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Tag: Paris Club

  • Money owed to Paris Club consultants was $68m and not $418m in public space- Nwoko tells NGF

    Money owed to Paris Club consultants was $68m and not $418m in public space- Nwoko tells NGF

    The Lead Consultant of Linas International Limited, the consultants for the recovery of over deductions from Paris and London clubs debt buy back funds, Prince Ned Nwoko, has revealed that the Nigeria Governors Forum (NGF) requested and received the sum of $100 million, and money owed to the consultants was $68 million and not $418 million that has been in public space.

     

    He explained that the $100 million was to prosecute elections in some states.

     

    According to him, the consultants had nothing to do with $418 million, which he said must be a miscalculation.

     

    He also 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.

     

    Reacting to the flurry of allegations and claims trailing his personal and company’s demands for the payment of services fees from the state governments and local government councils in the country, Nwoko described recent outbursts of the NGF on the matter as “noise”.

    Money owed to the consultants was $68 million and not $418 million that has been in public space

     

    Addressing the media in Abuja, Nwoko pointed out that a former chairman of the forum told him that the money was needed to prosecute elections in Bauchi, Ekiti and Ondo states.

     

    According to him, the Ministry of Justice intervened and the governors eventually received the sum of $100 million.

     

    He absolved the Attorney-General of the Federation, Abubakar Malami of any wrongdoing as he said the minister was only trying to ensure that the law was obeyed.

     

    Nwoko stated that the agreements and judgment being executed were reached before the advent of the present administration.

     

    TheNewsGuru.com recalls that earlier, a Federal High Court sitting in Abuja ruled in favour of Linas International Limited and 235 others against the Federal Government of Nigeria in the Paris Club Refund.

    Money owed to Paris Club consultants was $68m and not $418m- Nwoko tells NGF
    Prince Ned Nwoko

    In a suit with no FHC/ABJ/130/2013, Justice J.T Tsoho ruled in favour of Linas International and others (plaintiffs) against the Federal Government of Nigeria, The Attorney General of the Federation, The Minister of Finance and the Accontant General of the Federation (defendants).

     

    “As a consequence of the foregoing findings, the application of the interested party/applicant fails in it’s entirely and accordingly dismissed,” Justice Tsoho said.

  • $418m Paris Club debt: Court dismisses 36 governors’ suit against FG

    $418m Paris Club debt: Court dismisses 36 governors’ suit against FG

    A Federal High Court, Abuja, on Friday, dismissed the 418 million dollars Paris Club debt suit filed by the 36 state governments against the Federal Government.

    Justice Inyang Ekwo, in a judgement, dismissed the suit for lacking in merit.

    “I do not see any merit in this case on the whole and I hereby dismiss it for lack of merit,” Justice Ekwo said.

    The judge held that the 36 states’ attorneys-general, who instituted the suit had no locus standi to filed the matter.

    The court had, on Nov. 5, 2021, restrained the Federal Government from deducting monies accruing to the 36 states from federation account to settle 418 million dollars judgment debt in relation to Paris Club Refund pending the determination of the substantive suit.

    The court gave the order following an ex-parte motion moved by counsel to the plaintiffs, Jibrin Okutekpa, SAN.

    While the 36 states Attorney-Generals are the plaintiffs on the suit.

    Some of the defendants listed in the suit include the Attorney-General of the Federation (AGF), Accountant General of the Federation and Ministry of Finance.

    Others are Central Bank of Nigeria, Debt Management Office, Federation Account Allocation Committee, Incorporated Trustees of Association of Local Government of Nigeria (ALGON), among others.

    According to the motion dated and filed Oct. 27, 43 defendants are sued in the matter.

    Although four prayers were sought for, Justice Ekwo granted three in the motion ex-parte.

    The reliefs sought by the plaintiffs include an order of interim injunction, restraining the Federal Government from deducting any money accruing or due to all or any of the 36 states of the federation.

    The senior lawyer, who informed the court that the Federal Government had not commenced the deduction of the monies, withdrew the fourth prayer, asking for a refund of the monies deducted.

    He hinted that the deduction was expected to begin in November, 2021.

    He said in spite of his clients’ protest against such action, the defendants had vowed to go-ahead with the deduction.

    He said if allowed, no state would be able to pay workers’ salaries.

    Besides, Okutekpa argued that the states were not party to any contract resulting in such debts.

