Mambilla Contract Saga: Obasanjo denies approval, offers to testify against fraud allegations in legal showdown
Story from Fatima Adamu, Abuja.
Former Nigerian President Olusegun Obasanjo has pledged to testify in any legal proceedings regarding the disputed $2.3 billion Mambilla power contract.
Sunrise Power, a company alleging a breach of a $6 billion contract by the Nigerian government, is seeking $2.3 billion in compensation at the International Chamber of Commerce in Paris.
Nigeria has countered the arbitration, accusing Sunrise of fraudulent activities and corruption in the contract’s award, drawing parallels with the P&ID case.
The Economic and Financial Crimes Commission (EFCC) has found evidence of fraud in the contract and filed charges.
Former Power Minister Olu Agunloye claimed authorisation from Obasanjo for the contract, but Obasanjo challenges these claims.
The Attorney General, Lateef Fagbemi, requested information from Obasanjo following claims by Agunloye and Sunrise about the Mambilla project.
In documents seen by this newspaper, former Power Minister Olusegun Agagu wrote to Obasanjo on November 20, 2002, seeking approval to invite Tafag Nigeria Ltd and Sunrise for detailed negotiations for the construction of the power station.
Obasanjo gave the minister the go-ahead on November 28, 2002, stating: “Please give the two the same parameter i.e. part participation not more than 25% higher than prevailing tariff of the thermal plant.”
However, on April 7, 2003, Agunloye, who had by now become minister of power with Agagu having resigned to contest for governorship in Ondo State, wrote to Obasanjo, asking him to recall his earlier approval for the invitation of “Messrs Tafag Nig. Ltd, Sunrise Power Ltd and Lemna International for further negotiations”.
Instructively, Lemna International was not mentioned anywhere in the previous memos.
Agunloye thereafter requested Obasanjo’s approval to issue a “letter of comfort” to Sunrise for a Build-Own-Transfer (BOT) contract.
A letter of comfort, also called a “letter of intent”, indicates an initial willingness to enter into a contractual obligation without a legally enforceable contract.
In his reaction to Agunloye’s request, Obasanjo said he had no objection but asked him “to bring a memo to Council to include comparison with coal-fired plant for 4000MW to 5000MW”.
READ ALSO: EFCC investigates suspicious transactions in Sunrise/Mambilla power project
In his letter to Fagbemi, Obasanjo said: “What is abundantly clear is 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.”
Agunloye wrote a letter of award to Sunrise on May 22, 2003 — a day after the federal executive contract stepped down his memo seeking the approval to go ahead.
Obasanjo maintained that no minister had the authority to commit Nigeria to beyond N25 million without express presidential consent when he was in office.
He assured Fagbemi of his “continued commitment” to assist the government “by shedding more light on these matters as may be required of me.
“In particular, 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.
“I have therefore resolved to make myself available to testify in Arbitration or any forum should you consider it necessary in our national interest”.
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