Buhari Stops Payment Of $418m To Consultants On Paris Club Refund

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(Last Updated On: 2021-09-10)

President Buhari has stopped the controversial payment of $418 million to consultants over the Paris Club refund

Buhari on Thursday directed the ministry of finance to ask the Debt Management Office (DMO), which was supposed to pay in form of promissory notes, to stay action “until all the cases are exhausted”.

The Nigeria Governors Forum (NGF) and the general public have asked for the suspicious payments to be stopped. Non of the former presidents, including Olusegun Obasanjo, approved the payment because of lack of evidence of work done.

Many have drawn a parallel with the P&ID case over a gas processing contract that was never executed but for which Nigeria was slammed with a fine of over $10 billion.

It was also understood that Kayode Fayemi, governor of Ekiti state and chairman of NGF, met with the president on Wednesday evening over the controversy.

$12 billion was paid by the federal government in 2006 to get an $18 billion debt write-off by the Paris Club of international creditors.

However, because the payment was made directly from the revenue accusing to the entire federation, states and LGAs that did not owe the Paris Club asked the federal government for a refund.

Some consultants surfaced along the line to claim a percentage of the refunds as payment for their services to the states and councils.

Some contractors also claimed they were asked to execute projects across the country by the Association of Local Governments of Nigeria (ALGON).

While the contractors and consultants went to court, Malami curiously went to negotiate an out-of-court settlement with them and agreed to pay $418 million as judgment debt.

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Despite opposition by the governors and activists, Buhari went ahead to approve the payments.

However, his decision to “stay action” may not be final — in the past, a dubious payment of legal fees was made to lawyers over the Abacha Loot despite the president initially holding off.

Enrico Monfiri, a Swiss lawyer, had already been paid by Nigeria for the recovery of the loot and all that was left was for Malami to write for the money to be repatriated.

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But he went ahead and engaged lawyers to write the letter, and they were paid $17 million — $5 million more than Monfrini who had traced and frozen the loot over a period of seven years

Source: thenigerialawyer.com

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