Paris Club Refund: Uproar as AGF disobeys presidential approval over consultants’ $350m fee

…Accountant General cites verbal directive from Gov Yari for refusal of FG’s directive …Says ‘I’ve complied with relevant directives’ Months after President Muhammadu Buhari directed the final settlement of all debts relating to the Paris Club loans refund, the Accountant General of the Federation (AGF) has failed to abide by the directive. The Accountant General also remained adamant despite subsequent advises by the Attorney General of the Federation (AGF) and Minister of Justice, Mr. Abubakar Malami (SAN) and the then Minister of Finance, Mrs. Kemi Adeosun, that the presidential directive be complied with. Investigation further revealed that the Accountant General is relying on a purported contradictory oral directive by the Chairman of the Governor’s Forum and Zamfara State Governor, Abdullaziz Yari, who gave an oral instruction that funds meant to pay consultancy/legal fees, estimated at about $350 million, be withheld. The Chief of Staff (COS) to the President, Abba Kyari had, by a letter dated June 28, 2018, disclosed that President Muhammadu Buhari has approved the settlement of all claims related to the Paris Club loan reimbursement. In the letter copied to Malami and Adeosun, Kyari also sought the legal opinion of the Attorney General of the Federation (AGF) on the issue. Malami, in his letter dated July 11, 2018 (in reaction to the COS’ request for legal opinion) and another letter dated August 20, 2018 (in response to request for legal opinion by the Minister of Finance), identified some 3rd party claimants, who were entitled to be paid various amounts as consultancy/legal fees for the services they rendered to states and Local Governments in relation to the Paris Club refund. In the August 11, 2018 letter titled: “Legal opinion on 3rd party claims,” Malami identified one of the consultants as Hon Ned Munir Nwoko, who sued the Nigerian Governors’ Forum (NGF) and seven others in suit: FHC/ABJ/CS/148/2017 and claimed that he was engaged by NGF to provide legal/consultancy services on the Paris Club refund. Malami noted that parties to the suit, including Nwoko and the NGF, entered a consent judgment on May 9, 2017 “to the effect that Hon. Nwoko is entitled to be paid a negotiated percentage on every refund made by the Federal Government to the states. “Hon. Ned Munir Nwoko, covered under paragraph 5 of my letter dated 11th July, 2018 has stated that, in view of the unwillingness of the NGF to negotiate and pay him his full entitlement in line with the consent judgment, he is reverting to his initial claim of $71,936,881.36. “He is therefore seeking for the payment of the sum of $68,658,192.83 as outstanding sum due to him from NGF. “The EFCC investigation report, dated 1st August 2018 equally confirmed that the judgment creditor (Nwoko) was engaged by 14 states to recover excess deduction with respect to the Paris and London Club debts,” Malami said. The Justice Minister also warned that since the consultants and other 3rd party claimants have obtained garnishee orders against the Federal Government and the Central Bank of Nigeria (CBN), the Federal Government was under obligation to settle these 3rd party creditors before making disbursement to the states and LGs. Malami said: “I wish to reiterate the fact that the payments under consideration are to be made before final payments are made to the state’s and Local Governments to avoid a situation where the Federal Government will be forced to bear any unwarranted liability on this subject matter.” In view of Malami’s advice, then Minister of Finance, Mrs. Kemi Adeosun, in a letter dated September 14, 2018 asked the Governor of Central Bank of Nigeria (CBN), Godwin Emefiele, to set aside the consultants’ fees, estimated at $350 million from the $2,689,279,365 reserved as the final claim to the states and LGs under the Paris loan refund arrangement. Part of the letter by Mrs. Adeosun reads: “Please find attached herewith the approval of His Excellency, President Muhammadu Buhari, dated 29th August 2018 in respect of the final claim on Paris Club loan reimbursement of over-deductions from allocations of states and Local Governments. “I specifically refer you to paragraph 6 which authorised that the final claim of $2,689,279,365 be paid to qualified states, and paragraph 10(x) which recommended that the sum of $350 million be provided for settling legal/consultancy fees, etc. “In view of the above, you are requested to credit Escrow Account domiciled with the CBN with the sum of $350 million,” Mrs. Adeosun said. The CBN Governor, in a September 18, 2018 letter, acknowledged the directive by the Finance Minister, and sought among others, information on the accounts to which the funds should be paid. But, in his letter of September 21 to the Attorney General of the Federation, which he sent through the Finance Minister, the Accountant General of the Federation, Ahmed Idris attempted to justify why the $350m meant for the payment of legal/consultancy fees is being withheld. He sought advice from the Minister of Justice in a letter dated on September 21. Idris, in the letter titled: “Re: Payment of legal/consultancy fees deducted from states’ reimbursement in respect of final claim on Paris Club loan,” referred to a certain counter-directive by the Chairman of the NGF to withhold the $350m. Part of the letter reads: “The Honourable Attorney General of the Federation and Minister of Justice is kindly referred to our tri-partite discussion, at the Ministry of Justice on the above subject vide Mr. President’s approval and be informed that the Chairman of the Governors’ Forum has verbally instructed that the payment be kept on hold. “In view of Mr. President’s approval and the counter-instruction from the Chairman of the Governors’ Forum, kindly advise accordingly.” But commenting on the propriety of his action, the office of the AGF said: “The OAGF had to write to Attorney General of the Federation in view of some emerging developments on the matter. “We always comply fully with relevant directives and extant rules guiding public expenditure and payments. “As Treasury, we perform our duties ethically and without compromising our professional callings as holders of public trust. Should you need additional information on this matter, please contact us again. Thank you for the effort to hear from us”. By Matthew Dadiya, Abuja