    “That is why we ran to your court,” he said.

  • Court fixes date to deliver judgment in $418m Paris Club debt suit against FG

    Court fixes date to deliver judgment in $418m Paris Club debt suit against FG

    A Federal High Court, Abuja, on Tuesday, fixed March 25 to deliver a judgment in the 418million dollars Paris Club debt suit filed by the 36 state governments against the Federal Government.

    Justice Inyang Ekwo fixed the date after counsel to the plaintiffs and the defendants adopted their processes and presented their arguments for and against the matter.

    The court had, on Nov. 5, 2021, restrained the Federal Government from deducting monies accruing to the 36 states from the federation account to settle 418 million dollars judgment debt in relation to Paris Club Refund pending the determination of the substantive suit.

    The court gave the order following an ex-parte motion moved by counsel to the plaintiffs, Jibrin Okutekpa, SAN.

    While the 36 states Attorney-Generals are the plaintiffs on the suit, some of the defendants listed in the suit include the Attorney-General of the Federation (AGF), Accountant General of the Federation and Ministry of Finance.

    Others are Central Bank of Nigeria, Debt Management Office, Federation Account Allocation Committee, Incorporated Trustees of Association of Local Government of Nigeria (ALGON), among others.

    According to the motion dated and filed Oct. 27, 43 defendants are sued in the matter. Although four prayers were sought for, Justice Ekwo granted three in the motion ex-parte.

    The reliefs sought by the plaintiffs include an order of interim injunction, restraining the Federal Government from deducting any money accruing or due to all or any of the 36 states of the federation.

    The senior lawyer, who informed the court that the Federal Government had not commenced the deduction of the monies, withdrew the fourth prayer, asking for a refund of the monies deducted.

    He hinted that the deduction was expected to begin in November, 2021. He said despite his clients’ protest against such action, the defendants had vowed to go-ahead with the deduction.

    He said if allowed, no state would be able to pay workers’ salaries. Besides, Okutekpa argued that the states were not party to any contract resulting in such debts.

    “That is why we ran to your court,” he said.

  • Governors tackle Malami for supporting consultants in $418m Paris Club Payments

    Governors tackle Malami for supporting consultants in $418m Paris Club Payments

    The Nigeria Governors’ Forum (NGF) on Monday said the Honourable Attorney-General of the Federation (HAGF), Abubakar Malami, was working against the public’s interest by insisting on the payment of $418 million to private consultants from the accounts of state governments.

    The consultants are claiming a percentage of Paris Club refunds as payment of services they said they rendered to the states and local government.

    The Federal Government had determined to pay the consultants from state accounts but a Federal High Court on Friday restrained it from making such deductions until all issues relating to that matter were fully determined.

    In a statement signed by the spokesman of the Office of the Attorney-General of the Federation, Umar Gwandu, on Friday, the AGF suggested the states and local governments had acted in bad faith for taking the case to court.

    The deductions were ratified by several court judgements, the AGF said, and the Federal Government only had to step in to avoid forfeiting any of its assets, since it was also a defendant in the lawsuits against the states.

    But on Monday, the NGF, in a statement signed by its spokesperson Abdulrazaque Bello-Barkindo, said the AGF’s actions “raises questions of propriety and the spirit of justice.”

    “The HAGF is supposed to be the chief arbiter in all matters concerning Nigerians, especially the poor masses of this country. It is incumbent upon him to, not just ensure that justice is done, but that justice is seen to have been done,” the statement said.

    “The undue haste, with which the statement was issued even before the service on the AGF of the court processes and the order dated 5th November, 2021 restraining the Federal Government, seems to suggest that there is a special relationship between the Office of the AGF and the consultants over and above Nigerian citizens, whose interest the AGF as the Chief Law Officer of the Federation is statutorily bound to always protect. The statement also suggests that the restraining order issued last Friday not only unsettled preconceived plans and angered the unnamed ‘government officers’ referred to by the media aide.

    “The media aide to the AGF justifies the deductions on the basis that they are made pursuant to four court judgments; two of which are consent judgments and/or that the NGF/States and LGAs consented, expressed no objection to the payments and had already paid part of the debts to the said contractors and consultants. The statement by the media aide to the HAGF however conveniently and deliberately failed to name the judgments under reference and whether they are on appeal or challenged in any other way. He also failed to specify which of the four judgments authorized payments and in what proportion to each of the contractors.

