Wike/Fubara: Rivers Challenges Court Order Stopping CBN Funds

Rivers Govt Appeals Court Ruling on Allocation Block

“It's a legal problem and you cannot take it out of the court, particularly when you are a defendant...”

Rivers State Judgment: Court bars CBN, banks from releasing funds to Governor Fubara's administration over unconstitutional budget approval.

The Rivers State Government has taken swift action against a Federal High Court ruling that halted further allocations to the state from the federation account. On Wednesday, October 30, they filed an appeal, a move that follows Governor Siminalayi Fubara's successful dodging of an impeachment attempt led by Martin Amaewhule's faction of the Rivers State House of Assembly.

This faction is allied with FCT Minister Nyesom Wike, and their attempt to impeach Governor Fubara was recently thwarted. The Federal High Court ruling, made by Justice Joyce Abdulmalik, deemed Governor Fubara's 2024 budget approval by a four-member Rivers House of Assembly faction a “constitutional aberration.”

Commissioner Joseph Johnson confirmed the appeal, expressing confidence that the Appeal Court will overturn the decision. He argued that the judgment was flawed and would unfairly impact local government workers and services.

Reactions:

Rivers Government: Confident that the Appeal Court will overturn the decision, citing clear indications that favor their case.

Opposition Faction: Celebrated the ruling as a victory for “rule of law.”

Atiku Abubakar: Criticized the ruling, warning that the judiciary is exacerbating political instability in Rivers.

Legal Experts: Mixed reactions, with some arguing against halting state allocations and others warning of governance impacts.

Civil Society: Some commend the ruling as a check on executive power, while others caution the CBN to avoid political involvement.

“We saw this judgment coming the way it did when the trial judge refused 23 council chairmen as joinders, refused the state to change their lawyer and refused our objection challenging jurisdiction of the federal high court,” he said.

“The judgment has already been appealed and I believe that the Court of Appeal will upturn the judgment. We are not panicked and there is no cause for alarm.”

Background information on this story:

A Federal High Court in Abuja has stopped the Central Bank of Nigeria (CBN) from releasing monthly financial allocations to the Rivers State Government. The court ruling was based on allegations that the 2023 presentation and approval of Rivers State’s budget for 2024 were illegal.

Justice Joyce Abdulmalik of the Abuja Federal High Court made a landmark ruling on Wednesday, declaring Governor Siminalayi Fubara's presentation of the 2024 budget to a four-member Rivers State House of Assembly as unconstitutional. This decision comes after Fubara's budget approval was challenged due to the significantly reduced number of assembly members present.

According to Justice Abdulmalik, Fubara's actions, including receiving and spending monthly allocations since January, constitute a severe breach of the constitution. As a result, she has barred several financial institutions, including the Central Bank of Nigeria (CBN), the Accountant-General of the Federation, Zenith Bank, and Access Bank, from granting Fubara further access to funds from the Consolidated Revenue and Federation Accounts.

Implications of the Ruling:

Constitutional Breach: Fubara's budget presentation to a reduced assembly membership is deemed unconstitutional.

Financial Restrictions: CBN, Accountant-General, Zenith Bank, and Access Bank are prohibited from disbursing funds to Fubara.

Governance Impact: The ruling may affect the governance and operations of Rivers State.

Governor Fubara has been facing opposition, including an impeachment attempt led by Martin Amaewhule's faction of the Rivers State House of Assembly, allegedly backed by FCT Minister Nyesom Wike. The Rivers State Government has since appealed the ruling, expressing confidence in overturning the decision.

Justice Joyce Abdulmalik's judgment was a significant blow to Governor Siminalayi Fubara's administration. She declared that the four-member assembly supporting Fubara had been invalidated by both the Federal High Court and the Court of Appeal in Abuja, rendering any budget approvals by them unlawful. This decision effectively stripped the four-member assembly of its legitimacy.

In contrast, Justice Abdulmalik affirmed the legitimacy of the Amaewhule-led House of Assembly, emphasizing that only a properly constituted legislative body could approve the state budget, as mandated by the 1999 Constitution. This ruling underscores the importance of adhering to constitutional standards in governance.

As a result of this judgment, Justice Abdulmalik issued an injunction preventing Fubara and the state's Accountant-General from authorizing withdrawals from government accounts until the budget is properly approved. This move effectively freezes the state's finances until the budget is legitimized.

Key Implications:

Constitutional Breach: Fubara's four-member assembly is deemed unlawful.

Legitimacy Affirmed: Amaewhule-led House of Assembly recognized as properly constituted.

Financial Freeze: Injunction prevents withdrawals from government accounts until budget approval.

The Rivers State Government has since appealed the ruling, expressing confidence in overturning the decision. The appeal is a significant development in the ongoing political tensions between Governor Fubara and the opposition faction led by Martin Amaewhule.

A significant development has unfolded in Rivers State, Nigeria, following a suit filed by the Rivers State House of Assembly and Martins Amaewhule against multiple defendants, including the Central Bank of Nigeria (CBN), Zenith Bank, Access Bank, the Rivers State government, and Governor Siminalayi Fubara.

The plaintiffs contended that Governor Fubara disregarded previous orders to resubmit the 2024 Appropriation Bill to the Amaewhule-led Assembly. This led to the Assembly suspending all state spending on July 15, with a seven-day deadline for compliance, which has since expired.

In the aftermath of the ruling, the Government House in Port Harcourt witnessed heightened activity, with officials, PDP supporters, and stakeholders congregating, causing congestion on Azikiwe Road. Furthermore, Finance Minister Wale Edun was seen in a closed-door meeting with Governor Fubara, sparking additional speculation.

Rivers State Commissioner Joseph Johnson cautioned that if the appeal fails, local government workers may face significant consequences. This situation underscores the complexities surrounding the Rivers State local government fiasco, highlighting concerns about respecting the rule of law and the potential implications for the state's governance.

He said, “If it is anything to reckon with it will impact negatively on the civil servants at the third tier of government, it will affect teachers' salaries and all that are attached to the council salaries.

“So, I can imagine how anybody would advocate for the stopping of funds that will bring development to the local government councils and also pay those who work in the council.

“It's a legal problem and you cannot take it out of the court, particularly when you are a defendant. That is not how the law operates. This matter is one that the court will give justice to. So, let us stop all these shenanigans because it is not going to take us anywhere. It is the state that will suffer and in this case the local government staff.”