The Economic and Financial Crimes Commission (EFCC) has explained that it placed a Post No Debit (PND) restriction on the Osun State Government’s First Bank account following alleged suspicious movements of funds linked to ecology funds, intervention funds and Federal Account Allocation Committee (FAAC) allocations.
EFCC spokesperson Dele Oyewale said in a statement on Wednesday that the commission had been investigating the state government since March over alleged fraudulent handling of funds amounting to N11 billion.
He said the state accountant-general and other government officials had been invited for questioning as part of the investigation.
According to the EFCC, the decision to restrict the account was not initially part of the investigation but became necessary after the commission detected large transfers from the account to what it described as suspicious corporate entities from August 2.
“The commission noticed huge transfers of funds into different corporate entities and had to swiftly halt the trend by freezing the accounts from which such heavy funds were being moved,” Oyewale said.
The anti-graft agency said the action was taken under its mandate to prevent the possible diversion of public funds and protect government resources.
The EFCC also dismissed suggestions that the move was connected to the August 15 Osun governorship election, saying its actions were based on ongoing investigations and not political considerations.
“The commission has always pointed out that it is non-partisan and non-sectarian but always working in the overall interests of Nigerians,” the statement added.
Adeleke challenges EFCC action
Governor Ademola Adeleke criticised the account restriction, describing it as a breach of due process.
Speaking at a press conference at the Oke Fia Government House, Adeleke said the state received a notification from its bank about the EFCC directive but that no court order was presented.
“We are supposed to be in a democracy where the rule of law must always prevail,” he said.
The governor directed the state Attorney-General and Commissioner for Justice to challenge the action at the Federal High Court in Osogbo.
Adeleke accused the EFCC of targeting his administration ahead of the governorship election and demanded that the agency explain publicly the reason for freezing the account.
“All I ask is for the EFCC Chairman to explain to the good people of Osun State and Nigerians why he froze the state government account and provide evidence to support the decision,” he said.
Despite the development, the governor said his administration would continue its re-election campaign.
