Economy

Failed Abuja CCTV contract: Court orders FG to account for $460 million Chinese loan…Will Buhari Obey?

May 21, 2023
Sycamore Times
  • The court ordered the Federal Government to account for the $460 million Chinese loan for failed Abuja CCTV contract.
  • FG is to publish the total amount of money paid to Chinese and local companies and contractors, specific details of the identities of the companies and contractors as well as the implementation of the project.

A Federal High Court in Abuja has ordered the government of President Muhammadu Buhari to account for the spending of a $460 million Chinese loan to fund the failed Abuja Closed-Circuit Television (CCTV) project.

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The order was given by Hon. Justice Emeka Nwite while delivering judgment in a Freedom of Information suit number: FHC/ABJ/CS/1447/2019 brought by Socio-Economic Rights and Accountability Project (SERAP).

The judge also ordered the government to “publish the total amount of money paid to Chinese and local companies and contractors, specific details of the identities of the companies and contractors as well as the implementation of the project.

This disclosure is contained in a statement issued on Sunday, May 21, 2023, by SERAP and signed by its deputy director, Kolawole Oluwadare.

According to the statement, the suit followed the disclosure in 2019 by the Minister of Finance, Zainab Ahmed that “Nigeria was servicing the loan,” adding that she had ‘no explanations on the status of the project.’ She reportedly said, “We are servicing the loan. I have no information on the status of the CCTV project.”

Suit in the interest of Nigerians

In his judgment, Justice Nwite agreed with SERAP that “there is a reasonable cause of action against the government. Accounting for the spending of the $460 million Chinese loan is in the interest of the public. It will be inimical for the court to refuse SERAP’s application for judicial review of the government’s action.

Justice Nwite also said that “The Minister of Finance is in charge of the finance of the country and cannot by any stretch of imagination be oblivious of the amount of money paid to the contractors for the Abuja CCTV contract and the money meant for the construction of the headquarters of the Code of Conduct Bureau (CCB).

Justice Nwite also ordered the government “to provide the details clarifying whether the sum of N1.5 billion Naira paid for the failed contract meant to construct the headquarters of the Code of Conduct Bureau (CCB) was part of another loan obtained from China.”

SERAP has a case

  • The judgment from Justice Nwite partly reads, “SERAP’s core objectives are to promote human rights, transparency and accountability and anti-corruption in Nigeria.”
  • “I am of the humble view that there is a reasonable cause of action against the government [through the Minister of Finance] and I so hold that SERAP has made out a case to be entitled to the reliefs sought.
  • “The law is well settled that where a document or letter is sent by post, it is the law that same is taken or presumed to have been delivered.
  • “Following this principle of law and relying on exhibit OS2, SERAP’s Freedom of Information request sent to Ms. Ahmed is deemed to have been delivered. Therefore, the averment by the government [through her] that they were not served with the letter is hereby discountenanced. I so hold.”

Joined as defendants in the suit are Ms. Ahmed and the Minister of Police Affairs.

The orders against the Federal Government

Justice Nwite granted the following orders of mandamus against the Nigerian government:

  • An order of mandamus is hereby made directing and compelling the government [through the Minister of Finance] to provide and make available to SERAP information on the total amount of money paid to contractors, with specific details of names of companies and local contractors involved, from the $460 million loan obtained in 2010 from China by the Federal Government of Nigeria to fund the failed Abuja CCTV contract.
  • An order of mandamus is hereby made directing and compelling the government [through the Minister of Finance] to provide the details of the local companies and Chinese contractors that have received funds from the $460 million loan for the finance of the Abuja CCTV contract as well as details of the status of implementation of the project.
  • An order of mandamus is hereby made directing and compelling the government [through the Minister of Finance] to provide the details clarifying whether the sum of N1.5 billion Naira mobilisation fee reportedly paid to the contractors for the construction of the Headquarters of the Code of Conduct Bureau in Abuja was part of another loan from China. This is the judgment of the court.

President Buhari should comply

  • The SERAP Deputy Director said, “The onus is now on President Buhari to immediately comply with the court’s orders. We commend Justice Nwite for his courage and wisdom and urge President Buhari and Abubakar Malami, Attorney-General of the Federation and Minister of Justice to immediately obey the court orders.
  • “This is a victory for justice, rule of law, transparency and accountability. The judgment shows the way forward in the fight against corruption and impunity of perpetrators. We will do everything within the law to ensure full compliance by President Buhari with this ground-breaking judgment on Chinese loans.
  • “We call on President Buhari to use the judgment as the basis for publishing details of spending of all Chinese loans and other loans obtained by his government since May 2015.”

What you should know

  • SERAP had in December 2019, filed a lawsuit against Mrs Zainab Ahmed, Minister of Finance, Budget and National Planning over failure to “disclose information and specific documents on the total amount of money paid to contractors from the $460 million loan obtained in 2010 from China to fund the apparently failed Abuja Closed-Circuit Television (CCTV) project.
  • It also sued the Federal Government over failure to name the contractors involved and explain why the government has continued to repay the loan as well as details of the status of implementation of the project.
  • SERAP also sought an order of mandamus to direct and compel the Minister of Finance to disclose whether the sum of N1.5 billion Naira paid in 2010 for the failed project meant to construct the headquarters of the Code of Conduct Bureau (CCB) was part of another loan obtained from China, and to clarify further whether the sum of N1.5 billion Naira mobilsation fee for the construction of the Headquarters of the CCB in Abuja was part of another loan from China.”
  • The suit followed SERAP’s Freedom of Information (FOI) request dated 25 October 2019 to Mrs. Ahmed, expressing: “concern that Nigerians are being made to pay for the Chinese loans for failed and abandoned projects, and for which they have not benefited in any way, shape or form.”
  • Serious concerns have been raised over Nigeria’s rising debt profile. Nigeria’s total borrowing from China climbed from $1.39 billion to $4.29 billion between June 2015 and December 2022, according to data from Debt Management Office (DMO).

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