Autonomy: ALGON Drags, FG, States To Court Over FAAC Sharing
According to reports, the Central Bank of Nigeria asked all the 774 councils to provide at least two years of audited financial reports before they could receive their allocations directly.
The apex bank insisted that the local governments must meet this requirement before opening accounts for direct remittance of their allocations.
Following the delay in the implementation, Abubakar said there was a need to approach the court to seek an order for the representation of local government councils in the Federation Account Allocation Committee, or any other body that deals with the allocation of these funds.
In the suit, the association urged the court for a declaration that any attempt to disburse funds to the 774 local governments through commercial banks or other agencies, without the authorisation and approval of the local councils, would be illegal.
Other prayers of the association include: “A declaration that the 1st to 8th defendants cannot disburse monies to the 774 local government councils in Nigeria, through the 9th to 23rd defendants or any other person whatsoever, without the plaintiff authorizing, approving said 9th to 23rd defendants or any other person whatsoever after conducting due diligence on them to avert any diversion of the funds of the local government councils.
“A declaration that the 1st to 7th defendants or any other person whatsoever cannot discuss, approve, disburse or in any other way whatsoever deal with the monies accruing to the 774 local government councils in Nigeria without the representation of the local government councils at such deliberations, discussions, committees, howsoever called, including at the Federation Account Allocation Committee (FAAC) chaired by the 2nd defendant.”
In addition, ALGON also requested an order restraining the defendants from continuing to disburse funds to the local governments through any other agency or without the direct involvement of the local government councils in the process.
Source: PUNCH
