Alleged offer of a $40 million commission to a governor forced the Nigerian Governors Forum (NGF) to resist the payment of $418 million to some consultants on London-Paris Club refund, investigation has revealed.
Governors were suspicious of the offer by a consultant who approached the said governor, urging him to persuade his colleagues to accede to the request to release the money.
It was also learnt that the governors were availed of a report by the Economic and Financial Crimes Commission (EFCC) on one of the consultants.
The report indicated that no service was rendered.
Based on facts at their disposal, the NGF sent a powerful letter to the Secretary to the Government of the Federation, Mr. Boss Mustapha, to draw the attention of President Muhammadu Buhari on the need for a second opinion on the $418 million.
It was gathered that when the request for the approval of the payment of the humongous cash was tabled before the Federal Executive Council (FEC), ministers were convinced by the position of the governors.
Some ministers said since there was a case in court over the cash, the presidency should allow judicial process to run its full course. The decision of the FEC made the President to halt the payment of the $418 million.
Notwithstanding, the NGF chairman, Dr. Kayode Fayemi, yesterday said the governors won’t give up on halting the payment of the $418 million to the consultants.
According to investigation by our correspondent, the lid on the $418 million deal was blown open when the alleged offer of commission was made. Findings confirmed that the desperation to secure the release of the cash made a consultant to approach a governor with a juicy offer.
Checks revealed that by the time the alleged move leaked, NGF members mandated their leadership to reject the payment of the $418 million.
A governor, who spoke in confidence, said: “Nigerians need to understand that this noise about $418 million is about protecting national interest. “For a country like ours, we cannot afford to pay $418 million to consultants whose services were disputed.
“We became curious when one of them approached a governor with an offer of 10% of $418million to facilitate the payment of the so-called consultancy fees. States do not have agreement with the affected consultants in whatever form. We cannot pay for services we did not enjoy.
“More importantly, we have won a case against one of the consultants. The case is likely to drag to the Supreme Court. Our position is that there is no point rushing to pay the $418 million when we still have a case on the matter.”
A source, who was privy to how the governor was offered the said sum, told our correspondent in confidence that, “it is true.” But he said: “Very soon, the governor may expose the dirty deal.”
As at press time, investigation showed that the governors took their battle to the Federal Executive Council through the Secretary to the Government of the Federation, Mr. Boss Mustapha.
Another source gave insights into how President Buhari directed the Attorney-General of the Federation, Mr. Abubakar Malami (SAN) to withdraw his memo seeking approval for the payment of the $418 million.
The government source added: “The NGF wrote a strong-worded letter to the SGF on the anomalies surrounding the demand for the $418 million. The Forum’s letter gave the President an opportunity for a second opinion on the cash.
“At the FEC meeting, the contributions of the Minister of Education, Adamu Adamu, the Minister State for Labour and Employment, Mr. Festus Keyamo (SAN) and the Minister of Works and Housing, Mr. Babatunde Fashola (SAN) were so excellent that ministers agreed that the governors had a good case.
“Having been convinced, President Muhammadu Buhari asked AGF Malami (SAN) to withdraw his letter seeking the payment of the $418 million to the consultants.”
A governor from North-Central said: “The governors have nothing against Malami, but he should allow the law to take its course. He is behaving as if he seeks to protect the consultants.
“We have evidence that the EFCC in a report faulted one of the consultants that he rendered no services.
“Therefore, we want the AGF to defend the interest of Nigeria, not consultants.
“All those who have played some roles in this $418 million deal should know that from 2023, they will account for every kobo of it.”
When contacted, the NGF Chairman, Governor Kayode Fayemi said: “We (governors) won’t give up. It is a court matter. We will pursue it to a logical conclusion at the Supreme Court.”
Since April 19, 2021, there had been controversy over the payment of the $418 million.
The amount involved had varied from $318 million to $419 million.
The Nigeria Governors Forum (NGF) and the Association of Local Governments of Nigeria (ALGON) had protested to the Minister of Finance, Budget and National Planning, Hajiya Zainab Shamsuna Ahmed against deductions from the states statutory allocations from the Federation Account.
The NGF’s counsel, Femi Falana (SAN) in the April 19th, 2021 letter to the Minister said in part: “The Nigeria Governors’ Forum (NGF) has engaged our services to challenge the decisions of the Court relating to or connected with payments of Legal and Consultancy fees arising from London Club Debt, Buy Back and London Club Debt Exit Payment, which is the fulcrum of the judgment of the Federal High Court, Abuja in Suit No: FHC/ABJ/CS/130/13 — LINAS INTERNATIONAL LIMITED & ORS.V. THE FEDERAL GOVERNMENT OF NIGERIA & OR
“Section 162(5) of the 1999 Constitution of the Federal Republic of Nigeria (as amended) mandates any amount standing to the credit of local governments to be paid directly to the states for the benefit of their local government councils. The states therefore have a responsibility to ensure that funds standing to the credit of the local government councils are protected as custodians of such funds.
“We need to inform you of your sacred duty of staying action on this matter in view of the injunctive reliefs sought in the processes to be filed in Court on these matters.
“While extending the assurances of our highest regard, we hope that you will exercise restraint by resisting any urge to issue promissory notes to anyone (including Dr. Ted Iseghohi Edwards, Mr. Ned Munir Nwoko, Panic Alert Security Systems, Dr. George Uboh, Riok Nigeria Ltd, Prince Orji Nwafor-Orizu & Barrister Bello Olaitan Busayo) pending the determination of these actions by the Court.”
Earlier in an April 8th 2021 letter to the Minister of Finance, Mr. Ikechukwu Ezechukwu, (SAN), who is the counsel to Dr. Ted Iseghohi Edwards, demanded issuance of the promissory notes to his client.
The letter reads in part: “We are counsels to Dr. Ted Iseghohi Edwards (Judgment Creditor) herein referred to as our client. “Our client got a Garnishee Order absolute attaching the funds belonging to Local Governments in the custody of the Central Bank of Nigeria in satisfaction of a Judgment debt as per Judgments of both the FCT High Court and the Federal High Court of Nigeria which entered Judgment in favour of our client for the sum of $318,000,000.00.
“At the instance of the Federal Government, this Judgment was compromised to the effect that the Federal Government agree to pay less than the full Judgment debt. Mr. President has since December 2020 approved the payment of this sum through issuance to our client a Promissory Note because the Country is in financial straits.
“Since the approval of Mr. President, you, as the Minister responsible for carrying out the Presidential approval, have refused to carry out your official reasonability as a Public Officer hiding under the cloak of awaiting for consent and responses of the judgment debtors.
“We hereby demand on behalf of our client your immediate compliance with the Presidential approval and effect the satisfaction of our compromised Judgment debt by issuing our client with Promissory Notes as proved