November 09, (THEWILL) – The federal government on Monday disclosed plans to investigate contracts allegedly signed by previous administrations with Process and Industrial Development Limited (P&ID).
The Attorney-General of the Federation and Minister of Justice, Abubakar Malami, stated this when he appeared before the Senate Committee on Judiciary, Human Rights and Legal Matters to defend his ministry’s 2022 budget.
He told the Senate panel that the affected contracts were in breach of due process and procedure which had the capacity to undermine the nation’s economy.
He cited the Process and Industrial Developments’ contract which he said was signed without due process and procedure and could cost Nigeria $10bn.
A tribunal had in 2017 awarded P&ID $6.6bn as damages for the failed contract between the firm and the Nigerian government.
The amount however rose to about $8.9bn with an additional $2.3bn in accumulated interest at 7 per cent rate per annum following the Nigerian government’s refusal to enter an appeal for over five years.
Malami, while responding to questions from members of the committee, explained that the P&ID contract did not pass through the Office of the Attorney General. He said some items embedded in the contract clauses were inimical to Nigeria’s interest.
Malami disclosed that a taskforce had been set up for the purpose of investigating the anomaly.
He said the taskforce would spend N1.1bn in 2022 to investigate nine other contracts signed by previous administrations that are inimical to the country’s interest.
He said, “It is the taskforce that is intended to review the existing problematic contracts that have the capacity to undermine the economy in line with the P&ID; a kind of lessons and experience.
“In the Office of the Attorney-General, there exists two fundamental departments relating to getting of contracts. Solicitor Department is charged with vetting any governmental contract and they have lived up to expectations over time.
“But the major problem with P&ID is that the contract was never allowed to pass through the Office of the Attorney General for vetting. On the account of that, there are clauses embedded in the contract that are inimical to the interest of the nation.
“Because of the fact that there is a preliminary conspiracy among the key promoters of the contract, the contract was never allowed to pass through the Federal Executive Council for its approval, neither was it allowed to pass through the Federal Ministry of Justice for vetting.
“The existing structures are there, but they can only act in respect of contracts that are referred to the department.
“For example, as it is now, even though in respect of government contracts, arising from the fact that China is involving certain clauses regarding immunity which some ministries and departments are willing to compromise, they are not allowed to pass.
“We have developed need for other circulars that these are intended clauses that could be tolerated in public interest and the interest of the nation in mind were attached.
“What I’m saying in essence is that the Taskforce is poised at looking at it.
“In respect to P&ID, there were about nine contracts that were signed at the same time in breach of due processes and procedures.”
The Chairman of the Senate panel, Opeyemi Bamidele, lamented increasing judgment debts, demanding urgent action about the development from the Ministry of Justice.
Bamidele said, “It is also pertinent to state that the judgment debt profile of the country keeps soaring without corresponding response from government in order to address the situation.
“This development is now viewed as a national embarrassment and necessary action must be taken to ensure that the image of the country is protected.
“In this regard, I implore you prioritise your budget and make a case for legislative intervention where necessary, in order to ensure that this area of concern is critically looked into, with a view to proffering the much-needed solution.”
