Supreme Court rules freezing bank accounts of terror suspects is illegal

Published on Wednesday 27 January 2010 21:57

THE Supreme Court yesterday ruled that the government broke the law in freezing the assets of terrorism suspects, as it did not have parliament's approval.

In a landmark ruling, the court said that ministers had acted without the authority of parliament in placing financial restrictions on five suspects.

In response, ministers promised new "fast-track legislation" to comply with the ruling.

A panel of seven justices allowed a challenge by five men who had all their assets frozen.

The 2006 orders were made in response to UN Security Council resolutions calling for steps to be taken to hit the financing of international terrorism.

However, the orders were not voted on in parliament. Yesterday, the Supreme Court ruled the Treasury had exceeded its powers and the orders were unlawful.

The justices declared that if the government considered such "far-reaching measures" were necessary to combat terrorism, "it must first obtain approval for them from parliament".

Later, a Treasury spokesman said:

"We will introduce fast-track legislation to ensure there is no disruption to our terrorist asset-freezing powers."

The justices said the orders placed very severe limitations on the ability of persons who had been designated terror suspects to deal with their own property.

They said the orders had an extremely grave effect on an individual's freedom of movement, liberty and private life – and also the liberty of their families and associates.

Lord Hope, one of the panel, said: "Even in the face of the threat of international terrorism, the safety of the people is not the supreme law.

"We must be just as careful to guard against unrestrained encroachments on personal liberty."

Conferring an unlimited discretion on the government as to how the UN resolutions should be implemented was "wholly unacceptable" and "conflicts with the basic rules that lie at the heart of our democracy".

The judges also allowed an application by the media for the right to name the five applicants, who have previously been the subjects of anonymity orders.

They are Mohammed al-Ghabra; Hani el Sayed Sabbaei Youssef; Michael Marteen – formerly known as Mohammed Tunveer Ahmed; Mohammed Jabar Ahmed; and Mohammed Azmir Khan.

More than 50 people living in Britain are believed to be on the Treasury sanctions list.

They all have to apply to the Treasury for permission to spend money, even on groceries, and anyone who provides them with "an economic resource" is liable to criminal proceedings and a jail sentence.

Liberal Democrat home affairs spokesman Chris Huhne said: "Hot on the heels of the control orders embarrassment, another dubious government measure has been deservedly slapped down by our courts.

"The government's desperation to circumvent parliament is creating bad laws, legal defeats and hefty bills for the taxpayer. It has to stop."