A Federal High Court in
Lagos has restrained the Financial Reporting Council of Nigeria (FRCN) from further investigating the suspended Central Bank of Nigeria (CBN) Governor, Malam Sanusi Lamido Sanusi.
Reports say that Sanusi had on March 26, filed a suit through his counsel, Mr Kola Awodehin (SAN), seeking a declaration that the FRCN, constituting itself into an investigating body in a manner contained in some newspaper publications of March 24, ultra vires its powers.
Joined in the suit as 1st and 2nd defendants are; the FRCN and the Executive Secretary of the council.
In the suit, the plaintiff also maintained that the council’s declaration in a briefing note dated June 7, 2013, and submitted to the President, ultra vires its powers as contained in the FRCN Act, 2011.
He prayed the court to restrain the defendants or any person, body, agent, or privies, under its authority, or pursuant to the FRCN Act, from conducting and continuing any investigation or inquiry against him as advertised.
The defendants, however, filed a preliminary objection challenging the jurisdiction of the court to hear the suit.
In his ruling, Justice James Tsoho, however, held that the court had jurisdiction to determine the matter as raised in the preliminary objection made by the defendant’s counsel, Mr Mohammed Ajibola (SAN).
He held that the role played by the FRCN and the language of the briefing note by the defendant revealed that the defendants had already decided the fate of the plaintiff.
The judge said the fact that the plaintiff was not called upon to make representation in the matters contained in the briefing notes, connoted prejudice.
While granting all the relief sought by the plaintiff in his suit, Tsoho held that the council acted beyond the scope of its power (ultra vires) to investigate the plaintiff.
He said that although the FRCN Act conferred it with investigative powers, such powers should be limited to the object and purpose of the Act.
The judge also ruled that the Act did not confer absolute powers on the FRCN and its executive secretary to investigate the plaintiff.
He held that the practise, according to the Act, should be for a professional accountant to relate any irregularity in the financial statement of the CBN to the FRCN.
He also ruled that such investigations must be conducted in line with the rules of natural justice, adding that the rules of natural justice and fair hearing were not complied with.
He said issues of bias was seen in the manner the investigation was conducted, and therefore restrained the council from further investigating the suspended CBN governor.