Alleged N2.5bn fraud: Court orders ICPC to de- freeze Pinnacle’s account

Abuja division of the Federal High Court on Friday ordered the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to immediately de- freeze the account of Pinnacle Communication Limited ‎with Zenith Bank. Justice Nnamdi Dimgba gave order in a judgment he delivered on Friday in the suit filed by the company challenging the no debit restrictions placed on its account with Zenith Bank by the anti- graft agency. The Court dismissed the preliminary objections raised against the suit by the Commission and the Attorney General of the Federation, earlier during the judgment on the ground that the objection lacked merit. In arriving at its conclusion on the preliminary objections, the court disagreed with the defendants that the suit bordered on a simple contract and tort of an individual customer and his bank. On this, Justice Dimgba held “it is clear from the claim of the plaintiff that the suit did not border on a simple contract of tort, but one which bordered on the administrative act of the 1st defendant (ICPC) and therefore confers jurisdiction on the Federal High Court. Dimgba conceded that the ICPC has statutory powers to freeze accounts of individuals and corporate entities, he however noted that where such freezing is not done properly, the court has jurisdiction to review it. On the contention by the ICPC that the freezing of the account was ordered by a Magistrate court, Justice Dimgba held that the defendants cannot hide under the umbrella of a Magistrate court which is an inferior court, to foreclose the jurisdiction of a Federal High Court. The court further dismissed the claim of the defendants that it was sitting as an appeal court over the order of a Magistrate court, but “the plaintiff’s suit is rather challenging the action of the 1st defendant (ICPC) in directing the 2nd defendant (Zenith Bank) to freeze it’s account. ” “This court has the powers under section 6(6) and 251(1) of the 1999 constitution to review the administrative actions of the 1st defendant to determine whether it was right or wrong.” The court said though the freezing of the company’s account was lawful and within the statutory powers of the ICPC, but the freezing of the account cannot be indefinitely but on a temporary basis. “The order of temporary freezing of the account was to allow the 1st defendant to conclude investigation and file an action in court if a prima facie case is established. “It is not to freeze the account for a long period of six months. The account was frozen on June 14, 2018, and today, a period of six months period has elapsed and no criminal charge has been filed against the plaintiff. The word temporary should be for a short time and not a period of six months.” “If there is indeed any prima facie case against the plaintiff, I am at a loss as to why a criminal charge has not been filed in court. Freezing the account of the plaintiff indefinitely is an overkill, and amounts to killing a fly with a sledge hammer”. “I resolved the issues in favour of the plaintiff and grant all the reliefs sought. The 1st defendant should file a charge against the plaintiff before a competent court if a prima facie case is established against it, rather than a perpetual freezing of its account, “Justice Dimgba held. Pinnacle Communications Limited is a private licenced signal distributor for the Federal Government approved implementation of the transition from analogue to digital terrestrial television broadcasting in Nigeria in accordance with the 2012 government White Paper section 11.2 (a) which approved that ‘more than one signal distributor be licenced in addition to NTA-the public licenced signal distributor, another signal distributor should be licensed immediately. In 2014, Pinnacle emerged successful bidder out of nine companies after a rigorous public tender and full compliance with due process. It is the claim of the ICPC that Pinnacle Communication was fraudulently recommended to the Minister of Information and Culture for the release of N2.5 billion against the guidelines contained in the White Paper. Andrew Orolua, Abuja