The Supreme Court on Friday delivered a split judgment in the case filed by the Attorney General of Osun State against the Attorney General of the Federation over the alleged unlawful withholding of local government funds.
By a majority decision of six justices to one, the apex court struck out the suit, holding that the Osun Attorney General lacked the legal capacity to institute the action on behalf of the state’s 30 local government councils.
The court ruled that only duly elected and inaugurated local government officials have the locus standi to sue or be sued in matters affecting their finances and administration.
However, the Supreme Court also held that the Federal Government acted unconstitutionally by withholding funds due to local governments, describing the action as a “grave breach” of the 1999 Constitution and of its earlier judgment granting full financial autonomy to local councils.
Delivering the lead judgment, Justice Mohammed Idris said the Federal Government’s hands were “soiled” by the illegal seizure of funds and urged immediate compliance with constitutional provisions requiring direct allocation to local government accounts.
The court also dismissed contempt allegations raised by the AGF against Osun State, stating that the Federal Government was in greater contempt for failing to release the funds as mandated.
Justice Idris further noted that there was no evidence showing that the Osun Attorney General had been formally authorised by the local government councils to file the action.
In a dissenting judgment, Justice Emmanuel Agim disagreed with the majority, holding that the Osun Attorney General was entitled to initiate the suit. He condemned the withholding of funds, warning that such actions could cripple local governance nationwide.
Counsel to the Osun Attorney General, Musibau Adetunbi, SAN, represented the state in the matter.
Follow us on:
