Court restrains FG from disbursing N6.5b BASA fund
A Federal High Court in Abuja restrained the federal government from disbursing over N6.5 billion (50 million dollars) Bilateral Air Services Agreement (BASA) fund.
The money was said to had been approved by President Olusegun Obasanjo to be shared by the major Aviation Parastatals to improve their infrastructure.
Justice Abimbola Ogie made the order against the federal government while sitting in a case filed by four representatives of unpaid creditors of Nigeria Airways (in liquidation) against the federal government and the company’s liquidator, Prince Ade Babington-Ashaye.
Specifically, Ogie granted the order in the interim that the money should remain in BASA Account No. 5882746082 of Nigeria Airways Limited (in liquidation) with the Central Bank of Nigeria (CBN) pending the determination of the suit.
She ordered parties in the suit to maintain status quo pending the determination of the suit.
Earlier, counsel to the plaintiffs, Prof. Taiwo Oshipitan (SAN), had informed the court that the federal government had approved the money for disbursement to the Parastatals under the Aviation Ministry.
He contended that the money was meant for the unpaid creditors of Nigerian Airways particularly the pensioners of the liquidated company.
Oshipitan said he has filed a motion on notice to this effect and that it has been served on all the respondents to the suit.
The respondents are, Babainton-Ashaye, the Ministry of Aviation, the Federal Ministry of Finance, The Central Bank of Nigeria (CBN) and the Attorney General of the Federation (AG-F).
“There is the need to preserve the rest of this case, My Lord, because by the time we will come back the money will have been disbursed and this case will become a mere academic exercise,’’ Oshipitan said.
Only CBN among the five respondents was represented by a counsel, Mr Kolawole Omotinugbon.
Omotinugbon urged the court not to grant the interim order on the ground that the court would have, in doing so, granted the major relief of the plaintiffs.
“There is a motion on notice which has not been argued, in the interest of justice and fair hearing, we should be given a date to state our position,’’ he said.
At this stage, Justice Ogie asked Omotinugbon to make an undertaking on behalf of his client that the money would not be disbursed pending the determination of the motion.
Responding, the counsel said that he was not given instruction to enter any undertaking maintaining that the court should adjourned for them to state their case.
In a short ruling delivered thereafter, Ogie ordered parties to maintain status quo pending the determination of the suit.
She adjourned the case till Febuary 5 for further hearing and directed Oshipitan to ensure service of hearing notice on all the respondents.
In the substantive suit, the Plaintiffs, Mr. Nick Fadugba, Chief S.W. Baidi, Chief D.E Ogono and Mr desoji Adebola made ten claims against the defendants.
They asked the court to declare that the money in BASA Account with the CBN wholly and exclusively belong to and therefore form part of the assets of the Nigeria Airway Limited (in liquidation).
They also asked the court to declare that the appointed liquidator for the company was under statutory and fiduciary duty to take possession of the funds for the purpose of distributing it among unpaid creditors of the company.