BREAKING: GROUP DRAGS AMAC CHAIRMAN, OTHERS TO COURT OVER ILLEGAL COLLECTION OF COMMUNITY DEVELOPMENT LEVIES FROM ABUJA RESIDENTS
… SEEKS FREEZING ORDER AGAINST ZENITH BANK PLC
The Incorporated Trustees of Global Integrity Crusade Network has on Friday, 23rd August 2024 filed an Originating Summons against Abuja Municipal Area Council as well as its Executive Chairman, Hon. Christopher Zakka Maikalangu over illegal collection of Community Development Levies. In the suit marked CV/3763/2024 the Claimant sued Omafit World Integrated Limited, the Technical Partner to AMAC as 3rd Defendant while Mr. Okon Mkpafit, the Honourable Minister of FCT, Attorney-General of the Federation and Zenith Bank Plc were named as 4th, 5th, 6th and 7th Defendants respectively.
Copy of the Originating Summons obtained by journalists shows that the Claimant is seeking the following reliefs jointly and severally against all the Defendants:
“a) A DECLARATION that by the interpretation of Section 7 and Part II of the Fourth Schedule to the 1999 Constitution of the Federal Republic of Nigeria (as amended), Local Government Act 1976, Local Government Act, Laws of FCT Abuja 2006 read together with the Abuja Municipal Area Council Community Development Levy and Allied Matters Bye-Law (No. 14B, 2019), it is illegal, improper, unjustified, null and void for the 1st and 2nd Defendants to partner with the 3rd and 4th Defendants and collect Community Development Levies from residents within the Abuja Municipal Area Council above the stipulated sum of N1,000 (One Thousand Naira).
b) AN ORDER OF INJUNCTION perpetually restraining the 1st, 2nd, 3rd and 4th Defendants from continuing with the collection of Community Development Levies from residents within the Abuja Municipal Area Council above the stipulated sum of N1,000 (One Thousand Naira) on the ground that such collection is illegal, improper, unjustified, null and void having breached the Abuja Municipal Area Council Community Development Levy and Allied Matters Bye-Law (No. 14B, 2019).
c) AN ORDER FREEZING the account held by the 1st Defendant with the 7th Defendant to wit; Abuja Municipal Area Council Revenue Account – 1312542950 COMMUNITY DEVELOPMENT LEVY which the 1st, 2nd, 3rd and 4th Defendants have been using to collect Community Development Levies from residents within the Abuja Municipal Area Council in order to preserve the subject matter (money deposited in the account).
d) AN ORDER COMPELLING the 1st, 2nd, 3rd and 4th Defendants to forthwith refund all Community Development Levies collected from residents within Abuja Municipal Area Council above the stipulated sum of N1,000 (One Thousand Naira) from 2023 till the date judgment is delivered in this suit on the ground that such collection is illegal, improper, unjustified, null and void having breached the Abuja Municipal Area Council Community Development Levy and Allied Matters Bye-Law (No. 14B, 2019).
e) AN ORDER DIRECTING the 5th and 6th Defendants being the administrator of the Federal Capital Territory and Chief Law Officer of the Federation respectively to monitor the activities of the 2nd Defendant to ensure that the 2nd Defendant forever refrain from collecting Community Development Levies from the residents within the Abuja Municipal Area Council above the stipulated sum of N1,000 (One Thousand Naira) in contravention of the Abuja Municipal Area Council Community Development Levy and Allied Matters Bye-Law (No. 14B, 2019).
f) AN ORDER FOR EXEMPLARY DAMAGES in the sum of N1,500,000,000 (One Billion, Five Hundred Million Naira) against the 1st, 2nd, 3rd and 4th Defendants for illegally collecting Community Development Levies from residents within the Abuja Municipal Area Council above the stipulated sum of N1,000 (One Thousand Naira) in contravention of the Abuja Municipal Area Council Community Development Levy and Allied Matters Bye-Law (No. 14B, 2019).
g) COSTS of N500,000,000 (Five Hundred Million Naira) in favour of the Claimant to cover expenses for instituting and prosecuting this action.
h) AND any further Order or Orders as the Honourable Court may deem expedient to make in the circumstances of this case.”
Part of the affidavit deposed to by Edward Omaga Esq., the Chairman Board of Trustees/President of the Claimant in support of the Originating Summons reads:
“2) That the Claimant is a pro-democracy, anti-corruption and human right Civil Society Organization registered at the Corporate Affairs Commission, Abuja on 9th January, 2018 with CAC/1T/No. 104969. Certificate of Incorporation of the Claimant is attached as EXHIBIT GICN 2.
3) That the Claimant is mandated by virtue of its incorporation to, amongst other things, advocate for integrity, justice, probity and transparency in public offices whilst upholding the principles of peace, rule of law, good governance and sustainable development in Nigeria. Copies of the Constitution and Status Report of the Claimant are attached as EXHIBITS GICN 3 and GICN 4, respectively.
