Governors under the auspices of the Nigeria Governors’ Forum (NGF) have expressed discontent over the decision of the minister of finance, budget and national planning, Zainab Ahmed to issue promissory notes in favour of judgment creditors relating to Paris and London Club refunds despite pending court cases.
The governors, in a letter, through their counsel, Femi Falana, said the minister ought to have stayed the execution of judgment connected with payments of legal and consultancy fees arising from London Club Debt Buy Back and London Club Debt Exit Payment, which is the fulcrum of the judgment of the federal high court, Abuja in suit No: FHC/ABJ/CS/130/13 – Linas International Limited & ORS V. the federal government of NIGERIA & ORS.
The NGF noted that the minister was duly served with court processes seeking for stay of execution of, and/or injunction restraining her and others from giving effect to, activating, enforcing and/or further enforcing the judgments of the trial courts pending the determination of the NGF’s appeals.
“Specifically, your office has been served with a hearing notice fixing one of the motions for hearing before the federal high court on 29th of September, 2021,” the letter read.
The NGF said it was therefore amazing to note that despite the service of these processes as well as hearing notice on the minister, the permanent secretary, acting under the minister’s instruction, had directed the debt management office (DMO) to issue promissory notes to contractors and consultants, whose claims were still being challenged and contested in court.
“As you already know, these promissory notes your office is directing the debt management office to issue to these contractors and consultants are to be deducted over a period of ten (10) years from statutory allocations due to the states of the federation.
“It is not only curious but an action in bad taste for your office” that the directive was issued by the minister adding that “It is the height of corruption and lawlessness.”
Continuing the governors noted in the letter that “We need to inform you of your sacred duty of staying action on this matter in view of the injunctive reliefs sought in the processes duly filed in court on these matters.
“It is the law that once an application for injunctive reliefs (such as the one filed by us and already fixed for hearing) is pending in a court of law, parties are barred from engaging in any act that would foist a fiat accompli on the court in respect of that application or action.
“While extending the assurances of our highest regard, we hope you would be guided by the admonition of our highest court as quoted above by withdrawing your directive to the debt management office to issue promissory notes to any contractor and consultant pending the determination of court processes in respect of which your office has been served and notified of their hearing dates.”
Recall that in 2019, the NGF asked for a review of the indebtedness and called for a forensic audit into the agreements leading to the court judgments and had this year, engaged Falana to challenge the judgments awarding some “consultants and contractors” shares of the Paris and London Club refunds received from the federal government by the various states and their local governments.
