CEM REPORT | Governors of the 35 states of Nigeria have refuted the planned move of the federal government to commence payment of the $418 million Paris Club refund allegedly owed four contractors from the federation account.
The governor’s under the aegis of the Nigeria Governors’ Forum (NGF) in a letter to the federal government argued that deducting the sum from the federation account would be unconstitutional and disregarding the highest out in the country.
“Significantly, while that appeal is pending, one of the contractors, who is a beneficiary of the Promissory Notes in the sum of $USD 142,028,941.95, Riok Nigeria Limited and who had lost at the Court of Appeal, further appealed to the SC in SUIT NO: SC 337/2018 BETWEEN: RIOK NIGERIA LIMITED V INCORPORATED TRUSTEES OF NIGERIA GOVERNORS’ FORUM &7 ORS. The Supreme Court on 3rd June 2022 also dismissed Riok’s appeal as lacking in merit.”
The letter addressed to the federal government through the Secretary to the Government of the Federation (SGF), Boss Mustapha, argued that the Supreme Court had on the occasion made clear that neither the NGF nor ALGON had the power to award contracts and charge the same directly to the Federation Account as done in this case.
The letter noted that the dismissal of the case also halted payment to the companies.
“The dismissal of RIOK’S case by the SC 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 DMO,” the letter said.
“Besides RIOK and the two lawyers, the States have also challenged either on appeal or 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 letter, signed by the Chairman of the NGF and outgoing governor of Ekiti State, Kayode Fayemi, argued that the Supreme Court judgement clearly states that none of the contractors recommended for payment of the sum of $418 Million by the Accountant General of the Federation (AGF), Abubakar Malami, and Honourable Finance Minister, Zainab Ahmed (HMF), can be 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. Those contracts as they stand are unconstitutional and unlawful and cannot vest any legal right on any of the contractors. It is immaterial that part of the contract sums has been paid.
“Those payments did not validate the unlawful nature of the contracts. The SC has spoken. It is final and must be obeyed. The excerpt of the decision of the SC is attached for ease of reference.”
The governor’s urged the federal government not to disregard the court by seeking means to pay the sum, adding that it would appear to the Nigerians that the federal government was prioritising the contractor over them in the face of stiff economic challenges.
“The NGF, therefore, urges that the AGF and the HMF should not under any guise whatsoever stampede the FEC to take a decision which will not only be patently unconstitutional and illegal but also an affront to the highest court of the land. The rule of law is not only supreme; it is a cardinal principle canvassed by the present administration and should in this particular occasion be strictly obeyed,” the letter said.
“In the face of the crushing economic realities and security challenges facing the nation and competing for allocation of scarce resources, the payment of contractors of the humongous sum of $418 Million from public treasury is not and should not be the priority of FEC.
“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.
“The NGF, therefore, admonishes FEC to prevail on the AGF and HMF to toe the line of constitutionality and allow the due process of the law to prevail.”
