The Nigeria Governors Forum says it has stopped the planned payment of $418 million and the promissory notes issued to the Paris Club consultants by the Federal Ministry of Finance and the Debt Management Office.
The forum comprising the 36 state governors vowed to continue to explore all legal channels available to them in ensuring that ‘’resources belonging to states are not unjustly or illegally paid to a few in the guise of consultancies.’’
The governors stated this in a communiqué signed by the NGF Chairman and Sokoto State Governor, Aminu Tambuwal, issued on Wednesday after their 8th teleconference meeting which was held on Tuesday night.
But reacting to the governors’ stance, one of the consultants, Ned Nwoko, threatened to enforce the payment in a foreign court and freeze the federation accounts.
Although Nwoko did not mention the foreign country, findings show the consultants may head for France, where the secretariat of the Paris Club is located.
The Minister of Justice and Attorney-General of the Federation, Abubakar Malami, SAN, had said that the NGF had no basis to reject the proposed deductions of $418m from the federation account, noting that the governors created the liability whose payment they had also indemnified.
Briefing State House correspondents on August 11, Malami said the governors commonly agreed on the engagement of the consultants to provide certain services for them relating to the recovery of the Paris Club fund.
“When successes were recorded in the refund process, the governors collectively and individually presented a request to the Federal Government for the fund and among the components of the claim presented for the consideration of the Federal Government was the payment of these consultants that are now constituting the subject of contention,’’ the minister stated.
But rising from their Tuesday meeting, the governors expressed opposition to the move to pay the consultants despite the DMO promissory note.
The NGF in its communiqué said, ‘’We, members of the Nigeria Governors’ Forum at our meeting held today received briefings on various sub-national programmes, interventions, and issues of national importance. On these we resolved as follows:
“Regarding the controversial $418 million Paris Club refund and promissory notes issued to consultants by the Federal Ministry of Finance and the Debt Management Office, the forum remains resolute in exploring all legal channels available to it in ensuring that resources belonging to states are not unjustly or illegally paid to a few in the guise of consultancies.’’
Responding to the forum’s resolution, Nwoko, a former lawmaker, said, “They (Governors) will only embarrass the Federal Government because I will execute the judgment abroad. When I do that and the accounts of the Federal Government are frozen, they will not need the governors’ authority to pay.”
However, he did not disclose the foreign country he would use in executing his threat.
Speaking on the development, a lawyer, Ebun-Olu Adegboruwa, said it was better for the consultants to allow the matter to be settled in the local court, adding that foreign court would likely want to await the decision of the Nigerian court.
