Statutory Corporations (debtors) Law

1. Citation. This Law may be cited as the Statutory Corporations (Debtors) Law.

2. Interpretation. In this Law - “appropriate authority” means the Permanent Secretary, Ministry of Finance or any persons duly authorised by him; “auditor” means the Auditor-General for the Delta State of Nigeria or any other person duly authorised by the Auditor-General; “Corporation” means any Corporation listed in the second column of the First Schedule, and also includes that listed in the Second Schedule; “debtor” means a person, whether dead or living, owing money to a Corporation and shall, where the contexf so admits, include a debtor’s guarantor; “property” includes money, goods, land and every description of property, whether real or personal, and whether situate in the Delta State of Nigeria or elsewhere; also easements and every description of estate, interest and profit, present or future, vested or contingent, arising out of, or incidental to property as above defined.

3. Auditor to issue full statement of account. (1) The auditor, after examining the account of a debtor with a Corporation in respect of any loan given to him, shall issue a full statement of account showing the detailed particulars of the debt, and shall serve the debtor with a copy thereof. (2) The auditor shall thereafter serve the debtor with a notice to show cause why he should not pay the debt disclosed in the statement of account served on him.

4. Debtor to surcharge or falsify. (1) If a debtor is dissatisfied with the statement of account, he may surcharge or falsify the account either by adding items in his favour which were wrongly omitted or by striking out items against himself which were wrongly inserted. (2) Where a debtor wishes to surcharge or falsify an account, he shall, within fifteen days of his being served with the statement of account, return to the auditor an amended statement of account. (3) The debtor shall specify the errors on which he relies and the amended statement of account must show clearly what balance is due, or that no balance is due. (4) If a debtor, within fifteen days of being served with the statement of account, fails to surcharge or falsify the account or dispute it in any other way, he shall be deemed to have accepted the statement of account as correct. (5) On the application of a debtor, the auditor shall be entitled to require from any officer of a Corporation such books, deeds, contracts, - accounts, vouchers, receipts and other documents, and such information and explanation as may be necessary to assist the debtor in falsifying or surcharging the Corporation’s statement of account. (6) The burden shall be on a debtor to prove a surcharge or a falsification of the Corporation’s account. (7) A debtor’s personal representative shall be at liberty to do all such things as the debtor, if alive, is empowered to do under the provisions of this Law.

5. Auditor to certify debt. (1) The auditor shall certify the debt due from the debtor to the Corporation and shall issue a certificate accordingly. (2) Where a debtor furnishes an amended statement of account and the auditor accepts it as correct, the auditor’s certificate shall be based on that amended statement of account. (3) The certificate of the auditor shall be deemed to be, and shall have the effect of a judgment of a court of competent jurisdiction. (4) A copy of the certificate of the auditor shall be served on the debtor before it is filed.

6. Recovery of sums due. (1) Any sum which is certified by the auditor to be due from a debtor to a Corporate on ‘shall forthwith’ become payable by the debtor to the accountant or fishier of the Corporation and shall be recoverable in the manner hereinafter stated. (2) The appropriate authority may register a certificate signed by the auditor giving the name and address of the debtor concerned and the amount of debt owing, in a High Court of competent jurisdiction in the same manner as a judgment obtained in another State may be registered. (3) The auditor’s certificate shall be in the form set forth in Form I of the Third Schedule to this Law. (4) The appropriate authority shall annex to a certificate filed by it a list of the known property and assets of the debtor. (5) Upon the filing of the certificate hereinbefore referred to, the property and assets enumerated in the list annexed to the certificate shall be deemed to have been attached for sale as if same had been attached under the Sheriffs and Civil Process Law, and the sale thereof may proceed in accordance with the provisions of the said Law and the Judgments (Enforcement) Rules. [Cap. S3] (6) An application for a stay of execution shall not prevent a sheriff from carrying out a sale under the provisions of the last preceding subsection unless there is an interim order by a judge staying execution.

