Governors of the 36 states of the federation are billed for a crucial meeting today in Abuja, as they deliberate on the controversial $418m Paris club loan refund which was deducted from the States accounts last month by the federal government, as well as the worrying state of the nation’s security and economy
It would be recalled that the Governors have countered the decision of the federal government to deduct.
The Governors have asked the Federal Government to refrain from deducting from funds accruing to them and all local government councils as liquidation for the alleged $418 million London/Paris Club loan refund-related judgment debts.
The governors stated this in a letter dated April 4 in response to a November 11, 2021 letter from the minister of finance, budget, and national planning, advertising the commencement of the deduction for the liquidation of the alleged judgment debts.
In March, the attorneys-general of the 36 states appealed a judgment that dismissed a suit seeking to restrain the federal government from effecting the planned deduction of $418 million from states’ funds.
The plaintiffs in the suit marked: FHC/ABJ/CS/1313/202 sought to restrain the president and others.
The state governments said they were not parties to any suit on the London/Paris Club refund, and were thus not liable to any person or entity in any judgment debt being relied on by the federal government.
But the Federal government, while justifying the deductions, through the Attorney General and Minister of Justice, Abubakar Malami, las thursday, declared that state G overnors have no basis to complain about deductions from the Paris Club refund, which he said war paid to consultants they hired.
Addressing the controversy caused by the recent deductions made from the refund, the Minister affirmed that when the Nigeria Governors Forum (NGF) made a request for the refund, one of the components was the settlement of the consultants who were engaged by the forum.
Malami recalled that when the refund was paid to the states, the governors initially made to states, part payment was also made to the consultants.
However, he said the governors later decided to stop payment while asking for an out-of-court settlement.
The Minister said this resulted to request to the President to make the payment, a request he said, was then passed on to the Office of the AGF for a legal opinion.
Malami noted after being subjected to necessary checks, it was found out that there was no element of fraud involved.
According to him, the indemnity of the governors was also sought and received.
“That was we agreed that the payment should be made,” the AGF stated.
He revealed that the indemnity of the governors was also sought and received, adding that this gave rise to the decision to make the payment.
Malami explained in response to a question: “On the issue of Paris Club that is raised, you mentioned that there exists presidential directives that payments should not be made and then in breach of that position, directives payments were perhaps maybe arising from the conspiracy between the Attorney General of the Federation and Minister of Justice payments have been made.
“I think you need to be informed first, as to the antecedents, prevailing circumstances and how the liability arose. But one thing I’m happy to state, which I want to reiterate having stated the same earlier, is the fact that the Office of the Attorney General and the government of President Muhammadu Buhari has not, indeed, incurred any major judgment debt for the period of seven years it has been on.
“Now, coming to the antecedents, background of the Paris Club. The liability or judgement debts related to Paris Club were indeed a liability created by the Governors Forum in their own right.
“How do I mean? The Governors Forum comprising of all the governors sat down, commonly agreed on the engagement of consultants to provide certain services for them relating to the recovery of the Paris Club. So, it was the Governors Forum under the federal government in the first place that engaged the consultants.
“Two, when eventually, successes were recorded associated with the refund, associated with Paris Club, 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 a component related to the payment of these consultants that are now constituting the subject of contention.
“So, the implication of that is that the governors in their own right recognized the consultants, recognized their claim and presented a such claim to the federal government.”
The Governors according to a statement issued Tuesday in Abuja by the Head, Media and Public Affairs of the NGF, Abdulrazaque Bello-Barkindo, noted that the state of the economy will dominate the conversation when the 36 governors meet at the Banquet Hall of the Presidential Villa in Abuja.
The statement read: “The state of the economy will dominate the conversation when the 36 governors meet on Wednesday, 17th August 2022 at the Banquet Hall, of the Presidential Villa in Abuja.
“Worried by the economic woes that the citizenry have been complaining about and the hardship associated with it, several governors reasoned that it is high time they told each other the bare truth by confronting each other on the situation and brainstorming on it.
“This formed the basis for resorting to an in-person meeting, which since the outbreak of the Covid-19 pandemic been relegated by the states’ executives.
“Two things will feature prominently in the conversation: the economy and security.
“This will be the first time in the year, contrary to media reports that governors had collectively advised the President on the weeding of fifty-year-olds from the Federal Civil Service and other spurious suggestions meant to impose further hardship on the people, that governors will collectively meet to consider a total overhaul of the nation’s economy.
“The meeting which, according to the invitation issued by the Director General of the Nigeria Governors’ Forum, Mr Asishana Bayo Okauru, will commence at 2p.m., begins with the launch of the Primary Health Care Leadership Challenge Fund, followed by the launch of the World Bank SFTAS charter before the real conversation on the state of the economy begins.
“There will also be such regular updates as the CARES programme and the Chairman’s remarks. All governors are warmly welcome.”