    “While it is very easy to argue as the AGF does, that the NGF and ALGON took no early steps to appeal as they should have done, it is important to inform the Nigerian public that State governors have since appealed and are challenging the judgments in various courts. Interestingly the AGF has been served all these processes, nevertheless, this was ignored and payment was authorized to be made and has been processed with unprecedented speed not common in the public service. It must be stated that between the NGF and AGF, the latter is in more vantage constitutional position and has a legal responsibility and burden to defend public interest. The AGF should have therefore initiated appeals against the said judgments once his attention was drawn to them, because public interest was at stake involving huge sums of money meant for the provision of public services. It must be noted that the state governments were not parties to any of the said judgments. It should be further stated that the Office of the AGF failed to professionally defend the cases leading to those judgments and the courts commented on that unprofessional attitude.

    “While we are constrained not to comment on a subject which is sub-judice, we have a responsibility to the public to respond in some detail to the statement issued by the Office of the AGF in order to put the records straight. Any discerning legal mind would find no difficulty in concluding that the so-called judgments under reference are dripping with too many irregularities bordering on competence and lack of jurisdiction which are the bases why some of them are being challenged on appeal and in other courts. No diligent public officer would act on such judgments by recommending payment.”

    The NGF also noted that the AGF had recommended payments to some contractors allegedly based on judgments that did “not make any monetary award or on claims that were struck out.

    “The AGF may need to explain to Nigerians why these particular judgment debts are given unusual attention and priority and processed with supersonic speed over and above all others; some of which preceded these so-called judgments and have been pending for settlement by the AGF for several years.

    “While it is convenient to say that part of these judgment debts have been paid with the release of USD$86,546,526.65 and N19,439,225,871.11 in 2016 and $100m in 2018 to the contractors with the concurrence of the NGF; that does not detract from the fact that they were payments wrongly made which ought not to have been made even if they were products of consent Judgments. States can still go after the contractors to recover the funds wrongly made. It should concern the HAGF that ALGON disowned the contracts claimed by RIOK and the same was duly communicated to him requesting him to prevent the use of LG funds to ‘settle dubious and illegal claims’

    “Was the AGF not concerned that several contractors are laying claim to legal fees for the same Paris Club Refund? Was it lost on the AGF on the detailed procedure available under the law how legal fees can be claimed in deserving cases?

    “One of the strange payments made is that of USD$47,831,920 million to Panic Alert Security Systems Ltd/George Uboh for allegedly reviewing a 16-page judgment for the then factional NGF. Can the Office of the HAGF point to any consent judgment awarding that sum to PANIC Alert? Did the NGF’s letter of 20th January, 2020 relied upon by the HAGF ever recommend the payment of any sum?

    “LINAS and NED Nwoko in this scheme are walking away with US$68,658,193.83 state funds allegedly for legal consultancy services. Is the AGF not aware that the work alleged to have been done by him was already contained in a FAAC Reconciliation Committee Report constituted in 2005 submitted in 2007 with recommendations on how states and LGAs should be refunded the over charges from the Paris Club Refunds.

    “Dr. Ted Iseghohi-Edwards has been paid the sum of USD$159m in promissory notes, yet he had his matter in Suit No FCT/HC/CV/1353/18 struck out on November 10th, 2020. Furthermore, the legal basis for his claim is rooted in SUIT NO FHC/ABJ/CS/130/13: LINAS INTERNATIONAL LTD & 235 ORS V FGN which clearly stated that he cannot benefit under the judgment because he was not a party in the case and cannot enforce the terms of the judgment. Contrary to the representation of the AGF, the EFCC’s report on TED was negative. The report not only recommended his arrest but a forfeiture of any of his assets associated with the Paris Club Refund. The AGF ignored these recommendations.

    “RIOK to whom the AGF supports and recommends the payment of USD$142,028,941.95 was also excluded by Justice Ademola in the Judgment in the LINAS case. This was confirmed by the Court of Appeal in Appeal No CA/558/2017. That is the appeal now before the Supreme Court (SC). Which Judgment then is the basis of the AGF recommendation that RIOK be paid the sum of $142,028,941.95. There is also no evidence of execution of any contract by RIOK. Curiously, the Department of State Security (DSS) is alleged to have confirmed 50% execution. The Court and EFCC stated clearly that it is not the responsibility of the DSS to ascertain the execution of contracts as they do not have the expertise. ALGON disowned the contracts. Why will the AGF insist on them? It is not true that the EFCC in its report recommended payment to the contractors. It did not.