4) That the Claimant being a non-profit, non-governmental and non-partisan organization is also registered at the Special Control Unit Against Money Laundering (SCUML), an arm of the Economic and Financial Crimes Commission (EFCC) with number RN: SC 151407936. Copy of the SCUML Certificate is attached as EXHIBIT GICN 5.
5) That by virtue of my aforesaid position I am familiar with the facts deposed hereto which are within my personal knowledge, save as otherwise stated.
6) That I have the consent, authority and permission of other Trustees of the Claimant being my colleagues to depose to this affidavit.
7) That the Claimant mainly consisting of Legal Practitioners, Paralegals, Background Check Experts, Private Investigators, Human Right Activists, Media Practitioners and Policy Analysts is equally dedicated to supporting the effort of government to stamp out corruption, terrorism and economic sabotage from Nigeria for the betterment of the poor masses.
8) That the Claimant has been monitoring the activities of politicians and public office holders, particularly their level of compliance with the relevant laws regulating activities at the Federal, State and Local Government levels in Nigeria.
9) That this suit is predicated upon the belief by the Claimant that public office must be held in trust for the masses and should not be abused for personal benefits under any guise whatsoever.
10. That the 1st Defendant is a creation of Section 7 of the 1999 Constitution of the Federal Republic of Nigeria (as amended), Local Government Act 1976, Local Government Act, Laws of FCT Abuja 2006 and saddled with various functions, including urban planning, waste management, public health, education, transportation and social welfare.
11. That the 1st Defendant is expected to be administered in such as a way as to ensure the wellbeing and good quality of life for the residents within its 12 (Twelve) Council Wards without any form of discrimination on the basis of tribe, religion or political affiliation.
12. That the 2nd Defendant is the Executive Chairman of the 1st Defendant who was born on 23rd December, 1978 to the family of Zakka Tukura Sofu Maikalangu of Garki Village, FCT-Abuja within the jurisdiction of this Honourable Court.
13. That the 3rd Defendant is an Abuja-based Limited Liability Company with Registration Number 1757746 which was registered on 16th February, 2021 to carry on the business of General Contracts, amongst others. Status Report of the 3rd Defendant is attached as EXHIBIT GICN 6.
14. That the 4th Defendant is Managing Director/Chief Executive, Controller and Alter Ego of the 3rd Defendant being that he holds 800,000 out of the total 1,000,000 Ordinary Shares of the 3rd Defendant company.
The affidavit states further that;
“15. That the 5th Defendant is an appointee of the President of Nigeria and heads the Federal Capital Territory under which the 1st Defendant exists as one of its 6 (Six) Area Councils.
16. That the 6th Defendant is the Chief Law Officer of the Federation who is saddled with the duties of prosecuting offenders on behalf of the Federal Government and advising the President on all legal related matters.
17. That the 7th Defendant is a Nigerian multinational financial services provider licensed as a commercial bank with business office in Abuja, within the jurisdiction of this Honourable Court.
18. That I am aware that Community Tax/Development Levy is a revenue item contained in the Abuja Municipal Area Council Community Development Levy and Allied Matters Bye-Law (No. 14B, 2019) but was never harnessed till sometime in 2023 when the 2nd Defendant assumed office as Executive Chairman of the 2nd Defendant.
19. That the First Schedule to the said the Abuja Municipal Area Council Community Development Levy and Allied Matters Bye-Law (No. 14B, 2019) stipulates that individuals and corporate bodies resident within Abuja Municipal Area Council shall pay the sum of N1,000 (One Thousand) each as annual Community Tax. The Bye-Law is attached as EXHIBIT GICN 7.
20. That by a Demand Notice dated 26th July, 2024 the 1st and 2nd Defendants acting through the 3rd and 4th Defendants as their Technical Partners wrote to Furniture House located at 3rd Avenue, Gwarimpa, FCT-Abuja asking for the sum of N5,000,000 (Five Million Naira) as Community Development Levy covering the year 2024. Copy of the said Demand Notice is attached as EXHIBIT GICN 8.
21.That by another Demand Notice dated 19th August, 2024 the 1st and 2nd Defendants acting through the 3rd and 4th Defendants as their Technical Partners wrote to the Manager, Waffle Way located at Gana Street, Maitama, FCT-Abuja asking for the sum of N40,000 (Forty Thousand Naira) as Community Development Levy covering the year 2024. Copy of the said Demand Notice is attached as EXHIBIT GICN 9.
