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Paris Club Refund: Court Enters N13.3bn Judgement Against Katsina Govt
A Federal High Court in Abuja has ordered Katsina State Government to pay a firm, Mauritz Walton Nigerian Limited over N13.3billion for the debt management services it rendered to the state, which aided the refund of the $217,274,991.01 to Katsina by the Federal Government.
In a judgment Justice Inyang Ekwo, held that Mauritz Walton was able to establish, through credible evidence, that it was entitled to its claims as laid out in its suit filed and argued on its behalf by its legal team led by Wole Olanipekun (SAN).
Justice Ekwo said the N13,253,774,451.60 to be paid to Mauritz Walton, formed 20 per cent of the $217,274,991.01 refunded to Katsina State Government.
The judge ordered the state government to, in addition, pay the firm 20 per cent interest on the judgment sum to be calculated from October 1, 2018 until the day the judgment was given, and thereafter, at the rate of 10 per cent per annum until full and final payment.
The judgement was on a suit marked: FHC/ABJ/CS/1298/2017 by Mauritz Walton against the Minister of Finance, Central Bank of Nigeria (CBN), Accountant General of the Federation, Katsina State Government and its banker, the United Bank for Africa Plc.
Mauritz Walton claimed that it was appointed by Katsina State; by a letter dated August 18, 2014, with reference No: MOF/STAFF/409/1/31 to ascertain and recover the excess deductions by the Federal Government from its account to service its external debt between July, 1995 and March, 2002.
The firm stated that it was agreed between it and the Katsina State Government that it would be paid 20 per-cent of what was due to the state from the excess deduction, which is commonly referred to as the Paris Club refund.
Mauritz Walton’s Chief Executive Officer (CEO), Dr. Maurice Ibe stated, in his witness statement that, through his firm’s efforts, it was ascertained that Katsina State was entitled to $217,274,991.01 (estimated at N66,268,872,258.00 calculated at an exchange rate of $1 to N305) as Paris Club refund.
Ibe added that his firm’s efforts yielded further results when President Muhammadu Buhari, in 2016 directed the payment of the first tranche of the Paris Club refund to states, including Katsina.
He stated that, although almost all the amounts due to Katsina State had been paid into the state’s account, marked: 1019265062, in the United Bank for Africa (UBA), the state has refused and failed to pay his firm the 20 per cent fees agreed between parties.
Ibe further stated that despite the pendency of the suit and existing interim orders by the court, restraining further payment to Katsina, the 2nd defendant (Central Bank of Nigeria), on the instruction of the 1st defendant (Finance Minister) paid N35,364,610,435 to the 4th defendant (Kastina State), through the 5th defendant (UBA).
In his judgment, Justice Ekwo, said: “I find, by the evidence in this case, that the plaintiff has established the essential ingredients that must exist for a contractual relationship to be founded, that is; offer, acceptance, consideration, intention to create legal relationship and the capacity of the parties to enter into a contractual relationship by credible evidence which has not been successfully discredited by the defendants especially the 4th defendant.
“I hold therefore, that there was an agreement between the plaintiff and the 4th defendant for the payment of 20% commission charge of the recovered sum to the plaintiff by the 4th defendant.
“It is my finding also, that the defendants are ad idem (are in agreement) that the excess deductions have been fully paid to the 4th defendant and this was done during the subsistence of the debt management consultancy agreement between the 4th defendant and the plaintiff,” he said.
The judge faulted claims by the 1st, 2nd, 3rd and 5th defendants that they ought not to be joined in the suit on the grounds that they were not parties to the contract between the plaintiff and the 4th defendant (Katsina State).
“The 1st defendant (Minister of Finance) was duly informed and it actually acknowledged the receipt of notices of the appointment of the plaintiff as a debt management consultant of the 4th defendant.
“Since the 1st defendant has been so notified, it cannot claim not to know about the contract between the 4th defendant and the plaintiff on the debt recovery consultancy.
“The same applies to the 2nd and 3rd defendants (Central Bank of Nigeria and Accountant General of the Federation), who are agencies of the 1st defendants.
