The Nigeria Governors’ Forum (NGF) has kicked against an alleged plan by the Attorney General of the Federation (AGF), Abubakar Malami and Minister of Finance and National Planning, Zainab Ahmed to deduct $418 million from the federation account to settle the controversial Paris Club debt.
The governors’ protest was contained in a letter dated August 1 and addressed to secretary to the government of the federation (SGF), Boss Mustapha.
They lamented that the two ministers were attempting 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 $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 NGF chairman, Kayode Fayemi, and governor of Ekiti, 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 and that 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.”
The governors also called the attention of FEC to what they termed “undue haste” in which the payment of the contractors in the Paris Club refund has been pursued and processed by the AGF and HMF, adding that it 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.
