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Paris Club Refund: NGF, AGF at loggerheads as Governors deny collecting $100m to fund elections

Published

2 years ago

August 22, 2022

…Allege Malami sponsoring futile advocacy to justify plundering $418.9m

By Moses Adeniyi

Following a blow of allegation of collecting $100m to fund elections, the 36 State Governors under the aegis of the Nigeria Governors Forum (NGF) have taken a whip at the consultants working on the London and Paris Club refunds, distancing themselves from any involvement in or been in receipt of USD$100m or any other funds from NED Nwoko to finance elections in any State.

The Governors described as “desperate, spurious and futile advocacy mounted and coordinated by the AGF (Attorney General of the Federation and Minister of Justice, Mr. Abubakar Malami, SAN) on behalf of the so-called Paris Club Consultants to justify the plundering of the humongous sum of USD418.9m from the public treasury of the States and Local Governments.”

In a statement by NGF Director of Media and Public Affairs, Abdulrazaque Bello-Barkindo, the Governors said that facts on the alleged fraud associated with the Paris Club refunds can never be changed by a thousand Press Statements by the Minister of Justice and Attorney-General of the Federation, Abubakar Malami, SAN or any of the Consultants.

The Governors said, “It does appear that the romance between the consultants and their determination to fight together under the AGF’s tacit coordination to pull out of the States the sum of $418,953,690.59 may have suffered a crack.

“This must have led NED to address the press alone and single out his unmerited claim of $68 million as justifiable,” they said.

The NGF warned NED Nwoke and the other Consultants to end the media war and direct all energies towards defending the appeals, adding that as a body, it will not waste its valuable time to defend what it described as unsubstantiated allegations against individuals or persons who are in a position to defend themselves.

“The NGF hereby states unequivocally that it has not at any time been involved in or been in receipt of USD$100m or any other funds from NED Nwoko to finance elections in any State,” the Governors said.

Recall the consultants working on the London and Paris Club refunds had on Saturday alleged that the NGF demanded and received the sum of $100 million to prosecute elections in some states, just as they also alleged that the governors and especially, the Chairman of the NGF and governor of Ekiti state, Kayode Fayemi, are the problems of the Country.

The consultants who spoke through the Lead Consultants, Hon. Ned Nwoko, alleged that when he submitted a bill of $350 million as the consultancy fee, the State governors demanded to be paid 50 percent of it before it could be honored

The Governor however in reaction said, “Not surprisingly, the desperate, spurious and futile advocacy mounted and coordinated by the AGF on behalf of the so-called Paris Club Consultants to justify the plundering of the humongous sum of USD418.9m from the public treasury of the States and Local Governments continued on Saturday 20th August 2022, when Ned Nwoko, in a press statement, attempted to blur and obfuscate the real facts and legal issues in controversy by dishing out blatant lies and half-truths.

“The facts are and will always remain: whether the claims of the consultants are lawful and justified under our Constitution and whether any Judgment which is a subject of a pending appeal can be enforced or executed as the consultants now attempt to do? If both questions are answered in the negative, it does not matter if the contracts leading to the claims were entered into by any public official, past or present.

“No person or persons can agree to blatantly circumvent our Constitution and get away with it. Neither is the period when Judgments were obtained of consequence in this case.

“Undoubtedly, the salient facts on the fraud associated with the Paris Club refunds can never be changed by a thousand Press Statements by the AGF or any of the Consultants.”

The Governors said, “As the Judgments of the appellate courts, particularly that of the Supreme Court have begun to expose the creepiness and unlawful nature of the consultants claims; it is not surprising that they are now afflicted by dizzy spells, seriously discomforted and are now driven by desperation to ensure that the plundering and fleecing of the State is quickly completed before the determination of the pending proceedings in the appellate and other courts in order to foist a situation of frustration and helplessness on the States.

“This is obvious as the consultants are not in a position to restore the funds to the States if they lose on appeal; as it is becoming apparent.

“It is therefore needless joining issues with NED NWOKO or indeed any of the consultants.

“However, it is imperative to debunk patent lies dished out in order to disabuse the minds of the undiscerning public.

