The controversial debt arose from various court judgments ordering that some “contractors” and “consultants” be paid for certain services and projects
The Attorney-General of the Federation and Minister of Justice, Abubakar Malami in 2018 tricked President Muhammadu Buhari to approve $350 million out of the total sum to some consultants, despite repeated warnings on the genuineness of the $478 million judgment debts said to be owed by the states and their local governments with respect to the Paris Club refunds.
Disregarding the warnings including a report by the Economic and Financial Crimes Commission (EFCC), against the legitimacy of the debts, Malami in a letter to the President dated 9th October, 2018 and obtained by SaharaReporters said his office had worked out “disbursement ratio of this amount to the appropriate beneficiaries.”
The controversial debt arose from various court judgments ordering that some “contractors” and “consultants” be paid for certain services and projects executed for the various states and the 774 local governments.
Some of the claimants were said to be consultants who helped the states and local governments to secure recovery of funds over-deducted from their allocations between 1995 and 2002 to service then London and Paris Club loans.
“Your Excellency kindly recall my previous correspondence addressed to the Chief of Staff to the President dated 11th July, 2018 and 1st August, 2018 copies of which are attached herewith a ANNEXURE IA & IB on the need to settle 3rd party claims in respect of the above subject matter,” part of the letter written by Malami to the President read.
“Your Excellency subsequently approved the recommendation for the settlement of this 3rd party via letter dated 29th August, 2018 with Ref. No. SH/COS/08/B/848 addressed to the Hon. Minister of Finance, a copy of which is attached herewith as ANNEXURE II. Consequent upon the approval the Hon. Minister via letter dated 14th September 2018 with Ref. No. FMF/HMF/CBN/PC/FINAL/1/2018 directed f the he Governor, Central Bank of Nigeria to set aside the sum of US$350 million for settlement of Legal,Consultancy Fees, etc. A copy of this letter is attached herewith as ANNEXURE III.
“I wish to draw Your Excellency’s attention to the fact that in the initial refund made to the State, the Hon. Minister of Finance directly instructed CBN to pay the sum of $86,546,526.65 as consultancy fees and N19,439,225,871.11 as legal fees to NGF accounts. The relevant letters are attached herewith as ANNEXURE VII(A) & VII(B). The above payment resulted in EFCC investigations/prosecutions and forfeiture actions. Please see attached media report in ANNEXURE IV. ALGON/LGAs did not benefit from the above sums.
“It is also instructive to relate that the instant presidential approval is premised solely on the need to settle outstanding court judgments/orders arising from the Paris Club refund in respect of LGAs to avoid future judgment debit liability on FGN. I wish to buttress the above by making references to Paragraph 10(ix) of the letter of the Hon. Minster of Finance addressed to Your Excellencyand dated 5th July, 2018 with Ref. No. FMP/HMF/SH/PRES/FINAL/2018 which clearly state a court order has been secured with regards to Local Government refunds. A copy of this letter is attached to ANNEXURE II.
“I wish to further make references from the Chief of Staff to the President dated 28th June, 2018 with Ref. No. SH/COS/08/B/782 addressed to the HON. Minister of Finance, copied to me (attached herewith as ANNEXURE V, whose paragraph 1(f) stated the President’s directive to me as follows: directed that - in relationship to court case instituted by the 235 Local Government Council against the Federal Government- the Attorney General provides a legal opinion as to the constitutionally and sovereign implications of any 3rd party consultant, such as Linas International Ltd, being eligible for 20% if judgments sum as payments which are to be deducted at sources.
“This above also shows beyond doubt that the 3rd party claim for which presidential approval was sought is in relation to the judgment obtained in the case instituted by LGCs and not States.
“Your Excellency is respectfully invited to note that: (i) Presidential approval was granted for the sum of US$350 million for settlement of Legal Consultancy Fees, etc based on recommendation made by the FGN Legal Team. (ii) My office has worked out disbursement ratio of this amount to the appropriate beneficiaries. (iii) In the initiate refunds made to the States, NGF was paid the sum of $86,546,526.65 consultancy fees and N19,439,225,871.11 as legal fees while ALGON Legal and Consultancy Fees remain unsettled.
“(iv) Both NGF and ALGON had previously issued letters of no objection to direct payment. ALGON Legal and Consultancy Fees to Linas international Ltd (copies attached ANNEXURE VI(A-C). (v) All beneficiaries are to submit appropriate letters of understanding accepting the payment as final settlement of their claims. (vi) EFFC is better being directed to initiate criminal action against Riok Nigeria Ltd (Prince Nichola Ukachukwu) and Ted Edwards based on the report of its earlier investigation for the extradition of Ted Edwards.
“NOTATION: 8. In view of the foregoing Mr. President is respectfully invited to: (i) Note that the Hon Minister of Finance, Accountant General of the Federation and the Governor of the Central Bank of Nigeria are to effect disbursement of the approved sum of US$350 million in accordance with disbursement mandate to be issued by the Hon. Attorney General of the Federation.”
SaharaReporters had in a series of reports exposed wide-ranging legitimacy issues, including non-execution of agreed contracts and backdoor deals raised against the indebtedness from various quarters.
One of the beneficiaries is one Dr Ted Iseghahi Edwards, who was indicted by the Economic and Financial Crimes Commission (EFCC).
Documents seen by SaharaReporters showed that Edwards did not represent the Association of Local Governments of Nigeria (ALGON) as claimed.
A letter dated August 1, 2018, by former EFCC Chairman, Ibrahim Magu, to the Ministry of Justice/Attorney General Office, indicted him of an attempt to defraud the Nigerian government.