    “In the case of payments recommended and paid to Prince Orji Nwafor Orizu US$1,219,440.45, and Olaitan Bello – US$215,195.36, it remains a mystery. These two lawyers are alleged to have performed legal services for RIOK and its associated companies and not for the states or LGAs. Why they are paid from State resources is only imagined.

    “The AGF also claims he intervened to pay the contractors to avoid execution of the judgments against the federal government resources. That is absolutely not true at all. Assets of the FGN were not at any time threatened. The NGF is not aware that there is any existing mandamus issued by any court in favour of the contractors against the Federal Government. The only application for mandamus by PANIC Alert is pending for hearing at the Federal High Court and parties have since joined issues.

    “The AGF also says that the NGF and LGAs seek to transfer their liability to the FGN. That is not true. There is no liability to transfer in the first place and none exists; neither has the NGF provided any undertaking or indemnity to the FGN to act on its behalf as represented by the AGF.

    “The AGF has consistently stated that this administration is an avid respecter of the rule of law. This is one case in which this commitment should be fully and completely demonstrated. Let the AGF remain neutral and protect scarce public resources. Let him advice the contractors to wait until all appeals and litigations in court are concluded. That is the true test of observing the rule of law. There is no other way, uncomfortable as that would appear. State resources needed for critical development should not under any guise be frittered away as payments for contracts whose veracity and authenticity is still a subject of litigation and disputation. These contractors are impecunious and cannot restitute the states/LGAs if the appeals or other litigation are determined against them.

    “We call on the general public to be alert and vigilant. The debt relief granted Nigeria by the Paris Club in 2005 was meant to enable her have a respite and use the resources saved for meaningful development. It was not for distribution to private persons to fund their luxurious lives; neither can Nigeria justify her borrowing funds all over the world to fund capital projects and turn round to disburse state resources to individuals in a manner that offends all public sensibilities.

    “We urge all those appointed as gatekeepers to our laws to ensure that the laws of our land are respected and protected. Let professionalism, reasonable caution and due diligence prevail on this matter, please.”

  • Paris Club: Court stops FG from deducting $418m from 36 states’ accounts

    Paris Club: Court stops FG from deducting $418m from 36 states’ accounts

    The Federal High Court in Abuja has stopped the Federal Government from executing its plan to deduct $418 million from the bank account of the 36 states of the Federation.

    Justice Inyang Ekwo issued a restraining order against the Federal Government on Friday following an ex parte application brought by the counsels to the 36 states, Jibril Otukepa and Ahmed Raji.

    While moving the application, Okutepa who led the legal team of the states told the judge that the states would be completely crippled if the federal government should go ahead to deduct the huge amount from the bank accounts of their clients.

    In 2006, Nigeria paid $12 billion to get a $18 billion debt write-off by the Paris Club of international creditors.

    States and local governments that did not owe the Paris Club, according to reports, later asked for a refund after it was discovered that the payment was made directly from the revenue accruing to the entire federation.

    Reports later emerged that some consultants, who claimed a percentage of the refunds as payment for services they said they rendered to the states and local governments, went to court in a bid to get their pay.

    The sum of $418 million was agreed as a judgment debt after the Federal Government opted to negotiate an out-of-court settlement with the contractors.

    But this move was rejected by the states who sought redress in court after the Federal Government said it would commence the deduction.

    The Attorneys-General of the 36 states were listed as plaintiffs in the suit filed by their lawyers on October 27.

    Joined as respondents included the President, the Attorney-General of the Federation, the Accountant-General of the Federation, and the Ministry of Finance.

    Others were the Central Bank of Nigeria, the Debt Management Office, the Federal Account Allocation Committee, and various commercial banks in the country.

    The states, among others, had also sought an order of interim injunction restraining the Federal Government, any of its agencies, or any other person from deducting any money due to the states for the payment of any judgement debts arising from contracts and suits in relation to the Paris Club Refund.

    They requested the refund of any money deducted by the government from the Federation Account so far in relation to the issue in dispute, without the express consent of the states.

    The states based the application on 13 grounds, which included that the plaintiffs were the attorneys-general and chief law officers of their respective states as created by the Constitution.