“While Mr. Ned Nwoko strenuously tried to single out and justify his own bogus claim of $68 million; the total amount which all the consultants working in concert, collectively seek and claim from the States and Local Governments, albeit unlawfully is $418,953,690.59 broken down as follows:

“i. NED MUNIR NWOKO ($68,658,192.83); ii. DR. TED ISIGHOHI EDWARDS ($159,000,000); iii. PANIC ALERT SECURITY SYSTEMS LTD ($47,831,920) iv. RIOK NIG. Ltd (USD142,028,941.95); v. PRINCE ORJI ORIZU (USD1,219,440.45); vi. BARRISTER OLAITAN BELLO (USD215,195.36); TOTAL – USD$418,953,690.59

“It is instructive to note that all the claims by the consultants are rooted in Suit No FHC/ABJ/CS/130/13 BETWEEN: LINAS INTERNATIONAL LTD & 35 ORS VS FEDERAL GOVERNMENT OF NIGERIA & 3 ORS in which NED NWOKO instituted, and was awarded a bogus 20% of the sum of $3,188,078,505.96 from the States and Local Governments Paris Club refunds. The Judgment has been challenged on appeal by the States and NGF in Suit No CA/ABJ/PRE/ROEA/CV/327M1/2022: ATTORNEY GENERAL OF ABIA STATE & 35 ORS VS LINAS INTERNATIONAL LTD & 239 ORS.

“The attempt by NED therefore to separate his own claim of $68 million as if it is not related to the claims of other consultants is being clever by half. All the consultants claim to have rendered the same or similar service of helping the States and Local Governments to recover over-deducted Paris Club refunds by the Federal Government.

“Their cases therefore rise or fall together. A poison of the part is a poison of the whole. What is unlawful remains unlawful. Its origin is immaterial and the part or role played by all parties separately or collectively at all times is unlawful and cannot be remedied.

“As it is common with all unholy alliances, it does appear that the romance between the consultants and their determination to fight together under the AGF’s tacit coordination to pull out of the States the sum of $418,953,690.59 may have suffered a crack. This must have led NED to address the press alone and single out his unmerited claim of $68 million as justifiable.

“This is also coming just on the heel of a similar press briefing by the AGF, a few days ago during which he stoutly defended all the consultants and berated the States for opposing or delaying the prompt payment of the sum claimed.

“It was thought that the AGF had done a good job of defense for all of them; but NED’s decision to go solo to make his own case without reference to others suggest that the union of consultants is gradually falling apart.

“What however NED did not tell the public is: If all the Local Governments engaged him directly as claimed and if he acted for the States through his lawyers and the NGF requested that he extends the services to all the States as also claimed, what different service did TED ISEGHOHI-EDWARDS, his collaborator and conspirator (indicted by the EFCC) render for which he is being paid the whooping sum of $159,000,000 also from the Paris Club refund?

“In his desperation to justify his claim, NED peddled untruths that his team was a member of the Federal Government Committee constituted to reconcile figures under the Paris Club refunds to the States and Local Governments. That is patently false.

“The report of that committee dated May, 2007 shows that only the FMF, OAGF, CBN, DMO and RMFC (secretariat) were members.

“Private persons who were not privy could not have been included in a committee that was meant to examine purely public financial records. It was this Committee that did all the work now claimed by NED and the other consultants.

“While it is possible that the unlawful scheme hatched by the consultants to feast on public funds may have over the years been executed with the cooperation of enemies of the State without anyone raising an eye brow; the bubble has now burst and the time to account has come.

“It is an irony that NED and other consultants who flaunt Judgments of courts as justification for payment are now uncomfortable and jittery when the same Judgments are tested on appeal.

“An appeal is not a circumvention of a Judgment as NED may want the public to believe. It is a constitutional right.

“The consultants have no choice but to pursue the various appeals. While NED has vowed to fully enforce the Judgment in FHC/ABJ/CS/130/2013; may we remind him that the law does not permit the enforcement of a Judgment that is on appeal. Let him reserve all his vituperations against the NGF Chairman and canvass them on appeal as the law may permit him.

