The N16 billion represents the local governments' share of the Paris Club refund, which the Anambra State Government received on their behalf but refused to hand over to them.
The Federal High Court in Awka has blocked a move by the federal government aimed at helping the local government areas in Anambra State to recover over N16 billion diverted by their state government.
The court agreed that the state government’s failure to pay local governments’ share of the money into the State Joint Local Government Account “is clearly a constitutional breach”. He said the federal government would require a court order to help the local government areas recover their money.The fund in question is a fraction of what the federal government has released to all 36 states of the federation and their local government areas as Paris Club refunds over the years.
investigations over his handling of the funds for his state and as then chair of the Nigeria Governors’ Forum . Mr Falana’s law firm sent two such letters dated 1 July 2019 and 29 September 2019 to the finance ministry. It sued the Minister of Finance and the Attorney-General of the Federation as co-defendants in the suit.
Mr Dimgba held that the law does not provide room for a ”direct relationship” to disburse funds between the federal and local government areas. He criticised the judgement on the grounds, including a contention that the affected local government areas, which were necessary parties, were excluded.
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