Appeal Court Voids EFCC’s Seizure of Ozekhome’s Professional Fees

By Davidson Iriekpen

The Lagos Division of the Court of Appeal Lagos has dismissed the appeal filed by the Economic and Financial Crimes Commission (EFCC) against the judgment of Justice Abdulazuz Anka of the Federal High Court in Lagos, unfreezing the account of a human rights lawyer, Chief Mike Ozekhome (SAN).

Justice Anka had unfrozen Ozekhome’s account in Guaranty Trust Bank and vacated the interim ex parte order he earlier placed on the funds of Mike Ozekhome’s Chambers, at the instance of the EFCC.

The EFCC had obtained the interim ex parte order of forfeiture to freeze the money for 120 days, arguing that the N75million transferred to the account was proceed of unlawful activity, because it was paid to Ozekhome by the then sitting Governor of Ekiti State, Mr. Ayodele Fayose, whom it said it was investigating.

The Court of Appeal in dismissing the appeal brought by the EFCC, held that the anti-graft agency had wrongfully obtained the ex-parte order to freeze the account.

It also held that the lower court lacked the jurisdiction to grant the order, as the defendant could not have committed any infraction to warrant his account being blocked and frozen.

The court after hearing arguments from U. U. Buhari for the EFCC and Ejieke Onuoha for Ozekhome, held that there was uncontroverted evidence shown in the invoices and receipts issued by Ozekhome to Fayose that the said sum represented part payment for his professional fees in the handling of various cases for Fayose across Nigeria.

The case commenced in 2016 when the EFCC through Justice I.B.M Idris, then of the Federal High Court, Lagos, frozen Governor Fayose’s accounts, accusing him of allegedly keeping proceed of unlawful activity.

Fayose immediately engaged Ozekhome’s legal services and he approached the Federal High Court, Ado Ekiti, presided over by Justice Taiwo Taiwo, to challenge the ex parte order granted by Justice Idris.

In a judgment delivered by Justice Taiwo, he found that the freezing order was improperly granted and without jurisdiction in the first place, and upon suppression of material facts.

Fayose after the judgment went to his bank and withdrew N5million naira from his unfrozen account for himself, while transferring N75 million to Ozekhome, as part payment of his professional fees.

The EFCC, though appealed this judgment, still went ahead and froze Ozekhome’s account, contending that the N75 million paid to his chambers by Fayose as professional fees for legal services rendered was proceed of unlawful activity.

Ozekhome filed a motion before the Federal High Court, Lagos, urging it to set aside its earlier order freezing his chambers’ account. He alleged misrepresentation, non-disclosure, suppression of material facts and non-compliance with the rules of the lower court and judicial authorities regulating the grant of ex parte applications by the appellant.

Justice Anka after hearing arguments from Ozekhome and Mr Rotimi Oyedepo for the EFCC vacated the ex parte order and unfroze his account with GTBank.

It was this judgment that the EFCC appealed to the Court of Appeal.

In an unanimous judgment delivered by the presiding judge, Justice Chidi Nwaoma Uwa, with Justices Tunde O. Awotoye and James Gambo Abundaga, they dismissed the appeal and found as of fact that the bank account from which Fayose paid the fees was unencumbered as at the time he did having been defrozen by Justice Taiwo of the Federal High Court, Ado Ekiti.

The court found and held that the said order of Justice Taiwo which had vacated the order of Justice Idris (a court of equal and coordinate jurisdiction remained the extant law as it was still valid, subsisting and binding, having not been set aside by an appellate court or by the trial court itself.

The appellate court also agreed with the lower court and held that from available evidence on record, the disputed amount having already been dissipated by the respondent as at the time it was frozen by the lower court at the instance of the EFCC, the lower court did not have the requisite jurisdiction to have granted such freezing order in the first case.

The court also held that the said sum of N75million was lawful proceed for legal services duly rendered to Fayose by Ozekhome, and not proceed of unlawful activity.