It said, “The suspects had filed applications in court to be joined as one of the judgement creditors during the garnishee proceedings and the applications were refused by the Federal High Court. The judge in a ruling delivered on the 27th of June 2016 frowned at Dr Ted Edward for brandishing a judgment purportedly delivered by the Federal Capital Territory on 30th October, 2015 and in fact took a swipe at it.
“By the Motion Ex parte filed on the 30th of March, 2015, the judgement creditors applied for a Garnishee Order Nisi which was granted on 1st April, 2015 and fixed the return date for 16th April for the Garnishee to show cause why the Order Nisi should not be made absolute.
“The Honorable Judge in his ruling stated unequivocally that let me state right away that the substantive matter was commenced by me until I entered judgement on the 3rd of December, 2013. I have searched my records up to the date of I entered judgement. I could not find the name of Dr Ted Iseghahi Edwards as representing the judgement creditors even for one day nor did I find any process filed by his law firm. How then was that judgement prosecuted?
“Another point to highlight is the fact that according to the purported letter of engagement being bandied by Dr Ted Edwards, he was engaged on September 15, 2011, long before the matter was filed in court quoting the exact judgment sum.
“What this throws up is the fact that the said letter of engagement was done after 3rd December, 2013 and backdated to make it look as if the suspect had been engaged before the case started. There is no evidence to prove that the suspect did any work in relation to the recovery process.
“A careful look at the memorandum of settlement Dr Ted Iseghohi Edwards and Hon Odunayo Ategbero betrays the conspiracy and an attempt to defraud the Federal Government by the suspects.
“Pending Actions; Invitation and/or Arrest of the suspect, Dr Ted Iseghahi Edwards with a view of confronting him with all the issues raised in the evaluation above. Tracing and filing interim forfeiture order on any property or asset acquired with proceeds of fraud by Dr. Ted Iseghahi Edwards.”
SaharaReporters gathered that despite the report, Malami persuaded Buhari to approve $159million as legal fees to Edward.
They also directed the DMO and the Ministry of Finance to release the promissory notes to Edward and others so that they could take their shares, a source had said.
“Edward was the Secretary-General of ALGON when the Paris Club refund case FHC/ABJ/CS/130/2013 was done by Joe Agi (SAN) and his colleagues before Justice Ademola. It is clear that he was not the lawyer to ALGON and this much ALGON has said in writing to Malami and the Chief of Staff, Gambari,” the source had told SaharaReporters.
“The EFCC in its report to Malami and (Ibrahim) Gambari also established that Ted Edward did not represent ALGON and that Ted Edward in his own handwriting admitted that Joe Agi was the lead counsel for ALGON. He went to one Judge, Baba Yusuf and procured a judgement that he was the lawyer to ALGON in the Paris Club refund case.
“Yet Malami who knows this is recommending that Ted Edward be paid $159,000,000 as fees from ALGON instead of the actual lawyer. Will this not amount to double payment whenever Mr Joe Agi demands to be paid? From my investigation, Mr Joe Agi, ALGON and the Nigerian Governors’ Forum have all gone back to court to challenge the payment of the $418 million including that of Edward through promissory notes.
How Attorney-General Malami Manipulated Buhari to Approve Payment of $350million to Ned Nwoko, Other Paris... by Sahara Reporters on Scribd
“Should Malami not take a second look at the suit and see if really there is any fraud as being widely alleged? Instead, he and the Chief of Staff tricked the President and subsequently directed the Debt Management Office and the Finance Office to release the promissory notes to Edward and others so that they can take their shares.
“The total sum of $418 million promissory note suggested by Malami to be paid is just a tip of the iceberg of what is coming unless he is stopped. Nigeria will become bankrupt before President Buhari leaves office. The anti-corruption war of Buhari has been effectively clipped by Malami and Gambari using their powerful offices to trick the President who really trusted them.
“All (that is) needed to be done is to allow independent people to go through the whole cases concocted on the advice of Malami and the truth will be seen and Nigeria saved of all these massive stealing.
“Why is Malami not challenging any of these court judgements? If I may ask; in most of all these claims, the EFCC had investigated, taken statements and established that none of the contracts was executed. The report was submitted to Malami and former Minister of Finance, Kemi Adeosun by Magu-led EFCC suggested the arrest and interrogation of Ted Edward and one Prince Nicolas Ukachukwu but he and Gambari suppressed the report.
“The same man suggested to be arrested is who Malami said should be given $159,000,000. ALGON had written several letters to him and (Kayode) Fayemi, who is the Chairman of Nigerian Governors’ Forum that all the jobs executed by Edward and others were fake, not executed. Yet Malami in the face of this clear case of fraud tricked the President in a memo and said judgement was given against them.
“He also negotiated the debt to 50 percent and convinced the President to pay to avoid more damages. It’s high time President Buhari save his anti-corruption war by causing a thorough investigation of his appointees involved in this massive fraud.”
Other beneficiaries include Nwoko, who is laying claim to $142,028,941 via a consent judgment he obtained from the Federal High Court in Abuja in the suit marked FHC/ABJ/CS/148/2017.
Three beneficiaries laying claim to $143,463,577.76 via a judgment of the Federal Capital Territory (FCT) High Court in the suit marked FCT/HC/CV/2129/2014 are: Riok Nigeria Ltd, Orji Nwafor Orizu, and Olaitan Bello.
From the total money, Riok Nigeria Limited has a share of $142,028,941.95 (about N54 billion), Mr Nwafor is entitled to $1,219,440.45 and Mr Bello has a share of $215,159.36.
A firm, Panic Alert Security System Limited, owned by George Uboh, is also laying claim to $47,831,920 based on another “consent judgment” it obtained in suit number FHC/ABJ/CS/123/2018, which was filed as recently as 2018.