“The 1st, 2nd, 3rd, 4th and 5th (UBA) ought not to have taken steps that disturbed the res (subject of dispute) in this matter, especially when proceedings were on-going in this case and in the face of the orders of court to that effect.”
Justice Ekwo noted that it was strange that despite the presence of its lawyer throughout the duration of the proceedings, the Accountant General of the Federation did not file a defence in the case.
He held that: “The implication of a defendant failing to file a statement of defence in response to a statement of claim is well known in our jurisprudence. The law is that where there is no statement of defence filed in response to a statement of claim, the averments in the statement of claim are deemed as admitted.”
Justice Ekwo further held that: “Upon the evaluation of the relevant documentary evidence before this court, which evidence I have stated in the preceding pages of this judgement, I therefore have the requisite premise to hold that the case of the plaintiff has succeeded on the preponderance of evidence before this court.”
The judge proceeded to declare that the plaintiff was entitled to the 20 per cent of the $217,274,991.01 refunded to Katsina State Government by the Federal Government during the pendency of the contract between the 4th defendant and the plaintiff.
He ordered that the 4th defendant pays forthwith to the plaintiff the sum of N13,253,774,451:60 being its (the plaintiff’s) due remuneration for the consultancy services rendered by the plaintiff to the 4th defendant, leading to the recovery and release of 4th defendant’s said external debt excess debit refunds.
“The 4th defendant is hereby ordered to pay interest on the said sum of N13,253,774,451:60 at the rate of 20 per cent per annum from October 1, 2018 until judgment, and thereafter, at the rate of 10 per cent per annum until full and final payment,” the judge said.
News
NGO-ATLANTIC-OYOROKOTO ROAD’LL UNLOCK COASTAL PROSPERITY FOR RIVERS – FUBARA
Rivers State Governor, Sir Siminalayi Fubara, has described the ongoing construction of the brand new 13.52-kilometre Ngo-Atlantic-Oyorokoto Road as a bold and visionary effort by his administration to open up the coastal region for economic growth and harness the full potential of the state’s blue economy.
The Governor made this remark during an inspection visit to the project site in Andoni Local Government Area. The road, being constructed by Monier Construction Company (MCC), cuts through challenging coastal terrain and leads to a newly identified beachfront facing the Atlantic Ocean.
Governor Fubara explained that while the original plan was to construct a road leading to Oyorokoto Town and its popular beach, his administration decided to expand the project to create an entirely new route that would open access to another pristine beachfront.
“We are doing another inspection today. This particular one is a virgin road, 13.52 kilometres of a new pathway to the blue economy,” Governor Fubara stated.
“Initially, we were constructing a road to Oyorokoto Beach, one of the finest tourist centres in this area. But as we progressed, we discovered another beach directly facing the Atlantic Ocean. It became clear that we shouldn’t limit development to just one site. We want to harness this new beach front as part of our broader plan to develop the blue economy.”
The Governor emphasised that the project, once completed, will not only improve access to coastal communities but also stimulate tourism and economic activities, boosting revenue for Rivers State.
Describing the area’s difficult terrain as challenging, he commended the contractor for its dedication, and expressed confidence that the road would be completed and commissioned by March next year.
“You can see for yourself, it’s a brand-new road in a very difficult terrain, just like the one we saw yesterday. But I strongly believe we will overcome it. From what we’ve seen today, the contractor, MCC, is doing their best, and by next year, hopefully by March, we’ll have the cause to commission this project and give God all the glory,” the Governor affirmed.
Governor Fubara also visited Opobo/Nkoro Local Government Area to assess the progress of work on the Epellema axis of the ongoing 5.2km Kalaibiama-Epellema road project featuring a 450-meter bridge.
News
FUBARA HAILS PROGRESS OF WORK ON TRANS-KALABARI ROAD
Rivers State Governor, Sir Siminalayi Fubara, has expressed satisfaction with the level of progress recorded on the ongoing Trans-Kalabari Road project, revealing that about 75 percent of the critical piling work has been completed.
Governor Fubara made this known while addressing journalists after an on-the-spot inspection of the 12.5-kilometre road project, which will connect the state capital to several Kalabari communities across the sea.
