Withheld council funds: Supreme Court strikes out Osun’s suit against FG

From Godwin Tsa Abuja

The Supreme Court has, in a split judgment of six to one, struck out a suit filed on behalf of the Osun State Government by the state’s Attorney General seeking to compel the Federal Government to release the allocations due to local governments in the state.

In a majority judgment, the apex court held that the Attorney General of Osun State lacked the locus standi (the legal right) to have filed the suit on behalf of local governments in Osun State who are legal entities with capacity to sue to assert their right.

The apex court in its majority judgment that was prepared and read by Justice Mohammed Idris yesterday held that the plaintiff failed to establish that there was any cause of action capable of invoking the original jurisdiction of the Supreme Court as provided under Section 232(1) of the constitution.

In addition, Justice Idris held that from the facts of the case, the issue in dispute was about the alleged failure of the Federal Government to release funds standing to the credit of Osun State Local Governments in the Federation account, and as such, there is no dispute between Osun State and the FG to have allowed the state’s AG to approach the Supreme Court.

The apex court held that such suit over withheld local government funds ought to have been filed by the affected Local Governments.

The court dismissed Osun AG’s argument that the suit was a public interest litigation.

Though the apex court upheld a preliminary objection filed by the Attorney General of the Federation (AGF) against the competence of the suit, it however admonished the Federal government to give full effect to its judgment that granted fiscal autonomy to all the 774 Local Government Areas in the country. Justice Idris frowned at the failure of the Federal Government to put in place all necessary measures to give effect to the Supreme Court ‘s judgment.

However, in his dissenting judgment, Justice Emmanuel Agim disagreed with the position of the six other Justices on the seven-member panel.

While holding that the Osun AG has the right to institute the case, Justice Agim frowned at the Federal government for withholding the local government funds,  an action he said was in bad taste and capable of crippling the financial activities of the Local Government Areas.