22. That I am also aware that the 1st and 2nd Defendants acting through the 3rd and 4th Defendants as their Technical Partners have sent Demand Letters to Julius Berger Nigeria Plc, Gilmore Nigeria Limited, Dantata & Sawoe, Arab Contractors Nigeria Limited and Setraco Nigeria Limited asking for humongous amounts ranging from N30,000,000 (Thirty Million Naira), N50,000,000 (Fifty Million Naira), N70,000,000 (Seventy Million Naira) to N100,000,000 (One Hundred Million Naira).
23. That the illegal actions of the 1st, 2nd, 3rd and 4th Defendants as chronicled above have caused severe damage, financial loss and emotional trauma to residents and business owners within the Abuja Municipal Area Council.
25. That unless and until the 1st, 2nd, 3rd and 4th Defendants are curtailed as a matter of urgency they will stop at nothing to also serve the Claimant a Demand Notice asking for an amount above the N1,000 (One Thousand Naira) stipulated in the Abuja Municipal Area Council Community Development Levy and Allied Matters Bye-Law (No. 14B, 2019).
26. That it is important for this Honourable Court being the last hope of the common man to declare that the 1st and 2nd Defendants have acted outside the powers conferred on them by Section 7 and Part II of the Fourth Schedule to the 1999 Constitution of the Federal Republic of Nigeria (as amended), Local Government Act 1976, Local Government Act, Laws of FCT Abuja 2006 read together with the Abuja Municipal Area Council Community Development Levy and Allied Matters Bye-Law (No. 14B, 2019) by collecting Community Development Levies from residents within the Abuja Municipal Area Council above the legally stipulated sum of N1,000 (One Thousand Naira).
27. That this Honourable Court is entitled to grant an injunction perpetually restraining the 1st, 2nd, 3rd and 4th Defendants from continuing with the collection of Community Development Levies from residents within the Abuja Municipal Area Council above the stipulated sum of N1,000 (One Thousand Naira) on the ground that such collection is illegal, improper, unjustified, null and void having breached the Abuja Municipal Area Council Community Development Levy and Allied Matters Bye-Law (No. 14B, 2019).
28. That this Honourable Court also is entitled to grant an order freezing the account held by the 1st Defendant with the 7th Defendant to wit; Abuja Municipal Area Council Revenue Account – 1312542950 COMMUNITY DEVELOPMENT LEVY which the 1st, 2nd, 3rd and 4th Defendants have been using to collect Community Development Levies from residents within the Abuja Municipal Area Council in order to preserve the subject matter (money deposited in the account).
29. That the interest of justice will be better served if this Honourable Court grants an order compelling the 1st, 2nd, 3rd and 4th Defendants to forthwith refund all Community Development Levies collected from residents within Abuja Municipal Area Council above the stipulated sum of N1,000 (One Thousand Naira) from 2023 till the date judgment is delivered in this suit on the ground that such collection is illegal, improper, unjustified, null and void having breached the Abuja Municipal Area Council Community Development Levy and Allied Matters Bye-Law (No. 14B, 2019).
30. That this Honourable Court can conveniently grant an order directing the 5th and 6th Defendants being the administrator of the Federal Capital Territory and Chief Law Officer of the Federation respectively to monitor the activities of the 2nd Defendant to ensure that the 2nd Defendant forever refrain from collecting Community Development Levies from the residents within the Abuja Municipal Area Council above the stipulated sum of N1,000 (One Thousand Naira) in contravention of the Abuja Municipal Area Council Community Development Levy and Allied Matters Bye-Law (No. 14B, 2019).
31. That the 1st, 2nd, 3rd and 4th Defendants ought to pay exemplary damages in the sum of N1,500,000,000 (One Billion, Five Hundred Million Naira) to the Claimant for illegally collecting Community Development Levies from residents within the Abuja Municipal Area Council above the stipulated sum of N1,000 (One Thousand Naira) in contravention of the Abuja Municipal Area Council Community Development Levy and Allied Matters Bye-Law (No. 14B, 2019).
32. That I know as a fact that the Claimant has incurred costs to the tune of N500,000,000 (Five Hundred Million Naira) which cover expenses for instituting and prosecuting this action and it is important that this Honourable Court award same in favour of the Claimant.
33. That it will be in the interest of justice, equity and fairness if all the reliefs sought by the Claimant in the Originating Summons are duly considered and granted by this Honourable Court.”
No date has been fixed yet for hearing of the suit. However, the 1st, 2nd, 3rd and 4th Defendants have been served advance copies of the suit so they can maintain status quo pending when the Honourable Court orders otherwise.
In an earlier development, the Executive Chairman of AMAC, Hon. Christopher Zakka Maikalangu had on Wednesday 21st August 2024 issued a Press Statement regarding this issue. He said that the Council did not empower any Technical Partner to generate revenue on Community Development Levy. According to him, anyone who goes about asking for such levy should be treated as a criminal. The whole drama is becoming interesting, as some of the Demand Notices sent to residents so far and sighted by journalists are on the letterheads of AMAC.