“Understandably, the Supreme Court (SC) has in its Judgment dated 3rd June, 2022 sent a clear signal in SUIT NO 337/2018: RIOK NIG LIMITED VS NGF 7 ORS that the claims of the consultants are unequivocally unconstitutional as funds of States and Local Governments cannot be attached in the Federation account in the manner approved and pushed by the AGF.

“Let the consultants therefore have their day in court with the NGF and upon victory; they can seek to be paid. It is absurd to pursue payment in the face of all pending cases.

“While the consultants are strangely emboldened by those who should ordinarily oppose the payment and protect public trust; the law is not silent. It upholds the truth at all times no matter how long it takes.

“No professional advocacy or media campaign to hoodwink the public can change the law. We are not unmindful of the ridiculous claim by one of consultants that it was his media campaign that swayed a Federal High Court Judgment in favour of the NGF.

“Interestingly, the public which is the greatest victim in the mismanagement of scare public resources has since been well informed and is on red alert to avert and stop what is apparently an attempt by some ravenous rent seekers masquerading as consultants to further exacerbate the economic woes of citizens under the prevailing dire economic situation.

“The use of libelous language on the person of the Chairman of NGF, who has refused to be compromised and has firmly stood his ground on the unconstitutional and unlawful nature of the consultants’ claims, is not helpful to their case either.

“The NGF is an apolitical organization that operates under defined principles targeted at good governance. Its role in the whole of this Paris Club refund debacle to consultants is to ensure that Nigeria citizens are not unlawfully deprived of resources meant for their development.

“NGF will not therefore waste its valuable time to defend unsubstantiated allegations against individuals or persons who are in a position to defend themselves.

“If NED is sure of his facts, he is at liberty to approach the necessary authorities to bring to justice on any person or persons and all conspirators (including himself) who were allegedly involved in misappropriating public resources for campaign financing.

“The NGF hereby states unequivocally that it has not at any time been involved in or been in receipt of USD$100m or any other funds from NED Nwoko to finance elections in any State.

“Perhaps, confirming our fears and that of the public that the AGF has abdicated his role as public defender and trustee and become the strongest advocate to the consultants is now evident in NED NWOKO’s press statement wherein he praised the role played by the AGF describing it as inevitable.

“NED cannot say that the consultants have no official Platform to canvass their case, when the AGF has, in spite of public protestation, provided the strongest and most virulent platform to campaign for the expeditious payment of the sums claimed.

“The AGF has addressed and issued over half a dozen press statements justifying why the consultants should be immediately paid. Not even NED’S solicitors could have done any better.

“The NGF and its leadership remain focused and determined to diligently pursue all appeals on the Judgments on the Paris Club refunds. All that it requests of the AGF and the consultants is to allow the appeal processes to run and be exhausted.

“It may be that the consultants will successfully defend the appeals after which they will be paid. However, if they lose as RIOK NIGERIA LTD has lost; which is the most likely verdict that shall befall all the other consultants; let the public funds in issue remain protected.

“We urge NED and the other consultants to end the media war and direct all energies towards defending the appeals,” the Governors said.

Related Topics:AGF NGF Paris Club Refund: NGF

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Account enrollment: Court validates CBN’s regulation, permits collection of customers’ social media handles

Published

1 day ago

May 17, 2024

NewsDirect

…Dismisses concerns, says social media handles not protected by privacy rights

…Financial institutions cleared to collect social media handles for KYC

By Sodiq Adelakun

The Federal High Court in Lagos has ruled in favour of the Central Bank of Nigeria (CBN) in a case challenging the regulation that requires financial institutions to collect their customers’ social media handles as part of the Know-Your-Customer (KYC) procedure.

Recall that the Socio-Economic Rights and Accountability Project (SERAP) had urged the court to compel CBN to withdraw its directive to banks and other financial institutions.

However, in the ruling, Justice Nnamdi Dimgba struck out the suit filed by Lagos-based lawyer, Chris Eke, who argued that the regulation violates the right to privacy of bank customers.

Eke had sought a declaration that the regulation contained in Section 6(a) (iv) of the Central Bank of Nigeria (Customer Due Diligence) Regulations, 2023, is undemocratic, unconstitutional, null, and void, as it contradicts Section 37 of the 1999 Constitution of the Federal Republic of Nigeria (as amended). However, Justice Dimgba ruled that the regulation does not breach the right to privacy of bank customers.

