Paris Club Refund consultants alleged that the consultancy fee paid to the Nigeria Governors’ Forum (NGF) is $86.5m USD and N19.4 billion.
The consultants working on the London and Paris Club refunds for states and local governments on Saturday alleged that the Nigeria Governors Forum (NGF) demanded and received the sum of $100 million from the consultancy fee to prosecute elections in some states.
Nigerian Tribune quotes the Lead Consultant, Ned Nwoko, as alleging that when he submitted a bill of $300 million as the consultancy fee, the state governors demanded to be paid 50 percent of it before it could be honoured.
He said a former chairman of the forum had explained it to him that the money was needed to prosecute elections in Bauchi, Ekiti and Ondo states.
According to him, the Ministry of Justice intervened and the governors eventually received the sum of $100 million.
Nwoko revealed that the money being owed to his consultancy firm is $68 million being payment for the last tranche of work done for states and not $418 million that has been in public space.
He said: “I am compelled to embark on this public engagement to debunk the litany of lies, spin and false narratives that have been dished out to abuse the minds of the undiscerning public by the Chairman of Nigeria Governor Forum (NGF), Governor Kayode Fayemi against the payment of consultancy fees legitimately earned and owed my firm for services rendered and which the states and local governments have fully been refunded.
“The outstanding fees owed my firm with regards to last work done for the states is approximately $68m USD and not $418m USD as maliciously sought to be conveyed by Fayemi and co. Our original claims calculated based on agreed terms was well in excess of $300m USD. We offered huge discount on the entitlement to accept the $68m USD.”
He disclosed that from the $300 million bill originally submitted, the firm offered a huge discount, noting that the consultants have nothing to do with $418 million, which he said must be a miscalculation.
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He absolved the Attorney General of the Federation and Minister of Justice, Abubakar Malami, of any wrongdoing as he said the minister was only trying to ensure that the law was obeyed.
Giving the history of his involvement in the securing refunds for states and local governments, which he said started with the Adamawa and Taraba states, he said he had advised former President Olusegun Obasanjo on exiting the Paris Club and halting deductions from states’ allocations.
“It is to the eternal credit of former President Olusegun Obasanjo that the federal government halted the excess charges and over deductions as well as began refunding on identified over deductions and excess charges. Yar’ Adua did and President Jonathan as well,” he argued.
Nwoko said even though he was initially hired by all the local governments in the country to press for their refunds, the NGF later got him to extend the services to cover the states due to the success for the councils, culminating in the federal government agreeing to begin refunds in 2016.
He explained: “The Federal government in the refunds paid money to accounts provided by the state governors for receipt of the refunds accruable to the states. The governors also provided accounts to receive the refunds accruable to local governments.
“The first tranche refunds to states and local governments the Federal Government wrongly paid the consultancy fees to the NGF. The consultancy fee paid to the Nigeria Governors’ Forum (NGF) is $86.5m USD and N19.4 billion.
“While we were labouring to secure the refunds for the benefit of state and local governments, Governor Yari Abubakar developed a parallel scheme to misappropriate the consultancy fees. As recent as 2016 the NGF in a letter to the Accountant General of the Federation dated June 22, 2016 claimed it appointed a consultant.
“During an altercation on one occasion during the several meetings with HE Governor Yari Abubakar, I confronted him about the unconscionable quest to appropriate the $86.5mUSD and N19.4 billion. He claimed it was not for his personal use but was needed for the purposes of the elections in Bauchi, Ekiti and Ondo elections.
“Additionally, it should be recalled how some these monies found their way to some of the leadership of the National Assembly at the time. EFCC was able to clamp down and recover some of the money funneled away by the NGF.
“Most these frauds are still subject of investigation as well as civil and criminal litigations including our action against the NGF and the Federal Government in Suit No, FHC/ABJ/CS/148/2017.
“It is important to state that the various state governments issued written instructions to the Federal Ministry of Finance authorizing it to deduct at source and pay to the NGF 5% of the sum due each respective state as legal fees.”
Nwoko alleged that the state governors diverted the refunds meant for their local governments except five states including
Delta, Bauchi, Kwara, Benue, Ondo and the Federal Capital Territory (FCT).
The Lead Consultants also accused the current chairman of the NGF and Governor of Ekiti state, Fayemi, of telling a litany of lies of over the payment to the consultants.
Recall that while noting that governors did not provide any indemnity, Fayemi had claimed that the AGF was insistent on paying the consultants for selfish reasons as he pointed out that the matter was before the court.
While emphasizing that the agreements and judgment being executed were reached before the advent of the present administration, Nwoko explained the role of the federal government in the matter.
According to him, “It is obvious from the foregoing that the federal government is at the center of the refunds and the claims of the consultants hence the inevitable role by federal government functionaries who have regrettably been caught in the middle of what the NGF is deliberately spinning to win public opinion against our payments and avoid discharging obligations.
“The role of the NGF in the process of the federal government refunds is beyond speculation from the foregoing. The disposition of Governor Fayemi is therefore misleading. It has progressed and degenerated to the point of casting aspersions and personal slur on fellow public officers discharging the responsibilities of their public office.
“You can see from the above facts that this is consistent with the struggles we have encountered every step of the way to recover our consultancy fee.
“I am compelled to inform you of our experience when Mr. President approved payment of $350mUSD for Linas International Limited in connection with local government in Suit No. FHC/ABJ/CS/130/2013:
“I was asked to sign a document accepting the approved sum in full and final payment of the judgment sum of $637mUSD. Governor Yari insisted that half of that money must go to NGF. I refused initially since I had already signed that the payment was in full and final payment.
“The Ministry of Justice brokered a solution whereby the document I earlier signed in full and final payment is returned to me and secondly, Yari is compelled to sign an indemnity for the sum he is arm-twisting to collect against any claims by me against the FGN. Governor Yari signed.
“It is shocking that Governor Fayemi states that such indemnity is not valid and binding on NGF.
“We will do everything possible to enforce fully the judgment which has partly been honoured since Governor Fayemi, like his predecessor is blackmailing everybody locally.
“It must be stated that we are members of the public who do not have the official platform with which the state governors muscle and arm twist their way out of responsibilities after enjoying the benefits of services rendered.”
