By David Lawani, Dennis Mernyi and Ben Ogbemudia
The Minister of Justice and Attorney-General of the Federation, Abubakar Malami on Tuesday insisted that the 36 states Governors under the Nigerian Governors Forum approved of the $418 million Paris Club deduction to consultants only to turn around to reject the action by the Federal government.
Malami’s clarification on the contentious deductions came a day after the NGF cautioned the Federal government in a widely publicized statement to halt the fund deduction to the states.
But speaking through his Special Assistant on Media and Public Relations, Dr. Umar Jibrilu Gwandu in a chat with ThisNigeria reporters, the Minister said it is rather unfortunate that this agreement was reached many years ago when the current administration had not come to the office. He cautioned the Governors to be mindful of the implication of signing agreements that they would not be willing to accept its outcome.
“This was an agreement that was reached for how many years? Some of these things were done long ago like 2024, 2015, 2017, and 2019. Who asked them (Governors) to sign an agreement that they are not mindful of the implication?”
“Is it because they cannot stand on the agreement they have undertaken? They should think twice next time if they want to do these things. There is a letter by the NGF that they have no objection that the payment should be made.
“I think the government and the Minister will look at the legal implications together. Next time, before they enter into an agreement, they will have to think twice about it”, Gwandu said.
But the Governors are hinging their rejection of the deduction on the ruling of judgments of court which put a stay of action on the deductions maintaining that the action of the Federal government was unconstitutional.
In a statement by Abdulrazaque Bello-Barkindo Head of Media and Public Affairs of the NGF, while responding to an earlier statement by Gwandu on November 5, the governors frowned at what they described as the deduction of humongous state resources amounting to USD$418 million from the Federation Account.
According to the NGF, the payments were being made in favor of private contractors and/or consultants for alleged work done from the Paris Club refunds to the States and Local Governments.
Gwandu in subsequent press releases stuck to his position that the NGF and the Association of Local Governments of Nigeria, (ALGON) had pre-knowledge of these deductions before going ahead to challenge it in lawsuits.
His words: “It is curious to note that both NGF and ALGON who had actual knowledge of these judgments between 2013 and 2019, consented to their partial compliance and also undertook in 2019 to settle them from their FAAC Allocations, only to turn around in 2021 to take steps to challenge the judgments. The Federal Government acted on the Undertaking/Indemnity provided by the NGF. More so the Judgment Creditors also obtained orders of mandamus compelling the issuance of the promissory notes.
Buhari salutes Emir of Gwandu at 85
“It is remarkable to note that the NGF at various times in 2016 and 2018 received payments from the Federal Government under the guise of legal and consultancy fees related to the same Paris Club refunds. Specifically, the NGF was paid US$86,546,526.65 and N19,439,225,871.11 in 2016 and US$100,000,000.00 in 2018. It was however convenient at that time not to complain about payment to consultants.
Malami said the Federal Government did not act in a vacuum before the decision to comply with the existing judgments was taken. The Minister maintains that the Federal Government could not fold its arms and watch while the consultants/contractors who had already obtained garnishee order absolute attaching the funds of the Federal Government in the Central Bank of Nigeria on account of the fact that the refunds of the Paris Club loans were released by the Federal Government to the States and Local Governments in contempt of existing court judgments procured against NGF and ALGON by consent.
With all sides sticking to their positions, the tone of language emanating from the Office of the Minister of Justice and Attorney General of the Federation suggests that the matter is far from being resolved as the battle line may have been drawn.
