By Correspondent in Lokoja.
Kogi State Government has sealed off all First Bank Nigeria PLC branches operating in the state on the order of a Kogi High Court sitting in Lokoja.
Our Correspondent reports that the seal was effected on Monday by Kogi State Internal Revenue Service (KGIRS), following what it described as the inability of the bank to liquidate its outstanding tax liabilities of over N411.12 million to Kogi State Government.
Chatting with some Journalists on the development in his office, Bar. Saidu I. Okino, Director, Legal Services of the KGIRS, said the amount represents outstanding withholding tax from the bank’s mobile banking agents from 2015 to 2022.
He said that the action of the board was as a result of the refusal of the bank to liquidate the liability,despite several several demand notices to that effect.
Okino said that approaching the court was as a last resort as all other measures to make the bank pay up proved abortive.
He said:”Before we went to court, there was a Demand Notice to that effect dated 12th day of October 2021 and signed by the then acting chairman, Abubakar Yusuf.
“We made several attempts we sent them a notice of the intention of the service to take warrant of distrain so that we can do whatever is needful, on 25th day of February, 2022 but was ignored.
“On the 25th of August, 2022 Notice of Refusal to amend their liability was served on them. We did not on our own roll out our machineries to go and seal.”
He said that the service (claimant) had to approach the court through a Motion Ex-parte number HC/457M/202, dated August 29 and filed August 30th, 2022.
The Service, he said, prayed for an Order of the Court to execute Warrant of Distrain against the defendant by her goods, chattels, bonds, security or any other property.
It also sought distrain upon the land, office, business premises or place of management of the defendant (First Bank Nigeria Limited)’s offices in Lokoja, Okene, Kabba, Ajaokuta and any other movable property of the defendant found Within the jurisdiction of Kogi State.
The Board also sought an order that “the defendant bears the cost of executing the distrain in pursuance of section 104(5) of PITA and section 51(5) of the Kogi State Harmonized Tax Law, 2017, as accessed in the sum of N250,000 per site each day.
The presiding judge, Justice Rukkayat Ayoola, in her ruling, granted, all the reliefs sought in the Motion Ex-parte supported by an eight-paragraph affidavit and deposed by Mohammed Ibrahim, a civil servant.
“The Order for the defendant’s failure and or refusal to liquidate her debt to Kogi State Government in the sum of N411,120,966.77 being the outstanding tax liabilities owed the Kogi State Government for the years 2015 to 2020 is hereby granted”, Ayoola said.
Efforts by our Correspondent to get the comment of the officials of the bank proved abortive as none of them was available when he visited the offices of the bank at the Post office and Ganaja junction, Lokoja.
Some of the customers of the bank who spoke with our Correspondent on the issue expressed concern that they could not transact business with the bank as beyond withdrawing money via ATM.
They stressed the need for the two parties to reach amicable resolution for the bank to resume business.
Kogi govt.seals off offices of first generation bank
By Correspondent in Lokoja.
Kogi state government, through its revenue agency; Kogi State Internal Revenue Service (KGIRS), on Monday, sealed off all the offices of First bank in the state over what it described as the refusal of the bank to settle its outstanding tax liabilities.
Speaking with Journalists in Lokoja on issue on Monday, the Director, Legal Services of KGIRS,Bar. Saidu Isah Okino, said the sealing off of the offices of the bank was sequel to the order of the court granting the leave sought by state government to execute warrant of distrain against the bank.
According to Okino, the bank is owing the state government N411,120,966 77 only as outstanding liabilities from 2015 to 2022, adding that all efforts by the revenue agency to make the bank settle the tax liabilities could not yield positive result.
The Director of Legal Services also told the Journalists that having explored all available avenues to get the bank settle the tax liabilities without success,the state government had no option but to approach the court over the issue.
He said the state government then filed an Ex-parte motion,fated August 29,2020 at the Kogi State High Court, Lokoja seeking an order granting leave to it to execute warrant of distrain against the defendant.
Okino added that in the Ex-parte motion was in respect of the bank’s goods,chattels, bonds, security or any other property and/or of distrain upon the land to get the outstanding tax liabilities settled.
According to him, the Ex-parte motion,also affects defendant’s offices located beside Chucks Super Market opposite Post Office, Murtala Mohammed Way, Lokoja and that of Over-head bridge, Ganaja junction, Lokoja.
Others properties of the bank,he added are the defendant’s offices at Okene,beside Old John Holt Limited, along OkeneAuchi-Benin Road, that of Kabba, Steel Complex, Ajaokuta and any other movable property of the bank found within the jurisdiction of Kogi State.
In a statement signed by Eddy Sunday on September 6,2022, entitled Motion No.HCL/457M/2022 for Registrar of the court, a copy of which was made available to The Reporters on Monday, the court granted all the prayers of the state government.
According to Registrar,after hearing the 8 paragraphed supporting affidavits, deposed to by Mohammed Ibrahim and after hearing S.I.Okino, counsel for the applicant , Justice R.O. Ayoola, gave an order granting leave to the state government to execute warrant of distrain against the defendant.
The Court also granted an order to the defendant to bear the cost of executing distrain in pursuance of Section 104(5) of PITA and Section 51(5) of the Kogi State Harmonized Tax Law,2017 as accessed in sum of N250,000.00. per site each day.
Justice Ayoola said the order was for the defendant’s failure and/ or refusal to liquidate her debt to Kogi State Governnent in the sum of N411,120,966.77 only, being the outstanding tax liabilities owed the Kogi State Governnent from.2015 to 2022.
Efforts by our Correspondent to get the comment of the officials of the bank proved abortive as none of them was available when he visited the offices of the bank at the Post office and Ganaja junction, Lokoja.
Some of the customers of the bank who spoke with our Correspondent on the issue expressed concern that they could not transact business with the bank as beyond withdrawing money via ATM.
They stressed the need for the two parties to reach amicable resolution for the bank to resume business.
Edited by Dada Ahmed.
