The Osun State government has challenged the legal basis for the Economic and Financial Crimes Commission's decision to freeze its statutory account, saying the anti-graft agency lacks the authority to restrict access to funds meant for public services.
Osun State Attorney-General and Commissioner for Justice, Oluwole Jimi-Bada, made the position known Wednesday while addressing journalists in Osogbo following the reported freezing of the state's account with First Bank by the EFCC.
Jimi-Bada said the state recognises the mandate of the EFCC and other lawful institutions but argued that the laws cited by the commission do not empower it to freeze or interfere with a state's statutory account.
He said the government's position was based on constitutional and legal considerations and was not an attack on the anti-corruption agency or any political group.
According to the Attorney-General, sections of the Money Laundering (Prevention and Prohibition) Act and the EFCC Act do not grant the commission powers to restrict access to funds in a state government's statutory account.
He warned that such restrictions could affect the payment of salaries, pensions, healthcare, education, security and other essential government obligations.
Jimi-Bada said Osun State was not opposed to lawful investigations and remained committed to accountability and cooperation with relevant authorities.
He disclosed that Governor Ademola Adeleke had directed him to approach the court to seek interpretation and determination of the legal issues surrounding the EFCC's action.
The development follows the EFCC's earlier statement that it froze the account as part of an investigation into alleged financial irregularities involving about ₦11 billion in Ecology Funds, Intervention Funds and Federation Account Allocation Committee (FAAC) allocations.
The commission said the action was taken after it detected large transfers from the accounts to various corporate entities, which it described as suspicious.
The Osun State government has said the matter will be resolved through the judicial process.
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