Ondo communities drag government, commission to court over unremitted funds
Two indigenes of Ilaje Local Government Area of Ondo state, Olona Mathew Eniola and Jerry Okuntade have dragged the Ondo State government and Ondo State Oil Producing Area Development Commission (OSOPADEC), to court over failure to remit 40 per cent of the 13 per cent oil derivation funds accruable to the commission’s account.
The duo has dragged the state governor, govt of Ondo state, the Attorney General and OSOPADEC to court over failure of the defendants to remit the full fund accruable to the commission, describing it as unconstitutional.
The claimants stated that the commission, OSOPADEC, which was saddled with the responsibilities of initiating developmental projects in the region has failed to live up to the expectations of the people and has not initiated development projects in the oil-producing communities of Ilaje.
They argued that the 40 per cent of the 13 per cent oil derivation funds accrued to the state should have been paid to OSOPADEC as a first-line charge, but said the non-remittance of the full sum accruable to the commission is unconstitutional.
In the originating summons, the indigenes of the communities demanded to know if the combined provisions of S. 162(2) CFRN. S. 6(i)(a&b). S. 10(i)(a) of the OSOPADEC LAW, CAP, 106 LAWS of Ondo State 2006, the 40 per cent of the 13 per cent Oil derivation funds accruable to the fourth defendant is not on a first-line charge to be received, administered and managed exclusively by OSOPADEC.
“Whether the first to third defendants can apply or expand the 40 per cent of the 13 per cent oil derivation funds accruable to the fourth defendant or any portion thereof, on any heading of expenditure outside the budget of OSOPADEC as passed by the Ondo State House of Assembly and assented to by the first Respondent.
“Whether the first to fourth defendants does not owe the duty of care to provide developmental projects to the claimants’ communities by virtue of the Ondo State Oil Producing Areas Development Commission Law, Cap 106, Laws of Ondo State, 2006”.
Also, “whether the continued application and diversion of the 40 per cent of the 13 per cent oil derivation funds statutorily provided for fourth defendants or any portion therefore by the first to third defendants on any other heading of expenditure outside the OSOPADEC budget is not unlawful and a breach of trust”
In the 10 page legal documents, the claimants sought ten reliefs in the suit, in support with an affidavit deposed before the court, with a declaration that the 40 per cent of the 13 per cent oil derivation funds accruing to the Ondo State Oil Producing Areas Development Commission by virtue of S. 6(i)(a&b). S. 10(i)(a) of the OSOPADEC LAW, CAP, 106 LAWS of Ondo State 2006 should be accrued to the fourth defendant as a first liner charge.
The claimants also sought an order from the court compelling the first to fourth defendants jointly or severally, to make full public disclosure to the oil-producing communities of Ilaje local government area of the state of all the monies amounting to 40 per cent of the 13 per cent derivation fund accruable to Ondo State to be applied by the fourth defendant for the benefit of the claimants’ communities from the federation account from January 2001 when the commission’s law was enacted till date.
They prayed the court to restrain “the first to third defendants from tempering, diverting and howsoever expanding, the 40 per cent of the 13 per cent derivation fund accruable to Ondo State to be applied by the fourth defendant from the federation account, except in accordance with the provision of Ondo State Oil Producing Areas Development Commission Law Cap 106 Laws of Ondo State”
The claimants added that the court should also restrain the first to fourth defendants from further appropriating or expanding the fund accruable or any portion thereof on any project outside the 4th defendant’s mandate area as defined by the established law.
They also prayed the court to compel the first to third defendants to remit into the account of the fourth defendant an amount totalling One Hundred and Five Billion, Sixty-Two Million, Seven Hundred and Sixty-Three Thousand, Five Hundred and Eight Two Naira, Sixty Kobo (N105,062,763,582:60) only being shortfalls of the statutory transfer accruing to the fourth defendant being the 40 per cent of the 13 per cent oil derivation funds from 2001 till date with interest calculated at the current interest rate of CBN.
The Court has fixed September 16, 2020, for hearing.
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