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$2.5b Mambilla Power Dispute: What Obasanjo, Buhari Told Paris Court

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$2.5b Mambilla Power Dispute: What Obasanjo, Buhari Told Paris Court

•Fagbemi, Malami, Fashola. Adamu also testify
•Sunrise Power yet to produce a witness
•Aondoakaa makes dramatic appearance

Former Presidents Olusegun Obasanjo and Muhammadu Buhari have told the International Chamber of Commerce Court of Arbitration in Paris, France that the Federal Government at no time awarded a contract in respect of the $6 billion Mambila Power Project in Taraba State to Sunrise Power.

Obasanjo and Buhari, who both testified for Nigeria in the $2.3 billion arbitration case filed by the company and its founder, Chief Leno Adesanya, against Nigeria over an alleged breach of contract by the Federal Government, disputed the complainants’ claims.

Sunrise says the compensation demanded was meant to defray what it has spent on financial and legal consultants.
Obasanjo and Buhari urged the court to ignore the purported 2003 agreement which Adesanya and his firm based their arguments on, because the document was invalid.

They said Sunrise got the purported letter, signed by a former Minister of Power, Dr Olu Agunloye about 24 hours after the Federal Executive Council rejected award of contract to the firm.

Agunloye is currently standing trial in Abuja for forgery, disobedience of a presidential order and corruption in respect of the power plant project.

His prosecutor, the Economic and Financial Crimes Commission (EFCC), accused him of awarding a contract entitled “Construction of 3,960MW Mambilla Hydroelectric Power Station on Build, Operate and Transfer Basis” to Sunrise Power and Transmission Company Limited without budgetary provision, approval or cash backing.

The ex-minister claimed yesterday that government was merely trying to use him as a scapegoat to “portray systemic corruption to the arbitration panel and undermine Sunrise’s claims.”

The testimonies of the ex-presidents at the Arbitration Court were corroborated by Justice Minister and Attorney-General of the Federation Lateef Fagbemi(SAN), his immediate predecessor, Mallam Abubakar Malami (SAN), a former Minister of Power, Babatunde Raji Fashola (SAN) and a former Minister of Water Resources, Engr. Suleiman Adamu.

The Nation gathered that another former Minister of Justice and Attorney-General of the Federation, Mr. Mike Aondoakaa (SAN) made a brief appearance in Paris but did not testify at the hearing.

It was not clear if Aondoakaa, who served during the administration of the late President Umaru Yar’Adua, was in Paris for the government or Sunrise.

Neither Sunrise nor Leno Adesanya had produced any witness at press time last night.

A source at the proceedings said Obasanjo and Buhari were at their best to “defend the interest of Nigeria.”

“It is very important for nation’s case that the Minister of Justice and Attorney-General of the Federation, Lateef Fagbemi, was successful in bringing two former presidents – Chief Olusegun Obasanjo and Muhammadu Buhari to testify at the hearing,” the source added.

“By this action, the government of Nigeria sent a signal of its strong commitment to defending the nation’s interest.

“Both leaders-Obasanjo and Buhari-are known for speaking forthrightly and unequivocally, and this they were said to have exhibited in Paris.

“To the delight of the international team of lawyers representing Nigeria, the two past presidents did extremely well, exposing the Sunrise/Leno’s claim for what it is: an attempt at using fraud, deceit and lies to scoop settlement from Nigeria in the first instance, for the alleged violation of a 2003 contract for which there is no valid approval.”

The source branded Nigeria’s witnesses as “Team Nigeria” and united.

“It was by and large a great showing, consolidated by the equally outstanding testimonies of former ministers Engineer Sulaiman Adamu, formerly of Water Resources, and Babatunde Raji Fashola, Power.

“The Arbitration Court in France had a week-long hearing 18th-23rd January in Paris on the ongoing dispute between Sunrise Company/Leno Adesanya and the government of Nigeria on the existence or the absence of a contract for the construction of the Mambilla Power Project.

“Although it is up to the chairman and other members of the tribunal to decide on who is right and who is wrong, it can be said at this point that Nigeria had a very good outing on the basis of certain facts that have emerged from Paris.”

The source said Sunrise and Leno Adesanya had not been able to produce any major witness.

The source added: “It is evident from the proceedings that the case of the complainants was rooted in a purported 2003 agreement.

“The 2003 contract was established not to have been validly in existence. This is worsened by the fact that the complainants failed to produce their major witnesses.

“The much-touted appearance of a one-time Minister of Power, Dr. Olu Agunloye, did not also materialise. He was the one who allegedly signed a letter communicating the approval of the contract 24 hours after its rejection by the Federal Executive Council (FEC) which meeting was presided over by Obasanjo.

“A third ‘key witness” a Senegalese lady, did not also appear at the hearing.

“So who spoke for Sunrise/Leno Adesanya?

“He did everything for and by himself.

“Another major setback suffered by the complainants was their over-reliance on an earlier witness statement deposed to by Abubakar Malami, Minister of Justice and Attorney General under President Buhari.

Malami, on whose testimony the complainants made heavy weather, ended up lining up behind his former boss, President Buhari, to support and prepare him well for his (Buhari’s) testimony.

