Why CBN Can’t Freeze Our Accounts – Polaris Bank

Why CBN Can't Freeze Our Accounts -Polaris Bank

The Central Bank of Nigeria (CBN) cannot freeze our accounts in spite of an order from an Ondo state High Court for the apex financial institution to do so. This is according to Polaris Bank.

It would be recalled that the court in Akure, Ondo State capital, granted a garnishee order directing the Central Bank of Nigeria to freeze the account of Polaris Bank to the extent of a judgment debt of over N2 billion.

The bank was said to have owed the Ondo State government a sum of N2.2 billion.

It was widely reported that the court gave the order following an application moved by the Attorney General and Commissioner for Justice in Ondo State, Charles Titiloye, who applied for the ‘garnishee order nisi’ in the suit No AK/75/2017, where he attached all the sums of indebtedness of Polaris Bank to the government.

BizWatch Nigeria understands a garnishee order to be one of the options open to a judgment creditor to enforce a judgment that has been made in its favour.

Explaining the situation on the ground, Polaris Bank, in a statement, said it is yet to be served the Garnishee Order as required by law relating to Garnishee proceedings.

“We are aware of the matter and our Solicitor has filed the necessary processes to set aside the Garnishee order.

“The matter is on appeal and an application for a stay of execution is pending at the Court of Appeal. Thus, the garnishee order ought not to have been obtained by the reason of the pending appeal and motion for stay.

“Above all, the effect of the order is not to freeze the Bank’s account with CBN as erroneously published by a section of the media but to set aside the contentious judgment sum until the conclusion of hearing in the case,” the statement read.

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