Paris Club refund: Court orders Katsina to pay N13.3bn to firm

Justice Inyang Ekwo of a Federal High Court, Abuja, has ordered the Katsina state government to pay a firm, Mauritz Walton Nigerian Limited, N13.3 billion for the debt management services it rendered to the state.

The firm was said to have rendered the services, which aided the refund of the $217.3 million to Katsina state by the federal government.

Justice Ekwo, in a judgment held that the firm was able to establish, through credible evidence, that it was entitled to its claims as laid out in its suit filed and argued on its behalf by its legal team led by Wole Olanipekun (SAN).

The judge said the money to be paid to Mauritz Walton Nigerian Limited forms 20 per cent of the $217, 274, 991. 01 refunded to Katsina state government.

He ordered the state government to in addition, pay the firm 20 per cent interest on the judgment sum to be calculated from October 1, 2018 until the day the judgment was given and thereafter, at the rate of 10 per cent per annum until full and final payment.

The judgement is in respect of a suit filed by Mauritz Walton Nigerian Limited against the minister of finance, Central Bank of Nigeria (CBN), accountant -general of the federation, Katsina state government and its banker, the United Bank for Africa Plc.

The firm claimed that it was appointed by the state via a letter dated August 18, 2014 with reference number, MOF/STAFF/409/1/31 to ascertain and recover the excess deductions by the federal government from its account to service its external debt between July 1995 and March 2002.

It stated that it was agreed between it and the state government that it would be paid 20 per cent of what was due to the state from the excess deduction, which is commonly referred to as the Paris Club refund.

Mauritz Walton’s Chief Executive Officer, Dr. Maurice Ibe, stated in his witness statement that through his firm’s efforts, it was ascertained that Katsina state was entitled to $217.3 million (about N66, 268, 872, 258 calculated at an exchange rate of one dollar to N305) as Paris Club refund.

Ibe added that his firm’s efforts yielded further results when President Muhammadu Buhari in 2016 directed the payment of the first tranche of the Paris Club refund to states, including Katsina.

He stated that although, almost all the amounts due to state had been paid into the state’s account with the United Bank for Africa (UBA), the state has refused and failed to pay his firm the 20 per cent fees agreed between parties.

Ibe further stated that despite the pendency of the suit and existing interim orders by the court restraining further payment to Katsina state, the second defendant (Central Bank of Nigeria) on the instruction of the first defendant (finance minister) paid N35, 364, 610, 435 to the fourth defendant (Kastina state) through the fifth defendant (UBA).

Justice Ekwo in his judgment said: “I find by the evidence in this case, that the plaintiff has established the essential ingredients that must exist for a contractual relationship to be founded, that is; offer, acceptance, consideration, intention to create legal relationship and the capacity of the parties to enter into a contractual relationship by credible evidence which has not been successfully discredited by the defendants, especially the fourth defendant.

“I hold therefore, that there was an agreement between the plaintiff and the fourth defendant for the payment of 20 per cent commission charge of the recovered sum to the plaintiff by the fourth defendant.

“It is my finding also, that the defendants are ad idem (are in agreement) that the excess deductions have been fully paid to the fourth defendant and this was done during the subsistence of the debt management consultancy agreement between the fourth defendant and the plaintiff,” he held.

The judge faulted claims by the first, second, third and fifth defendants that they ought not to be joined in the suit on the grounds that they were not party to the contract between the plaintiff and the fourth defendant (Katsina state).