He dismissed the objection by counsel to the Ministry of Justice
based on Section 80 (2) of the constitution which stipulates that
no money shall be withdrawn from Consolidated Revenue Fund without
the approval of the National Assembly, maintaining that the
agreement was by the consent of the 74 local government areas as
represented by ALGON.

“The Minister of Finance has no choice than to agree with the
mandate of the beneficiaries of that account. Therefore, the
decision of the Supreme Court in the case of the AG of Ogun State
are distinguishable from this case,” he said.

The judge said the Ministry of Finance did not file any
application to comply with the procedure to reply on counter
affidavit in the course of the proceeding.

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