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Saturday, April 27, 2024

Nigerian governors explain fight with Malami on $418m Paris Club refund

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Nigerian state governors have released details of their battle against Attorney-General of the Federation and Minister of Justice, Mr. Abubakar Malami (SAN)

The Nation reports that a document containing the details has been forwarded to the presidency, key government officials, stakeholders, and opinion leaders across the land.

The governors are fighting to stop the deduction of $418 million of their statutory allocations from source.

The governors, under the umbrella of the Nigeria Governors’ Forum (NGF), also disclosed the whole truth, revealing why the cash should not be paid to any consultant until the case is decided by the Supreme Court.

According to them, neither the 36 states nor the NGF was privy to the contract and the states and the governors’ body were not parties to the suits.

They said there was no order against the states and the NGF in the said judgment.

According to them, the contracts allegedly executed were for the benefit of local government areas.

They queried why the Federal Government on October 22, 2021, suddenly came up at the Federation Account Allocation Committee (FAAC) meeting to deduct $418 million as first line charge from the allocations due to them from the Federation Account.

The planned proposed deductions by the Federal Government, they said, contradict Section 120 and 162 of the 1999 Constitution.

They said the AGF contradicted himself by advising the President to approve the payment of the controversial $418 million.

In a letter to the President on October 9, 2018, the same Malami advised the President to allow any payment relating to the $418 million to await the outcome of the case before the appellate court.

Having won a case at the Supreme Court on June 3 against one of the consultants, the governors asked why Malami will not allow the legal process to run its full course on other cases connected with the controversial fee.

They also said a report by the Economic and Financial Crimes Commission (EFCC) on August 1, 2018 faulted the Office of the AGF for abandoning or not filing appeal on some of the cases which led to the demand of the $418 million.

The governors said the EFCC’s report also indicted some of the consultants for not rendering any service to warrant payment of the $418 million.

The said contracts were between three consultants and the Association of Local Governments of Nigeria (ALGON) for the recovery of the Paris Club Debt refund of about $3, 188, 078, 505.96 ($3.188 billion).

The consultants demanding payment of $418m from the states are: Linas Nigeria Limited (20% of $3, 188, 078, 505.96); Riok Nigeria Limited (25% of $3, 188, 078, 505.96); a former Secretary of ALGON, Dr. Ted Iseghohi-Edwards (awarded the sum of $318,807,950.59 as 10%).

The fourth case was about $68,658,192.83, which was the outstanding of a partially executed Judgment sum arising from Suit No.: FHC/ABJ/CS/148/2017 in Suit FHC/ABJ/CS/148/2017; Hon Ned Munir Nwoko vs. Nigeria Governors Forum & Ors.

The governors said the states and the NGF were not privy to the said appointment of the consultants by ALGON and were not parties to the case leading up to some judgments.

They, however, admitted that the NGF only entered into an out-of-court settlement of the case with Nwoko pursuant to which the terms of settlement dated 3rd May 3, 2017, was filed.

But they said that there were no liabilities accepted and or assumed on the Federal Government of Nigeria and the Federal Government agencies involved in the suit.

There was also the case of Panic Alerts Security Systems Limited and George Uboh v. the Nigerian Governors Forum (NGF and others)

 

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