The CBN regulation is targeted to enhance customer due diligence and anti-money laundering measures, and requires banks to collect social media handles, among other personal information, from their customers.

The applicant had asked the court to grant an order of perpetual injunction, restraining CB from enforcing the regulation which requires financial institutions to request customers’ social media handles as part of normal bank customer due diligence requirements.

The CBN in its response to the suit, filed a notice of preliminary objection, challenging the competence of the suit. The apex bank also disagreed that the said regulation constitutes any interference with the private life of the applicant, as claimed.

The judgment came as Justice Dimgba dismissed a suit, stating that the notice of preliminary objection held merit and consequently struck out the case.

During the proceedings, Justice Dimgba emphasised that providing a social media handle is akin to furnishing email addresses, phone numbers, and other contact details for banking purposes.

He argued that such information aids in conducting due diligence to ascertain if an individual is suitable for conducting business with a bank.

Justice Dimgba further explained that the essence of having a social media account implies a willingness to engage in public communication, thus rendering privacy concerns unfounded.

According to him, “First, the Applicant claims that the requirements on the CBN Regulations for financial institutions to request and collect the social media handle of its customers as part of KYC infringes on his right to privacy.”

“This claim is very ambitious and amounts to a very far throw. The said Regulations are directed to and apply to financial institutions. It does not apply to private individuals such as the Applicant.

“Even if, as appears to be argued, that the Regulations itself would inevitably affect the Applicant, this claim is speculative for the simple reason that in nowhere in the affidavit in support was it stated that the Applicant operates an account with a financial institution and that the said institution had demanded his social media handle. So the suggestion that he would be affected by this Regulation, albeit negatively, is very speculative and at large.

“Secondly, there is also no deposition to the effect that any financial institution had begun to implement this Regulation and that its implementation had begun to create disruptions and inconvenience against the general population, in which case one could infer that the suit should be legitimated as a public interest litigation.

“Thirdly, assuming even that the banks had begun to implement these regulations, the applicant assuming he maintained any bank accounts or sought to open one, but is being hindered or irritated by the requirement of the Regulation to avail his social media handle as part of KYC, the Applicant still had a choice, which is to refuse to do business with any bank insisting on the information as part of its social media handle, but to seek other alternatives.

“Fourthly, and for all it is worth, I do not see how asking a banking or potential banking customer to provide his social media handle can ever amount to a breach of privacy.

“Granted that Section 37 of the Constitution of the Federal Republic of Nigeria 1999 (as amended) provides inter alia: The privacy of citizens, their homes, correspondence, telephone conversations and telegraphic communications is hereby guaranteed and protected.

“My view is that the provision of a social media handle is of the same genre as the provision of email address, phone numbers and other means by which a potential customer of a bank can be contacted.

“Thus, it is clear from the face of the Regulations as set out above that email addresses, phone numbers and social media handles are all provided for under clause 6iv just to show that the aim was not to pry on anyone but rather to provide alternative ways by which a customer of the bank can be contacted, and or due diligence conducted on the person to determine if the person is a fit and proper person to extend banking services to.

“I do not see how this infringes on the right to privacy. I should even say that the essence of having a social media account was for one to be publicly visible communication-wise. It, therefore, appears quite ironic, though wryly, that one can suggest that asking for information about a social media handle with which the individual exposes and immerses himself or herself in the public, can amount to a violation of privacy rights, which rights itself is all about isolation of one from public glare.

“It is also to my knowledge that even in filling some business applications, personal information of this sort, is sometimes requested, and parties generally oblige. If it does not constitute a breach of privacy, why should it now?

“A social media handle is left at large for the world to see, being in the public space, everyone enjoys the liberty to have access to it whether or not consent was obtained. It would be highly unreasonable to hold the Respondent in breach of privacy for what other persons have access to.

“The apprehension of the Applicant of his social interactions being monitored is manifestly speculative in itself and rather incredulous to believe that the financial institutions have the luxury of time to concern itself with such frivolities.

