The First City Monument Bank (FCMB) has sued the Kogi State government over alleged breach of contract leading to loss of over N700 million in loans to workers.
In the suit before the Federal High Court, Lokoja, which has the state government, the state attorney general and commissioner for justice, the Local Government Service Commission, Zenith Bank and Access Bank as defendants, the plaintiff faulted the action of the state government in removing salary accounts of its workers from FCMB.
The bank averred that the state government erred in removing the salary accounts to the 4th and 5th defendants in spite of undertakings it entered with FCMB for domiciliation of the salary accounts of beneficiaries of its consumers’ loan facilities.
According to the bank, accounts of the beneficiaries of the loans, in line with the undertakings, are to be “irrevocably and unconditionally domiciled and remain domiciled with the plaintiff” until the said loan facilities were fully amortised with accrued interests.”
In the writ of summons by the plaintiff’s solicitor, A.Y. Mohammed, FCMB is seeking six reliefs, including a declaration that the state government and its agents were bound by their several undertakings, commitments and assurances.
The plaintiff is also seeking an order of perpetual injunction restraining the state government and its agents from continuing with the action and an order restraining the 4th and 5th defendants from continuing to open salary accounts for civil and public servants.
When the case came up yesterday, counsel to Zenith Bank, John Erame filed a motion supported by a four-paragraph affidavit for extension of time to enable counsels in the suit file their counter affidavits.
The trial judge, Justice Phoebe Ayua granted the application and adjourned the case to October 5.
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