The Nigeria Governors’ Forum (NGF) has raised the alarm over
a purported attempt to deduct $418 million from the federation account to
settle the controversial Paris Club debt.
The governors said this in a letter dated August 1 and
addressed to Boss Mustapha, secretary to the government of the federation
(SGF).
They alleged that the plan is spearheaded by Abubakar
Malami, attorney general of the federation (AGF), and Zainab Ahmed, finance
minister.
“The attention of the NGF has been drawn to yet another attempt
by the Attorney General of the Federation (AGF) and the Minister of Finance
(HMF) to circumvent the law and the recent judgment of the Supreme Court by
surreptitiously securing the approval of the FEC to effect payment of the sum
of $418 million to four contractors who allegedly executed contracts in respect
of the Paris Club refunds to the states and local governments,” the letter,
signed by Kayode Fayemi, NGF chairman and governor of Ekiti, reads.
“It would be recalled
that an earlier approval of Mr. President under the instrumentality of the AGF
and HMF to pay the said sum to the contractors through the issuance of
promissory notes had met stiff resistance by the 36 state governors who
approached the court for redress through their Attorneys-General.
“The matter is currently pending on appeal at the court of
appeal in Abuja for hearing.”
“Significantly, the governors said that while the appeal is
pending, one of the contractors, who is a beneficiary of the promissory notes
for $142,028,941.95, Riok Nigeria Limited, and who had lost at the court of
appeal, further appealed to the supreme court, in suit no: SC 337/2018.
“The supreme court on
June 3, 2022, also dismissed Riok’s appeal as lacking in merit. The SC had on
the occasion made clear that neither the NGF nor ALGON have the power to award
contracts and charge the same directly to the federation account as done in
this case. The SC specifically held on page 43 that:
“The funds belonging to a state or local government must be
kept in an account belonging to the state or local government as the case may
be, and disbursed or expended by the state strictly in the manner and for the
purposes prescribed in the constitution and an appropriation law or as
prescribed by the house of assembly of the State and in the manner and for
purposes prescribed in the constitution, a local government law or as
prescribed by the council of the local government.”
According to the governors, the dismissal of RIOK’S case by
the court also affected the payment of $1,219,440.45 and $215,195.36 to two
private lawyers to RIOK, Nwafor Orizu and Olaitan Bello who are also
beneficiaries of promissory notes by the Debt Management Office (DMO).
Besides RIOK and the two lawyers, the NGF added that the
states had also challenged either on appeal or in other courts the claims by
the other contractors including Dr Ted Isighohi Edwards ($159,000,000), Ned
Nwoko ($68,658,192.83) and Panic Alert Security Systems Ltd ($47,831,920).
“These cases are pending and no steps ought to be taken to
enforce the Judgment and alter the status quo until the matters are fully
determined. A caveat issued to restrain all parties concerned and the public
from dealing or honouring promissory notes issued had earlier been published,”
the NGF added.
“The purport and essence of the definitive pronouncement by
the SC is that none of the contractors recommended for payment of the sum of
$418 Million by the AGF and HMF can be so paid because the contracts and
payments relied upon were not processed as prescribed by the Constitution and
the law.
“The funds certainly cannot be accessed through the
federation account as vigorously pursued by the AGF and HMF.
“FEC may also wish to note that the undue haste in which the
payment of the contractors in the Paris Club refund has been pursued and
processed by the AGF and HMF has already created the impression in the
discerning minds of the public that it would appear that the interest of contractors
takes precedence over and above the welfare and interest of the general public
whom the senior officials of government had sworn to defend and protect.”
Over the years, the controversial payment of $418 million to
consultants over the Paris Club refund had become a contentious issue between
the three tiers of government.
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The AGF and HMF have hidden interests and should be investigated and more so , the manner by which the contracts were awarded are questionable and lacks merit.
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