The Governor rode on a boat from a jetty at Rumuolumeni in Obio/Akpor Local Government Area through the rivers and creeks on the project route during the inspection.
The project was awarded to Lubrik Construction Company Limited, on May 15, 2024, with an initial 32-month completion timeline.
The Governor said the visit was aimed at verifying reports from the Ministry of Works regarding the project’s advancement. He commended the contractors for their dedication, and described the progress as “a true reflection of hard work and commitment to excellence.”
“The first phase of the project takes us to Bakana, and features four major river-crossing bridges and nearly five deck-on-pile structures. The terrain is difficult, and the engineering work required is complex. But to the glory of God, I can confirm that the reports I’ve been receiving are accurate. Almost 75% of the piling job, which is the most critical part of the project, has been achieved,” Governor Fubara said.
He emphasised that the Trans-Kalabari Road is one of the most technically demanding infrastructure projects in the state due to its challenging marine terrain but reaffirmed his administration’s resolve to deliver it on schedule.
Governor Fubara highlighted the strategic importance of the road in connecting the Kalabari Kingdom to Port Harcourt, and stimulating economic growth across riverine communities.
“This is a key project that will turn around the lives of the Kalabari people immediately it is concluded. By the grace of God, in the next six months, if we return here for inspection, we might be driving across the bridge,” he said.
Governor Fubara assured Rivers people that his administration remains focused on delivering transformative infrastructure projects that will improve lives and bring lasting development to rural communities.
“We have made a promise to our people to embark on projects that will change lives and bring development, and this is a testament to that commitment,” he added.
News
RSG EXPRESSES CONCERN OVER FLOODING IMPACT, EROSION
The Governor of Rivers State, Sir Siminalayi Fubara, says that the impact of flooding and erosion on the inhabitants of Rivers State, especially those living in coastal communities, are of great concerns to the government.
Governor Fubara lamented the consequences of flood on both human and biotic life, which sometimes lead to loss of life, property, and degradation of the environment.
The Governor made the remark in Port Harcourt during the launch of a book titled, ‘Coastal Zone Flooding And Erosion in Developing Communities, Principles, Cases and Strategies,” written by Emeritus Prof. Wiston Bell-Gam.
According to the Governor, who was represented by the Secretary to the State Government, Hon. Benibo Anabraba, his administration, would continue to undertake and encourage adaptation strategies to combat flooding.
In his words: “The Rivers State Government will continue to undertake and encourage adaptation strategies, such as construction of seawalls and breakers, canals and channels, restoring coastal ecology and ecosystem for coastal resilience and where necessary, the relocation of communities on the coastline.
“These issues are currently receiving the much needed attention and intervention by the recent approval of the construction of shoreline protection along the coastlines of more than five communities in Ogba/Egbema/Ndoni and Opobo/Nkoro LGAs respectively.”
“It is important that as stakeholders in the protection and preservation of marine environment, we all act and advocate for mitigation strategies such as reduction in emission of Green House Gasses that causes climate change and rise in sea levels. Let us promote the use of clean energy and against fossil fuel.
Governor Fubara further cautioned residents to desist from building on waterways.
“We also need to encourage our people to stop developing buildings on and along natural water courses, indiscriminate sea mining and dredging activities on our coastline without consideration for mangroves and swamps,” he stressed.
He appreciated the author for his advanced contributions to the body of knowledge in both Rivers State and globally.
Also speaking, a former Military Governor of the old Rivers State and Amayanabo of Twon Brass, King Alfred Ditte-Spiff, who was Royal Father at the Event, stated that the book was timely to enable stakeholders manage the challenges of global warming.
“Global warming is real. If it’s not addressed globally, a time will come coastal areas will find themselves under water. The coastline of Nigeria is shocking with many mangroves gone,” he noted.
The Reviewer of the Book, who is also the Vice Chancellor of Olusegun Agagu University of Science and Technology, Ondo State, Prof Temi Ologunorisa, explained that the 14-chapter book is timeous as it fills literary gaps between desire and available knowledge on coastal flood and erosion in developing communities.,
“A major beauty of the book that sets it apart is the detailed consideration of flood and erosion control from around the world,” he stated, adding that the book is based on detailed field investigation.
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