TSA: Angry Court Strikes Out FG’S Suit Against 7 Banks, Awards N1.2m Costs
We told you earlier that the federal government said it was withdrawing its case against some 7 banks opting for out-of-court settlement instead.
It appears that this has failed to appease the Lagos Federal High Court which is entertaining the suit.
The court on Wednesday, not only struck out the suit filed by the Federal Government seeking to recover 793.2 million dollars allegedly kept by the 7 banks, it also awarded 1.2 million naira in damages to the accused banks.
The banks which included: Diamond Bank, United Bank for Africa (UBA), First Bank, Skye Bank, Fidelity Bank, Sterling Bank and Keystone Bank were accused of violating the Treasury Single Account (TSA) policy.
The vacation judge, Justice Chuka Obiozor, struck out the suit following a motion of discontinuance filed by the federal government.
Counsel to FG, Prof. Yemi Akinseye-George (SAN), on Tuesday informed the court that he had the instruction of the Attorney-General of the Federation to discontinue the case in the “overall interest of the public”.
But the banks, having been enraged by the false accusation, would have none of that.
All of them in a reply to the federal government’s notice of discontinuance, then demanded between 10 million naira and 20 million naira as costs from the plaintiff.
But while striking out the suit, Obiozor ordered the federal government to pay 200,000 naira each as cost to all the banks except Skye Bank which had no representation in court.
This is a clear case of a sloppy litigation at the expense of tax payers.