Court rules on $418m Paris Club refund suit March 25

FG, contractors’ counsel seek dismissal of case

Justice Inyang Ekwo of the Federal High Court, in Abuja, has fixed March 25, 2022, for judgment in a suit by the 36 states governments against the Federal Government’s plan to deduct $418 million from their funds to settle debts owed consultants engaged by the states and councils in relation to the Paris Club refund.

The judge chose the date, yesterday, after lawyers to parties in the suit FHC/ABJ/CS/1313/2021 adopted their final written addresses and made final submissions.

The plaintiffs are seeking to restrain President Muhammadu Buhari and others from effecting the planned deduction from states’ funds to settle the debt owed consultants engaged by states and local councils.

Lead plaintiffs’ lawyer, Sunday Ameh (SAN), in his final submission, argued that the defendants misconstrued the kernel of his clients’ suit. He faulted the argument by the defendants that the suit was challenging existing judgments given by the court in favour of some of the consultants.

His words: “We are not challenging the judgments; we are saying the way the Federal Government and its agencies are going about enforcing the judgments violates Sections 120 and 162 of the Constitution.”

Ameh stated that his clients were not averse to the Federal Government’s issuance of promissory notes to the consultants (also sued as defendants), but became uncomfortable when it issued a notice to commence deduction from the states’ accounts.

He added that since the government agreed that the contractors were owed in relation to the services they rendered, it should settle them without deploying funds belonging to the states and councils.

“If the Federal Government is inclined to pay the debt, it should look for other ways to do so and leave the funds belonging to the state governments and local councils alone,” he stressed, praying the court to allow the case and grant his clients’ prayers.

Counsel to the defendants, including Wole Olanipekun (SAN), Mrs. Maimuna Shiru (Acting Director, Civil Litigation, Federal Ministry of Justice) and Olusola Oke (SAN), faulted the competence of the suit and urged the court to dismiss it.

Olanipekun, who represented one of the consultants, Dr. Ted Iseghohi-Edwards (14th defendant), described the plaintiffs as meddlesome interlopers, noting that the state governments claimed to be fighting for the local councils, a distinct tier of government, without its consent.

Shiru argued that not only was the suit statute-barred, but the plaintiffs were also seeking the impossible by asking the court to sit on appeal over judgments earlier delivered by it and other courts of coordinate jurisdiction.

“The plaintiffs have not appealed against the judgments of this court and the High Court of the Federal Capital Territory (FCT) that the contracts awarded to the consultants are valid,” she said, adding that the plaintiffs could not distance themselves from the decision taken by the Nigeria Governors’ Forum (NGF) in engaging some of the consultants.

Oke, who represented Riok Nigeria Limited, and Prince Nicholas Ukachukwu argued that the suit was without merit and should be dismissed.

He stated that the judgment obtained by his clients was against the local councils and not the plaintiffs, adding that the council admitted the contract awarded to his clients.