A Federal High Court in Abuja yesterday threw out an application by state Attorneys- General seeking to be made a party to a Federal Government suit seeking to block the redemption of promissory notes issued to some consultants/contractors in relation to the Paris Club refunds dispute.
The consultants/contractors had claimed to have been engaged by the Nigeria Governors’ Forum (NGF) and the Association of Local Governments of Nigeria (ALGON) to retrieve their shares of the Paris Club refunds. They got judgments against the states to pay them about $418 million.
Listed as defendants by the government are FSDH Merchant Bank Limited, Ned Munir Nwoko, Gregory Lar, Riok Nigeria Ltd, Orji Orizu, Olaitan Bello, Ted Edwards, and Panic Alert Security System Limited who make up the consultants/contractors.
In the suit marked FHC/ABJ/CS/896/2023, the Federal Government joined the Attorney-General of the Federation (AGF), the Minister of Finance, Budget and National Planning, and the Accountant General of the Federation as co-plaintiffs.
Justice Inyang Ekwo held that the Attorneys-General were not necessary parties to the suit.
He described the application as defective and affirmed that the suit could be effectively determined by the court without their involvement.
Ekwo however adjourned till October 22 for the hearing of the preliminary objection raised by the defendants against the competence of the suit.
The Attorneys-General had argued that being representatives of their states whose funds would be affected by the promissory notes, they ought to be heard by the court.
The Federal Government had while initiating the suit last year faulted the procedure for the issuance of 62 promissory notes in 2021 and urged the court to invalidate them.
It also asked the court to issue a perpetual order restraining the defendants and their agents “from exercising any proprietary rights” over the promissory notes.
READ ALSO: Court adjourns Emefiele’s case over $53m Paris Club debt
The 62 promissory notes, valued at $418,953,668 were issued to the defendants on September 27, 2021, by the Debt Management Office (DMO), following judgments and orders of mandamus obtained against the Federal Government and the Finance Ministry.
The government contended among others, that the promissory notes were invalid, having been wrongly issued in violation of relevant laws.
It however noted that although the promissory notes were executed by the Finance, Budget, and National Planning Ministry and the DMO, the notes were not signed as required.
“The promissory notes in issue were wrongly and unlawfully changed on the assets and revenues of the federation instead of the assets and revenues of the states and local governments, who incurred the applicable loans/debts,” the government argued.
A senior official of the Federal Ministry of Justice, Mr. Oyinlade Koleosho stated, in a supporting affidavit, that the promissory notes were wrongly and invalidly issued against the assets of the federation.
He stated that Sections 314 and 317 of the Constitution have separated the assets of a state or Local Government Council from the assets of the Federal Government.
Koleosho added that the promissory notes were charged on the assets of the government, which is not indebted to any of the contractors/consultants.
He said: “The debts upon which the promissory notes were issued were not incurred by the Federal Government of Nigeria or the Federation.
“The promissory notes charged against the assets of the Federal Government of Nigeria are only issued in respect of loans taken by it and not by the State Government or Local Government Councils.
“The promissory notes of the Federal Government of Nigeria can only be issued to offset Federal Government-owned debts.”
According to court documents, FSDH Merchant Bank Limited was issued 10 promissory notes valued at $67,925,661 at the rate of $6,499,561. per note (allegedly for the benefit of Nwoko)
Lar, who is described as Nwoko’s agent, was issued two promissory notes “for the account/ benefit of Nwoko for a total value of $732,511 at the rate of $366,256.00 per note.
Riok Nigeria Ltd was issued 10 Federal Government promissory notes worth $142,028, 941 at the rate of $14,202,895 per note. Orizu had 10 promissory notes for a total value of $1,219,440.00 at the rate of $121,944.00 per note.
Bello is said to have been issued eight promissory notes for a total value of $215,195 at $21,524 per note. Edwards got 10 notes for the value of $159,000,000 at the rate of $15,900,000.00 per one.
Panic Alert Security System Limited was also issued 10 promissory notes for the value of $47,831,920 valued at $4,783,192.00 per one.
The post PARIS CLUB REFUNDS: Court rejects state Attorneys’ request to join FG’s suit on $418m payments appeared first on Latest Nigeria News | Top Stories from Ripples Nigeria.