“This strategy had the dual benefits of ensuring Buhari’s successful testimony and at the same time pulling the rug from under Leno Adesanya’s feet.”

The Chairman/CEO of Sunrise Power, Leno Adesanya, had during the week testified before the International Chamber of Commerce (ICC), Paris, France, in connection with the $2.3 billion arbitration proceedings his company filed against Nigeria over an alleged breach of contract by the Federal Government.

Why I testified at Mambilla power project arbitration in France – Obasanjo
Ex-President Obasanjo told Premium Times that his decision to testify at the hearing was to enable him clear the air on what he called the atrocious claims made by Agunloye on the matter.

Obasanjo said it was necessary for him to set the records straight.

“I volunteered myself to testify in this case. Nobody sent me to do so. President Tinubu did not ask me to do so as speculated. I didn’t speak to anybody on my intention to testify,” he was quoted as saying.

He added: “I decided to testify because of the statement made on the matter by Olu Agunloye. I considered his claims atrocious and thought it necessary to set the records straight.”

He had previously challenged Agunloye who was Power Minister at the time the purported contract was awarded to disclose from where he derived the authority to award the contract.

Online publication The Cable, which has done extensive investigation on the matter, had reported that on 7 April 2003, Agunloye in his capacity as power minister had written a memo to his principal, Obasanjo, requesting permission to invite Sunrise Power and Lemna International for consideration to handle the 3,050MW project on a ‘build, operate, and transfer’ (BOT) basis.

This was followed by another memo from Agunloye requesting Obasanjo’s approval to issue a letter of comfort to Sunrise Power for the BOT contract.

Obasanjo reportedly said he had no objection but asked Agunloye “to bring a memo to Council to include comparison with coal-fired plant for 4000MW to 5000MW.”

The Cable quoted Obasanjo as telling Justice Minister in a letter that “at no time did Dr Agunloye comply with the foregoing directive by bringing a memo to Council to include the [stated] comparison, nor can my directive be stretched to be inclusive of any approval to award any contract to Sunrise Power and Transmission Company Limited or any other person.

“In any event, my directive as stated above cannot by any stretch of imagination reasonably be extended to mean that issuing “a letter of comfort” translates to an award of contract. It is therefore clear that at no time was any contract awarded to Sunrise Power by anyone in my Administration,” he added.
Agunloye allegedly wrote a letter to Sunrise Power awarding the contract 24 hours after the FEC had stepped down his memo requesting the approval to proceed.

Obasanjo said no minister in his administration had authority to commit Nigeria to beyond N25 million without presidential approval.

He said the embarrassment to Nigeria caused by “these acts of fraud, deceit and malfeasance of Dr Agunloye and others of his ilk does no good to Nigeria or Nigerians,” and resolved to make himself available to testify in Arbitration or any forum in the national interest.

Ex-President Buhari returned to Nigeria yesterday after his Paris testimony.

Sunrise commenced its arbitration against Nigeria on October 10, 2017, seeking $2.354 billion award for “breach of contract” of its alleged 2003 agreement to construct the 3,050MW plant in Mambilla.

Obasanjo distorting the facts – Agunloye
However, the former minister in his own defence accused his erstwhile boss of distorting the facts with a view to obscuring his (Obasanjo’s) own role in the matter.

Agunloye said in a statement that he was a victim of personal conflicts between Obasanjo and “two of his associates: former Vice President Atiku Abubakar and Leno Adesanya, owner of Sunrise Power Company.

His words: “The government seeks to use me as a scapegoat to portray systemic corruption to the arbitration panel and undermine Sunrise’s claims. Challenges stem from personal conflicts between President Obasanjo and two of his associates: former Vice President Atiku Abubakar and Leno Adesanya, owner of Sunrise Power Company.

“Obasanjo feigned ignorance of the BOT contract during his presidency and later distorted the facts in public and judicial settings.

“The arbitration in France arose from actions taken by successive administrations, particularly under President Buhari. In 2017, then-Minister of Power Babatunde Fashola bypassed a 2012 agreement signed under President Goodluck Jonathan with Sunrise and awarded the contract to another company.

“Despite advice from the Chinese government to resolve the dispute amicably, the FGN failed to honour two settlement agreements, leading Sunrise to return to arbitration.

“The government is spreading misinformation and using me as a pawn to divert attention from the actions of its own officials and four former presidents who handled the project over two decades.”

Only last Thursday, the Federal Capital Territory High Court in Abuja granted the request of EFCC to amend the charges it filed against Agunloye.

Agunloye is facing a seven-count charge of forgery, disobedience of a presidential order, and corruption in respect of the Mambilla power plant project.

According to the commission, Agunloye in May 2003 awarded a contract titled “Construction of 3,960MW Mambilla Hydroelectric Power Station on Build, Operate and Transfer Basis” to Sunrise Power and Transmission Company Limited without budgetary provision, approval, or cash backing.

It claimed to have traced suspicious payments made by Sunrise Power and Transmission Company Limited to accounts linked to Agunloye.

Agunloye, pleaded not guilty to the charges.

 

-THE NATION

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