    “Part of the deductions in the FAAC summary is for the liquidation of judgement debts in favour of persons who neither had any contractual relationship with the plaintiffs/applicants nor obtained any judgement against any of the plaintiffs/applicants,” the fourth ground of the application read.

  • Paris Club refund: Consultant sues 36 state governors, FG over payment

    Further withdrawals from the Paris Club refund by the states government has been stalled as a consultant has dragged the 36 state governors and the Federal Government to court.
    A highly placed source at the Presidency, told TNG on Friday night that the consultant in question is suing the state governors for reneging on the payment of the five per cent consultancy fees due to him for services rendered in relation to the sharing of the fund.
    According to the source, state governors may not be able to pay their workers from the Paris Club refund before Christmas as they had originally planned.
    The source said that the case has been filed at the Federal High Court Abuja.
    The source said before this new court case, efforts were in top gear to release the balance of the Paris Club refunds to states to pay workers salaries all over the country before Christmas.
    “The payment of the Paris Club refunds is at the final stages. It will be paid to enable the workers enjoy the Christmas and New Year festive seasons,” the source said.
    Meanwhile, the Federation Account Allocation Committee (FAAC) meeting scheduled for Friday was put off till Saturday because stakeholders had not received the component statement from NNPC.
    One of the state Commissioners for Finance, who pleaded anonymity, told NAN that for the second time, the NNPC was late in remitting funds into the Federation Account.
    “NNPC is the major cause of all these things. It has not brought in money just like last month.
    “Last month, the state governors insisted that the NNPC must bring in money before it later brought out N30 billion from Excess Crude Account (ECA) before the last FAAC could hold.
    ”Again this month, the CBN and Revenue Mobilization Allocation and Fiscal Commission (RMAFC) said they have not received component statement from NNPC.
    ”’This indicates that NNPC had not paid money into the Federation Account. Without that money we have to wait till tomorrow for FAAC meeting to hold.
    “If the component statement is sent from NNPC, it will take about six hours before the stakeholders can go through it” the commissioner said.
    President Muhammadu Buhari last month urged all state governors to utilise the balance of 50 per cent Paris Club refund to settle unpaid salaries owed workers before Christmas.
    To remove any hitches, he directed the CBN, Ministry of Finance, and the Budget Office of the Federation to work out how the outstanding fund would be paid before 2017 ends.
    The payment began in December 2016 with the release of about N522.74 billion to all 36 states in the first tranche of the Paris Club refund.
    The federal government later in July 2017, released N243.8 billion as second tranche.
    The funds were released following protests by states against over deductions for external debt service between 1995 and 2002.

  • Oyo receives N7.2bn Paris Club excess deduction – Commissioner

    Oyo State Government has confirmed the receipt of N7.2 billion as its share of the Paris Club excess deductions.

    Mr Toye Arulogun, the State Commissioner for Information, Culture and Tourism, made this known to newsmen in Ibadan.

    The News Agency of Nigeria (NAN) reports that the Federal Government approved the sum of N522.74 billion to be paid to the 36 states of the federation as part of the reimbursement for over deduction on the Paris Club loan.

    Gov. Abiola Ajimobi governor had on Jan. 4 during the state’s annual inter-religious service, debunked claims that the state government had collected its share of the fund.

    Ajimobi had said that he was hopeful that the state would be paid as promised.

    The governor had promised to allocate 50 per cent of the fund to settling outstanding salaries when the money was paid.

    The state government had announced in December 2016 and reiterated in January 2017 that the state was excluded from the initial beneficiary states of the Paris Club over-deduction funds.

    “Oyo State was initially excluded from the states to benefit from the Paris Club over-deducted fund.

    “The governor was not at peace with the development and swung into action to ensure that the state was included on the list.

    “The effort of the governor has yielded result.”

    Arulogun said that the governor had mandated the state Ministry of Finance to reconcile accounts with the Federal Ministry of Finance, which resulted in the payment of N7.2 billion to the state.

    He also explained that 60 per cent of the fund collected was added to the federal allocation to the state to pay salaries of workers for the months of August and September 2016.

    “We have used 60 per cent of the funds received to pay salaries as promised by the governor during the inter-faith service of the Oyo State Government held on Jan. 4.

    “The state appreciates the cooperation of the Minister and Federal Ministry of Finance officials, who facilitated the payment that has brought some degree of succour to workers in the state.

    “The state government will be able to deliver more dividends of democracy to the people,” Arulogun said.