Law News
Court stops Ebonyi N15bn bond application

THE Government of Ebonyi State led by Martins Elechi, weekend, suffered a major setback, as a Federal High Court sitting in Lagos, restrained the Security and Exchange Commission and Nigerian Stock Exchange, NSE, from approving a N15 billion bond application by the government.

Hon. Odefa Obasi Odefa, through his counsel, Dr Joseph Nwobike, SAN, had prayed the court to restrain the governor of Ebonyi State and its agents from obtaining a new bond without the approval of the state House of Assembly.

In suit No. FHC/L/CS/13/2015,the presiding Judge, Justice I.N Buba while ruling on the matter ordered that the 1st and 2nd defendants which were Securities and Exchange Commission, SEC, and NSE to maintain the status quo and not permit or authorise the governor of the state, government of Ebonyi State, Attorney-General of Ebonyi State, Commissioner for Finance and Ministry of Finance to raise or procure bonds without the prior approval of the State Assembly pending the hearing of the motion on notice at the Federal High Court Abakaliki to be fixed by that court in Abakaliki.

The court also ordered that the certified true copy of its order be served SEC and NSE defendants in Lagos State.

It, however, ordered that the case file be transferred to Abakaliki division not later than today (Monday, February 2, 2015) while the order should also be served all the defendants in Ebonyi.

According to the Judge, “that the 1st and 2nd defendants; the Securities and Exchange Commission and Nigerian Stock Exchange shall maintain the status quo and shall not permit and or authorise the 3rd – 7th defendants to raise and or procure bonds or any other securities in the name of the 4th defendant without the prior approval of the 8th defendant pending the hearing of the motion on notice at the Federal High Court, Abakaliki, to be fixed by that court in Abakaliki.”

 

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