“On the whole, if I did not sustain the NPO, I would have dismissed the suit for the reasons stated. But the NPO having been sustained, the suit is therefore hereby struck out.”

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N1.3trn power debt: Tinubu approves payment, unveils plan to liquidate gas debts

Published

1 day ago

May 17, 2024

NewsDirect

President Bola Ahmed Tinubu has given approval for the payment of N1.3trn legacy debts owed power generation companies.

Minister of Power, Chief Adebayo Adelabu speaking at the 8th Africa Energy Market Place 2024 in Abuja said that President Bola Tinubu has approved a plan to liquidate the debts.

According to him, “Mr. President has approved the submission made by the Minister of State Petroleum (Gas) to defray the outstanding debts owed to the gas supply companies to power generation companies. The payments are in two parts, the legacy debts and the current debts. For the current debt, approval has been given to pay about N130 billion from the gas stabilisation fund which the Federal Ministry of Finance will pay.”

“The payment of the legacy debt will be made from future royalties in exchange for incomes in the gas subsector which is quite satisfactory to the gas suppliers. This will allow the companies to enter into firm contracts with power generation companies.

“For the power generation companies, the debt is about N1.3 trillion and I can also tell you that we have the consent of the President to pay, on the condition that the actual figures are reconciled between the government and the companies. This we have successfully done and it is being signed off by both parties now. Majority has signed off and we are engaging to ensure that we have 100 percent sign off.

“The debt will be paid in two ways, immediate cash injection and through a guaranteed debt instrument, preferably a promissory note. This assures the companies that in the next three to five years, the government is ready to defray these debts.”

The Minister further stated that the government was working to get the distribution companies solvent and effective by unbundling their operations along state boundaries.

He insisted that the areas covered by the current DisCos were too large for them to deliver effective services to consumers.

In the same vein, the Chairman of the Nigerian Electricity Regulatory Commission (NERC), Engr. Sanusi Garba lamented the poor financial state of the DisCos, noting that it is difficult for them to raise the needed capital to invest.

Engr. Garba pointed out that the challenges facing the sector were a culmination of all past inactions and missteps by those saddled with the responsibilities of managing the sector both at policy and operational levels.

According to him, “Today when you look at distribution companies they are clearly and technically insolvent, and you also want them to raise capital in terms of debt or equity. It’s a Herculean task. I also want to mention that implementing the power sector reform requires very strong political will to implement decisions that impact on the wider public.”

However, the African Development Bank (AfDB) disclosed that it has so far spent over $450 million to support various power sector projects and programmes with another $1 billion planned to support the power sector reform effort by the government.

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Emirates Airline to resume Lagos-Dubai flights October 1

Published

1 day ago

May 17, 2024

NewsDirect

Emirates Airline has disclosed that it will resume services to Nigeria from October 1, 2024, operating a daily service between Lagos and Dubai.

This development was announced in a statement on Thursday by the airline, which has its hub in the United Arab Emirates (UAE).

The airline disclosed that flight services will be operated using a Boeing 777-300ER.

“We are excited to resume our services to Nigeria. The Lagos-Dubai service has traditionally been popular with customers in Nigeria and we hope to reconnect leisure and business travellers to Dubai and onwards to our network of over 140 destinations.

“We thank the Nigerian government for their partnership and support in re-establishing this route and we look forward to welcoming passengers back onboard,” Emirates’ Deputy President and Chief Commercial Officer, Adnan Kazim, said.

Recall that Emirates Airlines had suspended its Dubai-Lagos flights in 2022 over its inability to repatriate trapped funds in Nigeria in the heat of the diplomatic row between the two countries.

This comes after Festus Keyamo, Minister Of Aviation And Aerospace Development in a post on his X (formerly Twitter) page had disclosed that he got correspondence from Emirates Airline when he visited Salem Saeed Al-Shamsi, ambassador of the United Arab Emirates (UAE) in Abuja.

”Yesterday, I paid a working visit to the Ambassador of the UAE to Nigeria, His Excellency, Salem Saeed Al-Shamsi at the UAE Embassy in Abuja. He handed me a correspondence from the Emirates Airline indicating a definite date for their resumption of flights to Nigeria,” Keyamo said.