7. Mode of service. Every service required by or for the purposes of this Law shall be by pre-paid registered post, and a debtor, whether dead or living, shall be deemed to have been served on the date a document is posted to his last known place of abode.

8. Appeals. (1) Any person who is aggrieved by the decision of the auditor may within fifteen days of the said decision appeal to the High Court. (2) Any person desiring to appeal against the decision of the auditor shall commence his appeal by filing in the appropriate court a notice of appeal in the form set forth in Form II of the Third Schedule to this Law. (3) The High Court may, in the exercise of its appellate jurisdiction- (a) vary or reverse the decision of the auditor if, in the opinion of the court the auditor erred by rejecting the debtor’s surcharge or falsification of the Corporation’s account; or (b) remit the case to the auditor with such directions as the Justice of the case may require. (4) The decisions of the High Court shall be final.

9. Formal defect not to invalidate proceedings. (1) No proceeding under this Law shall be varied or declared void solely by reason of any formal defect or any irregularity, unless the court before which an objection is made is of the opinion that substantial injustice has been caused by any defect or irregularity, and that the injustice cannot be remedied by any order of the court. (2) No defect or irregularity in the appointment of an officer of a Corporation shall vitiate any act done by him in good faith.

10. Certain provisions not to bind Corporations. Save as provided in this Law, the provisions of any other Law or enactment relating to the remedies against the property of a debtor, the priorities of debts, the effect of a composition or scheme of arrangement, and the effect of a discharge shall not bind the Corporation.

11. Extent and application. (1) For the avoidance of doubt, the provisions of this Law shall also apply and extend - (a) to all debts, which fell due, and became payable on 8th August, 1963, to the Corporations listed in the first column of the First Schedule; (b) to all debtors, who were on 8th August, 1963, still owing the Corporations listed in the first column of the First Schedule various sums of money. (2) For the further avoidance of doubt, it is hereby declared that all debts owing to any of the Corporations listed in the first column of the First Schedule before 9th August, 1963 - (a) by any debtor whose usual place of abode was, immediately before 9th August, 1963, within the area now known as the Delta State of Nigeria; or (b) with respect to any project or enterprise within the aforesaid area, shall be deemed to be owing to the Corporations listed opposite, in the second column of the said Schedule.

12. Transfers by debtor null and void. Any sale or disposition made by a debtor of any right or interest in and over any property which forms the security for the debt owing to a Corporation shall, as against the Corporation, be deemed to be null and void. Schedule 1 STATUTORY CORPORATIONS (DEBTORS) LAW [Section 2] List of Statutory Corporations First Column Second Column

1. Western Nigeria Development Corporation

2. Western Nigeria Finance Corporation Ministry of Finance Incorporated

4. Western Nigeria Marketing Board Delta State Marketing Board Schedule 2 STATUTORY CORPORATIONS (DEBTORS) LAW [Section 2] Further Statutory Corporation Ministry of Finance Incorporated Schedule 3 STATUTORY CORPORATIONS (DEBTORS) LAW [Sections 6 (3) and 8 (2).] Forms FORM 1 Certificate No.............. I, .............................. Auditor-General, Delta Stale of Nigeria, having examined the account of Mr/Mrs/Mis ....................... with the Corporation/Board in respect of a loan given to him/her by the said Corporation Board, do hereby certify that the sums of .... made up as hereunder is now due from the said Mr/Mrs/Miss ............... to the said Corporation. Particulars of amount due as at .................., 20 ........... PrincipalLoan.................................................................................... Accrued Interest............................................................................... Signature...................................... Auditor-General Delta State of Nigeria FORM II Notice of Appeal BETWEEN: ...................................... Appellant and ............................... Respondent TAKE NOTICE that I, Mr/Mrs/Miss.......................................... being dissatisfied with the decision ofthe Auditor-General, Delta State of Nigeria contained in Certificate No............................. dated the................ of ...........................................20....................do hereby appeal to the High Court on the grounds set forth hereunder. Grounds of Appeal - (i) ...................................................... (ii) ..................................................... DATED this........................................... day of......................... 20............. ........................... Appellant