FG Not Resorting To Arbitrary Deductions On Paris Club Refund— Malami

The Attorney-General of the federation and Minister of Justice, Abubakar Malami SAN, has reacted to a federal high court Abuja ruling barring the federal government from deducting from allocations to the 36 states of the federation to settle debts relating to the Paris Club refund.

President Muhammadu Buhari, Central Bank of Nigeria, Debt Management Office, Attorney- General of the Federation, Accountant- General of the Federation, are part of the list of defendants in the suit, which include several banks, individuals and companies.

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THE WHISTLER reported that presiding judge Inyang Ekwo granted 3 out of 4 orders sought in the exparte motion filed by J.S Okutepa SAN on Friday, on behalf of the 36 state Attorneys General.

Okutepa had prayed the Court for the following reliefs:

“AN ORDER of Interim Injunction restraining the Federal Government of Nigeria acting through all or any of the 1st to 7th Defendants or any of its agencies or any other persons whomsoever, from approving the deduction or deducting any money accruing or due to all or any of the 36 States of the Federation (hereinafter referred to as the Plaintiffs/Applicants/States/States of the Federation) from the Federation Account for the payment of any judgment debt in the sum of 418 Million Dollars in relation to the Paris Club Refund or any other matter ancillary thereto without the express consent of the States of the Federation and the appropriation of the said monies by the Houses of Assembly of the various States of the Federation pending the hearing and determination of the Motion on Notice for Interlocutory Injunction

“AN ORDER of Interim Injunction restraining the Federal Government or any of its agencies or any other person whomsoever, acting on their behalf from deducting or further deducting any money from any amount due to all or any of the States of the Federation from the Federation Account for the payment of any Judgment Debts amounting to the sum of 418 Million Dollars purportedly arising from contracts and suits in relation to the Paris Club Refund or any other matter ancillary thereto contrary to the Appropriation Laws of the various States of the Federation pending the hearing and determination of the Motion on Notice for Interlocutory Injunction.

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“AN ORDER of Interim Injunction restraining any or all of the 21st to 43rd Defendants from accepting, giving value, discounting and/or honouring in any form or manner whatsoever, any Promissory Notes issued by and/or with the approval of all or any of the 1st to 7th Defendants to the 9th to 19th Defendants their attorneys, assigns, agents, creditors or any other person deriving any form of interest from all or any of them in relation to any Promissory Notes issued in relation to the purported Judgment Debt amounting to the sum of 418 Million Dollars purportedly arising from contracts and suits in relation to the Paris Club Refund or any matter ancillary thereto, against the accounts and interests of the Plaintiffs without the express consent of the States and appropriation of the said monies by the Houses of Assembly of the various States pending the hearing and determination of the Motion on Notice for Interlocutory Injunction.”

Making reference to the matter, Malami denied any wrongdoing, adding that it was the states that were attempting to draw back on the term of agreement reached with relevant stakeholders.

“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, 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 of consultants.

“Thus, the Federal Government did not act in vacuum before the decision to comply with the existing judgments was taken. The Federal Government could not fold its arms and watch while the consultants/contractors 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 made by the Federal Government to the States and Local Governments in contempt of an existing court judgments procured against NGF and ALGON by consent.

“Thus, the Federal Government did not resort to arbitrary deductions of funds belonging to States and Local Governments rather it is in furtherance of the need to settle judgment debts judiciously consented to by NGF and ALGON that were incurred but in respect of which they are seeking to transfer the liability of same to the Federal Government. Thus, the media onslaught on what played out at FAAC October meeting that States won’t be able to pay salaries on account of the deductions is far from the truth as the problem is self-induced being a product of contractual negotiation in respect of which NGF and ALGON submitted to judicial decision legitimately entered by their consent.

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“The Honourable Attorney General of the Federation denies any wrongdoing in the steps that have been taken so far to comply with the various court judgments and is also not party or privy to any of the sinister agenda or plots being insinuated in the malicious publications, but maintains that he has a responsibility to protect Federal Government from bearing liability of a judgement debt incurred by Nigerian Governor’s Forum and ALGON which is mischievously being transferred to the Federal Government,” Malami had reacted in a statement issued by his Spokesperson, Dr. Umar Jibrilu Gwandu.

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